Market makers

Need marketing expertise? Marketing help comes in all shapes and sizes. Here are factors to consider when hiring advertising and marketing support.

by David Gordon

Companies that market effectively in an economic downturn come out of the downturn faster and have greater sustained growth than companies that don’t. The key, of course, is making sure your marketing is effective. Even if you recognize that now is a good time to grow your business by taking market share, you may need help to enhance and target your marketing efforts. A good advertising agency or marketing company can help.

Because marketing companies and ad agencies come in many shapes and sizes, finding qualified marketing assistance can be daunting. With that in mind, here is some advice to help distributors choose the kind of company they need to help them improve their marketing efforts.

First, it’s important to recognize there are different types of agencies. The three basic types are:
• Advertising agency
• Marketing communications agency
• Marketing agency

What are the differences?
An advertising agency typically focuses on the “soft stuff.” They are interested in branding, graphics, ad placement and brochures. Unless you have a significant branding strategy, these are good project shops for collateral material. You tell them what you need and the strategy behind the need.

A marketing communications agency can provide more support to your project. While they focus on graphics, they also ask many questions about what you are trying to accomplish, your specific audience and your message. They may also make recommendations about how you can best communicate your message to your intended audience.

A marketing agency is more expansive. Marketing agencies are interested in understanding your business strategy and are proactive in helping you consider marketing opportunities. Typically, they can offer support with promotions, Web design, trade shows, public relations, research, advertising, direct marketing, brochures, premium support, merchandising and other elements of the marketing mix.

As you can see, each type of agency builds upon the prior. Often, marketing agencies evolve from advertising or marketing communications firms.

What do you need?
Every company is different, and your comfort level in sharing information, accepting ideas from outsiders and your support needs will impact your decision. Do you want to hire an agency on a long-term basis? Or, are you looking for help to develop a single brochure? You may desire input from someone outside your industry with exposure to many different industries and types of clients.

If you are a small distributor, consider identifying a few small agencies or freelancers in your area. This is a great way to cost-effectively gain professional support. Or, consider ways to outsource your marketing department, hence buying part-time marketing assistance.

If you are a mid- to large-size distributor, do you have in-house staff and only need periodic support? Or, would you like an extension to your marketing department? Perhaps you have one or two people now but need an implementation group.

Are they cost effective?
Agencies have different pricing strategies but, in general, are project-focused. Some charge for strategy development, but if you create a sole-source relationship, this can be negotiated.

If an agency develops a printed piece on your behalf, they will mark up the print cost. Don’t begrudge them that. It is better to have someone experienced handling the printer (and printing) than making errors on your own. Consider your opportunity costs — what else you need to be doing — and let the agency earn its keep by doing what it does best.

The easiest way to work with an agency is to tell them what your need is, and then provide a budget. No matter how hard you try to anticipate every detail, however, you will undoubtedly forget to tell them something. Unexpected problems or delays in getting approvals result in rush charges, plus postage, handling and other miscellaneous expenses, so plan for this when you give them a budgetary figure (for example, your budget less 10 to 15 percent).

Selecting an agency
The best approach is to invite a number of agencies to meet with you. Initially, try to meet with at least five companies, so you can compare, contrast and eliminate one or two to get to the final presentation. If you do not know many agencies in your area, call your Chamber of Commerce, do a Web search (look for business-to-business marketing agencies), go to www.americanadagencies.com for selected cities, contact your local chapter of the American Marketing Association (www.ama.org) or ask printers and other businesses.

Spend no more than one hour per agency. Give them a feel for your company, let them ask questions and present their capabilities to you. This is your introductory meeting.

Based upon these meetings, determine which companies you could be comfortable working with.

Next, create a request for proposal (RFP) that overviews your needs and provide open access to every agency you are considering to ensure a level playing field. Use the points in your RFP as your evaluation criteria. Provide the agencies two weeks to develop their proposal. Remember, however, you’re judging the quality of their thought process, so don’t expect them to be 100 percent on target the first time.

Presentation day
Involve a minimum of three people from your company in the decision-making process. Make sure to involve your sales management team. Any good agency will want to get to know your business and your customers, and your sales organization is your best resource to provide this information. Your sales team will also play an important role in implementing any marketing programs the agency develops.

Provide each agency 1 1/2 hours to present, with an additional 30 minutes for your questions. Have each agency prepare a written presentation as a leave-behind. Use your RFP and rate each company on a scale of 1 to 5 in each of the RFP areas. Total everyone’s scores to determine the winner.

The entire process should take a month.

Having an agency adds another level of professionalism to your marketing efforts. They can be effective, cost-efficient resources, enabling you to focus on strategy and implementation.

This article originally appeared in the January/February 2004 Progressive Distributor magazine. Copyright 2004.

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