Competitive advantage, Part 2
 


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by Andrew Lam-Po-Tang

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Picking up on the first half of this article (Competitive advantage for designers), competing as a design firm is about creating the perception of a meaningful distinction between yourself and your competitors. How you do that is driven by the nature of the competitor/s. What I include in this article is some ideas for how you can do that. How you decide to position your firm is your choice.

Competing against non-design firms

I generally think of non-design firms as being in two categories:

  • advertising agencies and marketing/PR consultants
  • dtp shops and similar setups within printing companies
Agencies tend to pitch their strength as providing a fully integrated service including research, communication strategy development, brief development, writing, design, production, print management and sometimes distribution management as well (eg. list buying, mail out, etc.). They may also argue on the basis of being able to fully integrate the design with the existing advertising strategy. This can be a formidable position to be up against! For clients who don't fully understand the communication process, using an agency is a way to make up for their own lack of knowledge.

Here are some tactics you may be able to use

  • For clients who don't fully understand the communication process, providing them with information on the process in your written proposal is a great way to educate them in a face-saving way, and it enhances both your professional standing and increases their ability to make a discrimintaing decision about what services they really want to purchase.
  • "Advertising moves the consumer to the product, whereas design moves the product towards the consumer," -- this quote from Gordon Andrews was cited by Michael Bryce in his recent presentation at the Design for Business conference in Sydney, it's a beauty!
  • Advertising tends to be focused on sales generation "now", whereas design tends to be more focused on a longer term message about market positioning.
  • As a graphic design specialist, you will bring a greater degree of communication focus, creativity and expertise to the solution.
  • Depending on your skills and experience, you can probably match the agency service for service in terms of starting with communication strategy through to print management. Getting to know good market research firms and mail houses in your area is a way to counter any gaps you may have in those areas. Ask your fellow AGDA members for tips!
  • Copywriting for corporate literature can be very different to that required for advertising material -- if you have access to a good corporate copywriter, then the words will be more focused than an advertising copywriter.
  • If you follow the sensible procedure of not paying for print yourself, but rather simply managing it on behalf of your client and letting them pay the printer direct, then you should be able to promise more cost-competitive print because you won't be charging a commission. However, if you use this tactic, make sure that you include a print management fee in you quote. For clients with a very large print run, this can be a very attractive benefit.
  • Finally, a very handy comment to make is simply to ask, "if advertising agencies reckon they can design as well as designers, why then do they invite AGDA to provide design judges for the Art Director Club awards?" (don't let your advertising friends know about this one)

DTP shops tend to say two things, "we're cheap!" and "we can do all the stuff a more expensive design studio can." Don't make the mistake of saying in response, "we're cheap too!" DTP shops are there to serve the bottom end of the market, which is highly price-sensitive and doesn't need great design. Assuming that client really does need design rather than just some hack work, here are some tactics real designers may use:

  • Design is about establishing a competitive edge, whereas DTP shops tend to focus purely on getting the job done. Unless the client has no competition, design adds value by using a visual vocabulary to create distinct product/service brand. Without design, communication may simply state the client's message louly without regard for what the client's competitors are saying.
  • Concede to the client that a good studio will probably never be as cheap as a DTP shop, but that is because it is a different service that is provided -- well-targeted communication! Trying to save a few bucks on the 'front end' of the communication process doesn't necessarily save any money on the reproduction, so the client may end up spending a total budget not that much less than if they had used good design, but the result will be a thousand copies of less-than-desired communication.
  • Don't kid yourself about 'getting in the door and then ramping the price back up to reasonable levels later' -- how would that message work on you? Especially if you believe you will always be able to bargain the design firm back down by threatening to go to a DTP shop? And being respected as a professional is pretty tough if they have already successfully pushed you around.

Competing against design firms

While there are some obvious distinctions between design and non-design firms, things get tougher when you are up against other design firms. However, losing to a 'good' competitor whose work you respect is a lot easier to deal with than losing to the local DTP shop. The biggest differentiator between design firms is often the amount of experience they have:

  • firms with a lot of experience (years) and a wide range of top clients
  • firms that are still getting going

Firstly I'd like to address the differentiators that can be used by both groups:

  • Client management skills -- these start with doing some basic research about the prospect's business so that your portfolio is tailored to their needs rather than your pride. Follow that up with even a superficial knowledge of the prospect's competitors and you will give a very strong impression that you really care about them.
  • Strength as a collaborator -- good collaboration between client and designer was consistently mentioned by both the design and client speakers at the Design for Business conference. Use a process map of your design process to carefully explain how you work and where the client fits in.
  • Communication skills -- I'm talking about your ability to tailor the client's message to the market. Use a couple of portfolio pieces to demonstrate your insights for another client from the briefing process, research and concept development and what kind/degree of impact the design had on the consumers' perception of the product or service. (I am assuming that you follow up your projects with your clients once the design is out there in the marketplace).
  • Personality -- because of your own individuality, you will naturally be more empathetic to certain types of clients. When I had a studio, I found that I had empathy with other professional service providers such as accountants and insurance companies -- I found what they did for a living to be quite interesting! Being aware of what your personal business style is can help you quickly spot a client who thinks/feels like you -- work that advantage because it can be pretty hard to beat!

Okay, let's talk about what firms who getting going can say:

  • You are just as professional -- without a large body of work you will need to use a detailed design process map to prove this depth of expertise to the client. AGDA is bringing out a Practice Note "Working With Designers" which you will be able to tailor to your own business approach.
  • You are 'young, fresh and creative' -- your approach will be uncluttered by 'the expected'
  • You will be more dedicated because you are smaller and therefore the client's work will occupy more of your studio's working time
  • If the client has a youth-oriented service/product, you are able to relate to the target market as a member of that market, rather than just an observer. Andrew Hoyne Design is a great example of capitalising on this advantage.

For firms with a lot of experience and a great portfolio, you're probably not even reading this article in the first place, but here goes...

  • Your experience reduces the risk of anything going wrong during the process and improves the likelihood of a smooth relationship with no nasty surprises
  • Your have built up a great deal of experience in addressing that client's market through other projects
  • Your experience has given you insights into not only what works within that client's industry, but also what works within other industries, allowing you to inject innovative marketing ideas into the project

To finish I'd just like to stress that because design is such a highly individual service, a 'me too' approach is not likely to succeed. I talk about the importance of working out your own philosophy and basic position in my article, A Designer's Life -- check it out.


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The views expressed this article are not necessarily those of AGDA. Please note that the information in this article is the opinion of the author only. I can therefore accept no responsibility for actions taken on the basis of this information. Copyright Andrew Lam-Po-Tang (andrew@lam-po-tangcom), 1998-2008. Permission is granted to freely copy this document in electronic form, or to print, for personal use. Reprinting for non-personal use will require the express permission of the author (which I will generally be very happy to give).