The Guide to Marketing Capital Equipment from Modern Marketing Partners shares four aspects of capital equipment purchasing and three marketing nuances. The guide also shares a capital equipment marketing checklist and infographic. To download visit: http://www.modernmarketingpartners.com/Download-Whitepaper-Guide-To-Marketing-Capital-Equipment.cfm

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CAPITAL
EQUIPMENT
MARKETING
PRACTICES GUIDE

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Capital Equipment Marketing
1
Capital equipment is typically defined as an asset with an
acquisition cost of at least $5000, but also includes assets that
can cost millions of dollars. Capital equipment encompasses
thousands of products and industries, from desktop computers
to mainframes, trucks and airplanes, agriculture, medical and
military, machine tools to entire plants. The greater the investment,
the more likely the purchase requires numerous related services
including finance (leases or loans), installation and training, system
integration, parts and supplies, maintenance and more.
Because of the cost involved, the capital equipment purchasing
process is complex for several reasons: the number and type of
decision makers, the need to carefully evaluate and compare multiple
options using financial analysis, the economic environment and
changing tax laws. As a result of these complexities, the capital
equipment purchasing process is often protracted, sometimes
taking years to complete.
Not surprisingly, the marketing of capital equipment requires some
different approaches and techniques. Certainly much different
marketing approaches than consumer products or low cost business
products or services. This guide details four aspects of capital
equipment purchasing, along with three considerations of capital
equipment marketing, followed by a capital equipment marketing
checklist and best practices detail, a capital equipment marketing
info-graphic, and some relevant resources.
A Closer Look at Capital Equipment Purchasing
Lets examine some of the aspects of capital equipment purchasing,
beginning with the decision-making process. As stated, capital
equipment purchasing typically involves multiple decision-makers
and influencers including executive and financial managers, technical
experts and consultants, project and procurement managers.
Shown here: float glass manufacturing equipment

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Capital Equipment Marketing
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Typically, committees or multiple-functional teams are formed for
specific capital equipment projects. The larger the investment, the
more decision makers.
Second, decision-making is based on the opportunity to generate
income or save costs. For capital equipment purchases, extensive
and detailed financial analysis is employed. Multiple options are
considered and compared via such analysis. Common financial
analysis techniques include Return on Investment (ROI), Payback
analysis, Net Present Value and total cost of ownership or TCO.
Because of the level of investment, alternative financing options
are often considered, including lease versus own. Obviously, tax
considerations are important.
Third, the economic environment has a huge effect on capital
equipment purchasing activity, and therefore, marketing. Capital
equipment is without question, the most cyclical of all categories.
When recessions occur, capital spending is often reduced, postponed or
cancelled. Likewise, when the economy is recovering from recession,
capital spending is often a leading indicator. Related to economics
are country-specific tax laws, or changes to the tax law. While
economics cannot be controlled by marketing, the economy must
be considered when forecasting and budgeting.
Not surprisingly, all these aspects of capital equipment purchasing
result in an extended procurement process. Depending on the level
of investment, timing of capital equipment purchasing can be
months or years.
Capital Equipment Marketing Considerations
Ok, so that’s a closer look at the purchasing process, now let’s focus
on some marketing considerations before getting to best practices.
There are at least three (3) factors that can have profound
implications for downstream marketing. First, reputation is critical.
$

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Capital Equipment Marketing
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Second, the number of customers is limited. Third, many capital
equipment brands tend to be so technical, that engineering
involvement and information must be part of both buying and
selling, including marketing.
Regarding reputation, when investing huge sums of money, while
the aforementioned decision makers evaluate multiple options,
the lowest price is rarely the most important criterion, certainly
in comparison to brand reputation. Risk avoidance is paramount.
This is further reinforced by the fact that larger capital equipment
purchases require so much more than the equipment itself. The
implications for marketing are profound.
One of great things about capital equipment marketing is that
the target market is relatively small, certainly in comparison to
consumer markets. There is no mass market. For the most complex
and expensive capital equipment there might be only hundreds of
potential customers, worldwide. International marketing is often a
requirement. No question, the marketing mix for targeting a small
number of very important prospects is unique.
One last point of marketing more complex or technical capital
equipment is the need for engineering for both buying and selling,
and yes, marketing. There may be a need for joint development
projects, or requirements for extensive testing or evaluation
of performance specifications. For these scenarios, effective
marketing-engineering processes are critical.
How to Market Capital Equipment
Now that we have identified several dynamics of both purchasing
and marketing, what are the most effective capital equipment
marketing strategies and tactics? Following is a capital equipment
marketing checklist, followed by best practices detail, and
an info-graphic.

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Capital Equipment Marketing
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CAPITAL EQUIPMENT MARKETING CHECKLIST
1. Analysis and Research
2. Planning
3. Brand Image
4. Brand Awareness
5. Website Improvement and SEO
6. Event marketing
7. Thought Leadership Content
8. Blogging
9. Social Media
10. Direct marketing
CAPITAL EQUIPMENT MARKETING BEST PRACTICES DETAIL
1. Analysis and Research - Because of the limited number of
customers, market and competitor intelligence is more critical
in capital equipment than any other category. Start with market
segmentation to understand which "verticals" drive sales and
profit. Use secondary or published research including the
Internet, trade publications, and associations to identify and
analyze customers and competitors. For some capital equipment
categories, syndicated (or fee-based) research might be available.
Search www.marketresearch.com. Another resource, Equipment
Data Associates sells a database of equipment lease and loan
information (www.edadata.com). If secondary or syndicated
research is not available, consider primary research including
surveys, customer interviews, or focus groups.
2. Planning – Strategic, tactical, and project planning are each
important to managing an effective capital equipment marketing
program. Strategic plans are long-term in nature and include
research and financial projections. Tactical plans are required
for managing media advertising, trade show or event calendars,
and related marketing programs. Project plans are required for
larger marketing initiatives like a new website. Budgeting is an
important part of planning that ensures financial resources are

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Capital Equipment Marketing
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approved and available for ongoing marketing. The time, effort
and formality of planning and budgeting will vary with the scale
of the program.
3. Brand Image – As mentioned, brand reputation is critical in
capital equipment markets. Prospects generally focus on a short
list or consideration set of 3-4 vendors, with the perceived leader
having a distinct advantage. Brand image is each customer’s
perception, and the sum total of all exposures to your brand.
When investing large sums, risk aversion is the customer
mindset. Therefore, brand image must exude leadership and
professionalism. Messaging must resonate with customer needs
and be clearly differentiated from competitors. Continuity of
brand elements and messaging across all marketing channels
and media is important. Without continuity, brand confusion
can result.
4. Brand Awareness – Prospects must be aware of your brand to
be considered. Sure, Internet search results can overcome lack of
awareness to some extent (the subject of the next best practice).
But, having a high profile in a vertical market or industry
supports brand reputation and making that short list. Advertising
and publicity are two marketing initiatives that can build brand
awareness. Advertising capital equipment most often uses trade
magazines or journals to reach specialized vertical markets.
In addition, there are associations, trade shows, and industry
websites for such verticals.
Publicity can be even more effective than advertising, as
customers perceive higher credibility from trusted news sources.
Publicity tactics include news announcements, article writing and
placements, speeches, and press events. Publicity often focuses
on the same publications as advertising, along with added news
outlets including wire distribution services like PRweb. Media
Shown here: computer data center

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Capital Equipment Marketing
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relations is the ongoing publicity efforts to achieve placements
and mentions.
5. Website Improvement and Search Engine Optimization (SEO) –
The company or brand website is the foundation of your marketing
program. It is likely one of the first impressions of your brand.
Is your website brand image stellar? Does the website content
address customer needs, problems or requirements? Importantly,
is lead generation maximized with offers and registration pages?
No question, prospects use search engines to identify capital
equipment options. Does the site rank in the top 3 search results
for keywords? Search authority is driven by multiple search engine
optimization (SEO) techniques. Run search engine optimization
diagnostics like SEOmoz to identify issues and problems. For more
SEO tips, check out our whitepaper on Search Engine Optimization
Best Practices (see resources at end).
What are your website traffic statistics? Check Google Analytics.
Consider paid search (Pay-Per-Click) if organic search cannot
achieve top positions in search engine results pages (SERPs).
6. Event Marketing – Many capital equipment vertical markets
have industry trade shows that are important to participate in.
Oftentimes, capital equipment is demonstrated and purchased
at key industry events. If trade shows are a key tactic, be sure
to leverage opportunities for pre-show communication, at-show
promotions and meetings, press events or speaking opportunities,
and post-show follow-up. Besides trade shows, other types of
event marketing include webcasts on a variety of topics, training
programs or demonstrations, and user groups.
Shown here: mining dump truck

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Capital Equipment Marketing
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7. Thought Leadership Content – Be the subject matter expert
(SME) or thought leader for your niche. How? Develop case
studies, white papers, surveys and industry studies, eBooks,
videos, and more. Use and repurpose the content for your
website, blogging, and social media. Use content for your
credentials kit when submitting proposals. Search and curate
(use with credit) content from other publishers, bloggers, and
editors. Educational and technical content is needed for many
marketing tactics.
Other content types include brochures and catalogs, Powerpoint
decks, specification worksheets, installation and training
manuals, performance specifications, and more.
8. Blogging – An effective tool for distributing content is a blog.
Blogging has many benefits to a marketing program including
excellent search engine optimization (SEO). Blogs integrate
with your website and social media to build indexed pages, and
distribute content through bookmarking and social sharing.
Blog software like WordPress has powerful search optimization
features, widgets, and plug-ins. Blogrolls are essentially link
directories, that encourage reciprocal links and support
link-building, a major determinant of search authority.
9. Social Media – Social media is the hottest topic in marketing.
Why? Because it can build search authority and generate leads!
How? Build-out LinkedIn personal profiles and LinkedIn company
pages, a Facebook business page, Twitter profile, YouTube
channel, and Google+. Be sure to add social profile icons and
links to your website and blog. Add social share tools to both
your website and blog (Facebook Like, Twitter Retweet, Google+,
Bookmarks). YouTube has a few features for meta-coding that
deliver high search authority for keywords.

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Capital Equipment Marketing
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10. Direct Marketing – The purpose of all marketing is lead
generation. So manage it with a customer database, contact
manager, or marketing automation software. Code, track, and
report leads. Integrate the database with website registration
pages, and email campaigns. Conduct ongoing research into
relevant prospects and contacts. Procure prospect lists from
publishers or associations. Use telemarketing qualification
to identify decision makers and contact information at each
prospect location.
With capital equipment’s extended sales cycle, email is an
excellent medium to stay in front of prospects over time. Monthly
email newsletters can be effective in keeping your brand top-of-
mind. Consider micro-targeting emails based on vertical and/or
role (example: engineering vs. finance).

10. 9
2011 U.S. CAPITAL EQUIPMENT
EXPENDITURES (MILLIONS)
TOP CAPITAL EQUIPMENT
MARKETS (2011 EXPENDITURES MILLIONS) *
MARKETING SPEND BY CAPITAL
EQUIPMENT VERTICAL (% SALES) **
U.S. ANNUAL CAPITAL
EQUIPMENT EXPENDITURES
(MILLIONS)
$40,966 (Used)
- Multiple Decision Makers
- Reputation
- Financial Analysis (ROI, TCO) - Small Number of Customers
- Economy - Engineering Roles
- Extended Procurement Process
$
ASPECTS OF PURCHASING MARKETING NUANCES
4 3
CAPITAL EQUIPMENT
MARKETING CHECKLIST
Analysis and Research
Event Marketing (trade shows)Planning
Thought Leadership ContentBrand Image
Blogging
Brand Awareness (Ads, PR)
Social Media (YT, LI, TW, FB)
Website Improvement and SEO
Direct Marketing (email)
$770,900 (Total)
$729,934 (New)
LEAD GENERATION MEASUREMENT/REPORTING
www.ModernMarketingPartners.com
©Copyright 2013. Modern Marketing Partners. All Rights Reserved. *Source: U.S. Census Annual Capital Expenditures Survey, www.Census.gov
**Source: Schonfeld & Associates Report, MMP Surveys
CAPITAL EQUIPMENT MARKETING - INFOGRAPHIC
Manufacturing Mfg. Equip.
IT/Computers
Utility Equip.
Mining Equip.
Healthcare Equip.
Transport/
Warehouse Equip.
Automotive/Rental
/Leasing
Financial Services
Durable Goods
IT/Computers
Healthcare
Utilites
Mining
Non-Durable Goods
Transportation/Warehousing
Automotive/Rental/Leasing
0 500000 100000 150000 2000000 0 2 4 6 8 10
$156,760
$95,059
$93,192
$79,357
$63,568
$51,319
$44,053
$42,213
$40,216
$38,064
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
800000
600000
400000
200000
639,410
743,130
630,373
673,353
821,238
829,455
641,149
676,112
811,779
770,900
0
Direct Costs
Overhead/Salaries/Admin
6.4%
8.4%
.92%
1.2%
.74%
1.7% 4.2% 5.9%
1.9% 2.6%
3% 4.2%
1.8%
.64%
2.1% 6.3%
1.6% 2.24%
4.6%
4.3% 5.2% (Total)

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Capital Equipment Marketing
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Modern Marketing Partners is a
full-service, strategic marketing
and communications agency with a
capital equipment and component
marketing practice. Clients include
Algus Packaging, Auto Truck Group,
Balemaster, Deublin, D&K Laminating,
Gammerler, ITW, Knuth Machine
Tools, Ko-Pack, Label-Aire, OMRON
Electronics, Panasonic, Sonoco
Alloyd, Swenson Chemical Processing,
Trine Labeling, Tuthill Pump, Tyco
Electronics, Wittenstein Motion
Control, Woodworking Machinery
Industry Association (WMIA) and
others. For more information visit
www.ModernMarketingPartners.com
Effective Marketing Drives Sales Success
Marketing capital equipment can be as complex as the equipment
itself. With multiple decision-makers, extensive financial analysis,
economic and tax considerations, the procurement process can
stretch over long time periods. Capital equipment marketers must
build a professional brand image, and attain a thought leadership
position. Websites must rank high in keyword search results.
Prospects must be identified and nurtured over an extended sales
cycle. Every sale is critical as the life of the capital equipment,
along with add on sales are significant. Employing these marketing
best practices can help capital equipment brands achieve success.
Additional Resources:
Search Engine Optimization: Top Priority for Modern Marketers (MMP)
Marketing Planning and Budgeting Best Practices (MMP)
Glossary of Modern Marketing Definitions (MMP)
© Copyright 2013. Modern Marketing Partners.
All Rights Reserved.