As the EMS market becomes more competitive, more companies are developing Web-based marketing capabilities aimed at building their brand.
When it comes to marketing themselves on the Web, EMS firms have been victims of their own success. Because the phone has rung relentlessly with new business so far, most of them have enjoyed the luxury of having to do very little self-promotion. Now, however, as the EMS industry begins to consolidate, branding and selling will become more important than ever. And the Web will be the battleground. But for now, EMS firms must play catch-up to the rest of the business world.
“So far, EMS marketing efforts have been practically non-existent,” says Albert Freire, principal of Production Technology East, based in Ellicott City, Md., which sells equipment to EMS firms. Freire also provides sales and marketing consulting services.
Now that more EMS firms are starting to do some online marketing, the quality of their efforts is in question. “I don’t think they do a very good job yet,” says Jeff Ferry, publisher of Circuitnet, a Web-based provider of industry news to thousands of EMS firms. “I don’t get the impression they typically put the kind of energy into their Web sites that they should.”
Behind the Curve
Steve Gold, editor of online electronics industry trade journal I-Connect 007 in Auburn, Calif., says EMS firms are shortly behind the curve. “They’re investing in what was hot a couple of years ago, rather than what they should be investing in now,” he says.
Some companies still use banner ads when the new standard for effective presentation is cable news-quality video that brings the enterprise to life, Gold says. Other EMS firms are using webinars, though the industry trend is toward a more protracted online education process that is interactive.
Despite any early missteps, Gold, Freire and Ferry agree the Web and its capabilities for targeting an audience with great precision and delivering a message, will become increasingly important to EMS firms as competition grows, especially in specialized market segments such as medical electronics or automotive components.
Top Tool
“The ability of a company, any kind of company, to market and promote themselves on the Web has exploded,” Ferry says. “When you look at all the different ways you can go to market and inform customers and prospects who you are and what you do, I think it’s moving rapidly to the top of the marketing chain.” He sees that ascension coming true right now with EMS firms.
“The No. 1 tool for any EMS company, and really for anybody in business, is their Web site,” Ferry says. “Smart companies pour energy, resources, manpower into the continuing development of their Web site. You need to get as much information on the site as possible.” Today, a good site must offer video and audio presentations, as well as devices such as blogs, forums and wikis for interacting with customers and prospects to build online relationships that convert to new business.
“It is a never-ending project,” Ferry says. “You have to continually update and add to your site. You also have to ensure you are picked up by search engines when certain terms are searched, such as EMS.”
“A lot of companies just see their Web sites as ways to gather leads,” Gold says. “They should be looking at them as ways to sell.”
Communication 101
Regardless of the information delivery system, whether it’s a slick video or a simple blog, the critical requirement for success is practical information that customers and prospects can use in their own businesses. For that reason, electronic newsletters are among the most effective marketing tools EMS firms can use to build brand awareness.
“Businesses that get in the habit of doing a good newsletter develop a closer relationship with their customer base and prospects,” Ferry says.
An even simpler way to keep in touch with people is with e-mail broadcasts that deliver newsworthy information of importance to their automated audience, he says.
Looking to the future, Gold and Freire say social networking, which is only now being widely adopted by businesses in general, will become an integral part of a comprehensive marketing campaign based on its unique and powerful capability for creating enduring relationships that can be nurtured, measured and exploited.
As an example of an electronics industry Web site that aspiring EMS companies could emulate, Gold cites solder paste manufacturer Indium. “They’re a great example of a company making use of every tool the Web has to offer,” he says. “As an example, they have a ‘meet the bloggers’ program. “Most companies don’t have a blogger, let alone multiple bloggers.”
Freire says social networking technologies will ultimately transform all businesses, including the EMS industry. But he thinks it will take five to 10 years. “They will have to take baby steps,” Freire says. “But they will learn to do it. They will have to. There continues to be very significant opportunities for the EMS industry as we discover new processes and techniques in many industries.”
