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Management Issues - October 2005

Fire Your Entire Sales and Marketing Department

By Ted Garrison

The title was designed to grab your attention. If you're not satisfied with the results from your sales and marketing efforts-in other words, you're not getting enough projects of the type you want and at the price you want, then change is needed. This is true whether you are a general contractor or subcontractor.

Of course the title is tongue-in-cheek, because every company needs sales and marketing. But I am serious, because we must fire the old attitudes about sales and marketing - not necessarily the people. If you want your marketing efforts to be effective, then it must come from the prospect's perspective. I doubt that any salesperson, or at least what most people think of as a salesperson, can sell a $20 million building to anyone. The investment is too large for the buyer to make that decision based upon a sales presentation. Instead, contractors must concentrate on developing a relationship built upon trust and value delivered to the prospect.

Also, conventional marketing doesn't work! The reason is everyone is inundated with marketing messages and we learn to block them. If no one reads your brochure, how effective will it be? I'm not suggesting throwing this material away, because it does serve a purpose. However, that purpose is to help justify the prospect's decision, not to convince them to make the decision in the first place. In other words, while conventional marketing is necessary, it has little impact unless it's part of an overall plan to provide value for the customer.

This article is focused on new prospects, because if your company hasn't developed positive relationships with current or past clients, then you have an even bigger problem. Therefore, the challenge is how to develop trust and perceived value in the prospect's mind when you haven't worked for him before.

Business Development

Many contractors have already titled their marketing department the business development group. This is closer to the concept because this starts to change the mental attitude. One definition of a client is "someone under the protection of". Well, that protection needs to start during the business development phase.

In my opinion the biggest problem with most marketing material is that it pounds the chest of the marketer, instead of reaching out to the prospect. I ask contractors why they spend valuable time telling prospects about their past projects. This may come as a surprise to many contractors, but in most cases the prospect is aware of those projects. That is how you got past the gatekeeper. If they didn't think you could build a building or your portion of it, they wouldn't waste their time talking to you. If you must, leave a brochure behind. But spend your limited face-to-face time focusing on the prospect. In essence, developing a consultative relationship from the start. Help the prospect through the process.

When MCI was getting started, they needed to purchase switchgear. Northern Telecom, the industry giant, told MCI everything they could do for them. In contrast, the little upstart, Digital Switch asked, "What can we do for you?" Digital Switch got the job.

Therefore, I recommend to contractors the first question they should ask is, "What are your concerns about this project?" You must focus on the prospect's needs and their concerns are high on that list. The difference between two competent contractors is minimal at best. Therefore, contractors must find other areas where they can differentiate themselves from their competition. With new prospects, this difference needs to occur as early in the process as possible, so why not start with the first question?

Or, even better, start building trust and credibility before you even know about the prospect. Instead of writing ads for magazines that attempt to tell how great you are, write ads that demonstrate your knowledge and prove your expertise. It's better to show than tell. For example, a mechanical contractor might explain how to avoid mold growing in buildings. Or as an upscale men's store in Philadelphia discovered, their most effective ad ever simply described how to buy a suit. The only mention of the store was its name and address at the bottom of the ad.

In conclusion, stop thinking sales - think how you can develop business by building relationships with your prospects.

Ted Garrison, president of Garrison Associates, is a consultant, author and speaker who works with businesses in the construction industry. He can be reached by email at Growing@TedGarrison.com.


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