Advertising Thingys

10 Reasons to Hire an Agency. Reason #7

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Reason #7:  The agency has great processes.

Admittedly, this may be the least known or cited reason for hiring an agency.  In all probability, it would likely depend on the kind of marketer you are, (heavily regulated, say) or the kind of work you seek (like branding a startup.) But nonetheless, this reason is popping up with more regularity as agencies try to distinguish themselves in an increasingly cluttered field.

So what does it mean that an agency has great “processes?”  And why should a small to midsize marketer care?

Processes (academically referred to as proprietary business systems or categorically as operational business engineering,) are basically sets of plans or rules to tackle complex or long or large tasks.  Typically, a process starts with a mission (what should this process accomplish?) and includes any number of tasks or steps, usually in a very specific and very predicated order, will almost always include intersections (with other internal processes or core disciplines,) and ultimately ends with achieving the objective or completing the task.

In some companies, processes like these are cobbled together as a loosely grouped set of best practices that are informally but systematically passed along from management to the execution team in timed increments.  “Okay, before you release that ad to the newspaper, send it over to copy for one last proofread.”   Many times, agencies have dozens of processes, but don’t even know it.  You probably do in your own business.

In other cases, processes may be codified and embedded in the company’s core offering…fully invested by employees and management at the elemental level. And at agencies whose business it is to create stuff, you can imagine that some processes emerge as complex, creative and deeply thought out systems.  In many instances, you’ll find agencies that brand and even trademark their processes.

There are any number of possible agency processes, but the likely suspects would be:

  • Branding
  • Creative Development
  • Situational Analysis
  • Objective Formulation
  • Research
  • Media Planning
  • Project Management
  • New Business

And while we continue, let’s bear in mind that “Marketing” itself is just one giant process.  So all activities of an agency working on your behalf will be some sub-process of the big enchilada.

So.  Does it help to find an agency that has well thought-out processes? Absolutely.  Generally, a process is built on two important aims:  create VALUE for the customer, and create EFFICIENCY of internal resources.  Both of those are yummy if you’re the recipient of the effort.  Moreover, the most palpable benefit is that a process clearly suggests a constant and consistent FOCUS on a desired outcome. If that outcome leads to finding and testing the best expression of your product benefits (for instance,) then yay for you!

But beware an agency mired in process development, and obsessed with telling you about their processes as a lead story.  Sometimes you pay more for all that pre-investment.  Sometimes, in order to run a process, more people are required than if you executed a simpler or a more organic solution.  Sometimes, agencies even try their hands at automation (especially in the media placement/measurement arena) and fail. Sometimes, the agency processes (or some of the people executing them) are outsourced.  None of which are really good for your brand or your bottom line.

If you hire an agency because they have developed and they execute sound business processes, you’re probably in for an education in good business.  But don’t pay more for it, (unless it’s a proven process that will save you time or money going forward.) And remember, the process should be the way to a solution, not what stands in the way of one.

Next – Reason #8:  The agency did great work for another client.

10 Reasons to Hire An Agency: Reason #6

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Reason #6:  I know someone at an agency.

One of the most oft-cited reasons for hiring an agency (and for entering into virtually any professional arrangement,) is a prior relationship between the two parties.  The marketer and the agency president may have once worked together, or sat on a board together, or something really important:  they play golf together.

Bear in mind, marketer-agency relationships are not always forged at the top, especially in the less-than-blockbuster marriages that don’t involve holding companies and gazillions of dollars, but rather between the folks in the trenches:  a marketing manager knows an account executive or a brand manager and a creative director once sat side-by-side on an industry panel, or (and this is becoming more popular,) a former agency pro makes the leap to the client side and then hires his or her old shop or vice versa.

Beginning a relationship with a former colleague or a professional acquaintance is generally good business, since the relationship tends to be built on a foundation of mutual respect and on an expectation level that the work will be executed at or to a certain level of quality. But with that expectation comes a certain amount of pressure.  There is an unspoken agreement between the marketer and the agency.  Something like “this better be good…I hired you because I know you, and I expect you to honor that choice and to (wait for it…) make me look good.”  Plus, if either party blows it, they still have to meet on the first tee next Saturday.  Yuck.

As you can see, that underlying (and usually unspoken) expectation can backfire.  In some cases, the marketer may put undue pressure on his or her colleague to go above and beyond the typical deliverable suite.  There may be a supposition that the marketer is deserving of special pricing, or a truncated timeline, or “special attention.”  Why?  Because I know you, dude.  You got the gig because I know you. The flipside is also true: in some cases, the agency may get complacent, or be prone to lollygagging on certain tasks, because there’s an assumption they won’t get fired by their “friend.”

So you can see that the alternative – hiring an agency where you DON’T know someone – is more than appealing.  The relationship is either built on a good vibe about the potential, or (as we read in an earlier post) on a great pitch, or on something that’s generally attractive about the agency and its abilities.  When an agency and a marketer get together for the first time, there tends to be a prolonged honeymoon period, where each side gets to reveal a little bit more about themselves…a sort of “I’ll show you mine if you show me yours” experience that evolves over time and forms out its own idioms and its own standards. Some of the best and most long-standing relationships are forged in this manner.

All in all, a marketer/agency relationship that’s built on a prior relationship is not the worst idea in the world.  But it’s no guarantee of success, and carries with it a steeper downside, since success is the baseline expectation.  On the other hand, the marketer/agency relationship that’s not built on previous history is a sort of professional courtship that tends to be more fully enjoyed and typically more participatory by both parties. The best course of action is to set the brand and your customers as your top two considerations, and then choose the best agency to serve them, whether you know that agency or not.

Next Post – Reason #7:  The Agency Has Great Processes

10 Reasons to Hire an Agency: Reason #5

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Reason #5: We have no marketing department.

Admittedly, this reason is generally limited to smaller marketers, as marketing can get lost in the shuffle of so many other business activities.  This can be true of all types of companies, from single-offering entrepreneurs (bakers, candlestick makers,) to high tech or Internet startups.  These businesses are so focused on making a great product or offering a unique service, that marketing – capital M – is often relegated to “we’ll get to that when we have some sales.”

So they go out in search of an agency to basically “outsource” an array of singular marketing needs, usually focused on promotion activity like website development or advertising or packaging.  In some cases, the limited funds (that precluded the marketer from establishing a marketing department,) tend to produce difficult choices.  Should we build a website first, or run some ads?  Should we fix up our product line or invest in finding the right distributors?  Should we sell direct or through intermediaries?  All of these functions would typically have been scrutinized by a marketing team and then decided on and cross-referenced with company/brand objectives.

A troubling problem with this approach, of course, is that marketing is often misunderstood, even by fairly accomplished businesspeople.  More accurately, it’s often only partially understood, and tends to be limited to activities that sound a lot like “promotion.”   What most smaller companies don’t understand is that marketing is way more than promotion, and should be everyone’s business, at virtually every level of every company.

So an obvious pitfall of hiring an agency because you don’t have a marketing department is that not all agencies can provide end-to-end marketing advice.  As we saw in post #3 in this series, many agencies have chosen to specialize:  some are great at advertising.  Others at direct marketing.  Others at branding.  Some are very competent digital or social shops. Additionally, the relationship between a company without a marketing department tends to get started off on the wrong foot, since the charge from the marketer is usually very specific.  They start asking around, and saying something like, “I think I need an agency to help with PR.”  Naturally, they’ll find PR agencies vying for their business.  Further, it can get a little icky for senior executives when an outside party comes in and starts asking real marketing questions, like “how did we arrive at this pricing strategy?” or “What are the plans for line extension?” or “How are we planning on expanding operations as we grow?” That can get a little too close for comfort for an entrepreneur who’s poured his or her soul into something for the last six years.

Conversely, there are many advantages to hiring an agency if you don’t have a marketing department.  Generally, someone at an agency (a senior account executive, or management executive,) or an independent consultant is usually well versed in the marketing functions.  Also, if the agency or consultant is a specialist in your vertical, you’re more likely to get road-proven advice that will lead to effective executions.  And let’s face it, every larger company that HAS an internal marketing department hires an agency (or several) anyway.  They can’t be that far off-base, can they?

Internally, any good business worth its salt is going to have to vet every marketing challenge:  the product line, the features, the accessories (if applicable,) the service plan, the pricing plan, the distribution strategies, the operational infrastructure.  A lot of un-sexy, un-advertising stuff.  But these are the basic building blocks for a successful business and a clear grasp of them is absolutely critical to building a brand with any merit.  If an agency can help you explore these concepts, it’s probably the beginning of a very profitable partnership for both parties.

Tomorrow:  Reason #6:  I know someone at an agency.

10 Reasons to Hire an Agency. Reason #4

Nader Ashway2 Comments

Reason #4:  The agency gave a great pitch.

We’ve all heard this one.  There were four agencies on the short list, and it was clear that agency X was the frontrunner.  Then agency Y comes in (from the Midwest, no less!) and knocks the client over and and knocks the incumbent out of a healthy set of billings.  They must have done one heck of a pitch!

“The Pitch” is the holy grail for some advertising and marketing practitioners.  It’s the closing argument of the prosecutor; the 2-minute wrap of the hopeful candidate; the coach’s impassioned locker room speech; heck, it’s the warbly proposal on bended knee.  It’s the one chance the agency has to articulate how it sees the problem, how it crafts the strategy and how it envisions and stylizes the solution.  It’s the only legitimized  method left in modern business to say “pick me!”

Remember Don Draper’s “carousel” speech on Mad Men?  In less than 3 minutes, he encapsulated the problem for Kodak’s slide projector, (that they didn’t have a “technology” sale to make,) added a healthy dose of personal passion, and created new terminology for the client to use as a go-to-market differentiator.  Perfectly presented.  And punctuated emphatically by the account director’s closing remarks:  “Good luck at your next meeting.”  Wow.

Marketers love getting pitched.  And why wouldn’t you?  Imagine you had a problem and you could ask 10 prominent psychoanalysts to give you their best recommendations – FOR FREE.  One by one, they march in, they flatter you and your personality accomplishments.  They ease into your shortcomings.  They postulate the provenance of your problems.  They offer a unique analysis and then lay out an expansive road map to a solution.  And then they thank you for the opportunity. How wonderfully indulgent!

On one hand, hiring an agency because they gave a great pitch is a bit like getting married after a first date.  Sure, it’s always fun and flirty in the beginning, and full of possibility.  But a long-term relationship is something different, and something that requires work, and patience, and more work and the ability to articulate what you WANT from the relationship.  Some agencies pitch well, and have a hard time delivering on all those lofty promises.  Or don’t see the implications of what they propose.  And be aware, small and midsize marketers:  some agencies stack the deck by hiring great pitchers.  There are professionals out there who know how to get into character and learn how to read a room, and learn what the CMO or marketing VP is dealing with, and craft a story so compelling, it’s hard to resist.

But, on the other hand, hiring an agency because they gave a great pitch is not always the worst move a marketer can make.  In some ways, the marketer gets to hear first-hand how the agency perceives your marketing problems.  And in this way, the marketer can sift through whether or not that agency “gets it” with the product offering, has the requisite knowledge of the vertical, of the client’s customer base, and many more subtle but important facets of going to market.  In many ways, marketers don’t always know what they want, but they know when someone is close, because they can hear it somewhere in the details.

You may not always know what you’re looking for when you’re hiring an agency, but you might want to collaborate with a team that’s stumbled onto something fresh and new in reviewing your business.  You might learn that an agency has discovered an insight about your business or your customers and has sound processes and systems to get that insight articulated into a message and then get that message into the hands of the people who matter most. And you might even learn something new in the process.  All in all, if you got any of THAT from an agency pitch, it’s not a terrible reason to hire an agency.

Tomorrow – Reason #5:  We don’t have a marketing department.

10 Reasons to Hire an Agency. Reason #3

Nader Ashway1 Comment

Day 3 in a 10-day series on reasons to hire an agency.

On day 2, we looked at a very popular reason that marketers hire agencies:  they have experience in my vertical.  See yesterday’s post.>

Today, we’re evaluating a slightly less popular reason, but one that seems to be making a lot of headway, especially in the din surrounding social media.

Reason #3:  The agency has a lot of experience in a particular medium.

This is becoming a popular reason for hiring an agency:  they kill it on television.  Or they’re social media experts.  Or they do great radio.  Or they’re DRTV specialists.  Or they’ve got out-of-home down to a science.

And agency owners (large and small) have been drinking the “specialist” kool-aid for a long time.  They think “I can be better positioned, and therefore more competitive, if I’m a specialist in SOMETHING.”  And so they focus on TV, because production budgets allow for a lot of buried costs.  Or they focus on radio because the creative director has a great voice.  Or they decide that mobile is the “shiny new thing” that they can own in their market.  Heck, they’ve probably written white papers (haven’t we all?) on how much they know about their specific medium and the opportunities it affords.  Haven’t you noticed all the specialized spinoffs from the big holding companies?

There is a healthy upside to this line of thinking.  An agency that has deep experience in a particular medium can be extremely helpful to a marketer, especially if the agency is buying the space or time on your behalf.  It likely implies that the agency also has strong relationships with the media reps, which can mean the most advantageous pricing and rate negotiations on your behalf.   It also may mean that there are some best practices that have been honed over years of channel experience.  You (the marketer) can certainly be a beneficiary of all that knowledge.

But hiring an agency because they kill it in a medium can also be a slogging, slippery slope.  It may mean that your entire marketing plan will be re-jiggered – by an outside party with interests that may not be aligned to yours – to focus on the medium it knows.  Not bad if your objectives call for a national TV launch, or a social blitz.  But what if it doesn’t?  And what if choosing the wrong medium does damage to your brand?  How much will that cost to recover?  Likely a whole heck of a lot more than you saved by buying your spot cable at an average of 6.88%.

Especially in the age of integrated marketing, choosing an agency for a medium specialty is shortsighted at best, and strategically disastrous at worst.  The fundamental shift in all marketing over the last 15 years has been towards the consumer, whether that consumer is a military housewife, or an enterprise IT purchasing manager or anyone in between. Marketers need to put the consumer, not the medium, at the center of the plans, and then choose the right channels, the right messages (and these days, the right conversations) and the right timing to meet that consumer’s demands.

Tomorrow:  Reason #4 – The agency gave a great pitch.