Susan Mucha will be giving a presentation at this year’s PCB West as part of their newly introduced EMS Management Conference Track. There is still time to register.
Five-and-a-Half Technical Services Marketing Myths
Wednesday, Sept. 13, 1-2 p.m.
As I write this at the beginning of February, President Trump is establishing himself as a man who follows through on campaign promises. Assuming that trend continues and there is a clear path to tax and regulatory reform, there will also be changes in OEM sourcing strategy. It may even be the level of shift seen when China devalued the yuan.
What does this trend mean for US regional electronics manufacturing services (EMS) providers? Beyond the immediate benefit of regulatory and tax reforms that has many of the EMS CEOs I know practically dancing in the streets, I think it will open the door to significant opportunities across the board. When OEMs outsource offshore, they tend to bundle all their projects. There are two reasons for this. First, a smaller supply chain is easier to manage at a distance and second, low cost labor markets typically have a higher percentage of “one size fits all” EMS providers. When OEMs outsource in the US, they tend to look more closely at the value of tailoring their outsourcing strategy. Niche projects may go to suppliers better interested in those volumes or technology associated with those projects. There may be interest in keeping new product manufacturing in close proximity to the engineering team. There may also be a desire to keep some manufacturing in-house and source production that is not a fit in close proximity. While these scenarios already exist today, tax and regulatory policies which incentivize re-shoring will ultimately increase the number of available opportunities.
The challenge is that if your company is the EMS world’s best kept secret you may not be on the bid list. So, from a marketing perspective, this is the right time to be developing a marketing strategy that will get your company’s name more widely known. It is also the right time to be reviewing existing accounts and looking for additional business opportunities either within the account or other divisions of that customer. The bottom line is that if the Trump Effect continues companies that weren’t on your company’s radar screen as prospects may be ready to buy your services. But they won’t be talking with you if they don’t know who you are. EMS providers that are upping their networking and marketing activities now, will benefit when those companies start re-evaluating strategy.
Powell-Mucha Consulting, Inc. specializes in helping companies develop marketing strategies that build market mindshare and highlight each client’s unique capabilities. This differentiation can be especially important in attracting OEMs pursuing niche outsourcing strategies.We also offer sales and program management analysis, coaching and training services, which can help your team quickly broaden their focus. Contact us if you’d like additional information.
My Circuits Assembly article this month looks at the concepts of branding, marketing and selling. Like my recent Leader vs. Manager post, this is another area where words are used interchangeably to refer to very different concepts. Branding, Marketing and Selling looks at the ways these concepts interrelate and specific ways that electronics manufacturing services (EMS) providers can capitalize on well thought out strategy in these areas. Read the full article here.
Here are the five biggest myths in electronics manufacturing services (EMS) sales and marketing:
Myth 1 – Cold calling works: Years ago a large magazine publisher used to run an ad with an unfriendly buyer and the headline, “I don’t know you. I don’t know your company. I don’t know your product. Now, what are you trying to sell me?” Today that buyer screens phone calls and deletes unsolicited emails. A good marketing campaign that highlights the common problems your company regularly solves can help get through that automated gatekeeping. Otherwise, cold calling is an inefficient use of sales team time.
Myth 2 – Your website should make it easy for prospects to download all your company information: Outsourcing is a relationship sell. If you make easy for someone to visit your website and download your brochure, equipment list and all other facts about your company, then they don’t need to contact sales and request more information. Meanwhile, your competition’s sales team is building a relationship.
Myth 3 – Marketing is unnecessary: Back in the 80s, most EMS companies did business through engineering networking. Now that the industry is much larger and competition has also grown; getting your company’s name out is important. That doesn’t necessarily have to translate to huge budgets, but you do need a strategy focused messages that are timed to repeat at specific intervals. With no marketing, your competitors will position your company to their advantage.
Myth 4 – Copy the Competition: In the absence of differentiation, prospects focus on price. You want prospects to focus on the specific benefits your company offers.
Myth 5 – Sell the sizzle, not the steak: Ask most successful EMS companies what clenches the deal and they’ll say it is their plant tour. The main reason that is true is because outsourcing decision makers can lose their jobs if the contractor doesn’t perform. Your marketing should sell your competencies and your plant tour should demonstrate how well you walk that talk. Too much focus on sizzle without substance may actually turn buyers off.
For over a decade, Powell-Mucha Consulting, Inc. has helped EMS companies develop marketing strategies that work and fit their budgets. Visit http://www.powell-muchaconsulting.com to learn more.
Years ago when I was giving a seminar on EMS Competitive Advantage at SMTAI, a person working at an OEM had also signed up. When I asked why he was registering for what was essentially a marketing class for EMS companies, he told me he wanted to hear what I was telling EMS companies about marketing. He’d been disappointed by companies who couldn’t walk their talk and basically wanted to see if I was telling companies to overstate their capabilities. The short answer was that I wasn’t. The EMS industry is selling a service-based relationship. Marketing efforts that focus on undeliverable promises do more harm than good. My February article in Circuits Assembly looks at the challenge of providing points of differentiation that track to deliverable customer benefits.
Many of the EMS companies I work with or talk to are considering the question: invest or cut back? My February 2012 Circuits Assembly column discusses the possible areas of investment focus.