To those unfamiliar with federal procurement, the idea of "marketing" may seem odd. After all, if procurement is subject to specific regulations and is open, fair and objective, marketing and advertising would have little effect on who is awarded a contract, right?

In fact, effective marketing is a prerequisite for success in the federal market. Relatively few purchases - especially those under $100,000 - are made using a sealed-bid, low-price procurement method. Streamlined procurement methods allow government buyers more latitude in determining what constitutes the best value for the government, and many small purchases up to $10,000 do not require competitive bidding at all. These sales go to the businesses that have made the effort to promote their businesses and their products to the right people.

As with any other market, your government customers need to know three things:

1. That you exist and want their business;
2. That your products or services can help them cost-effectively achieve their objectives or are better in some way than what they are currently using; and
3. How to buy from you.

Government buyers are looking for the same things any other buyer would: high quality products, reliable suppliers, and fair prices. But they are also looking for certain things that might not be as important to private-sector customers:

• Vendors that help them meet their purchasing goals for small businesses, women-owned business, and other targeted categories.
• More than one potential supplier. One objective of the FAR is to ensure that contracts are awarded in a competitive environment to the extent possible.
• Simplicity. Government procurement regulations can be complex and burdensome for buyers, and they may take the path of least resistance when deciding how to buy and from whom. In other words, if you make it easy for them to find you and buy from you, you'll get more business.

One tool that can quickly lead government purchasers to your company and products is the Central Contractor Registration (CCR).

CCR is a mandatory government-wide clearinghouse of vendor registration information. By registering, you make information about your company available to all government users. You are responsible for the accuracy of your information, and government users can access your information when searching for potential suppliers and administering contract awards. Registration is online at http://www.ccr.gov, and a D-U-N-S number is required.

Registering in CCR is the first step in your marketing effort, but will not necessarily result in a flood of phone calls. Why? Because there are hundreds of thousands of other registrants waiting for those same calls. You need to do more. You need to get your marketing message in front of your potential customers so that they will specifically seek you out when it comes time to buy.

Strategies and Tactics for Marketing to the Federal Government

Broadly speaking, your marketing efforts will fall into one of two categories: demand generation or product differentiation.

Demand generation means expanding the market for your product or service by convincing buyers who were otherwise unaware of your product or its benefits that they should buy it. This is usually the case for a new or innovative product or a unique service.

Product differentiation simply means convincing buyers that they should purchase a product from you rather than from another source. You can differentiate your company or product in any number of ways: features, quality, price, availability, compatibility with other products, expandability, your track record of performance, warranties, etc. Often, advantages you have in the private sector will carry over to the government sector.

Eight Ways to Market to the Federal Government

1. Call potential buyers within federal agencies. Remember to do your homework first to identify your best prospects. You can start by calling the procurement office, but the person you really want to talk to is the end user - the program manager or technical specialist who needs what you offer. Talking with potential customers is the best way to gauge their needs and establish a relationship.

2. Network. Go to vendor fairs to meet buyers, other vendors, and potential partners. You'll find that the government procurement industry has plenty of opportunities to network, including networking breakfasts, procurement seminars, matchmaking events, and trade fairs. A current list of upcoming Business Matchmaking "Face to Face" events can be found at www.businessmatchmaking.com. Meeting other players in the field, including government decision makers, is one of the best ways to identify opportunities and build relationships.

3. Get help from the experts. Click here for a list of organizations that can help you develop a marketing plan, identify prospects, find a government trade fair or answer specific questions about federal contracting procedures for your product or service.

4. Use government-wide purchasing vehicles, if applicable to your product or service. These are contracts that are negotiated by one agency, but are used by many other agencies to procure common products and services. The General Services Administration's (GSA) Multiple Award Schedule (MAS), also known simply as GSA Schedule, is the most widely used procurement vehicle for information technology products and services, office furniture and supplies, and other types of equipment and services. Contracts such as the GSA Schedule are particularly appealing to vendors because they provide many types of marketing support for the vendors. GSA actively promotes its contracts throughout the government, and in some cases will even provide you a mailing list of customers who have expressed an interest in your type of product or service. Other agencies that administer government-wide contracts are the Department of Defense (DoD) and Department of Veterans' Affairs (VA).

5. Look for subcontracting opportunities. Large prime contractors are required to subcontract portions of the work to small businesses. FedBizOpps lists many subcontracting opportunities, but you can find others by inquiring at the Office of Small and Disadvantaged Business Utilization (OSDBU) of major federal agencies (see here). Contact prime contractors to:

• Learn what products and services they purchase (check their websites for this).
• Find out, as a subcontractor-to-be, what the companies' requirements are for becoming a subcontractor.
• Know your federal prime contractor's payment terms. Terms could be based on deliverables or at the completion of the contract, usually 30-60 days.

6. Use direct mail or e-mail. Send a brochure or materials about your company and your products to the procurement offices of agencies that buy your product or service. Direct these materials to the small business representative.

7. Target government field offices, especially those in your area. Headline-grabbing large purchases might be made from the Washington, DC headquarters, but there is a great deal of purchasing activity closer to home. Many of these purchases are simplified purchases under $10,000, but some are much larger. You'll have the advantage of being closer to the customer - a requirement for many service contracts and on-site work.

8. Be prepared to do business the way government does it. More and more, this means electronic commerce. For example, GSA offers several electronic marketplaces that make it easy for buyers to find sellers. Other tools, such as eOffer (www.eoffer.gsa.gov), enable the entire process - from bidding to modifications to payment - to be handled electronically.

Next: Federal Government Procurement Methods

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