Although more firms are keeping tabs on their competitors with centralized files, most architecture firms in Boston, such as Perry Dean Rogers & Partners, say they lack a formal system of monitoring other companies. The Franklin W. Olin Foundation in Needham (above) is one of Perry Dean Rogers’ latest projects.
It’s reminiscent of J. Edgar Hoover’s secret files on congressional leaders, although not nearly as scandalous. The number of firms keeping a centralized file of data on competitors has grown to 31 percent, a 7 percent increase from the previous year, according to ZweigWhite’s 2003 Marketing Survey of Architecture, Engineering, Planning and Environmental Consulting Firms.
Pop open one of those files and you might find the names of key players, past projects, firm strengths or target markets.
It’s not a new concept, according to Jim Duffy, a ZweigWhite associate and marketing and corporate communications consultant in the firm’s Washington, D.C., office, although he says that it’s a trend gaining popularity, and one more companies should follow.
The goal? Achieving a competitive edge.
“The industry is becoming more and more competitive – there’s no doubt about that,” Duffy said. “It’s necessary to have these company profiles as part of your marketing mix.”
Architecture, engineering, planning and environmental consulting firms are paying close attention to marketing. This year, firms spent an all-time high of 5.3 percent of their net service revenue on newsletters, brochures, research or creating competitor files. In 2002, that number reached only 4.8 percent.
“That’s a substantial increase,” Duffy said. “It’s a sign that firms are taking marketing very seriously.”
‘The Usual Suspects’
With a weak economy and more competition for projects, firms can’t afford to relax market approaches or underscore the importance of keeping track of competitors, according to Duffy. Companies have consolidated and the downturn of the market has cast a slowdown or cancellation of projects.
Several local firms say that they do, in fact, track competitors, but on a much less formal basis. Most said that they do not keep a centralized file of data, but instead check Web sites and make a point of knowing key players.
“I don’t know that people keep something so formal, but I think most of us know who our competitors are and know what their work is like,” said Ann Johnson, marketing director of Perry, Dean, Rogers & Partners in Boston, an architectural firm. For the record, Johnson noted that her firm doesn’t keep files on its competitors.
Gabrielle Angevine, marketing director of the Boston office of Leers Weinzapfel, another architecture firm, said that her company keeps a file of architects and their brochures, but uses them only when the firm’s looking for a project partner.
“The only thing we do is, when we go after a job and we find out we’re on a short list, I’m sure to ask who else is on it,” she said. “I always, once a month, go through our toughest competitors’ Web sites to see what they’re up to.”
Leers Weinzapfel lacks a formal system.
“For us, it’s the usual suspects,” she said. “It’s always the same people; maybe it’s the size of the firm we are and the work we go after.”
Engineering firms are also facing a mixed economy, making market research a natural part of business, according to Abbie Goodman, executive director of the American Council of Engineering Companies of Massachusetts. She added, however, that she doesn’t know of any engineering firms that actually keep competitor files.
Duffy said the first step is to establish a profile for each competitor, including key managers, branch office locations, revenue, target markets, key clients and typical marketing practices. The competitive data will become a source for benchmarking the firm against the field, Duffy said.
Next, gather client feedback after presentations. Ask questions that compare the firm with the competition. If a job was lost, ask what the winning firm did to tip the scales in its favor. Use the client responses to improve presentation materials, delivery and enhance technical qualifications, Duffy said.
Finally, conduct a client perception survey. Ask clients what they think of the firm and its performance. Ask specific questions about the firm’s competitors, such as who they are and what they do best. Duffy said that provides an opportunity to educate clients on the firm’s specialties and clear up any misconceptions.
Duffy added that the files could include different types of information. A newly hired employee at a competitor may indicate that an engineering firm is bolstering one of its disciplines, or a list of a competitor’s past projects might highlight the company’s strengths. Knowing who the other key players are can help someone focus during an interview for a potential project.
“It’s a matter of understanding how to approach things,” he said. “You want to understand the company and what differentiates your firm. That helps establish a competitive edge.”
