Navigating the Internet for
Procurement Opportunities
Presented to:
Small Business Administration Georgia 8(a) Firms
EC
Arthur L. Brown
770-732-9392
art@lescot.com
Electronic Commerce
Defined (EC)
The electronic exchange of
business/technical information
using Electronic Data
Interchange (EDI), Email,
Electronic Funds Transfer
(EFT) and other similar
technologies.
Business Climate
Now
CHANGE
Forever
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/ind
ex.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/0,2469,3
5226973,00.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 Pages
Yellowpages.com
Thomas Register
http://www.thomasnet.com/
Sources to Identify Target
Markets/Government (cont’)
U.S., State and Local Governments
Federal
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
&returnAddress=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 Name Current 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
LeScot’s Mission
“To cost effectively build profitable organizations
through a solid foundation of business, marketing and
economic development expertise.”
LeScot Enterprise Services
EC
Business Management and Training, Seminar and
Technical Assistance Services Other Communication
Services
Economic Development
Marketing Development
What lies behind us versus what lies before
us are only tiny matters compared to what lies
within us.
…..Ralph Waldo Emerson