Marketing and Business Models

Transcription

1 Marketing and Business Models TOOLS FOR ARCHITECTS A WALK ABOUT PROJECT FOR AIM EMBA PRESENTED BY: EUGENE T. MANGUBAT, ARCHITECT

2 Objectives: Give an overview of marketing and business models to show how it creates value, attracts clients, aids in understanding our business and perhaps how we can improve on it.

3 Marketing

4 Marketing: Can Architects Do Marketing? 1-d The Architect shall not use paid advertisement nor use self laudatory, exaggerated or misleading, publicity. However, the presentation of factual materials, verbal or visual, of the aims, standards and progress of the profession through literature or by industrious application of his work and services which tend to dignify the professional or advance public knowledge of the Architect s function in society may be presented through any public communication media. 1-e The Architect shall not solicit nor permit to solicit in his name, advertisements or other support towards the cost of any publication presenting his work. He or She should refrain from taking part in paid advertisement endorsing any materials of construction or building equipment. 1-f The Architect shall not mislead the public through advertisements, signs or printed matter citing his professional specializations unless such qualifications are well known facts or sanctioned by professional consensus and years of experience. Architect s National Code Documents Series 200 Code of Ethical Conduct (Philippines: UAP 1979)

5 Marketing: Arch. Edwin Uy: Networking sources of leads Current and recent clients Other Professionals Organizations Contractors Trade and Industry Events

6 Marketing: Arch. Jason Buensalido: Work on you Brand Identity Communicate with Clarity Engage Engagements Do Good Work Use your website and social media to get leads Get yourself published Maintain relationships Be Consistent and committed Create a Marketing Plan

7 Marketing: Arch Wilson Alba: Define your Brand Idea Decide on your Company Name Design your Identity

8 Marketing Activities by Architects: Joining exhibits and competitions Speaking at forums and discussions Going to formal and informal groupings Social media putting up a blog, webpage, Facebook page, LinkedIn account Cold calls and presentations for open projects Joining professional networks like realtors, contractors and anyone in the building pipeline Tapping personal networks Subscribing to directory listings Pro bono work Writing in journals, magazines Uploading to YouTube or Vimeo

9 Marketing What is Marketing? Marketing is the process by which companies create value for customers and build strong relationships in order to capture value from customers in return. At its core the goal of marketing is to let people (your target market) know what you do (your unique selling proposition, or USP) and how you do it (your narrative). Philip Kotler, Gary Armstrong, Principles of Marketing 12 th Ed. (Singapore: Pearson 2008), 5. Eric Reinholdt, Architect and Entrepreneur: A Field Guide Vol 1(Maine: 30x40 Design Workshop 2015), 51.

10 Marketing: What is Value? Value in marketing, also known as customerperceived value, is the difference between a prospective customer's evaluation of the benefits and costs of one product when compared with others Value (Marketing),

11 Marketing What is Marketing? Marketing is the process by which companies create value for customers and build strong relationships in order to capture value from customers in return. At its core the goal of marketing is to let people (your target market) know what you do (your unique selling proposition, or USP) and how you do it (your narrative). Philip Kotler, Gary Armstrong, Principles of Marketing 12 th Ed. (Singapore: Pearson 2008), 5. Eric Reinholdt, Architect and Entrepreneur: A Field Guide Vol 1(Maine: 30x40 Design Workshop 2015), 51.

12 Marketing What is Relationship in Marketing? The Customer Decision Journey is a model of the relationship. This model shows how a consumer comes from: Consideration, Evaluation, Moment of Purchase, Post Purchase Experience, Trigger, Loyalty. McKinsey 2009 Post Purchase Experience Consideration Loyalty Moment of Purchase Evaluation

13 Marketing: Strategic Marketing Framework

14 Marketing Market Analysis Customer needs? What are your capabilities? What is current competition & market dynamics Who are your collaborators and complimentors

15 Marketing Market Selection and Segmentation Basis for Segmentation: Geographic Demographic Psychographic What is Segment Targeting: Involves evaluating each market segment s attractiveness & selecting one to enter. The objective is to select segments in such a way that the company maximizes its profit.

16 Marketing Product Positioning It is done by arranging a product to occupy a clear distinctive and attractive position relative to competing products in the minds of target consumers. One way to do it would be to make a positioning statement which would answer, who are the customers, what set of needs do the product fulfill, why is the product the best option to satisfy those needs? Our (Product/Service/Brand) is (single most important claim) among all (competitive frame) because (single most important support).

17 Marketing Positioning Statement & Tag Lines Target: Style on a budget. Expect more. Pay less. Volvo: For upscale American families, Volvo is the family automobile that offers maximum safety. For life. Home Depot: The hardware department store for do-it-yourselfers. You can do it. We can help.

18 Marketing Examples Tag lines: Mercedes-Benz: Engineered like no other car in the world BMW: The ultimate driving machine Avis: We are only Number 2, but we try harder Metrobank: You re in Good Hands with Metrobank (positions as safest bank) Jollibee: Sa Jollibee Bida and Saya (positions as a happiest fastfood in the country) Boysen: The Quality You Can Trust

19 Marketing Customer Acquisition Awareness-Knowledge of Existence Interest-Interest is generated by appealing to things relevant to your client Desire-Appealing to a client s personal needs and wants Action-Provide an option for them to take action, call now for free estimate. AIDA: Awareness, Interest, Desire, Action

20 Marketing Customer Loyalty and Retention Cost of Changing Brands Availability of Substitutes Social Ties Perceived Risk Satisfaction gained in the Past Need for repeated patronage to obtain optimum satisfaction

21 Marketing Marketing Mix 7 P s Product Architectural Design with emphasis on personalized service delivery Place/Distribution Greater Metro Manila & surrounding provinces Promotion & Advertising-Word of Mouth, Blog: Facebook Price- Initial basis of fee: Percentage of Cost People-Principal Architect (Me), Consultants, Clients, Apprentices & Staff Process of Design-Form Finding, Programming, SD-CD- DD-Contract Doc Physical Evidence-Blog, Portfolio, Recommendations, Project & Site Visits

22 Marketing: Strategic Marketing Framework

23 Marketing Activities by Architects: Joining exhibits and competitions Speaking at forums and discussions Going to formal and informal groupings Social media putting up a blog, webpage, Facebook page, LinkedIn account Cold calls and presentations for open projects Joining professional networks like realtors, contractors and anyone in the building pipeline Tapping personal networks Subscribing to directory listings Pro bono work Writing in journals, magazines Uploading to YouTube or Vimeo

24 Marketing: Can Architects Do Marketing? 1-d The Architect shall not use paid advertisement nor use self laudatory, exaggerated or misleading, publicity. However, the presentation of factual materials, verbal or visual, of the aims, standards and progress of the profession through literature or by industrious application of his work and services which tend to dignify the professional or advance public knowledge of the Architect s function in society may be presented through any public communication media. 1-e The Architect shall not solicit nor permit to solicit in his name, advertisements or other support towards the cost of any publication presenting his work. He or She should refrain from taking part in paid advertisement endorsing any materials of construction or building equipment. 1-f The Architect shall not mislead the public through advertisements, signs or printed matter citing his professional specializations unless such qualifications are well known facts or sanctioned by professional consensus and years of experience. Architect s National Code Documents Series 200 Code of Ethical Conduct (Philippines: UAP 1979) Yes

25 Business Model

26 Business Model They are at heart stories, stories that explain how enterprises work. A good business model answers the questions, who are the customers, what does the customer value, how do we make money in this business what is the underlying economic logic that explains how we can deliver value to customers at an appropriate cost. Joan Magretta, Why Business Models Matter in Rebuilding Your Business Model (Boston: Harvard Business School Publishing) p68.

27 Business Model Mass market, Niche market, Segment, Diversified, Multi-Sided Platforms

28 Business Model Quantitative or qualitative. It s the reason customers choose one company over another. It s the bundle of benefits a company provides

29 Business Model How the company communicates and reaches its customer segments to deliver its value proposition

30 Business Model Personal assistance, Dedicated Personal assistance, Automated, Self Service

31 Business Model Cash a company generates from each customer segment. They are generated through commission, fees, asset sale, subscription, lending/renting/leasing, licensing, advertising.

32 Business Model They can be physical, financial, intellectual or human

33 Business Model These are the actions that a company must to to operate successfully.

34 Business Model Key Partners create alliances optimize between their business model, reduce risk or acquire resources.

35 Business Model Cost Driven and Value Driven

36 Business Model

37 Business Model

38 Business Model

39 Business Model

40 Business Model 130 staff Makati Firm our most important allies are developers and contractors, for some projects it s the foreign architects who partner with us for local projects semi-annual town hall meetings to keep everyone in the loop, regular inventory of manpower to ensure efficiency our firm acknowledges that our most important asset is manpower Our motto is "always say yes to the client" which I think the client values. we make sure that the client is as much a part of the design process as we are. CEO's relationship with clients is as a friend and consultant. he plays golf with them and is available to take calls 24/7 about business architectural design, interior design, master planning, urban planning, and materials and other pre and post design services. Preferred clients are big and established developers such as Megaworld, Filinvest, SM, Vistaland, Sureste, Alphaland, etc. most projects are high end. 60% of revenue goes to compensation. biggest overhead expense is rent for older contracts we used percent of cost but for newer contracts we use manhours which give us more competitive prices

41 Business Model 100 staff Makati Firm The consultant engineers are important allies in a project. Fellow architect friends who are ethical whom we could exchange notes with and find mutual support Aside from desiging, marketing. How to get work to keep the office running. Important to learn accounting in running a business The assets and facilities personnel use are the most important physical assets. The personnel are the most valuable. The clients prefer the firm because of extensive experience and dependability. Past owners refer to past projects anecdotally nakatayo pa ginawa nating bahay, Our house is still standing. It is combined professional and close personal. Because during the course of the project the client becomes our friend. Architectural Design, Interior Design, Master Planning, Sustainability, Feasibility Studies, Site Development Consultation, Space Analysis, Building Rehabilitation The company caters to developers and corporations for its large projects, but also makes houses as special projects from the same individuals as these are projects that are usually favors and from repeat or loyal clients The firm spends a lot on equipment and software, and also office consumables such as ink, paper and other materials. Fees are computed usually on a fixed fee per square meter for large projects, and percentage of cost on smaller projects.

42 Business Model Medium Mandaluyong Firm Contractors, suppliers and allied consultants, in that order. Design and social innovation. The most important asset is its people Direct expenses in the maintenance and development of human capital. The value proposition is the offering of intelligence in design, nothing by whim nor caprice. It is all, depending on the stage of the projects. offers design services from built environments to social systems. Drawings are hardly the offering of the firm., environment and system design information The basis for billing is by percent of cost caters to the middle to high income individuals; business and corporations

43 Business Model Single Proprietor Paranaque Practice The clients, consulants, contractors & builders, suppliers As a teaching practice the training. Marketing through selected digital and traditional. Education man power and the culture personal delivery of design and attention to detail in the project deliverables such as drawings, meetings and consultations client and architect relationship is professional and personal towards the end Standard Architect s Services, Service Delivery, meetings, drawings, communications middle and high income individuals, business owners, corporations and institutions. primarily on manpower, office supplies and travel expenses fee is arrived as a percentage of cost

44 Conclusions The objective of this Marketing and Business Models tools talk, is to help promote vision and value. With these tools Architects can be leaders promoting changes in their activities towards a more enjoyable, profitable and fulfilling practice.

45 References

46 References: Architect s National Code Documents Series 200 Code of Ethical Conduct (Philippines: UAP 1979) Value (Marketing), Philip Kotler, Gary Armstrong, Principles of Marketing 12th Ed. (Singapore: Pearson 2008), 5. Eric Reinholdt, Architect and Entrepreneur: A Field Guide Vol 1(Maine: 30x40 Design Workshop 2015), 51. McKinsey 2009 David Edelman and Marc Singer, The New Customer Decision Journey (October 2015) AIDA: Awareness, Interest, Desire, Action Valerie A. Zeithaml, Mary Jo Bitner, Dwayne D. Gremler, Service Marketing 4th Ed (Philippines: McGraw Hill 2006) p Joan Magretta, Why Business Models Matter in Rebuilding Your Business Model (Boston: Harvard Business School Publishing) p68. Alexander Osterwalder & Yves Pigneur, Business Model Generation (New Jersey: John Wiley & Sons, 2010), Marketing Class Notes and Images from class of Prof Richard Cruz Marketing Class Notes and Images from class of Prof Catherine Tantoco-Daniels

47 The End Thank you very much!