differentiate and drive through digital

Differentiate and Drive Through Digital

Whitney DalyMarketing Manager, Atlas AdvertisingEconomists, strategists, and digital marketing evangelists working together to create vital community brands that generate results. We believe that our work has a direct and indirect ROI for all of the communities with whom we work.

Angelos AngelouPrincipal Executive Officer, Chief Strategist, AngelouEconomics Relentless experts who specialize in economic development and site location. With over two decades of experience, there’s very little we haven’t seen. We bring more to the table for you in the form of visions, strategies, implementation plans, economic impact studies, and site location advisement.

Introductions

Continue the Conversation •  Follow us on Twitter:

www.twitter.com/AtlasAd•  Tweet questions using hashtag

#ASKATLAS•  Join High Performance Economic

Development LinkedIn group•  View and share the slides with your

colleagues:www.slideshare.com/wright0405

View the Slides, Continue the Dialogue

•  Recap of “Why Site Selectors Hate Your Marketing”

•  Importance of differentiation in ED marketing

•  Perspective from a site selector•  Process of going digital•  Importance of digital in ED marketing•  Digital strategies that work•  Impact of not adopting digital approach•  How to differentiate through digital – 3

ways

What Are We Talking About Today?

1.  It’s not relevant2.  It’s not different3.  There is no substantive data4.  They’ve seen it before5.  It interrupts rather than invites

“Best ED webinar I have attended in a LONG TIME!”

“Excellent to both Guillermo and Will. Very, very helpful. Thank you!”

Recap of “Why Site Selectors Hate Your Marketing”

4 Key Takeaways— 1.  EDO websites are reviewed 100% of the time during the

research phase of a site selection process. 2.  Company testimonials, independent labor studies, and

flexible incentive support can make up for market disadvantages.

3.  LinkedIn is a great tool for connecting with site selectors.4.  Evaluation methodologies vary based on the unique

requirements of a project and company.

Recap of “Why Site Selectors Hate Your Marketing”

To differentiate (your message and strategy) is to stand apart, to be unique, to tell a story unlike any others.

In economic development, it means raising your community profile, and getting noticed as a viable option for companies all over the world.

Importance of Differentiation in ED Marketing

3 Ways EDOs Can Better Differentiate… 1.  Focus on the Challenge (Sun Corridor Inc.)

While Tucson Regional Economic Opportunities Inc. was a top-performing EDO, this well-established identity was preventing inquires beyond their city limits, especially south of the border into Mexico.


3 Ways EDOs Can Better Differentiate… 2.  Immerse Yourself in Planning, and Develop a Strategy

•  Identify competitors•  Identify target audiences•  Understand what it is you want to achieve


3 Ways EDOs Can Better Differentiate… 3.  Build Your Approach and Execute

•  National site selector research•  Marketing strategy•  Identity and logo development•  Advertising and tradeshow concepts•  Branded graphics


3 Ways EDOs Can Better Differentiate… Bonus #4 See the Payoff

•  Positioned the EDO beyond the boundaries of Tucson and outside the shadow of Phoenix – ideal for the kind of growth they experience

•  60 company relocations (2005-2015)•  10,000 new jobs (2005-2015)•  $1.4 billion in new investments (2005-2015)


ABOUTANGELOUECONOMICS

• 650+StrategicPlans

• $18BillioninSiteLocaBon

• 200+EconomicImpactStudies

CURRENTSITESELECTIONTRENDS

Capital Investments by State, 2015

Top States: Total Projects

Top States

State ProjectsTexas 689Ohio 582Illinois 394NorthCarolina 313Georgia 311Kentucky 258Michigan 230Pennsylvania 227Louisiana 200Tennessee 195

Source: Governor’s Cup, MapChart


Capital Investments by State, 2015

Top States: Projects per Capita

Top States

StateProjects per

CapitaKentucky 258Ohio 582Louisiana 200Kansas 109SouthDakota 27NorthCarolina 313Georgia 311Illinois 394Tennessee 195Iowa 88Source: Governor’s Cup, MapChart


Venture Capital - National

# o

f Dea

lsTotal Investm

ent

Source: PriceWaterhouseCoopers

CURRENTSITESELECTIONTRENDSVenture Capital by Top State and Industry

44%

13%11%

11%

5%

5% 5%2%2%2%

Top VC Sectors, 2014

Software

Media and Entertainment

Biotechnology

IT Services

Medical Devices

Industrial/Energy

Consumer Products

$27.2

$4.7$4.3$1.5$1.2$1.1$0.9$0.8$0.8$0.8

$0

$5

$10

$15

$20

$25

$30

Cal

iforn

iaM

assa

chus

etts

New

Yor

kTe

xas

Was

hing

ton

Illin

ois

Flor

ida

Uta

hC

olor

ado

Penn

sylv

ania

Bill

ions

VC by State, 2014

Source: PriceWaterhouseCoopers

CURRENTSITESELECTIONTRENDSTakeaways

Top States for Projects (Overall and Per Capita):1.  Georgia2.  Illinois3.  Kentucky4.  Louisiana5.  North Carolina6.  Ohio7.  Tennessee

Venture Capital:1.  Investment has rebounded since 2008, but not returned to levels seen in the

early 2000s, probably a good thing!

2.  Software (44%) is the leading sector for investments, followed by media (13%), biotech (11%), and IT (11%)

STEPSTOSITESELECTIONPROCESS

STEP 1: Project Set Up

Ø  Introduce the project team.

Ø Discuss the objectives, goals, and vision for the project.

Ø Review and finalize a detailed project schedule identifying milestones and goals as well as roles and responsibilities.

Ø Review the type of incentives that can be expected based on similar expansions and relocations.

THENEEDSOFANEXPANDINGBUSINESS

Criteria 1. Property Size 2. Rail Available 3. Airport - 1 hour 4. Water Available 5. Gas Available

Yes Yes No No Yes

Go / No Go Screen

AlternaBvesEliminated

Example of “Must” Criteria:

Must vs. Need Criteria

THENEEDSOFANEXPANDINGBUSINESS

Must vs. Need Criteria

Example of “Want” Criteria:

Criteria 1. Labor Size 2. Operating Cost 3. Logistics Cost 4. Incentives 5. Competitor Locations

10 9 8 7 6 5 4 3 2 1 Most Important Least Important

StepstoSiteSelecBonProcess

STEP 2: Market Research

Research will provide the base analysis for the initial selection of 10 to 15 target cities for site location. Criteria to be checked include:

Ø Quality of lifeØ Workforce and talent availability

Ø Market access & Proximity to industry clusters

Ø Business climate (utility costs, taxes, wages, permitting)

Ø Transportation logistics, air service, etc.


STEP 3: RFP and Proposal ReviewAE will issue an RFP and determine local suitability and acceptability by analyzing the following:

Ø  Local and Regional DemographicsØ  Education & Training ProgramsØ  Human Capital (e.g., labor availability and skill levels)Ø  Infrastructure Capacity (e.g., water, wastewater, electricity, and

transportation) Ø  Existing Technology Companies and SuppliersØ  Business Costs (income tax, franchise, business activity and sales taxes)Ø  Property Taxes (e.g., tax rate and depreciation schedules) Ø  Development Costs & Timelines (e.g., planning and zoning guidelines)Ø  Federal, State, and Local Financial Ø  Entrepreneurial Ecosystem Ø  Political Stability (e.g., national, state, and local political issues or

legislative actions that may impact project)

PROMOTINGYOURCOMMUNITY’SASSETS

Importance of Community Assets:

Ø  Skilled Workforce

Ø  Quality of Life

Ø  Market Access

Ø  Proximity to Clusters

Ø  Transportation Logistics

Ø  Business Climate

Ø  Incentives

TOOLSTOCAPTUREINVESTMENT

Cost of Operational Analysis:

Ø  After all cost factors are considered, a total cost comparison is made

Ø  Total costs are indexed to show relative costs for each competing city

Ø  Incentives are based on cost comparisons and specific to each city

LocalCostofOperaLonsIndex

TotalAnnualOperaLngCosts

100% 103% 101% 112%

0%20%40%60%80%

100%120%

DeKalb County

Cobb County

Gwinnett County

Prince George's County

$14,438,559

$14,932,471

$14,561,121

$16,237,029

DeKalb County

Cobb County

Gwinnett County

Prince George's County


STEP 4: Incentives Review & NegotiationNegotiate an incentive package with the appropriate governments and agencies. The types of incentives to consider include:

Ø  Tax abatements Ø  Cash grants and loansØ  Sales tax sharingØ  Labor training fundsØ  Tax creditsØ  Infrastructure improvementsØ  Job creation incentives and grantsØ  Land and rent subsidiesØ  Property tax depreciation policy and schedulesØ  Relocation assistance/moving expenses

TOOLSTOCAPTUREINVESTMENT

Economic Impact StudyTOTAL ECONOMIC ACTIVITY

Jobs Labor Income Economic Activity

Direct Impacts 1,751 $16,735,000 $43,646,000

Impacts to Other Industries 1,307 $15,121,000 $42,519,000

TOTAL IMPACTS 3,059 $31,857,000 $86,165,000

INDUSTRIES MOST IMPACTEDRANK INDUSTRY ECONOMIC ACTIVITY

1 Construction of new nonresidential commercial and health care structures $258,552,3762 Construction of other new nonresidential structures $76,597,7893 Construction of new residential permanent site single- and multi-family structures $71,659,1714 Architectural, engineering, and related services $29,817,0415 Imputed rental activity for owner-occupied dwellings $13,883,3146 Real estate establishments $13,463,9847 Monetary authorities and depository credit intermediation activities $11,880,6448 Wholesale trade businesses $10,448,6119 Telecommunications $9,285,31410 Food services and drinking places $8,197,678


PROJECT PHASES DURATION Month 1 Month 2 Month 3 Month 4 Month 5 Month6

Step 1: Project Set Up 2-3 weeks

Step 2:Market Research 4-6 weeks

Step 3:RFP & Site Assessment 4-6 weeks

Step 4:Final Incentives Review & Negotiation 6-8 weeks

TIMELINE:

DOs&DON’Ts

DO:ü  Have a standard process

ü  Customize the proposal

ü  Get the community involved

ü  Build rapport with consultants and prospects

DON’T:Be afraid to ask questions to clarify the RFP

Provide the bare minimum of what is requested

Show sites that do not meet the requirements of the project

Forget the “Wow” factor

ECONOMICDEVELOPMENTMARKETING

Steps to ED Marketing:1.  Target with a laser beam

2.  Community Vision, Set Goals

3.  Establish Community Brand – what do you stand for?

4.  Identify your assets and know your productØ  What are your selling points? What makes you unique?Ø  How can you differentiate yourself from the competition?

5.  Determine the right marketing mix – Internal vs External

6.  Measure and monitor

ECONOMICDEVELOPMENTMARKETING

Top 10 Marketing Tips!1.  HOPE is NOT a Marketing Strategy

2.  Marketing is Not Advertising – It is a Component of Marketing

3.  Public Relations is Not a Waste of Time

4.  The Media is Not Your enemy…Engage Them!

5.  If You Build it, They Will Not Always Come

6.  Never Underestimate the Competition

7.  You Could be One Click Away From Elimination

8.  Special Events Really do Need to be Special

9.  Don’t Take the Target Audience for Granted

10.  Marketing is a Long-Term Commitment

IMPORTANTDIGITALMARKETINGTOOLS

1. Website

2. Sales Missions

3. Networking

4. Newsletter

5. Print Collateral

6. Blogs

7. Social Media

Most Useful ED Marketing Tools as Ranked by Site Selectors:

Why is a Digital Frame of Mind Necessary?Your prospects are online, and that’s exactly where they want to find and consume information. They’re there on their own terms too, which is why your digital assets have to invite rather then interrupt.

Process of Going Digital in Econ Dev

The driving forces of digital are the organizations pushing the envelope, and adopting methodologies that yield the greatest gains. They’re the ones taking risks, and putting their faith in digital strategies that generate awareness and do so at an accelerated pace.

Importance of Digital in ED Marketing

Good website design (in other words, responsive design) Featured: Tennessee Department of Economic & Community Development

Digital Strategies that Work …i.e. organizations doing

digital well

Digital Strategies that Work

Clear value proposition Clearly communicating the value and benefits of your area or region makes it easy for site selectors and corporate location decision makers to evaluate your community.



Responding to RFPs – Creating a Business Response Kit •  When submitting more than one site, include all parallel /

common information (cover letter, road maps, etc.) with each site•  When submitting more than one site, create a CD for each

site•  Place CD within a binder sleeve, or an adhesive CD sleeve

•  Provide a table of contents or reference page at the front of the submission•  Use tabs or colored paper to separate sections and

attachments•  Any large documents that cannot be bound (e.g. e-size

plats) should be placed in sheet protector sleeves


Responding to RFPs Characteristics of a good proposal

•  Clearly labeled•  Organized•  Thorough•  Meets deadline


6 Touch Points •  Verification of receipt of RFP•  Questions about the RFP•  RFP response is on its way – Verification of receipt to

prospect•  Follow up – Any questions about the proposal•  Follow up on status

1.  “EDOs that do not adopt a digital approach are limiting their messaging reach, and reducing their competitive advantage.”

2.  “If you don’t adopt a digital strategy, you’re falling behind the competition.”

3.  “You can’t be competitive if you don't adopt a digital approach, and it’s imperative to have a “digital storefront.’”

What is the Impact on an EDO if They Don’t Adopt a Digital Approach?

A “digital storefront” that:•  Tells a story that’s different•  Provides critical information•  Provides clear direction•  Excites•  Invites

The Most Important Piece of Digital Marketing for Site Selectors

3 Ways to Stand Out From Your Competitors (Taken from Atlas’ annual white paper: The Road to Economic Development Marketing Reinvention)

1.  Utilize RFP response templates

2.  Understand and execute on the power of digital lead generation

Old School vs. New School Digital Lead Generation

3.  Leverage social media

How to Differentiate Through Digital

1.  It’s not relevant2.  It’s not different3.  There is no substantive data4.  They’ve seen it before5.  It interrupts rather than invites

Why Do Site Selectors Hate Your Marketing?

Join Atlas for an evening of finger foods and libations as we celebrate economic developers from all over the country.

Attending IEDC Annual Conference?

Thank You!

Whitney DalyMarketing Manager, Atlas [email protected]

Angelos AngelouPrincipal Executive Officer, Chief Strategist, [email protected]