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Marketing Interior Design Services: A comparison between Lebanon, the Middle East and Abroad.

Marketing Interior Design Services: A comparison … Interior Design Services: A comparison ... Just as fast food ... restaurant and pub business has grown out fast in the newly renovated

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Marketing Interior Design Services: A comparison between Lebanon, the Middle East and Abroad.

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Abstract:

Marketing design services comprises all the activities that build the relationship between the designer and the client, including product development, research and promotion. While selling design services is a process of educating and communicating directly with potential buyers. Just as fast food restaurants have learned to market hamburgers and drugstores have learned to market medicine, interior designers need to learn to market and sell design services. Designers often need to develop new communication techniques because they are the most concerned persons in how to market and how to sell particular clients depending on their backgrounds, culture, education and the society that they belong to. In selling their services, interior designers can show that they are businesspeople that understand construction and appropriate schedules and budgets. Only an informed consumer can differentiate between partial service and full service, qualified and unqualified designers and it is up to the designers to educate the consumer through marketing. The longstanding method of obtaining new clients through word of mouth is no longer adequate in some countries, even for firms who have been in business for decades. The majority of design firms rely on referrals as their major marketing tool. This is no longer enough, as many newcomers to the field have spent as much time developing their marketing techniques as other firms have spent developing design skills. This paper consists of describing and comparing the marketing and selling means of interior design services used in Western countries and how much of this science is implemented and adapted to circumstances in the Middle Eastern countries especially in Lebanon.

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MARKETING DEFINITION �Marketing is a social and managerial process by which individuals and groups obtain what they need and want through creating and exchanging products and value with others�. Kotler (2000:5) said:

In general, if someone intends to maintain his business activity and required growth in the future, he may have to seek a new business now. The business practice of marketing is an effective tool for controlling short, middle, and long-term development. In order to be effective, market development must be a highly systematized, structured process, with exact schedules, measurements and reviews of each part of the process- from defining the market and making the first contact, through to writing proposals into production and following up. Knackstedt (1993:5) says:

�A big part of marketing is defining what type of work is best for your firm, and refining that definition as your market changes. You need to analyze your values, systems, mission, and exactly where you want to be� You must look at who your client is. Any program is a partnership or marriage between a client and a firm with capabilities which match or complement that client�s needs.�

In marketing, one needs to define a strategic planning. Kotler (2000:37) explains: � �the process of developing and maintaining a strategic fit between the organization�s goals, capabilities and its changing marketing opportunities. This involves defining a clear company mission, setting supporting objectives, designing a sound business portfolio, and coordinating functional strategies.�

In the case of the interior design profession, some designers like to believe that they can rely on referrals as their major marketing tool. This is no longer enough and it is a mistake to place one�s entire emphasis on existing and prospective clients and overlook in house capabilities. It is important to focus on one�s abilities and resources, to consider how to relate to clients and offer the best possible project. But it is also essential to approach the right kind of client. A marketing plan can help designers focus on the market but this takes both management and leadership. It means that every person within the design firm must be dedicated to this plan. Someone must manage the plan�s direction to make sure that is accomplished and that the specific structure of the firm operates productively. Knackstedt (1993:6) explains about focusing on the market:

�Focusing on a particular segment of the overall market improves a firm�s chances for positioning and success� Focusing increases efficiency: Once you know where you are going, you can direct your energies accordingly making your firm more able to compete for work that might not have been attainable previously.�

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THE MARKET PLAN Before beginning to plan any marketing program, one can try to answer some basic questions about the goals, aims, objectives and the application of the marketing process:

Some of the following questions illustrate the means to manage a plan based on my personal experience in this profession on the local market: Goals: -What is the size of the firm and what can this firm do best? -What are the firm's strengths and weaknesses? -What types of employees does it have and what are their areas of expertise? -What is to be done in marketing efforts to increase profit? -What are the types of clients the firm is targeting? -What selling tools are available and what will the firms need to acquire? Aims: -Accomplish the firm�s goals. -Learn from others mistakes and successes. -Help the clients realize the firm�s potential. -Build a proper client-firm relationship. Objectives: -To practice the interior design profession. -Earn an appropriate income to support the firm and meet one�s expenses. -Improve the people�s quality of life. The marketing plan objectives for designers are to develop a higher earning and profit as well as gaining more market share. In order to create and carry out a successful marketing plan, Knackstedt (1993:17) wrote: �You will need to define:

- Your mission. - Objectives. - Value statement. - Company�s goals and results you want. - Budget. - Company�s profile- internal: a- Staff experience and background. b- Specialty. c- Experience: past projects. d- Past revenue sources. e- Product: define what it is that you have to sell. f- Strengths and weaknesses. g- Sales force. h- Income profile- past revenues and current expenses compared to the current market. - The marketplace-external: a- Client profiles, current and potential. b- Geographic limits. c- Prospect list d- Resources: suppliers, crafts and trades.

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e- Competition. f- Economic conditions. g- Social and cultural trends. h- Legal, governmental and regulatory forces. i- Technological issues. - Market research: - Compare your company profile and the market of potential clients. Define your best

client. - Create a bridge between your firm and the best client. - Select a manger and a leader. - Create a map, a plan to make this happen. - Prepare needed materials. - Measure results, make changes as needed?�

THE MISSION STATEMENT FOR THE DESIGN FIRM

The mission statement is the foundation of a marketing plan and consists of a goal with a deadline. The firm�s mission directs its conduct throughout its existence in the business. It defines the objective of the firm and its position in the design field while revealing the competitive advantages. The mission statement will help retaining the firm focusing on its interests. In other words, the mission clearly defines the design firm�s objectives, quality product, specialty and expertise.

Consequently, it is necessary to identify the firm�s customers in applying modern

marketing concepts such as market segmentation, this means Kotler (2000:180) adds: �� dividing a market into distinct groups of buyers on the basis of needs, characteristics, or behavior who might require separate products or marketing mixes�, for example: restaurants, hospitals, medical clinics as well as residential projects. Further more, one could plan to focus on: �� the needs of our customers by sub segmenting through the use of niche marketing or tailoring our marketing program through micromarketing (2000:182-183) or even individual marketing.� Examples: villas, specialized clinics for handicapped, hotels, etc.

The marketing research tool defined as� systematically to design, collection, analysis and reporting of data relevant to a specific marketing situation facing the organization; it could be useful to identify new customers, and to explore new methods of satisfying existing customers.� (2000:107)

The marketing research as it relates to interior design services is shown in more depth later in this sequence. THE DESIGN PRODUCT The product is the firm�s capabilities to produce and to produce differently from others. The best product is one that identifies the most appropriate type of business to match the firm�s capabilities and resources. The good product is one that can meet the wants and needs of clients. In fact, today�s market lies in the actual and potential clients. It is confined to how the interior design profession can provide services that are viable today to clients.

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Usually, designers seek out their clients using polished methods to develop a job

and try to become part of the client�s team. According to Ball (1995:21):

�Interior design as now professionally practiced can be regarded either as a business conducted in a professional manner or as a

profession conducted in an ethical business manner.�

Professional designers cannot be seen as marketers and salespersons, instead they need to be regarded as the clients� teammates willing to solve their problems. Question is: Who is looking for design services? And who is making major changes? Even though existing market trends are to be considered, sometimes, it is possible to find that the firm�s direction has changed and that there is a need to review these avenues. Geographical limitations help designers set the type of works they want to attract? For example: During the past year, restaurant and pub business has grown out fast in the newly renovated downtown Beirut district at a rate of almost one opening per month. Restaurant design brought some residential design firms to review their strategy according to the new trends. Also the tight economy in Lebanon for almost three years had clear indications on the need for some design firms to change the way to market their services. MARKETING RESEARCH FOR THE DESIGN FIRM Today, most interior designers need to develop their business and one of the tools for doing this is the market research. Market research can help interior design businesses stay successful during a downturn in the economy. It helps in identifying the clients, their backgrounds and their needs and it gives the design firm�s market segment as it is dealing with a specific subgroup of the entire population. Positioning, it is the image that the firm projects with respect to its customers and competition, also another tool that design firms can use to plan their market. The business activities that make up market research include analyzing and understanding consumer circumstances, economics and attitudes; it is also knowing the competition and being aware of relevant government, municipality and other local regulations. Knackstedt (1993:67) expressed her opinion about the sources for trends in saying:

�Before you can create a marketing plan, you need to investigate what is happening in the interior design field now and in the next twelve months.

We are in a dramatically service-oriented period, a period where even the design superstars must work harder on marketing." As mentioned above segmenting and targeting the right clients is also one of the

tools in achieving a good marketing plan. The general profile of Lebanese clients can be divided in good potential clients and bad ones. Good clients are the ones who see the design firm as a partner. They respect and follow

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the firm�s professional directives and they are willing to pay for the energies and commitment dedicated to the project. The bad clients instead do not value the firm�s efforts and are unwilling to continue and develop a relationship. After much design effort invested they change the design without considering the outcomes that this can cause. Finally, they do not pay appropriately the extended efforts on their behalf.

Most marketing forecasts are guess works. However, in Lebanon, the more information the designer can acquire in his research, the more scientific and profitable this marketing process becomes. It is also possible to hire someone to do all or parts of a market research, but few interior design firms in Lebanon are large enough to afford this luxury. Large firms in the USA have the means to access and consult marketing research agencies, for example, seeking for an agency in the Bradford's Directory of Marketing Research Agencies, which lists market research firms, their principals, number of employees and the type of market research they do. Instead the market research in Lebanon as far as the interior design field is concerned mainly concentrates on the ability to recognize early trends in full as well as knowing the current situation. Because of the small market peripheral, the lack of accurate and reliable indexing and the � know-how� to find specific markets, the Lebanese designer has learned to rely more on the number of information accumulated in time with difficulty pertaining to the �whom and where� to find these markets. This knowledge also had been kept secretly hidden in some Lebanese designers archives that gave them the upper hand and the exclusivity in the local market. As successful as they have been, they have barely wanted to transfer or share their market information research with others even when consulted. Moreover, the absence of a strong design association in Lebanon creates a handicap for future business development. Lebanese designers cannot expect their competitors to just give them any information about what is going on in the city, the country or the world� They are competitors after all. THE COMPETITION To exist in the marketplace, the interior designer needs to know his competitors. It is relatively easy to find out what competitors are doing just by being observant. Interior designers have best the ability to know what was done on a project and how, just by looking at it. In addition, sometimes clients, friends, and other people can provide similar information. Today�s competition for the interior design rate value has become increasingly aggressive to the extend that sometimes interior design fees are considered as the highest paying of the design professions, over architecture, landscape architecture, and engineering. But competition may come from all directions, from large architectural firms with small interior design departments, from furniture suppliers and even from manufacturers that often offer to compete with designers whether they are qualified or not. In a sense, designers are often not competing with their peers only, but with people who may have minimal, if any design training. Many newcomers are unaware of the scope of interior design, not providing full service, can easily undercut professional interior designers' prices as a result. Therefore, it is usually best not to talk down a competitor, especially in business; one will be subject to pay for it one day or the other. Better then,

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one may try to maintain rapport with the design competitors and work with them if possible; and instead show any potential client how one�s design firm services are exceptional. At one time, it was thought that marketing was selling a product to a client. Today, marketing is somehow determining who needs what you have to sell. Is it saleable? Is the client ready for this product or service at this particular time? Because it is quite costly and almost impossible to blanket the field, the Lebanese designers can probably pinpoint their marketing target and set geographic limits and time for their marketing efforts. They may well raise several questions before deciding on a location for their business, first in identifying the kind of persons they want to attract as potential clients. For example, if the designer�s focus were on hospitals, it would be foolish to allocate research funds or marketing energy in residential areas. Interior designers usually can have access to many referral sources for potential clients. REFERRALS

Almost everywhere, the best source for new clients is referrals. Because design is a sizeable investment, prospective clients are wary of hiring an interior designer without knowing something about him. And because no job stands alone, there are always other jobs that come from each particular one. The clients for whom a designer has done satisfactory work are excellent referral sources when keeping in touch with them and sometimes in Lebanon this client �designer relationship extends to reach friendship. Overseas, the designer sometimes may ask his clients if they would be willing to write testimonials or ask the clients� permission to use their project as a case study that can often be published or work sample mailed to prospective clients. In general, anyone who uses the services of an interior designer triggers a demand among his friends and acquaintances for design work. These people probably may become potential clients. The referrals are considered to be: 1. Friends: Childhood friends, neighborhood, school, high school, college, family friends, spouse�s and children, etc. 2. Inter-professionals: (Professionals in design-related Fields) Architects and engineers. 3. Contractors. 4. Manufacturers, Representatives, Wholesalers, Suppliers, Distributors. 5. Business Development Organizations. 6. Government and Government Officials. Governments are special type of clients with specific communication requirements, both in qualifying for a project and in documenting the job. In order to formulate the appropriate approach, designers in the western countries may want to localize business development organizations that have prepared up-to-date guides and contact lists. Often the officials within a community are aware of new building projects and new industries that are coming into the area. 8. Owners and Landlords. Owners of any large projects, such as an apartment building or an office building, are excellent sources for learning about new tenants. Normally the owners are interested in

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maintaining a good standard within their building, and so are happy to share this information. It is often said in business that it is not what you know, but whom you know and how you use those contacts. In Middle Eastern countries and in Lebanon, friends, field related professionals, contractors, suppliers, manufacturers and landlords are definitely the principal source of referrals that lead for potential clients especially where the market requirement is abundant in residential projects. As for the public and governmental sectors, referrals are not always what it takes to get a project. It is not about how much the designer knows but simply about how influential is the person the designer knows in a specific government. This may easily be categorized into the friendship sector and the only referral in such case is the word of mouth announced by the government official. Business organizations, like the Lebanese Chamber of Commerce, etc. and other government organizations in Lebanon have predetermined lists of projects formulated to fit specific firms work scopes that leaves little room for the bidding process. On the contrary, some Gulf and Arab countries� governments have lately come to an understanding in providing work only to qualified designers irrespective of who they know or relate to in their governments. Also they adopted construction codes with the help of European and American consultancy firms that have set the path for well-managed and quality controlled projects, for example: Saudi Projacs, Ryiadh; Projacs Kuwait, Kuwait City; Projacs Lebanon, Beirut, etc., reputable project management firms that enjoy autonomy and at the same time have established a solid venture of construction and project management with STI (Steiner and Turner International, Seattle; USA). NETWORKING The process of developing and using contacts for informal advice and moral support is called networking in western countries. It can be a popular and valuable tool for today�s interior designers else where in the world because through networking they can learn about jobs, people and situations. With a good network system, it's easier to find the right type of client and some relationships may be quite profitable, but not all are always effective. Time spent networking is an investment and if the return is not adequate, it is possible that the designer has invested in the wrong group. People tend to label almost any interaction as such; however, an effective network requires having a goal, a strategy, and a direction. The basis for a good network system can be found in the list of friends, the telephone and address books and the Internet links. For successful networking, Lebanese interior designers may find an advice in some guidelines used by western societies that have been embedded systematically in their lifestyle. The following list outlines these guidelines even though some of them may not immediately adapt to the mentality of the Lebanese society: 1. Trying to meet business contacts on a regular basis: For instance, going to events, seminars, workshops, meetings and any kind of organized programs. 2. Trying to make the first contact: People are usually flattered that you have taken the time to call them. 3. Trying to ask questions:

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People like to be asked questions and enjoy being considered authorities especially in Lebanon. 4. Trying to network with competitors: Sharing information in many ways and establishing good relationships between fellow designers may save a lot of aggravation and money. 5. Trying to stay in touch, send occasional cards and send "thank you" notes: A number of professionals organize mailing lists ready for different occasions or on a yearly basis. Saying "thank you" is important, but it makes more of an impact if it is sent as a handwritten card. 6. Promote others: In introducing people to each others and recommending them for projects, the designer accumulates good will. It is always good to be owed a favor while meeting the right people in the right situations and expect to be recommended in return. The answer in getting the right job would be in determining which clients are worth approaching and how much is appropriate to invest in each individual project. Large projects and continuing commissions are the most financially desirable projects, but there is no doubt that many firms are also going after those jobs. Sometimes the most lucrative projects can be from smaller clients. Some clients appreciate the attention and are often willing to reward the designer both financially and with good design opportunities. Reviewing one�s failure in getting the last few jobs in a certain area is possibly going after the wrong jobs. Taking the wrong job can destroy a firm. There is no faster way to ruin a project and to diminish one�s reputation than by taking on a project that is beyond the ability of the firm, or that is inappropriate to it. It is always exciting to move into new areas, but not jump into an area before getting ready to handle it. In my personal opinion, there are several key items that a designer can look into at qualifying a job from a potential client: 1. Is it the right type of job? Is it the right size job? Is the timing right? 2. Is there opportunity for professional growth? Does the job offer new challenges? 3. Is the prospective client used to making decisions? Is he reasonable or overly demanding? 4. Does the client pay his bills properly? Does he have a good credit rating? For the most specific marketing information, the market group needs to be defined. If the designer�s specialty is residential design for the highly affluent, he may want to read the social columns and announcements in many publications to watch the social movement of the potential clients. If the designer specializes in space planning for large offices he might want to update his reading list with some business and new trend magazines. It is important for the interior designer to be aware of general economic trends as well as specific developments planned by different organizations for which design services could be required. Traditionally most market development was undergone by the principal designer (the owner) of the firm; however, today the client development process has become so extensive that it is impossible for the principal designer to be active in both the design process and the market development. They are really two completely different functions. It is better then to have someone specifically devoted to this function. The person handling the marketing division can have both a good knowledge of the design field and

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excellent interpersonal skills although this combination is very difficult to find. The person responsible for marketing often influences the design decisions because of his liaison with the client, (ex: Sawaya and Moroni, one of the most prominent Milanese design firm; Sawaya, now Italian furniture designer of Lebanese origin associated to Moroni, a marketing and shroud businessman.) In marketing one�s design, public relations are those business functions concerned with informing the public of one�s abilities, activities, and policies; and attempting to create a favorable public opinion. PUBLIC RELATIONS

In some countries, the Principal designer in most design or architectural firms tends to take care of the client development process and less of the design process. It is clear that designers with Public Relations aptitudes are usually the ones going in business. For most interior designers abroad, public relations consist of personal interaction such as attending community functions and inviting the public to see their work. Public relations can have three purposes mainly: To help make designer known to resources, to his peers and to potential clients. In Lebanon, public relations have an extended value in concentrating more on the image rather than the potential. The designer may well tell people about his firm with his studio, his personal appearance, his business card, his stationery, and his portfolio in many different ways. But, public relations are not orchestrated for the individuals. Engaging in public relations aims at presenting one�s self in a favorable light and it takes several contacts to build enough rapport with a prospective client before being able to sell him services. Public relations can contribute tremendously toward improving any design firm�s business by providing time in doing the following activities: 1. Providing the best service possible. 2. Calling on potential clients. Pay visit to developers and other people that may have contracts available. 3. Talk to current clients. See if the clients will introduce the designer to other good prospective clients. 4. Attending every event possible within your community, municipality, etc. Taking part in community affairs is an excellent way to show future clients any interest in improving their lifestyle. 5. Going to various conferences or seminars. Appear accessible to clients. 6. Meeting people. Getting out there and meeting clients is very important. 7. Being aware of personal appearance. People may make judgments as to whether or not they will retain a professional Designer because of his personal appearance. 8. Learning to become an authority on something. Designers may develop a personal interest and becoming world experts. For example, expanding expertise in a style at a time when few people shared this interest.

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Good public relations require spending at least a modest predetermined amount from the design firm budget. This figure generally budgeted for promotion is five to ten percent of gross income. New businesses usually need larger budgets. The main tools for public relations in Lebanon can be listed as follows: -Business Card; Stationery; Portfolio; Mailings; Brochures; etc. In addition to that, the Lebanese designer considers fashion is an added value to these tools and a valuable one to boost his public image: -Smart clothing, new trends, cars, furniture etc. There are certain public relations activities abroad that can help bring someone�s firm to the attention of potential clients and they are: -Entertaining; Show Houses; Contests and Publication. Also in addition to that, Lebanese designers concentrate more on lunches, dinners and outings. Most interior designers need a publicist on a one-shot basis, but publicists rarely work this way. They need a consistent flow of information to maintain credibility with their editorial contacts. Interior designers can rarely supply this flow, but their resources and suppliers can. When a product manufacturer photographs a design project, it is usually because his product is predominant, if not used exclusively. If the project meets the product manufacturers' standards, and fills a need, designers may offer photographs of it to a magazine or include it in publicity packets going to newspapers and magazine. But some magazines still prefer to be approached by a designer rather than by a publicist. Since the past, in Lebanon, until present time, it is still considered unprofessional for interior designers and other professionals to advertise. Now that some lawyers and doctors engage in indirect advertising, such as: � � Due to traveling or changes of address, Dr. X, eye and ear specialist, is receiving his patients at this address�� some designers began placing similar ads for their firms. ADVERTISING

Advertising is most valuable in announcing the formation of a new firm or any change of direction for any existing firm. It is also useful for keeping the firm�s name before the public. Courtesy ads can be effective in bringing new business inquiries if and when integrated into a planned advertising and marketing effort. In the United States, when establishing the market research and development plan for his firm the designer had defined the services provided, his geographic area, and the type of customer he wishes to attract. He will need then this information to determine in which publications he wants to advertise. Although some very expensive and opulent ads for design firms are found in foreign professional design publications (Architectural Digest, Interiors, etc.) and others that are available on the international market, are not always appropriate for all firms. Unless the design firm has an international or national clientele, national advertising is not advisable. Since advertising aims at reaching specific customers in need of specific services, for most Lebanese interior designers, advertising in regional and local publications is more effective. The more specific the design firm can be, the better the advertising can be directed to meet this market. Ad agencies are skilled in creating this kind of portfolio of photographs to meet the individual requirements of magazines and other publications. The better the quality of the

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photography, the better the work appears to be. Also, some Graphic Design firms nowadays have the potential to deliver the same type of services and often less expensive than advertising agencies. They can usually create the best looking and most effective ad and this is important because interior design is a visual profession. Publication also can be useful when prospective clients see the designer�s work. Moreover, when articles are written about projects, they can create a good impression and consequently can have the benefit of being perceived credible by the readers. PHOTOGRAPHY AND OTHER VISUAL AIDS If the designer intends to use photographs to show prospective customers a record of his work, he may want to hire the best photographer he can afford. Record shots are usually taken using a 35mm camera, slow film, a wide-angle lens, and a tripod. Slow film will give definition and clarity to the photo; the tripod is a must with slow film. The better the quality of the photography, the better the work appears to be. Good photography can manipulate the way people feel about a subject by changing the way it is perceived. Today, digital photography is becoming among others a great means of depicting accurately designs with genuine colors and textures. It also has an advantage over traditional photography that is to allow the designer to send or mail pictures of a finished project via the Internet immediately after taking them. The interiors photographer can compensate for unique problems because what a person can see into a room is not the same what the camera sees. The camera's distortion varies in degree from camera to camera and depending on the distance between the subject and the camera. The skilled photographer knows how to compensate for this problem. Otherwise, as a result, the designer may get photographs that do not help sell his work. Designers can always include in their budget the cost of making good pictures of a project done by a professional. When done, it can only be considered as an intelligent investment for potential and future projects. Interiors are not static works of art. They change with use and acquire marks of wear and they are at their best during the first month after installation. Getting the work photographed correctly the first time is necessary because there will be probably no second chance. Another excellent tool would be the Digital Videotaping. It is the most effective way to document projects from beginning to end. With the help of a reasonably good photographer, the designer can prepare a great presentation especially that people like to see the before-and-after shots. Although some design firms have produced quite costly videotapes and CDs, there are also reasonably inexpensive ways to produce them. Videos and CDs make a dramatic and enjoyable presentation because they show action. They can be particularly exciting if they include background music and sound. Most clients are now accustomed to seeing design videotapes digitally recorded and really prefer video presentations projected on large or small screens to slide shows. Almost every designer can be equipped with a laptop computer and software enabling him to sell his work by presenting it to his client in the form of on an electronic book, by mailing or better even by e-mailing his design firm brochure. Recently, the existence of the Internet facilitated the designer�s need to be present almost instantly and anywhere by means of constructing a web site for the designer himself and his firm connected to as many search engines and links as possible.

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THE DESIGNER AS A SALESMAN The business potential is a necessary ability recommended to interior designers seeking for success. According to Ball, (1995: 78), this ability is divided in two parts:

�� First: your sales ability. It is necessary if your prized ideas are to see the light of day�.Many, therefore, maintain that you should

relish the competition and excitement of the marketplace with its dictates of maximum profit, and an accompanying selling style. The profession

of interior design does not subscribe to this. Good selling is to be able to communicate the quality in your designing so that it will be seen by your

client as well as by yourself. Selling of this sort is professional, and it is necessary. Selling, of course, is only one part of the business picture� Second part is

shrewd business sense. If you are so much the creator that all thought of business is an irksome interruption, then by all means hire someone to help

you with financial management�� Selling interior design services requires from any designer finding a prospective client with a problem and convincing him that he (the designer) has the ability and experience to solve that problem. Although his portfolio and photographs can support his sales effort, what sells a job is the designer�s skill at communicating to the client the abilities of his firm to do the project. Some interior designers are excellent salespeople and now we come to realize more and more that marketing and professional sales abilities are needed to get the right projects. A salesperson has to be very positive and enthusiastic, knowing and believing that his firm will do a better job for the client than the competition. Most good salespeople can understand and respect the client's opinions and can work with a client without necessarily having to agree with him. Salespeople help develop rapport between a firm and a client. Because of their sensitivity to the client, they create an atmosphere in which good decisions can be made for everyone�s sake. Good salespeople have a lot of drive and they must be willing to do whatever it takes to get a job. They have to be able to keep their enthusiasm high; they can't allow themselves to be discouraged. Even after losing a job, they have to keep right on going after the next job. Good presentations are the ones prepared with precision but delivered in a very short, simple, and direct fashion. There could be no surprises when selling a client. Making it easy and comfortable for the client encourages him to ask questions. In a sales conversation, the client may be talking most of the time; the salesperson can only act as a good listener. The latter�s ability and willingness to listen is crucial. So are the skills of observation in picking up visual cues from the surroundings, the client wears and his body language. Some selling techniques have been implemented and proven almost successful in Europe and the U.S.A. but for many people can be off-putting and even unacceptable especially in countries like Lebanon. Techniques like the �Cold Calling� and the � Emissary Method�:

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-Cold Calling is a specialized sales technique that has highly developed procedures and can be very successful. Successful cold calls begin with research to determine which clients are worth pursuing with expensive one-to-one visits or formal presentations. The cold calling division of a design firm can be as small as a single person. Cold calling in Lebanon, has not been very successful in the past few years even timidly accepted by the society. Even with the launching of new means of selling services due to the integration of the mobile phone in the past few years, it is still far from being compatible with the interior design in Lebanon. The interior design profession still has kept the mouth-to-ear selling technique and relies mostly on referrals. -The Emissary Method: When the principal designers are not able to do all of the market development, they hire an emissary to pre-interview prospective clients. His job is to size up the project and its general qualifications, on the other hand, to introduce the design firm principal designer in charge, the design staff and the management group. Then the emissary sets up a time for a formal presentation. By this time, the emissary will have developed a friendship with the prospective client in order to assist in the communication between the client and the design team and bring business to the firm. The Emissary Method also has not been accepted in the Lebanese society when it comes to interior design. This is simply due to the fact that most clients are usually introduced to the designer through their acquaintance who had already engaged with the goodwill of selling the designer�s services. Referring one�s designer is a very generous gesture in itself and could well be considered and appreciated. But clients� attitudes in buying design services have changed during the past few years. CLIENT�S EXPECTATIONS AND EVALUATION OF THE DESIGN FIRM

What clients wanted from an interior designer fifteen or twenty years ago is different from what they are looking for today. In the early seventies, most clients in Lebanon and the Arabian Gulf countries were looking for a total service organization with a lot of design know-how and high creativity. They looked at past projects, the availability to do the job, and lastly, the prestige. Today clients look first at the designer�s experience with their type of project, then at firm�s experience. They next evaluate the ability to complete the project on time and within a set budget, and the accuracy in making estimates and specifications. Also down the list of their considerations is the kind of design work the firm does, the firm's quality of management, the size of the firm, and the in-house capabilities. Today in Europe, the interior design profession focuses on Knowledge and the capacity of managing this Knowledge is increasingly important in the activity and the team based office, it is considered so important to the point that it can make or break a company. Therefore the knowledge of employees in a design firm becomes an active part of the evaluation process involved. But in turn, designers also have set their choices in deciding for whom to work and of course to choose their own clients in qualifying them during their first interview. The initial interview is the natural setting for the client's first opportunity to see the designer in person. It is also the designer�s chance to evaluate the client. Before the initial interview, the designer can try to find out as much about the prospective client as possible and perhaps checking with the person who referred him.

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Whether a project is a residential or a contract one, it is advisable for the designer to run a credit check on the client by learning what the client�s firm objectives are and whom the other professionals involved in the project are? Who are the principals of the firm? Who will be in charge, and what are his accomplishments and interests? Also checking the building reports and the possible design budget when applicable. Planning the interview is a necessary step in an initial meeting. The designer needs to determine the scope of the project, the client's needs, the scheduling, the financial expectations and any restraints. It is best to set the location of the initial interview on the job site so that the designer can see some of the particulars and assess them and gathering all the visual clues possible. Planning what to wear to the interview is critical; clients may find it difficult to relate to the designer if he looks from a different world. The way the designer looks is part of his presentation; his appearance usually fits his personality and design tastes. Ball (1995: 73, 74,76) advises the following: ��Interior designers are very busy people, and their clothes must be able to stand the pace�However, business is not school � A good rule is that when in doubt about Clothing for special occasions, dress simply rather than ornately. Your clothes do matter, but if they are neat and in keeping with conventional taste and if they have that attractiveness which your artistry can suggest, they will indicate a person of intelligence and sincerity rather than one of high fashion� And now we come to the last and most important personality trait you will need to become a successful interior designer�moral stamina. This quality and the need for it do not change with time. It means, in the present context, that almost involuntarily you cling to two basic ethical principles: honesty and fairness. The interior design profession has an ethical code in which honesty in conducting your own business and fairness in respect to your dealings with others are basic principles. Such a code cannot be an occasional cause for observance. It must come first in all that you do. And, when necessary, it must be clearly expressed.� DESIGNER�S QUALIFICATIONS

Other qualifications are also crucial to the designer and his image, to mention some besides the physical traits: personality and mental traits, artistic talent and business potential. During the interview, the designer can prepare a checklist of topics to be discussed and takes notes. Not only does this save time, but it also reinforces the client's belief that he is dealing with a professional. Topics discussed may include carefully researched written cost estimates and a time schedule. Most money problems between client and designer occur because the designer has not carefully presented his financial expectations. The initial interview can also tell a great deal about the client, his needs, wants, and what he can afford, Ball (1995: 27) in her own words:

�At last you find yourself facing someone who seeks the kind of help that you feel capable of providing. Your first obligation is to

try to interview this prospective client so as to understand and interpret his or her wants. This may take skillful effort on your part, for some people scarcely know their own needs except in the most

general terms�.

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PRESENTATION TECHNIQUES

It is important for a client to understand something about the design business and the scope of services available. Designer may use different probing techniques like the use state-of-mind probes, echo probes, i.e., to repeat what the client says to encourage him expand on a theme, to return to an issue already discussed and ask a reflective question, aiming for simplicity and clarity in everything said. Many clients do not understand the design vocabulary, when discussing sizes; the designer can always relate them to any item familiar that they can visualize. If, during the interview, it becomes apparent that the prospective client is not appropriate for the firm, the designer can pull out gracefully. The following interviewing techniques are part of the art of communicating in official interviews adopted in Europe and the U.S.A. and if observed can greatly influence Lebanese designers to determine the acceptability of a client: - To trust oneself gut reaction; - To probe the humor index; - To assess the empathy level: Every designer has stories about something that went wrong on a job. He may test the client's reaction and look for a viewpoint that reflects tolerance. - To Use the �what if probe�. This strategy is intended to determine the potential client's reactions to frustrations and disappointments. - To Listen to the prospective client's words. The words you need to be most aware of are "should," "ought," "must," and "have to." The "must" and "should" betray a lack of flexibility and a penchant for unreasonable demands. Now, should Lebanese designers charge for the initial interview? Designers say: �My policy is usually not to charge for the first interview�, � This interview gives me an opportunity to look over the space and the situation and to determine whether I want the job,� �Because I did not charge, I have felt free to walk out�... If designers are going to charge for the interview, they can notify the client before they go out to the site and clarify what the charges are. Some designers regard the initial interview as part of their marketing effort and do not charge but if they intend to, they can easily make their policy clear the interview. One way of doing this is by sending a note to be signed and returned by the prospective client pertaining to the consultation fee before the meeting. Or, another way, by stating the fee in advance over the phone and followed by a written letter of agreement even at the risk that the client will reject the whole issue. This will save lot of aggravation taking into consideration that many clients have never purchased design services of any kind before and do not necessary know the customary procedures. In such case Ball (1995: 27) suggests:

�Usually at the second meeting�or at the first if the problem is simple�you will suggest an approximate budget for the project, including a guarantee that you will receive a certain percentage of that cost, whether or not the project is

accepted for completion. Such a guarantee is merely a safeguard to protect

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your most valuable asset as a designer�your ideas. Use of this type of guarantee differs from project to project and depends on company policy.�

The things to do when presenting a formal interview in the Western countries: -Who should attend the interview? The principal designer of the firm usually needs to attend, as well as the project manager who will be dealing with the client on a day-to-day basis. Most of time the designer is given the opportunity to choose the order in which the presentation is scheduled. In case of a team presentation, the designer generally makes the introduction and then turns over the presentation to the project manager. Before the presentation, copies of the agenda and the proposal file can be made available to each and every member attending from the client�s firm. After the presentation, both the project manager and the principal answer the client�s questions. -Where should the interview take place? It can be held in the client's space, in the designer�s office, on the site of the potential project, or, at a completed project that is similar to the prospective one. Clients basically want to know who the firm is, what the firm does, how long it has been in business, where is the office located, what kind of services is the firm able to provide, and what types of consultants and other professionals would be brought to the project. They will want to know about recent jobs done that are similar to their project and how those projects were particularly successful. Ball (1995: 27) says:

�The initial conference should include an idea of the scope of the work. Then you may suggest some similar jobs you or your firm have completed. For a really large project the client may wish to

interview several firms before making a decision. If a good record has recommended your firm, you need not worry that this will cost

you the job. It may make it for you.� There can be three basic client concerns: Quality, schedule and budget. When making a presentation, clients don't want to hear only talk about the designer�s old projects; they are interested in their own. Clients want to hear the designer say: "Here is your problem, and this is our solution." Clients like a designer who shows understanding for their viewpoint. They need encouragement from their designers and often need to know how products work and will fit into their lifestyle. For example, when using new technology in a project, there is a need to reduce the complexity of technical data in the presentation so that it is easier for the clients to understand. Designers often become so involved with new products and new design ideas that they think everyone understands what they do. The smartest people can explain things in the simplest terms. Only people who lack confidence are the ones who are most apt to use words others might not understand. Should the designer show enthusiasm? There is a saying that enthusiasm indicates that

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someone is accepting a low fee. Designer can instead show that he wants the job but not that he needs the work. Too much enthusiasm can trigger clients� worry that the designer hasn't been getting business and they will wonder why. Here are some tips that may help Lebanese designers sell their services: - Making sure the presentation is completely thorough, well organized, and exciting demonstrating proof of faith, intelligence, aggressiveness, and talent. - During the presentation, the designer can describe the expertise and knowledge of his staff and explain how they will interact on the project. - Can provide references to previous clients who have used the same services for similar jobs. - Can explain how this design firm is different from the others in competition. Revealing the strong points the firm can offer that others cannot. - Can dress in businesslike clothing. Generally it is better to be a bit on the professionally neutral side than to seem too artistic. - Can rehearse the presentation and trying it out before the actual one takes place. - Can prepare an analysis, a built a model, some sketches, or take some photographs. Some designers often completely design a space before being awarded the job. Clients like to feel that time has been spent on their project. Generally interior designers spend about ten percent of their fee to get a job. This figure includes money spent on general promotion plus the direct marketing expense for special projects. When situations come up that require special negotiating, it is best to turn the negotiation over to someone else within the company. The most difficult part of selling is to know when and how to close. It is best to prepare a list of leading questions, ready questions that cannot be answered with a yes or no; this will require the client to give an extended answer. If the response to these questions is not positive, it is advisable attempting to reorient or resell the project. Sometimes designers lose a project because they oversell. The client is ready to buy and the designer talks him out of it. Losing a sale can sometimes happen simply because the designer neglected to ask for the job. In this case, Ball (1995: 27) explains:

�Whatever else occurs, this first interview should establish rapport

between yourself and the client. If it does not, then it is possible that something is fundamentally wrong�you, or your firm,

may not he just the right partner for the undertaking. It is better to chalk up the interview to experience before more damage is done. Your first interview may then be theoretically closed�a procedure

you must learn to do decisively and graciously�. One of the best ways that a designer can develop his firm's standards is to understand why he lost a job and how to evaluate his position in the field. This review is probably one of the most effective learning methods. The designer can be professionally disappointed but losing one project cannot stand in the way in being considered for another.

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CONTRACT AND AGREEMENT An interior design firm's contract is one of the most critical documents that it has. A contract can either make or break a project. It must be written in legal terms, although most designers prefer to see it written as simply as possible. To see that the contract is appropriately designed for both the firm and the client, this requires a cooperative effort between both the firm and its legal consultant. When accepting contracts with large corporations, where the client writes the contract, the firm�s attorney needs to review both the clients contract and the firm�s contract to assure they are in harmony. Every time the firm determines the scope of services intended to be offered to a client, the contract can be carefully reviewed to be sure that both practically and legally the firm would be able to provide these services. It is only prudent for a design firm to offer fewer services but ones that it can securely perform than for it to offer services that may put the firm in jeopardy. Do we really need in Lebanon to use or refer to contracts like those of ASID? (The American Society of Interior designers) Or is there another more valid form? Several attorneys have said that there is no contract written that guarantees against dispute and misunderstanding especially in the absence of a Lebanese Interior Design Association or similar Order. In that sense, Ball (1995: 30) simply describes:

�If this proposal meets with the client's approval, a contract will be written and presented. This is, as the word implies, a legal agreement between two

or several persons, each of whom must sign. Such a contract usually includes a fee payment schedule. Because much time, many orders, and money are involved in completing the project, it is customarily paid for as the work

progresses, with a residual amount due on its completion�� However, contracts are valuable because they spell out some of the areas of possible dispute and litigation. They define, and make the client aware of, potential problems. They acquaint clients with trade terms and familiarize them with the ways interior designers charge and calculate their fees. So, a contract is valuable in clarifying the communications and diminishing misunderstanding. It is not necessary to use a contract, but if both parties choose not to use one, and if anything wrong happens, the designer is to blame himself because he is the person who did not take the initiative or the time to clarify to his client his position and services. When preparing a contract or letter of agreement, the designer can make sure to include clearly the three major factors for completing the project: Scope of works, the time lap for completion and finally the method of payment. In addition to that, he can highlight his responsibility only for the design and the specification writing, the supervision of the project, or the coordination of the complete turnkey project. Also, review and define exactly which areas are to be designed. If he agreed to work on a specific space and the client has decided to add more to it, then the designer will need to prepare a different contract or proposal.

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Again, when preparing a contract, a careful review the terms and conditions with the client of the exact scope of work is required. It is also necessary to determine how responsibilities are divided when other design professionals are involved. The contract consists then to define their precise responsibilities and clarify how any overlapping tasks will be handled. When other architects or contractors are involved, the contract can state exactly what items are to be included in the designer�s fee. For example, detailing of items involving lighting fixtures, sanitary, etc. or any position regarding purchasing and fee schedules will be covered under the fee for interior design services. This includes items purchased through other contractors or individually, as they are specified and would include items purchased for this space at a later date. Major disagreements between client and designer usually arise from a break down of communication; unfortunately, they can lead to lawsuits. Here are a few suggestions in order to prevent lawsuits: -A design contract in Lebanon consists of clearly describing the services to be rendered and the extent of the designer�s responsibility. - It consists of listing the amount of compensation expected and exactly how this will be computed. - It consists of watching the time commitments and deadlines. - It determines liability for design or material failures. - It thoroughly delineates the duties and obligations of each party involved in the project when using consultants. - It consists of listing the prices that are to be charged. - It also spells out exactly how changes in progress will be handled. Disclaim responsibility or changes made by anyone but the designer and how changes can affect the quality and safety of the design. In most situations, it is to the designer�s advantage to have a simple letter of agreement or contract that can be filled in very quickly. This can be used on those occasions when the designer approaches a client with a small project; the agreement can be presented on the spot. Often it will be signed and the designer will be given a retainer right then. The more the designer gets familiar with the project, the better contract will be written. If the contract is properly outlined, it can serve as a scope of work to be done, making it very easy to coordinate the schedule and process the plan. Before presenting a contract, the designer generally prepares a contract proposal. The proposal can then be mailed or given to the client at the earliest meeting. Ball (1995: 27) refers to this matter in these words:

�Hours are worth money. By this time you should have a preliminary comprehension of the client's

ideas and needs and will have promised to prepare a proposal meeting the requirements�. Many designers fall into the trap of viewing clients as the "they" half of a �we-they� relationship. This viewpoint ignores the fact that they are both part of the same project team and tends to create needless conflicts. The designer�s ability to deal with clients as members of the project team will to a large extent determine his ability to meet project objectives.

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The first step in successfully managing clients is to find out who they are. This means to understand the role of each member of the client's organization or family, identify all the participants and each person's role in the project as early as possible, including: -Who makes technical decisions; -Who is responsible for the schedule and budget; -Who has the authority to modify the contract; -Who influences various kinds of decisions; Once participants are established, it is wise to know what the limits of each person 's authority really are. Because clients are people, they have personality types, work styles, and behavioral traits. Maslow's theory states that people are motivated by a hierarchy of needs depending upon where they are placed on a pyramid rating system. Recognizing that a particular client may not necessarily be in the same position on Maslow's hierarchy as the designer himself. Then the designer can seek to modify his methods of dealing with that client in order for him to be responsive to the client's needs. In the U.S.A. an excellent way to determine the compatibility with a client is to rank him using the Wilson Learning Corporation method of testing and identifying behavioral patterns in scale ranking each individual responsiveness and assertiveness. If both client and designer fall into the same quadrant, this will probably indicate a harmonious relationship because of the similarity. Regardless of the kind of relationship that the designer has with his client, one important ingredient needs to be present: The designer can serve without being servile. He cannot act as a "yes man" who goes along with everything the client says, regardless of the consequences. Finally, it has been said that the design profession consists of two things: selling work and doing work. While this is an oversimplification, it is true that firms that do well in these areas almost always succeed, while firms that do one or the other poorly often fail. Unfortunately, until now, design firms in Lebanon have not yet focused on the project managers� role in doing his marketing and selling work. However, the role of marketing and selling work is equally important to the success of the design firm. Indeed, today the success of a project manager is dependent on his marketing abilities, his knowledge of design as well as his technical and management abilities. The most valuable project manager is one who can bring work into the office and then get it done successfully.

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Bibliography: Armstrong, Gary, and Kotler, Philip, (2000) Marketing: An Introduction, (Fifth edition), New Jersey: Prentice Hall, Upper Saddle River. Ball, Victoria Kloss, David, Steams and Gandy Charles D., (1995) Opportunities in Interior Design and Decorating careers, Illinois:

NTC Publishing Group. Revised by David Stearns, foreword by Charles D. Gandy. Knackstedt, Mary V. with Haney Laura J., (1993) Marketing and Selling Design Services, New York: Van Nostrand Reinhold. Maslow, A. H. (1943) �A theory of Human Motivation,� Psychology Review, (July, p. 370-96) McGrath, Norman, (1987) Photographing Buildings Inside and Out, New York:

Whitney Library of Design. Panero, Julius, and Martin Zelnick, (1979) Human Dimension and Interior Space, New York: Whitney Library of Design. Reznickoff, S.C., (1986) Interior Graphic and Design Standards, New York: Whitney Library of Design. Siegel, Harry, and Alan Siegel, (1982) A guide to Business Principles and Practices for Interior Designer, New York: Whitney Library of Design. Stasiowski, Frank, (1985) Negotiating Higher Fees, New York: Whitney Library of Design. Stasiowski, Frank, and David Burstein, (1984) Project Management for the Design Professional, New York: Whitney Library of Design. Other references: _____. American Society of Interior Designers, (ASID):

(http://www.asid.org)

List of ASID DOCUMENTS: B171 STANDARD FORM OF AGREEMENT FOR INTERIOR DESIGN SERVICE B177 ABBREVIATED FORM OF AGREEMENT FOR INTERIOR DESIGN SERVICES

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A171 STANDARD FORM OF AGREEMENT BETWEEN OWNER AND CONTRACTOR FOR FURNITURE, FURNISHINGS, AND EQUIPMENT A177 ABBREVIATED FORM OF AGREEMENT BETWEEN OWNER AND

CONTRACTOR FOR FURNITURE, FURNISHINGS, AND EQUIPMENT A271 GENERAL CONDITIONS OF THE CONTRACT FOR FURNITURE,

FURNISHINGS, AND EQUIPMENT A771 INSTRUCTIONS TO INTERIORS BIDDERS #403 CONTRACT FOR PROFESSIONAL SERVICES (Residential Long Form) #404 CONTRACT FOR PROFESSIONAL SERVICES (Residential Short Form) #001 COMPENSATION AGREEMENT�Presented Price #002 COMPENSATION AGREEMENT�Hourly Rate #003 COMPENSATION AGREEMENT�Fixed Rate #004 COMPENSATION AGREEMENT�Percentage of Project Cost