Military vs. Commercial: What to Know When You Market to Them Both
We all know that aerospace and defense industry is cyclical. Sometimes, defense is booming. Other times, the commercial market reigns.
So diversification is wise, but using the same marketing approach to reach commercial and government customers is not. While it’s true that marketing fundamentals apply to reaching both groups, there are critically important differences that will impact strategy and execution. Here’s an overview of key considerations.
Marketing matters — to both audiences.
We’ve often heard industry veterans argue that marketing to the government is unnecessary, but it’s just not true. Once upon a time, aerospace companies used a “keep it sold” minimalist approach to defense marketing. But in the era of sequestration, when so many companies are competing for dwindling federal dollars, effective marketing and branding offer your best chance to be noticed and drive customer preference. We’re glad to see that government marketing is making great strides in its marketing — just like the government itself — and even the most stodgy defense contractors are starting to incorporate 3D, apps, and content into their expanding marketing toolkits.
Know your audience and your targets.
Because this is an industry of insiders, aerospace marketers run the risk of being overconfident and assuming they know everything about their audience. A Federal Content Marketing Review revealed significant gaps between government and contractor perceptions about the value of digital content, the most effective marketing channels and other relevant topics. For example, while 69% of contractors think marketing collateral is essential for information and education, only 37% of their customers think collateral adds value. Just think of all the money you could be saving on printed product cards and brochures.
The report from Market Connections is a fascinating study and a must-read for anyone marketing to the government.
Choose wisely.
If your tactical execution is on autopilot, it’s time to reassess. For example, with travel restrictions in place, your government customers may not be attending trade shows or other in-person events. At the same time, commercial events continue to grow. As with all marketing, stay closely connected to your customers and adapt to their preferences and behavior. Question and evaluate everything.
Consider the buying process.
While both markets have multiple decision makers, the government procurement process is significantly more complex, involving lobbyists, politics, and strict ethical guidelines – even ITAR regulations must be considered. Make sure you have an informed team and proceed with caution. In the commercial market, identifying your target audiences isn’t always easy, but it is much more straightforward.
Remember what you are selling.
Commercial marketers have largely learned this lesson, but many government marketers are still overly focused on hardware, when they should be communicating benefits, value and relevance. No one is buying a black box — they’re buying what it can do for them.
Parting thoughts.
It’s always easier to transition from selling to the government to selling to the commercial market than it is to shift from commercial to government. In many cases, products and services that have already been embraced by the military have a valuable pedigree and instant credibility with commercial audiences. Smart marketers can use this to their advantage.
What are your insights and experiences in marketing and selling to these diverse audiences? What companies are reaching both markets successfully?
You might also be interested in Best Practices in Aerospace Marketing or The Truth About Marketing to OEMs.