Debunking the Mystery of Market AnalysisBy Tracey A. Gould, MS, IMC, and Tim Klabunde, CPSM

When professional services marketers think of market analysis, they usually fall into one of two categories: 1) those who develop small sweat beads on their brow at the mere thought of

performing research and analysis and 2) those who embrace market analysis with a vengeance.

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With the rapidly changing A/E/C landscape, understanding market analysis has become a necessary part of professional services marketing. A February 2015 survey conducted by the Construction Marketing Association (CMA) even revealed that 14.3 percent of marketing effort is spent on market analysis.

What Is Market Research/Analysis?

Market analysis is the review (research) of external factors that dictate how you sell your services to clients. If your firm is not currently performing market research, analyzing your findings, and acting on this market intelligence, it is most likely responding to the strategic marketing questions of who, what, where, when, and why based on gut instinct instead of validated data. If you aren’t performing market research, it’s like having a marketing plan with misguided strategies and tactics.

Why Is So Little Time Dedicated to Market Research?

If we’re being honest, the A/E/C industry could improve on the amount of marketing effort applied to market analysis—especially since this effort is driving so many of decisions related to the overall marketing program.

So, what’s holding us back as professional services marketers? An informal survey in preparation for the SMPS Virginia annual conference presentation on this topic revealed that some marketers are simply apprehensive about the effort, while others are simply bogged down with tactical and deadline-oriented efforts, and they don’t have the time to transition to proactive efforts. Other reasons included inexperience, mystifying data integrity, finding it overwhelming, perceiving research as a black hole in terms of time and data, and viewing research as a mystical process.

When it comes down to it, some professional services marketers simply don’t know where to start to be most effective or have the most immediate impact. This is particularly true for multi-disciplinary firms or firms spread across various geographic and vertical markets. It’s challenging to know where to start, which internal client is the priority, which vertical market has the greatest need, and which geographic market and internal clients are most likely to benefit from your research efforts.

Since we don’t have a crystal ball, and are fairly confident you don’t either, it’s hard to know the answers to these questions. The best place to start would be to prioritize your profit centers and/or verti-cal markets in terms of which ones require or should be given the most marketing attention. Most firms approach it from the stand-point that they dedicate most of marketing’s limited resources to the most profitable or highest volume areas of the firm (reinforcing what works). Some firms approach allocation of marketing time and resources to emphasize those profit centers or markets that need the most help, such as the newest geographic or vertical market, underperforming markets, or where there is the perceived highest demand for services with the lowest amount of competition.

To use a B2C analogy, consumer brands will often more heavily advertise and market the lowest performing or newest products to generate demand. When a new Apple product is getting ready to launch, you start seeing commercials and advertisements pop up everywhere. When the latest electric vehicle sales are stagnant, and there are thousands of vehicles sitting on dealer lots without interest, automotive manufacturers will advertise, promote, and offer crazy incentives to encourage demand.

“A goal with no plan is just a wish.”—Ross Simmonds

Sample uses of market research include:

Geographic analysis

Lead generation

Competitive intelligence

Market opportunities exploration

Market sizing and entry

Client research

Vertical market research

Recruiting

Informing marketing plans

Sample market research and analysis tools include:

Capital plans

Master plans

Budgets

Government agency meeting minutes

Funding requests

Annual reports

Word of mouth

Primary

Secondary

Economic trends

Industry trends

Internet

William Oxley Thompson Memorial Library, The Ohio State University, Columbus, OH. GUND Partnership, Acock Associates, Schooley Caldwell & Associates, Smoot Construction, and Turner Construction. Photo by Brad Feinknopf, www.feinknopf.com.

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Who Owns Market Research in A/E/C?

This is an important question, as most small- to mid-sized firms do not have dedicated market researchers or analysts. In many cases, there isn’t even one person that oversees and carries out the effort as part of a larger marketing or business development role. If research does show up on a job description as part of a larger marketing or business development role, the execution of this effort is often trumped by deadline-sensitive priorities, which make it hard to juggle between a reactive and proactive marketing strategy.

So who does own market research in A/E/C? It is owned by what we coined the “invisible owner.” This happens for many reasons including:

Marketing and business development staff are too busy

Lack of a single dedicated person

Market research is generally not taught in undergrad marketing programs

MBA or business grads are generally the most skilled in market research and analysis

MBA and business grads aren’t often in A/E/C marketing roles

Research is typically performed by director/chief-level marketers (when performed)

Research is also conducted by third-party sources (time and resource-permitting)

Research is not a priority as a rule, as demonstrated by industry surveys

However, another recent industry survey hints that market research and analysis is becoming more of a priority, as marketers and principals understand and witness the value. In a January 2015 survey published by the CMA, more than 34 percent of respondents plan to increase market research efforts. Are you and your firm part of this 34 percent? If not, you may want to explore ways to incorporate more research into your daily mix.

The Benefits of Market Research in A/E/C

Market research—when conducted thoroughly, timely, and consistently—should be the basis for which your entire A/E/C marketing and business development programs are based. Market analysis and research in professional services marketing have many benefits, including minimizing risk, improving strategic thinking and decisionmaking, building competitive intelligence, gaining competitive advantage, and validating action (or inaction).No other single effort from an A/E/C marketer’s perspective can be so rewarding and beneficial.

It’s All About ROI and Revenue Growth

Let’s face it, marketing in the A/E/C industry is all about bringing new revenue to the firm. If a market isn’t profitable, it’s time to shift strategy. As with many marketing efforts in the industry, measuring ROI is complex; however, it is possible to measure ROI for market research efforts. Some metrics include revenue forecasting; comparing hit rates based on projects that were identified prior to RFP release vs. post-RFP release; and reporting of leads, pipeline (both fees and qualifications-based proposals), new business, and backlog.

In marketing, we should be looking at each of these reports quarterly, if not monthly, and reporting on the projects that were identified by leveraging market research. We discovered in our survey that projects that were tracked and pursued before becoming publicly available had at least a 50 percent greater chance of being awarded.

Your Next Move

Market research isn’t only for large, mega firms with dedicated people assigned to the effort exclusively. If you can scale your efforts, share the task, and set aside a specific amount of time each week that works for your firm size, markets, and disciplines, you can win. Begin this week by doing some research on the top three clients you regularly pursue. Take 30 minutes over the next week (an average of just six minutes a day), and request the capital improvement program from your public clients, or sit down with the client manager inside your firm for private clients to learn about upcoming projects. Then begin putting a game plan in place to pre-market those clients in advance of their next RFP. You will see your average gradually improve—one play at a time. n

William Oxley Thompson Memorial Library, The Ohio State University, Columbus, OH. GUND Partnership, Acock Associates, Schooley Caldwell & Associates, Smoot Construction, and Turner Construction. Photo by Brad Feinknopf, www.feinknopf.com.

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