Basic business development approach to building business in the A/E/C industry.

1. B U S I N E S S D E V E L O P M E N T B A S I C S
D R I V I N G R E V E N U E G E N E R AT I O N
P R E S E N T E D B Y J O E H I R S C H
0 6 . 0 2 . 1 7

2. Agenda
• What do you want to learn?
• Marketing vs. Business Development
• Business development – why is it important?
• Why is the offer of value?
• Client development process
• Sales in the A/E/C client acquisition process
• Prioritizing BD tasks & supporting activities
• Skill building and transitioning
• Client retention process
• The End

3. What do you want to learn?

4. How do you define Marketing?

5. The majority of marketing theory discussed in
business school is designed to be applied to the
manufacturing, distribution, and consumption
of consumer goods (products and services)
This helps to explain why the A/E/C industry
lacks a standardized definition of “marketing”

6. Basic Definition of – Marketing:
all activities involving the promotion and sales of goods
between manufacturing and customer delivery (As taught at the
Stuart School of Business at the Illinois Institute of Technology)
The five P’s – Product (service), Place (position),
Promotion, Price, People

7. In many business sectors, business development and sales
are considered subsets of marketing.
• In the A/E/C sector, sales is often considered a
subset of business development
• Marketing and BD in the A/E/C sector are often
viewed as co-dependent but separate business
disciplines
Conceptual lines between
marketing, BD, and sales in the
A/E/C sector

8. Have I confused you yet?

9. Business Development –
Why is it Important?
• It (along with marketing) directly supports an
organization’s strategic plan by:
– Developing and retaining clients
– Creating a hedge against revenue-stream peaks
and valleys
• It drives and supports the firm’s technical core
competency
• It is critical to an organization’s long-term growth and
stability

10. How is the offer of value?

11. Before BD activities are executed, an
organization must have a well-defined
unique value proposition for its target
audience(s).

12. An organization’s senior management and marketing
department need to collaborate in developing a unique value
proposition that integrates well with its overall brand voice.
• Prospects base buying decisions on perceived
benefits and risk
• The return on an organization’s investment in client
acquisition is related to:
– How effectively they target their
prospective audience
– How persuasively they differentiate the benefit
of their offer.

13. Where does the client development
process begin?

14. Overview of the client development process

15. Utilize a CRM
system
(e.g.: Deltek,
ACT!, Salesforce,
Cosential)

16. The Process
• Step 1 - Research market segments
– What are the traits of a good client for
your firm?
– Identify suspects that appear to
exhibit desirable traits

17. The Process
• Step 2 – Contact target suspects
–Phone calls
–Referrals
–Networking
–Marketing communications (e.g.: direct
mail)

18. The Process
• Step 3 – Qualify the suspect
– Cast away or prospect?
o Questions to answer:
o Has interest in your
firm?
o Has professional
services need?
o Has recourses (e.g.:
capital)?

19. The Process
• Step 4 – Build relationship with prospects
–Build trust
–Offer assistance
–Maintain contact

20. Where Should Meetings Occur?

21. The Process
• Step 5 – Identify needs
– Probe with questions
– LISTEN
– Propose offer
– Sell & win project

22. The Process
• Step 6 – Develop CARE program for client
– Obtain referral and/or another project

23. • Institutions/Owners – formal interview
• Developers – less formal process involving
negotiation
• Architects/Engineers – reciprocate leads, cost
(transactional), references
Sales Activity in the A/E/C client
Acquisition Process

24. Prioritizing BD Tasks
1. Follow-up on pending proposals (very
important / level of effort easy)
2. Prepare for interviews and/or meetings
3. Develop proposals (collaborative process with
technical staff)
4. Meet with prospects and clients
5. Schedule meetings (level of effort intense /
time consuming)
6. Participate in networking opportunities
7. Work on planning and strategy

25. Skill building and transitioning
• Be careful of what you ask for and be
yourself!
– Audit meetings
– BD research for target suspects
– Participate in networking events
– Practice and polish presentation
and persuasion skills
– Work with team in planning BD
and sales activities
– Entrench yourself with
information on consultative
selling, good sources:
• Jeffrey Gitomer
www.gitomer.com
• SMPS www.smps.org
• ZweigWhite
www.zweigwhite.com

26. Client Retention Process
• CARE (Client Attraction Retention &
Expansion)
• Yields high ROI
• Plan on yearly basis
• Need to know contacts’ personal interests
• Hospitality & ongoing contacts

27. The End
• The end of me for
now, and onto the
continuation of
your success!

28. KTGY ARCHITECTURE + PLANNING : KTGY.COM
T H O U G H T
D E S I G N
I N S P I R A T I O N
A R C H I T E C T U R E
P L A N N I N G
K T G Y . C O M