Brand Central Station

The road to marketing hell is paved with good intentions.

September 30, 2004 · Leave a Comment

In a recent poll conducted by our company, we found that 78% of small and mid-sized B2B marketers did not use an outside marketing service provider when it came to planning, creating or implementing their marketing plan.

That’s bad news for ad agencies, PR firms and marketing consultants.

It’s even worse news for small and mid-sized B2B marketers.

When we asked why, the answers were fairly predictable. And as complaints lodged against an industry go, pretty valid. Marketing service companies, especially ad agencies, are famous for not performing – or if they do perform, being totally incapable of tying the results of their actions to some tangible measurement on the bottom line.

This is the bane of ad agencies and PR firms everywhere: Return on Investment. And while I’m not going to debate or discuss ROI this time, rest assured, I will at some point. Ad nauseum.

Right now, I think it’s important to make clear why more B2B marketers should consider working with an outside service provider when it comes to developing their marketing plans and implementing marketing programs down the road. But first, let’s review the three major complaints lodged against outside providers:

1.) Outside marketing service companies are too expensive. This is the classic price versus value complaint and it’s not exclusive to marketing service companies (see complaint #3, below). The fact is, any outside supplier is too expensive if you don’t see a value in what they provide.

Furthermore, if you’re experience with ad agencies, PR firms and other marketing consultants is one of duplicated services, obvious insights, late work and blown budgets – you have had to endure the absolute worst these professions have to offer. I would hate to tell you how many times I’ve heard those kinds of charges made by clients against both former and current suppliers.

2.) Outside marketing service companies don’t know my business as well as I do. This complaint originates from an ignorant statement many agencies make when they pitch a new piece of business and clients lap up like puppies. I absolutely hate it when an agency says: “We know our client’s business (or “XYZ” industry) as well or better than our clients do.”

Boy, I sure hope not.

When I work with a client to select an agency, I try to find agencies that know the business of crafting well-targeted and highly effective communication, not making widgets. Ad agencies need to keep up on an industry (communications) that is exploding at a rate defined by Moore’s Law – and that should be a full-time job in itself. Any agency that tells you they are more up-to-date on your industry than you are actually saying either they can’t/won’t keep up on their own industry and/or they don’t respect your own knowledge of your industry. Either answer is unacceptable at best and disingenuous at worst.

3.) Outside marketing service companies, especially ad agencies, take unwarranted sales commissions for work we can do in house at a significantly lower cost. This is a related argument to the first (see above) but has a nasty, envious tone to it. I’ve heard this complaint lodged most frequently by mid-level marketing personnel who view the addition of an agency or consultant as a threat to their own job security. The root of this complaint often stems from previous agency-side experience of corporate marketers and a definite under-appreciation of the media planning/placement, print buying or media pitching tasks taken on by most agencies on their clients’ behalf.

Not to say the complaint isn’t warranted from time to time by unscrupulous (and often boastful) agency types.

The problem here stems from the ill-conceived and antiquated media commission structure most “old school” agencies rely on to generate a profit margin. I won’t get into the finer points of agency management and finance here, but let’s just say that media commissions and mark-ups on printing and production are quickly becoming a thing of the past. Any client who feels they are going to get screwed by an agency or consultant in this area needs to spend some time online or on the phone with agency search consultants who can explain the intricracies of agency compensation negotiation.

So, why should you still consider working with an outside service provider?

If they are sourced and used correctly, an ad agency, PR firm or marketing consultant can be a tremendously productive – and profitable – investment for your company. If you can identify the parts of the marketing mix that aren’t covered effectively with your internal personnel/capabilities, that’s where you need to consider bringing in outside help.

Be sure to write the job description for an agency, freelancer, PR firm or consultant carefully and completely. And, most importantly, keep an open mind to their recommendations and observations. The key value an outside service provider brings to a client relationship is objectivity. By the very nature of their business, they are frequently in contact with a wide variety of businesses and business situations that may relate to the dilemas you face on a daily basis.

Failure to find and hire the right outside marketing service providers will cut out this objective perspective on your business – and that could have a severely limiting effect on your long-term brand value and success. You may spend less in the short-term, but growth will be retarded and advantages will flow to your competition.

And there could be hell to pay as a result.

(c)2004, Brand Central Station – all rights reserved. To learn more about BCS, please visit our website.

Categories: Business of Business Marketing

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