Navigating the Internet for Navigating the Internet for Procurement OpportunitiesProcurement Opportunities

Presented to:Presented to:Small Business Administration Georgia 8(a) FirmsSmall Business Administration Georgia 8(a) Firms

EC

Arthur L. BrownArthur L. Brown770-732-9392770-732-9392art@lescot.comart@lescot.com

The electronic exchange of business/technical information using Electronic Data Interchange (EDI), Email, Electronic Funds Transfer (EFT) and other similar technologies.

Electronic Commerce Defined (EC)

Business ClimateBusiness ClimateBusiness ClimateBusiness Climate

CHANGE

NowNowNowNow

ForeverForeverForeverForever

Why/Uses for E-Business?

In order to sell goods and services Time-saving business communications To easily share necessary information with other staff

members/businesses

Why/Uses for E-Business? (cont’)

To purchase required goods and services

Create data once and use it many times To reduce costs of traditional

operations

Why/Uses for E-Business?(cont’)

To be electronically linked to the rest of the business community (world-wide)

Economic Forces Driving

Electronic Commerce

Cost of Labor

Telecommunications Costs

Computing Costs

Research Your Market to Find Answers To:

Who are my customers Where are they located What does/will make them by

my product/services What is my optimum selling

price What should my

advertising/promotional message consist of

How do I get to them

Market Research Methods Primary Research

Provide online surveys, questionnaires, online focus groups

Study your traffic logs Example:

http://www.zoomerang.com/login/index.zgi

http://www.surveymonkey.com/

http://info.zoomerang.com/

Start by Defining Your Business Classification North American Industrial Classification (NAICS)

Code - http://www.census.gov/epcd/naics02/ Standard Industrial Classification (SIC) Code -

http://www.census.gov/epcd/naics02/ Federal Supply Classification (FSC) Code

-http://www.softshare.com/tables/pscs/ National Institute of Government Purchasing (NIGP) -

http://www.nigp.org/ Commercial and Governmental Entity (CAGE) Code -

http://www.dlis.dla.mil/cageserv.asp Data Universal Numbering System (DUNS) Number -

http://www.dnb.com/US/

http://www.census.gov/epcd/naics02/

http://www.nigp.org/

http://statepurchasing.doas.georgia.gov/02/doas/osp/home/0,2469,35226973,00.html

www.dnb.com/US

Market Research Methods (cont’) Secondary Research Sources

Company Data Industry Sources/Associations Governmental Agencies Universities/Libraries Search Engines Trade Journals Investment Industry Analysis Internet Analysis

http://www.census.gov/epcd/cbp/view/cbpview.html

http://www.bea.gov/

Procurement Personnel Need to Know (Public Sector)

Small and Disadvantaged Utilization Specialists (SADBUS

Small Business Liaison Officer Users Contracting Officer Competition Advocate

Program Manager http://www.osdbu.gov/Member_List.htm

http://www.dodscrc.org/links.htm

Procurement Personnel Need to Know (Private Sector)

Buyers Purchasing/Procurement Supply Chain Managers Supplier Diversity Program Manager

Who’s the Competition Who are your competitors Where are they located What are their

strengths/weaknesses How does my product/service

compare

Marketing Strategy Development A marketing strategy is a target

market and a related marketing mix A target market is a similar group

(market segment) of customers to whom you wish to appeal

A marketing mix consists of a group of controllable variables (product, place, promotion, price) which are put together to satisfy a target market

Target Market Profile Parameters Demographic

Geographic Cultural and ethnic groups Economic Power Industry Type

Psychographic Values, attitudes, beliefs Lifestyles

Target Market Segment Examples Homeowners with homes valued

at $1million and over Professional athletes Colleges and Universities Families between the ages of 20

and 45 years of age Federal, state and local

governments

Sources to Identify Target Markets/Commercial

Build/Existing Contact Database Access/Purchase Database

Reference USA http://www.referenceusa.com/

Yellow PagesYellowpages.com

Thomas Registerhttp://www.thomasnet.com/

Sources to Identify Target Markets/Government (cont’)

U.S., State and Local GovernmentsFederal

http://www.fedbizopps.gov/ http://www.hq.usace.army.mil/cepr/ASFI.htm https://www.neco.navy.mil/ http://www.mbda.gov/index.cfm?fuseaction=login.main&ret

urnAddress=fuseaction%3Dpx2%2Ephx%5Fmain

State and Local

http://www.statelocalgov.net/index.cfm

Custom computer programmers in Fulton County – NAICS 541511

Banks in Fulton County

Procurement Research Sources Historical Purchases

E-Procurement Database – http://www.fpdsng.com/

Current Purchases Fedbizopps - http://www.fedbizopps.gov/ NECO -

https://www.neco.navy.mil/secure/register/register.cfm

Army Single Face to Industry - https://acquisition.army.mil/asfi/

Projections Agency Procurement Forecasts -

http://hqlnc.doe.gov/support/SmallBusUtil.nsf

www.fpds.gov

Procurement by NAICS 423690 - FY 07

Contracting Department NameCurrent Contract Value

DEPT OF DEFENSE $10,588,770,861

HOMELAND SECURITY, DEPARTMENT OF $2,893,651

HEALTH AND HUMAN SERVICES, DEPARTMENT OF $2,630,290

STATE, DEPARTMENT OF $1,413,033

JUSTICE, DEPARTMENT OF $1,266,694

INTERIOR, DEPARTMENT OF THE $1,004,970

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION $503,781

AGRICULTURE, DEPARTMENT OF $473,161

TRANSPORTATION, DEPARTMENT OF $462,324

VETERANS AFFAIRS, DEPARTMENT OF $394,590

GENERAL SERVICES ADMINISTRATION $332,839

COMMERCE, DEPARTMENT OF $241,832

TREASURY, DEPARTMENT OF THE $217,703

FEDERAL COMMUNICATIONS COMMISSION $157,000

SMITHSONIAN INSTITUTION $85,921

ENERGY, DEPARTMENT OF $71,842

LABOR, DEPARTMENT OF $58,316

EDUCATION, DEPARTMENT OF $29,612

ENVIRONMENTAL PROTECTION AGENCY $26,374

SMALL BUSINESS ADMINISTRATION $24,876

CONSUMER PRODUCT SAFETY COMMISSION $2,107

http://www.fedbizopps.gov/

http://hqlnc.doe.gov/support/SmallBusUtil.nsf

http://ssl.doas.state.ga.us/PRSapp/PR_index.jsp

http://www.sba.gov/GC/cmr/gasubs.html

Contracting Preference Programs Small Business SBA 8(a) Program Small Disadvantaged Business Woman Owned Firms Veteran Owned Veteran Owned Service Disabled GSA Schedule HUBZone Certified

Controllable Variables-4Ps Product Promotion Place Price

Product/Service Strategy What the customer gets to satisfy a

need Most time spent in this area

perfecting Giveaway for site visitors (not

everything) Product/Service often misunderstood

phenomenon

Promotion Strategy (Advertising) Most applicable to e-commerce

of the 4Ps E-Commerce has revolutionized

how products/services are viewed (Ex: email)

Internet Promotion Tactics Internal visitor registrations External website registrations Website Linking Advertising/Publicity

Internal Visitor Registrations Generates contacts for your

“contact” database Used to develop proactive

marketing campaign Request permission to receive

marketing material Specify on your page your

privacy policy

External Website Registrations Search engines extremely valuable

in getting traffic to your website Corporate/Industrial sector primarily

using Electronic Data Interchange as a tool for conducting business electronically

Government and particularly, the Federal Government farther ahead in website registrations than the private/industry sector

Must continue to be proactive in marketing efforts

Web Site Registrations Central Contractor Registration

Dynamic Small Business Search Kudzu.com Thomas Register

www.ccr.gov

Form Associations with Like Organizations Link to other web sites and

request visitors to your site to add a link to their site

Ask your visitors to bookmark your site

Develop an affiliate/associate program

Include your company in other industry/association group lists

Place (Distribution) Strategy Process of getting the product/service

to the customer Traditional distribution model –

manufacturer/provider to wholesaler/distributor to retailer to end user

With internet, target is manufacturer/provider to end user

Can be a major factor in customer satisfaction

Distribution Strategy Realities and Considerations

Christmas 2000 was a major fiasco for some retailers

Supply chain/Fulfillment must be continuously revisited

Must make every effort to be customer “sentric” since limited customer interaction

Customer Requirements Now Include: Forming Alliances Joint Ventures Partnering Teaming

Pricing/Payment Strategy Electronic payments to include EDI,

credit card payment/acceptance In the non-internet environment,

pricing is quite speculative In the internet environment, a more

open process Tends to be a negative for the

business Auctions/Reverse Auctions becoming

a trend

Securing The Payment

Business Concerns Security

Considerations Credit Cards "Electronic

Money"

Internet Marketing Requires Another 4Ps Persistence Perseverance Patience People

“To cost effectively build profitable organizations through a solid foundation of business, marketing and economic development expertise.”

LeScot’s Mission

LeScot Enterprise Services

Marketing Development

Training, Seminar and Other Communication

Services

ECEC

Business Management and Technical Assistance Services

Economic Development

What lies behind us versus what lies before us are only tiny matters compared to what lies within us.

…..Ralph Waldo Emerson