Transmittal Letter

To PCSI Design

he topic of this document is PCSI Designs marketing plan that will allow the company to grow, by implementing a new website and the change process PCSI went through this quarter while implementing the website. Lastly, weve provided a 12-month implementation plan of marketing tools that PCSI should use to increase business.

Authorization
This report was authorized through the University of Washingtons Business and Economic Development Center (BEDC) in cooperation with Professional CAD Services Incorporated (PCSI) Design. Leon Rowland, with the assistance of teaching assistant, AJ Ghambari, has monitored the progress of this report. Quality standards are guided by Leon Rowlands grading criteria for the UW course, Marketing 490. A team-created contract as well as a consulting contract developed by the consulting team and PCSI Design also sets the expectations of this report and the overall project.

Project Description
The work that the consulting team was responsible for was the development of an improved website for PCSI as well as a 12-month action plan for PCSI.

Findings, Conclusions & Recommendations

After meetings with PCSI, our recommendations are to choose a marketing position for PCSI Design and then implement marketing tools based on PCSIs positioning. As a result, the company will be able to present its capabilities and benefits to clients. The ultimate goal of our recommendations is to allow PCSI Design to gain a larger market share and to be able to win larger contracts. This should, in turn, generate more revenue for the company and signify to employees and clients that PCSI has permanence. Another effect of forming and implementing a marketing plan is that turnover would decrease because employees will see PCSI as a company they would like to work with for the long-term instead of a mere stepping stone for jobs at bigger companies. In addition, the industry will gain respect for PCSI. All these effects will accumulate into PCSIs growth and longevity.

Thank You, PCSI

On behalf of the BEDC consulting team, we would like to thank PCSI Design for their cooperation in allowing us to work with them for these 10 weeks. Sincerely, Akira Barrett Mike Christa Savitrii Rizki Rusty Thayer ____________________ ____________________ ____________________ ____________________

Executive Summary
What Managers and Decision-Makers Need to Know
This quarter, spring quarter of 2007, the BEDC consulting team for PCSI Design worked to implement a new website as well as develop a 12-month implementation plan with the emphasis on a cohesive marketing strategy to identify how PCSI Design should position itself and manage its growth strategically through the implementation of various marketing tools. PCSI Design is a small but powerful company with the potential to grow. The key is to use its resources, characteristics, knowledgeable and diverse team, and past projects properly to communicate a valuable message to future clients, as well as re-communicating the message to past and present clients. In terms of industry analysis, PCSI Design is operating in the Specialized Design industry that is recognized as a service sector. According to www.census.gov, the current growth rate of the industry is estimated to be equal to 27.7%. Given the rapid growth rate and rapidly changing future trends, PCSI Design needs not only to change today, but to constant analyze trends for possible future threats as well as opportunities. This should be an on-going activity conducted by Marketing VP, Angela Pettit. PCSI Design has experienced significant growth in the recent past. To ensure the companys future success, we began the implementation process with a website re-design based on winter quarter of 2007s recommendations. After establishing PCSIs needs for the website, our consulting team came up with a suggested layout and content for the new website. Then we selected several web design and ad agencies to interview and present at PCSI in order to find the right designer. Our second objective was to develop a 12-month plan based on winter quarters findings and recent findings that should direct PCSIs marketing activities so that the company can grow beyond heavy reliance on a few major clients, and also obtain larger-sized contracts. The plan includes (1) hiring summer interns, (2) defining the positioning of the company, (3) finishing the website, (4) creating professionally-developed presentation materials that are customizable for different prospective clients in different industries, (5) hosting CRM events/tradeshows/and milestone celebrations, (6) a direct mail campaign, (7) competing in design competitions to win awards and gain credibility, (8) generating PR through articles in print and online trade publications, and (9) an ad campaigns in print and online trade publications.

PCSI
Next Steps in Implementation
design

Final Report
Akira Barrett Mike Christa Savitrii Rizki Rusty Thayer

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Table of Contents
List of Tables & Figures ........................................................ 3 Background & Introduction .................................................. 4 Data Analysis ........................................................................... 6 Strategic Analysis..................................................................... 9 Competitive Analysis ............................................................11 Change Process & Accomplishments ................................12 Recommendations ................................................................17 Conclusion .............................................................................28 Sources of Information ........................................................29

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List of Tables & Figures
Figure A - Average Proportion Spent on Marketing ....... 7 Figure B - Average Breakdown of Marketing Spending ... 7 Figure C - Average Growth of Marketing Spending ......... 8 Figure D - The Chasm .........................................................12 Figure E - Rogers Adoption Curve ...................................13 Figure F - Flash Intro Part 1 ...............................................15 Figure G - Flash Intro Part 2 ..............................................15 Figure H - Quick Quotes .....................................................15 Figure I - Home Page ...........................................................15 Figure J - About Us ..............................................................15 Figure K - Services................................................................15 Figure L - Vision ...................................................................15 Figure M - Clients .................................................................16 Figure N - Direct Mail Piece ...............................................25

Table 1 - Company Strengths & Weaknesses...................10 Table 2 - Cost of Copywriting ............................................20 Table 3 - Cost of Presentation Materials ...........................23 Table 4 - Cost of Events ......................................................24 Table 5 - Cost of Direct Mail Postage ...............................25 Table 6 - Total Implementation Cost ................................28

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Background & Introduction

CSI is an eight-year-old computer-aided design company founded by Carlos Veliz in Everett, Washington. It is a full-service engineering design firm that provides 3D solid modeling solutions. It can design the physical form of a product concept and provide CAD data sets, models, and drawings, and they can also reverse-engineer an existing product form to develop 3D CAD data sets. The company started in a residential home with only two other engineers and has since grown into a small firm of 17 employees. This January, PCSI moved its central operations office to Bothell, Washington as it plans on continuing expansion its new facility.

Purpose: Mission & Goals

Our mission was to start the implementation of the most crucial promotion tool, which we deemed was the website because it serves multiple purposes (advertising, news feed, service inquiries, and client and employee management). It also serves as a reference point for companies that hear about PCSI through other forms of promotion. Our second mission was to create a 12-month plan so that PCSI will be independent of the UW consulting team after the quarter is over. Last but most importantly, we strove to persuade PCSI to realize that they are indeed in need of marketing plan and to persuade PCSI to take the time to define its positioning.

What Happened Last Quarter

With basic market research based on preliminary sources (informal employee and client interviews) as well as basic market research from secondary sources, the winter UW BEDC consulting team analyzed PCSI for weaknesses that impacted revenues the most. Their biggest weakness was that PCSI is lacking a solid marketing plan. Amazingly, without a well-defined and written marketing plan, PCSI is functioning well in three of the four Ps of marketing (product/service, placement, and pricing). Promotion was the area that was most neglected. Its only promotion strategy is to gain clients from Carlos personal network, which generates some word-of-mouth, and then presenting at those companies. The marketing team came up with the foundations of a marketing plan by coming up with potential promotion methods.

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This Quarter
We came in hoping to implement the recommendations from last quarter, but there were 2 limitations: 1. There was still no formal marketing plan so nothing was clearly defined. In order to implement from start to finish, we needed to define at least the positioning part of the marketing plan, so that PCSI communicates a consistent message through out all promotion strategies. 2. We had to evaluate last quarters recommendations and choose which one to implement first because no prioritization was given. Our achievements this quarter include: 1. Identifying marketing priorities for this quarter 2. Defining needs and parameters for the website and designer 3. Selecting designers to interview 4. Interviewed designers 5. Hosting designer presentations at PCSI 6. Creating a 12-month plan

Overview
After the background presentation, this report goes into strategic and competitive analysis taken from last quarter, then this report discusses what happened this quarter and the change that PCSI went through, then it ends with the 12-month plan.

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Data Analysis
Market Analysis & Trends
As mentioned in winter quarters final report, PCSI Design is operating in the Specialized Design industry that is described as a service sector. According to the US Census Bureau, current growth rate for the Specialized Design Industry is very optimistic, and equal to 27.7%i. Due to the fact that PCSI Design is serving various industries, the industries in which the company is operating include: Transportation Medical Aerospace Electronics Consumer Industrial Fitness

In terms of seasonality and sensitivity to economic cycles, PCSI Design is strongly affected by its customers responsiveness. Another key factor that has a strong impact on the companys condition within a given industry is technological change and development. Because of high industry growth rates and fast technological advancements, PCSI Design needs to respond rapidly to any changes that occur in order to stay competitive. An advantage of the Specialized Design industry, however, is high customer loyalty. Due to tough and rapidly changing industry conditions, companies recognize marketing strategies to be an important factor that enable design firms to fully use its potential. Most companies are spending 2-5% of their earnings on marketing. The complete results of the given enquiry are illustrated in the figure A.

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Figure A

Figure B

According to Figure B, key marketing tools that companies devoted most of its funds to are: Direct marketing (mail, telemarketing, email) Web and trade publications advertisements Exhibitions, trade shows Non-web advertising Public relations

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Changes that occurred within marketing tools used within the Specialized Design industry is illustrated in the chart below:

Figure C

According to the graph above, there is a highly visible trend of increased usage of direct marketing, website/web advertising and exhibitions/conferences. Industry growth is determined by computer technology developments as well as Internet developments. Internet enables potential clients to browse websites and search for the best design engineering company. Researchers found that most potential clients are searching for design providers via a general search engine. Only 10% of potential clients are using industry portals. In terms of future trends within an expanding Specialized Design market, the environment is also changing rapidly. First of all, there is a need for engineering design companies to go online. Internet is a growing source of information and competitive advantage for companies that are able to use the Internet, website, and online magazines to its benefit. In the computeraided design industry, websites are not a primary marketing tool, but more as a reference tool that establishes a firms credibility. What is more, there is a growing trend of online communities, where specialists, clients or people who are interested in the subject can exchange their experiences, contacts and information about the best design companies. Secondly, in order to grow and stay competitive, companies ought to collaborate and communicate openly its values and principles. From the clients perspective, services provided by design companies must be customized therefore standards are not beneficial. Last but not least, creativity of designers is extremely important. Customers are looking for more innovative projects that grab attention, yet high in

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quality and durability. As a result, design companies need to cooperate closely with its clients in order to provide designs that exceed customers needs and expectations. To conclude, market analysis is very optimistic for the Specialized Design sector in which PCSI Design is serving its customers in various industries. As was stated before, the current industry growth rate equals 27.7%. What is more, PCSI Design is facing little competition. To ensure stable growth and sales, PCSI Design needs to take advantage of its positioning, potential, goals and, most importantly, market situation.

Strategic Analysis
Currently PCSI is a small company completely reliant on word of mouth marketing and networking as its sole source of business. Its CEO and founder, Carlos Veliz is extremely well networked in the local community; both in the engineering industry and business culture. In order to better understand PCSI Design, and its industry as a whole, our team decided to analyze the strengths and weaknesses of PCSI.

Internal Strengths
Chief Executive Officer The CEO of PCSI Design, Carlos Veliz, is literally the core of the company. He founded the company and operated it from the very beginning; therefore, he knows all about the company and has a very good grasp of the industry. The companys noteworthy reputation is largely due to his involvement in community activities. His active role in the community has allowed Carlos to network with potential clients and spread the companys name. The firm deals mainly with large corporations and much of their revenues are due to maintaining relationships with these clients. Carlos Velizs amiable ways have allowed him to be recognized as a credible man to do business with within the industry. Flexibility Since PCSI Design is a small-scale company, it is able to do business in a flexible manner in comparison to large, rigid designing firms. They can work in their office, or be on site if the clients need them to be. They can travel to wherever they are needed. It is because of this flexibility that employees experience high satisfaction, and gives the firm a personal touch. These various advantages to working in a small firm make the working environment more exciting for employees, which in turn leads to high employee satisfaction. Diverse Experiences PCSI Design has been working with companies in various industries such as aerospace, medical, fitness, transportation, electronics, consumer goods, and many more. By looking at our client survey, we found that they have received favorable responses from all different industries. This is proof that PCSI Design has the ability to take on jobs in many different areas, which leads to a broader target market. Unlike any of the other local engineering design firms, PCSI is minorityowned and their team of professionals is comprised of employees from all

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different backgrounds. This gives the diverse company a fresh, different perspective and they plan to leverage this multiculturalism in their projects. High Referral Rate PCSI Design seems to maintain very good relationships with its past clients. All the clients who have participated in our survey replied that they were very satisfied with their work and that it is very likely that they will recommend PCSI Design to someone in need of CAD services. Strong Revenue Pipeline PCSI Designs revenue has increased steadily since 2004. It has almost doubled in year 2006. Strong revenue back-up provides them with opportunities to invest more to their company, such as up-to-date CAD software, hiring more employees, providing a better office space, etc. State and Federal Certifications Currently, PCSI Design has three state certifications and one federal certification. The state certifications are: Minority Business Enterprise, Office of Minority Women Business Enterprises, and Small Disadvantaged Enterprise Business. The federal certification is the Small Business Administration 8(a). These certifications give a sense of credibility to clients. Support from the State of Washington Washington State is very supportive of small-business owners. It tries hard to attract lots of investors from outside and provides lots of incentives for small businesses. For example, the nonmanufacturer aerospace B&O credit is for companies that develop, design, and engineer, but not manufacture, commercial airplanes or component parts of commercial airplanes. This program provides a B&O tax credit for expenditures for aerospace pre-production development.

Table 1
STRENGTHS Carloss networking skills, reputation within the industry. High employees satisfaction. Flexible design team. High referral rates. Technical expertise in multiple verticals. State/Federal Certifications. Strong revenue pipeline. Media coverage. Convenient location. Engineers from diverse backgrounds. Minority Owned Business. WEAKNESSES Lack of marketing strategy. Companys small size. High turnover rates. Weak company vision and mission statement. Large number of contracted engineers.

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Internal Weaknesses
Lack of a Marketing Strategy So far, all of the projects that PCSI Design has been contracted to work on are due to clients hearing about Carlos Veliz. Although word of mouth is a major marketing tool within the industry, not having any other marketing strategy is risky, especially for a company that wishes to grow significantly. PCSI Design needs strategies and directions to manage its future growth. Small Size Through our client survey, we found that clients view PCSI Design as a small design company, capable of managing only small projects. If this type of assumption of the company does not change, it will definitely hold back PCSI Design from reaching its full growth potential. Vision and Mission Statement PCSI Designs current vision and mission statement is very vague and does not represent the company well. A companys vision and mission statement should not only be the direction in which the company wants to head, but should also be an important tool when it comes to establishing relationships with new clients. Potential clients who have limited background knowledge of PCSI Design will likely look at their vision and mission statement to get a general idea of the company. In addition to this, a strong vision and mission statement unites employees, giving them a sense of belonging and team cohesiveness. High Turnover Rates Out of 16 employees, about 75% have been with PCSI Design for less than a year. For some reason, working for PCSI Design is perceived as a stepping stone rather than a life long job for a majority of its employees. Upon Analysis of these factors, there is a definite discrepancy between where PCSI is currently and where they would like to be as a company. The difficulty in incorporating this change is that the business is currently effective in making profit and acquiring contracts. However in order to grow in size and revenue the implementation of a marketing plan is unavoidable. Here in lies the difficulty of the change being that one of the companys major strengths, Carlos, can no longer be the sole source of marketing. Although a personal touch is one of PCSIs biggest assets and distinguishing characteristics; it can still be leveraged through other mediums.

Competitive Analysis
Competitors
The two biggest competitors that PCSI has are Carbon Design and Frog Design. The office at Carbon Design is more modern and has a sophisticated feeling. Products and other accomplishments were displayed visibly on the walls. The atmosphere at PCSI is more comforting and friendly. Carbon Designs most prominent method of client acquisition is

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also word-of-mouth and referrals. Carbon employs a full-time sales representative that deals with cold calls, follow-ups, and media distribution. In a way, PCSI is the same in regards to its primary source of clients through word-of-mouth. A key difference is that they did not have a marketing/sales specialist until recently. PCSI and Carbon share many common trends of the tier-two industry, such as direct mail tri-folds and a majority of contracts from returning clients. Carbon Designs former website was similar to PCSIs by using Flash. Using Flash is normal for the industry because it gives the perception of being high-tech and on the cutting edge. Carbons website was welldesigned and stylish like PCSI, but also like PCSI, the content was lacking. Both of the websites were difficult to navigate through. Initial information on both companies are hard to find as well. This brings us to another major competitor: Frog Design. Their website is clear and concise. It feels current and up-to-date with blogs about the company and news updates on the first page. Frog Design is the biggest competitor because they are a larger firm with offices in 9 different cities around the world and another office opening up soon in London.

Change Process & Accomplishments

Solution Formulation
Starting with step one of seven in the change process, our team mobilized energy and commitment at the second client meeting through joint identification of the business problems and their solutionsii with Glen and Carlos using information gathered last quarter and at the previous client meeting. In the strategic analysis section of this paper, we gave a clear definition of the business problemsiii: (1) lack of a marketing strategy, (2) small company size, (3) no vision and mission statement, and (4) high turnover rates. Our team decided that (1) lack of a marketing strategy should be tackled first. We knew we had to enlist the support of key people and not just the CEOiv, namely Glen, Carlos, and later on Angela the new marketing VP. To persuade Glen and Carlos, we should have answered why PCSI must do thisv. We did not, however, present any clear reasoning yet PCSI still agreed with us. Later we will discuss the difficulties we had and what we learned from them. The following are the reasons we should have presented to Glen and Carlos in order to persuade them to implement a marketing strategy first: 1. Both Glen and Carlos agree that they cannot go on without a formal marketing plan. This signals that they have exhausted the early market and must move on to the mainstream market, which entails jumping the chasmvi.

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2. The early market, which consists of innovators and early adopters, has very different expectations than the mainstream market.vii To cross this chasm, a company must define their marketing plan,viii articulate the benefits of their servicesix, and at least keep up with the competitionx. 3. Innovators are the gate-keepers for any new product or service companyxi. Hence, they are the first key to any product or service marketing effort. They pose the fewest requirements than any other group in the adoption profile. So far PCSI has satisfied them by giving them access to Carlos, the most technically knowledgeable person to address their problems, which is what innovators wantxii. Their only other concern is getting everything cheap, so they have no use for added-value argumentsxiii. This explains why it was easy in the beginning stages to do business without a formal marketing plan. 4. Early adopters are a rare breed who have the insight to match an emerging service to a strategic opportunityxiv. That is yet another reason why it was feasible to do business without a formal marketing plan in order to communicate PCSIs benefits. We were successful in persuading PCSI that a marketing plan implementation was needed. This was our first accomplishment. After persuading Glen and Carlos that a marketing plan was needed, we gave many suggestions on what we thought needed to be done, some coming from last quarters assessment. We suggested a scattered mix of (1) a website redesign, (2) a direct-mail campaign, (3) attending tradeshows, (4) hosting events for current and prospective clients, (5) generating PR through blogs, news, and magazine articles, and (6) a company newsletter. We were ambitious and wanted to accomplish a lot this quarter, however Glen did not want us to fail and knew that we could only accomplish one or two tasks in the time span of a quarter, so he suggested focusing on a maximum of two activities. This signaled to us that PCSI is still reluctant to trust us and still reluctant to change and that PCSI is only comfortable with making small changes for now. If we wanted to proceed, we would have to start with what theyre comfortable with even if its only a small change. Our team reluctantly took his advice, fearing that we would have no deliverables at the end of the quarter, and because we were impatiently waiting to take action. What we later learned from our course reading shed some explanation for Glens advice. Both our consulting team and PCSI had to understand that change can only happen if its continuous and incremental because small changes are easier to manage, enjoy a greater probability of success than big changes, disruptions that occur in the change process are short-term and confined to small units at any given time, and the organization and people will be kept in a constant state of competitiveness and change-readinessxv. At the end of the meeting, we were assigned to choose two deliverables to focus on and give our suggestions at the next meeting.

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In a team meeting to prepare for the third client meeting, we decided to suggest a website re-design, a direct mail campaign, and a 12-month plan to be our target deliverables for this quarter. Our reasoning is as follows: 1. Website Re-Design would serve as the foundation of their marketing strategy because: a. After hearing about PCSI or the need for product design services occurs to prospects, the Internet is their first reference point. Therefore PCSIs website serves as their first impression wherexvi. b. The website is an efficient way for prospective clients to send their inquiries and RFPs. c. The website could be used in sales presentations. d. An investment in a new website would force PCSI to define badly needed mission, vision, and positioning statements that affect all marketing materials if they want to achieve a compelling and consistent brand so that PCSI is adopted by the mainstream market. e. The website could be used for updating clients and employees on recent company news. f. The website could be used as an Intranet to keep employees connected so that employee satisfaction will increase, thus lowering turnover rates. g. PCSI must start change at the periphery then let it spread to other units without pushing it from the topxvii. We think an effective website will be well-received by the whole company. 2. Direct Mail Campaign: a. Direct traffic to the new website. b. Get new customers. c. Wanted to accomplish more than just one task. 3. 12-Month Plan: a. Provide direction for after this quarter is over and our consulting team is dissolved. At the third client meeting, we presented our suggestions. Again Glen insisted we focused only on two objectives at the maximum, so we settled with the website re-design and the 12-month plan because for the reasons previously mentioned, there are more advantages for the website to make it a greater priority. Therefore, direct mail will be included in the 12-month plan. More reasons to chose the website and 12-month plan were revealed at the third meeting with PCSI. The was website chosen as priority because not only is the website a foundation for marketing, but our team and PCSI saw it as developing an enabling structure, or an ideal pilot program to give PCSI an opportunity to grapple with marketing implementation and its problems on a smaller, more manageable scalexviii. What makes it an ideal pilot program is the websites tangible results and many uses with one implementation effort or risk-

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Figure F-M taking initiative. Each risk that succeeds will build confidence and will prepare PCSI for morexix. The 12-month plan is essential because an organization needs a nuts-andbolts plan for what to do, and when and how to do itxx. Our suggested 12month plan is included in the Recommendations section of this paper. After the third client meeting, our team was assigned to define our suggestions for an improved website (figure F-M), and write a client contract to specify the roles and responsibilities of everyone involved. Our suggestions ended up being used little for the final design because we learned that a credible web designer will do the research to come up with what needs to be on the website. However, it did get us to examine PCSIs current website more thoroughly and our team ended up with a greater understanding of the scope of their current websites problems. At least the client contract proved to be important for effective change because our textbook asserts that every planned outcome should be at the acknowledged responsibility of one or more individualsxxi. They should publicly state that they welcome and accept the responsibilityxxii. Most importantly, the client contract identified the leadership of this marketing plan initiative. For a change initiative to happen, a visible leader and sponsor of change is needed to own and lead the change initiative, assemble the resources needed for the project, and take responsibility for success or failure.xxiii Control and responsibility must be situated in the units undergoing change, handled by unit leadersxxiv. Glen will be responsible for the success or failure of this marketing plan. He is the perfect leader because he has a persistent belief that revitalization is key to competitiveness and a deep conviction that fundamental change will have a major impact on the bottom line and he isnt shy about itxxv. He also has the people-skills and organizational know-how to implement his visionxxvi. At the fourth client meeting, our team and PCSI collaborated to define needs for the new website and to define our expectations for the web designer. This collaboration was necessary for an effective change program. According to the course text, consultants and clients must develop a shared vision of how to organize and manage for competitivenessxxvii. Below is a summary of PCSIs needs and expectations: We would provide the designer with parameters and communicate PCSIs needs, and the designer should come up with creative solutions. PCSI does not want to be hassled with providing too much direction. The website should have wow factor. Communicate that PCSI can take on big projects. Assure clients that PCSI is knowledgeable in their industries since PCSI would like to serve every industry (breadth and depth.) Communicate that PCSI serves versatile product design needs (from CAD drafting to product concept to product form design)

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Communicate that PCSI is a flexible company to work with (they are accommodating and customer-service oriented.) Show off PCSIs accomplishments and design capabilities. Create and carry one look, one message, one brand in all marketing materials. Communicate that PCSI is an innovative and cutting edge company.

Implementation
With the parameters from the fourth client meeting, we were given the task of finding three web designers to interview and to present at PCSI. We started by doing a web search and found three in the Seattle area that seemed credible from their websites Big Fin, Ad Ventures, and Mercury Cloud. We also considered three other web designers we heard of from word of mouth Vanguard, and a friend of Grace, a teammate from last quarter. We conducted meetings at three web design agencies. An initial meeting was intended to invite them to do a presentation at PCSI in front of the decision makers as well as to get an initial impression and to talk about our needs. Professionalism of account executives and the office environment triggered our initial impressions. Big Fin had a very service oriented salesperson. She asked questions about our needs and gave us suggestions. However, the office environment was plain and did not present a creative impression. Ad Ventures had a nice office, but the person was not service oriented and did not take us seriously. She would not offer suggestions until we signed a contract with her. Mercury Clouds office impressed us. It was innovative as well as nice, and we were given great professional service being bombarded with three reps instead of one. They asked questions and were willing to listen. Presentations were given at PCSI and the company is currently awaiting proposals with cost figures. More on the presentations is described in the next section.

Lessons Learned
During implementation, we could not speed up the process and risk carrying Carlos unfinished psychological baggage from one change phase to the next. We had to resist our natural bias toward action and exercise patience. We had to monitor and adjust strategies in response to problems in the change processxxviii. We had to understand that people need to feel a sense of accomplishment. So to keep Carlos motivated, we adjusted our objectives by making presentation materials a more immediate priority after the website. It has tangible and more immediate uses and results. We had to find Carlos special talent, which is presenting to clients, and give him an opportunity to use it and to earn some recognitionxxix. Although PCSI chose to take two of three of our suggestions, it was out of mutually understood and assumed benefits by PCSI and not by clearly

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articulated reasoning on our part. We need to learn to better communicate our vision in order to motivate our clients and to persuade them. We also learned that change is complicated by the fact that organizations are social systems whose participations have identities, relationships, communities, routines, emotions, and differentiated powers. Managers must be alert to how change will conflict with existing social systems and individual routinesxxx. We also learned about the importance of change agents: such as Mercury Cloud. They see the need for change and can articulate it effectively to others. They are critical catalysts for a change initiative and should be placed in key positionsxxxi. With respect to marketing, we learned a few things from the designer presentations at PCSI. Presentations were conducted at PCSI to choose between the three. Mercury Cloud went first and set the bar high. They put on an amazing presentation presenting their work that relates to PCSIs needs. They also presented their initial impressions of the website and what PCSI should do, maybe taking it a step back and going back to branding. They suggested doing customer research, renaming, logo redesign, messaging and content creation to help with their website, but what would be feasible depends on the cost and PCSIs budget. Their presentation made it clear how a professional and compelling video and website and marketing materials can sell a company by leaving an amazing impression after the meeting in comparison with competitors. Big Fins presentation made it clear that they did not do any branding and did not specialize in graphic design. They specialize in building websites and search engine optimization. They could be the optimum solution if PCSI decides that it does not need to build a brand. However, that is what the last website lacks. Last but most importantly, we also learned to make small incremental changes.

Recommendations
Website Re-design
Again, we chose to re-design the website because website re-design would serve as the foundation of their marketing strategy: 1. After hearing about PCSI or the need for product design services occurs to prospects, the Internet is their first reference point. Therefore PCSIs website serves as their first impression wherexxxii. 2. The website is an efficient way for prospective clients to send their inquiries and RFPs. 3. The website could be used in sales presentations. 4. An investment in a new website would force PCSI to define badly needed mission, vision, and positioning statements that affect all

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marketing materials if they want to achieve a compelling and consistent brand so that PCSI is adopted by the mainstream market. 5. The website could be used for updating clients and employees on recent company news. 6. The website could be used as an Intranet to keep employees connected so that employee satisfaction will increase, thus lowering turnover rates. 7. PCSI must start change at the periphery then let it spread to other units without pushing it from the topxxxiii. We think an effective website will be well-received by the whole company.

12-Month Plan
The aim of the 12-month plan is to position PCSI Design then implement complimentary marketing tools to boost sales and acquire larger contracts. The company will achieve this by presenting its capabilities and benefits to clients through clear and consistent messaging to new and prospective clients through several media. We chose 7 marketing activities starting with solutions that last for the long-term, such as positioning the company and presentation materials. It ends with shorter-term solutions or solutions that are usable only in one or a few instances, such as advertising or publishing articles in trade publications. We also placed higher priority on marketing activities that will definitely be viewed by your target market. For instance, its definite that prospective clients will see your presentation materials, so the redesign of presentation materials has a higher priority. The benefit of this prioritization is that if PCSI is satisfied with its revenues, it doesnt have to spend resources on less permanent marketing activities.

First Step: Recruit Summer Interns (6/07)

These recommendations require much effort from the company and even the marketing VP. To help implement this marketing plan, PCSI should hire summer interns from the University of Washington Business School. To post an internship listing, csm.symplicity.com/employers. go to https://washington-

Benefits With the help of a marketing person and a few marketing interns, PCSI will be able to successfully execute this marketing plan. Angela Pettit, the new head of marketing, can delegate smaller, more mechanical tasks to interns so she can focus on the crucial, more dynamic tasks. Costs The process is quite simple to post an internship listing on Husky Jobs, the primary internship site of UW students, and is absolutely free.

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Second Step: Positioning (6/07)
CAD services are used in a variety of industries; from construction to software and fashion. Does PCSI have the capabilities to work for all of these industries. Clarifying your positioning will guide all following marketing activities. Your current positioning is that: PCSIs target market is any company in any industry. PCSIs sustainable competitive advantage is its: o o o Versatility in its ability to serve any industry. Excellent and personal customer service. Innovation

What differentiates PCSI is its: o Diverse ethnicities and nationalities of PCSIs employees.

But you should evaluate if your current positioning is: Practical. Is it practical to target all Industries? This would spread your marketing budget too thinly. Valued by potential clients and how important is it too them? If its only marginally important, find more significant points of differentiation and sustainable competitive advantages.

Some changes we suggest are: Either specifying your company as a mechanical (MCAD) engineering company, thereby targeting a more limited list of industries:xxxiv o o o o o o Automotive vehicles Aerospace Consumer Goods Machinery Ship Building Bio-Mechanical Systems

Or tone down the industrial, tech-feel of your branding so you can better attract clients in other industries such as Fashion and the Architecture, Engineering, and Construction Industry or AEC industry. Third, add differentiating points and sustainable advantages that are clearly considered benefits to your clients, for example:

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o Fast turnaround of projects or lower cost Fourth, explain how differentiating points and sustainable competitive advantages benefit clients, for example: o Guiding clients and keeping clients informed throughout the entire process is how PCSI demonstrates excellent personal customer service.

Fifth, add proofs to your points of differentiation and sustainable competitive advantages. For example: o Innovative work should be proven by certifications, awards, college degrees, the technology PCSI uses, and better showcasing PCSIs most innovative projects (the website will help accomplish this.)

Last, professionally copywrite PCSIs positioning and anything written in marketing collateral.

Benefits The benefits are consistent, clear communication that tells prospects what they want to know, and an image of professionalism that persuades prospects to use PCSIs services. Costs Monetary costs include the cost to copy write and hire a marketing firm to do the positioning and research for the positioning. However, there are significant cost savings if PCSIs leaders can take the time to develop an effective positioning. We recommend that Carlos, Glen, and Angela conduct a brainstorm session with a copywriter. Costs for a copywriter are estimated to be:

Table 2xxxv
Catalog Copy Brochure Direct Mail Package Free Standing Insert (FSI) Full Page Print Advertisement Four-Page Newsletter One-Page Letter Two-Page Letter Self-Mailer Space Ad (7x10) Space Ad (full-page tabloid) Web Page Website E-mail Marketing Message $50-$100/copy block or $100-$250/page $500-$1000 $1500-$5000 $750-$1250 $500-$1250 $1000-$2000 $300-$500 $500-$1000 $1000-$1500 $500-$750 $1000-$1250 $250-$500 $1000-$4000+ $300-$500

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Third Step: Finish New Website (6/07-9/07)
Website implementation was our main implementation objective for Spring Quarter 2007. PCSI is yet to choose a designer between Mercury Cloud and Axis Creative. Benefits The new website will serve as a reference point for their past, new and prospective clients. The website will be a base for the companys marketing strategy because it is an innovative and fresh medium through which the company can grab attention and provide decision-making point for clients. Costs A quote from Mercury Cloud estimated the cost to be $38,000.

Fourth Step: Presentation Materials (7/07-9/07)

Although PCSI should diversify their marketing strategy, word of mouth as well as presentations are still its main selling tools. As a result, PCSI Design needs to invest in the preparation of customized and professional presentation materials that are tailored to the specific needs of customers in various industries. This can result in rapid expansion to various industries. Proper planning and the creation of customized, professional presentations can be even much more successful than other marketing tools because presentations are guaranteed to be seen by prospective clients, and is the main influencer of a prospects buying decision. For a business-to-business service provider, a requisite for winning contracts are compelling sales presentations of the company, its services, and business proposal to prospective clients. Most likely, PCSI must do a sales presentation to satisfy every request for proposal regardless of whether a prospect approaches PCSI or vice versa. This is due to the fact that PCSI has many direct competitors, so prospects have many companies to choose from and prefer comparing CAD designers/engineers because projects take a long time to complete and have more significant costs. The purpose of the presentation is to provide knowledge to the prospect/client via the features, advantages, and benefits of your service, and business proposal. This allows the buyer to develop positive beliefs towards PCSI. These beliefs result in a desire (or need) for PCSIs services. PCSI must convert that desire (or need) into the attitude that PCSIs service is the best service to fulfill that desire (or need) and that PCSI is the best source to buy fromxxxvi. PCSIs current presentation materials fail to explain the service process and benefits to clients, fails to project a professional image, and fails to differentiate the company from competitors. According to The ABCs of Relationship Selling Through Service, only new, topquality, professionally developed visuals should be usedxxxvii. The best visual aid is the actual product, but with services you can only create a mental

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image of your services features, advantages and benefits.xxxviii So its crucial to create the best mental image as possible. For starters, a professionally developed tri-fold will make a good lasting impression even after PCSI is done presenting has left prospects. Another guideline for using visual aids is to customize them to the sales call objective the prospects customer profile and the customer benefit plan and concentrating on the prospects important buying motives, using multiple appeals to sight, touch, hearing, smell, and taste.xxxix Therefore we recommend hiring designers to professionally design customizable PowerPoint presentations. Technology provides excellent methods of presenting information to the prospect in a visually attractive and dramatic manner. Today, multimedia computers present video clips, play sound bites, show beautifully illustrated graphics and can be connected to projection equipment for great presentations. Videos are also increasingly being used in sales presentationsxl. Therefore we recommend outsourcing the creation of a sales video to be shown in PowerPoint presentations, the website, and to be burnt onto DVDs to mail and giveaway to prospective clients. Another way to leverage technology to provide better service is through computer software that can quickly crunch data providing instant solutions to buyers questions. Salespeople can quickly show buyers costs when considering different installment payment schedules at various interest ratesxli. These on-demand, customized cost estimates could then be sent to prospects e-mails upon request during sales presentations or viewed right on the computer or projector screen. This application could be developed by Angela on Microsoft Excel. To recap, weve suggested: 1. Including features, advantages, and benefits of your service, and a business proposal for prospective clients in presentations. 2. Professional business collateral development: tri-fold, fly sheets, and folder 3. Professional PowerPoint presentations 4. Professional video which would be used in the PowerPoint, website and handed out to clients/prospects in a DVD. 5. Cost estimate application for presentations Also, recently PCSI has contacted Mercury Cloud for quotes of different services to develop presentation materials, including: Logo re-design Business package development Business collateral development

We suggest that PCSI keeps its current logo, and does not pay $8000 if it is planning to target MCAD businesses because it has a high-tech feel, but not

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if you are expanding to different industries to include more consumer goods industries. Even so, a cheaper alternative would be to hire student graphic designers for a logo design. We suggest not doing the letterhead, envelope, mailing labels, note cards and matching envelope design of a business package development because those are all things Angela, the new marketing VP, could do on Photoshop, maybe even on Paint as long as PCSI has an appropriate logo. And previously, weve already discussed that business collateral development is one of our suggestions. Benefits In a sales presentation, the use of visuals increases retention of information, reinforces the message, and reduces misunderstandingxlii. Also, it is important to be considered both good and different according to Mercury Clouds presentation. Visuals in presentations show the buyer that PCSI is a professional companyxliii, hence good. As well, the use of visuals in sales presentations creates a unique and lasting impressionxliv, hence different. People retain approximately 10 percent of what they hear, but 50 percent of what they see. Consequently, you have five times the chance of making a lasting impression with an illustrated sales presentation rather than with words alone. Just as much as theyll remember good visuals, they will also remember bad visuals. Its often not what you say but how you say it that makes the salexlv. To keep up with and stay ahead of the competition, PCSI should use professional presentation materials. Salespeople are finding high-tech sales presentations effective in providing customers with the necessary information to make informed decisionsxlvi. Overhead transparencies, slides, and black-and-white handouts are being replaced by dynamic software packages, interactive multimedia programs, active-matrix color screens, and multimedia projectors that bring computer images to lifexlvii. Costs If PCSI decides to use a full-service marketing agency instead of a web designer alone, PCSI could use the same company to develop all marketing materials. Or separate designers could be used for each item, such as using a graphic design firm, such as Vanguard Press, to create the tri-fold, and another firm, such as ProPoint Graphics to create the PowerPoint presentation. Below are average prices for each item:

Table 3
Features, advantages, benefits Business collateral development PowerPoint Video Cost estimator This costs time to develop $6,750 $250+xlviii Less than $30,000xlix This costs time to develop on Excel

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Fifth Step: Events CRM, Tradeshows, Celebrating Milestones (9/07-6/08)
Maintaining long-term profitable relationships with past clients, as well as, finding opportunities to build new relationships can be achieved through active participation in customer relationship management events, trade shows, and milestone celebrations. The best opportunity to maintain relationships with clients is not only quality of service but personal interaction with clients during social events. We recognize the importance of organizing trips and seminars for clients that can be named Discover the Beauty of Washington State with PCSI Design clients can learn more about PCSI Design, interact with management as well as with the design team and at the same time enjoy what Washington State has to offer. Hosting CRM events is the most effective way to maintain existing clients while providing updated information on the companys growing and expanding capabilities. Banquet events and luncheons are the most effective method of gathering clients by providing free dinner. Last quarters team compiled a list of possible design engineering tradeshows, events and conferences that PCSI can attend. Many of these are free and offer great networking opportunities. We recommend that the company attend these events frequently, especially the ones that are held in the northwest. For tradeshows, PCSI should rent a booth and have Carlos, Glen and Angela be present. DVDs as well as tri-folds should be handed out. Company parties to celebrate milestones such as the completion of the website, the winning of awards and certifications, the winning of contracts and the completion of projects are also good events. Both clients and employees can be invited. Clients could get to know designers personally, enhancing trust and creating favorable attitudes toward PCSI. Benefits Carlos and PCSI will be able to make a favorable impression of the companys values and personal touch. The goal of the CRM should not be to win the client or expect to immediately gain contracts, but keep the company name in the minds of clients as a reputable growing company. Tradeshows provide networking opportunities that lead to future clients, whereas milestone celebrations can be both employee events that increase motivation and decrease turnover rates, and can also serve as CRM events. Costs A summary of costs is shown below:

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Table 4
CRM: Luncheon (50 guests) Catered Dinner (100 guests) Tradeshow: Booth Banner Milestone Celebrations: Pizza Party (30 guests) $400 (Top Foods) $4,570 (Cater Seattle) $1,500 $250 (Pagliacci Pizza)

Sixth Step: Direct Mail (10/07-6/08)

After business collateral is developed, the new website is up, and PCSI has made more contacts through networking events, it is time to focus its resources on a sending direct mail to past, current clients, and to addresses of prospective clients gathered from networking events, WOM, website inquiries and phone inquiries. The new presentation materials such as the tri-fold, business cards, and DVD should be mailed, along with a thank-you note tailored to each type of client. Benefits The benefit of direct mail to past and current clients is to maintain customer relationships and to remind them that PCSI is the best company to fulfill their design engineering needs. Mailing Lists On Demand's lead generation services states that their benefits include: Costs Costs of direct mail pieces are sunk costs because they were already incurred for presentation materials, except for the cost of thank-you notes which could be bought in bulk quantities of 100 for $142 at www.cardsdirect.com. Customization and shipping comes at no extra charge at cardsdirect.com. The only other cost is for postage:

Table 5
Number of Letters (trifold/DVD/business card/thank-you notes) 100 200 300 400 500 600 800 1000 Cost to Ship $39.00 $78.00 $117.00 $156.00 $195.00 $234.00 $312.00 $390.00

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Seventh Step: Awards and Competitions (11/07-6/08)
PCSI should consider competing in these competitions: as mentioned in winter quarters report: 1. Design and Business Catalyst Award 2. 2007 International CES Innovations Design and Engineering Awards 3. International Design Excellence Awards '07 Benefits Awards provide another vehicle for capturing attention by placing PCSIs designs into the spotlight. We felt this would be beneficial for PCSI as awards are third party endorsements, and therefore more trusted than selfendorsements. PCSI Design lacks team-oriented activities outside of work and we see these design engineering competitions as a perfect chance to build credibility for the company, and also allow employees to bond. Costs The entry and registration fees to enter design competitions vary. Some competitions have a $0 entrance fee while others range from $200 - $650 per entry.

Eighth Step: Public Relations Articles (12/07-6/08)

There is a need to create awareness and curiosity around the company and its services. It can be achieved for free through articles, case studies and recommendations written by industry experts in trade publications and websites. PCSI should strive to publish articles in magazines such as the Mechanical Engineering Magazine, which does not charge to place articles. Its online and print version provides updated industry-related business news and feature stories that interest a broad spectrum of engineers. Also, real-time press releases written and maintained by Angela Pettit, the head of marketing, should be posted on the companys new website in the Recent News section. Benefits This tool aims at creating interest and need recognition by potential clients that will direct them to PCSIs website at a low cost. Specifically, benefits of publishing articles in Mechanical Engineering Magazine allows PCSI to gain national and international exposure because Mechanical Engineering Magazine and Web provides a global platforms showcasing mechanical engineerings leading role in technological advancements. Public relations in general is considered to be more interesting and more credible than paid advertisements by viewers and readers.

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Costs For publishing an article, some magazines charge depending on how many words within a price range of $500 to $1000 for 2000-3000 words. If PCSI has to pay for articles to be published. Some magazines will publish articles for free, such as H2O City Magazine and National Mechanical Engineering Magazine, within a specific criteria and a selection processes.

Ninth Step: Paid Advertising Print/Web Ads (1/08-6/08)

We suggest focusing paid advertisements on local, state publications as well as online magazines with a business/engineering orientation. Local magazines we looked into include the Puget Sound Business Journal (http://www.bizjournals.com/seattle/), Pacific Northwest (Seattle Times) Magazine (http://seattletimes.nwsource.com/html/home/index.html), The Seattle Daily Journal of Commerce (http://www.djc.com/), and H2O City Magazines. Benefits Print advertisements generate requests for proposals if a potential client is in need of CAD services and happens to see PCSIs print advertisement. More importantly, it creates market awareness of PCSI, which leads to credibility for PCSI and then possibly future business if the viewer of the ad notices it and has a positive reaction. Thus, it is important that ads are professionally designed and engaging. Costs PCSI Design should focus its placement of print advertisements mainly in trade publications within the design engineering industry. It includes, for example, Mechanical Engineering Magazine. The ad rate of these magazines vary from various magazines and it depends on the dimensions and time to be displayed with a range up to $5,000. The average price of designing and developing a professional print advertisement is $5,000.

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Table 6: Implementation Cost Statement (Estimates)

Interns Positioning Copywriting Brochures Copywriting Space Advertisements Website Presentation Materials Collateral Development PowerPoint Video Events Pizza Party for Milestones CRM Luncheon CRM Catered Dinner Tradeshow Direct Mail Cards Postage Public Relations Paid Advertisements Design Space Rate Total Cost $ 0 1,000 1,250 38,000 6,750 250 30,000 250 400 4,570 1,500 142 39 1,000 5,000 5,000 $95,151

Conclusion
In this report weve presented the work done by BEDCs consulting team during the Spring Quarter of 2007. During this time we focused on website development as well as the development of a 12-month marketing implementation plan. Change is a main determinant of success for PCSI Design. That is the reason why we believe that PCSI Design must finish the route it began. However, PCSI must keep in mind that successful change happens continuously and incrementally. PCSI should not rush itself and take it step-by-step. Everyone affected by the marketing plan should have a say in its creation (our consulting team has only given suggestions for elements of a marketing plan.). Execution will be much easier if they have everyones support and enthusiasm.

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Sources of Information
Books:
Futrell, C. (2007). ABCs of Relationship Selling through Service. York: McGraw-Hill/Irwin. New

Harvard Business School Press. (2003). Managing Change and Transition. Boston, MA: Harvard Business School Publishing Corporation. Moore, G. (1999). Crossing the Chasm. New York: HarperCollins Publishers.

Online:
Computer-Aided Design. (2007, May). Wikipedia. Retrieved June 1, 2007, from the World Wide Web: http://en.wikipedia.org/wiki/CAD#Fields_of_use Copywriting Fee Schedule. (2007). The Write Direction. Retrieved June 1, 2007, from the World Wide Web: http://www.writedirection.com/fees.htm Corporate Presentation FAQ. (2006). ProPoint Graphics. Retrieved June 1, 2007, from the World Wide Web: http://www.propointgraphics.com/process-FAQ.html

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www.census.gov

Managing Change and Transition p. 33 Managing Change and Transition p. 33 iv Managing Change and Transition p. 53 v Managing Change and Transition p. 33 vi http://en.wikipedia.org/wiki/Crossing_the_Chasm vii http://en.wikipedia.org/wiki/Crossing_the_Chasm viii http://en.wikipedia.org/wiki/Crossing_the_Chasm ix Crossing the Chasm p. 40 x Crossing the Chasm p. 49 xi Crossing the Chasm p. 32 xii Crossing the Chasm p. 32 xiii Crossing the Chasm p. 32 xiv Crossing the Chasm p. 34 xv Managing Change and Transition p. 104 xvi The ABCs of Selling xvii Managing Change and Transition p. 43 xviii Managing Change and Transition p. 58 xix Managing Change and Transition p. 87 xx Managing Change and Transition xxi Managing Change and Transition p. 56 xxii Managing Change and Transition p. 56 xxiii Managing Change and Transition p. 39 xxiv Managing Change and Transition p. 39 xxv Managing Change and Transition p. 38 xxvi Managing Change and Transition p. 38 xxvii Managing Change and Transition p. 36 xxviii Managing Change and Transition p. 45 xxix Managing Change and Transition p. 96 xxx Managing Change and Transition p. 81 xxxi Managing Change and Transition p. 81 xxxii The ABCs of Selling xxxiii Managing Change and Transition p. 43 xxxiv Wikipedia http://en.wikipedia.org/wiki/CAD#Fields_of_use xxxv http://www.writedirection.com/fees.htm xxxvi ABCs p. 312 xxxvii ABCs p. 325 xxxviii ABCs p. 324 xxxix ABCs p. 328 xl ABCs p. 269 xli ABCs p. 329 xlii ABCs p. 323 xliii ABCs p. 323 xliv ABCs p. 323 xlv ABCs p. 329 xlvi ABCs p. 269 xlvii ABCs p. 329 xlviii (http://www.propointgraphics.com/process-FAQ.html) xlix Mercury Cloud e-mail from William N. Prater, Principal
ii iii