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Barq Asks Why You Eschew Outsourced Assistance?

Posted by Anonymous on 4/20/2007 at 5:57 PM ET 1000 Points
Today, with 6,142 Expert Points, and 8,400 Question Points, I broke the top 100 MarketingProfs expert list threshold. To celebrate, I will be transferring at least 2500 of my Expert Points to ONE of you by 5/4/07. The rest of the question points will be distributed evenly among all respondents.

QUESTION:
I often see questions posted on this MarketingProfs Forum that used to be standard fare for advertising agencies. It is as if companies have chosen to take all marketing functions in-house, and do not want outside assistance.

Are there are in-house pressures that inhibit you from seeking an independent assessment of (and answers to) your company’s marketing challenges? Are there other issues or attitudes that inhibit you from seeking the counsel of “outside the company” marketing specialists?

[This is one in a series of 6 questions I am posing to those who are not advertising or marketing AGENCY staffers, but who are responsible for selling or marketing a product or service for your company. I will also consider comments from agency people, as long as you speak from a strong position of the marketing buyer’s insight. The questions will be posted in several MarketingProfs subject categories, so if you wish to respond to all questions (and qualify for the points), please click on my “Posted by” name (BARQ) and choose from my “Recent Questions” list. The last question will be posted by 4/30/07 in the “Just For Fun” category.]

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RESPONSES

  • Posted by Tracey on 4/20/2007 at 8:03 PM Accepted
    Hi BARQ,
    I can give you a couple reasons for companies I've worked at. However, I wasn't the one to make the decision, and these were B2B companies that have an obviously different approach than B2C. There are a few reasons I see:

    Budget -- agencies are expensive, or at least, perceived to be.

    Marketing is not really understood or valued as much as it should be -- therefore, execs don't see the value of outside marketing expertise.

    #1 Reason: Industry knowledge -- agencies weren't seen as having an intimate knowledge of the market we were in. Especially prevalent in highly technical software companies I've worked at, or niche markets. The execs perceived the industry knowledge as being the "difficult" part and the marketing knowledge as being the "easy" part.

    We did do outsourcing for PR, graphic design, and some projects with a defined scope/outcome, like telemarketing. We kept things that required more industry knowledge in-house, like copywriting, lead gen campaigns, and event management.
  • Posted by prhyatt on 4/20/2007 at 8:16 PM Accepted
    Tracey has zeroed in on two of the Great Myths:
    Myth 1: Agencies/consultants are expensive.
    Reality: Not necessarily true. Small agencies and independent consultants can be very affordable, and will provide exemplary personal attention and service.
    Myth 2: You have to be part of the industry to effectively market a business in the industry.
    Reality: How many companies do you know that are mired in their own jargon and what they perceive to be their SWOT? Many could benefit from a fresh, objective look by an outsider who is coming to your communication pieces cold and is not influenced by the history and politics of your organization. Part of being a professional marketer is being able to get up to speed quickly in a variety of industries.

    Great questions, BARQ. Looking forward to seeing the responses.
  • Posted by Peter (henna gaijin) on 4/20/2007 at 9:06 PM Accepted
    Along with the direct cost talked about above, there is also employee security/insecurity. Internal employees want to get the answers themselves so they can then solve whatever issue they are working on by themselves. Businesses have gone away from providing security in jobs over the years, making some employees insecure and wanting to do what they can to show their value. If they can do something instead of paying a consultant, this helps them. If they can't and have to pay a consultant, this may add to their insecurity.
  • Posted on 4/20/2007 at 9:09 PM Accepted
    Barq,
    3 comments:
    Many companies have tried agencies, spent money, sometimes large amounts, and didn't get clear measurements to prove the value. If the company doesn't insist on a plan for measurement right from the start, they will feel uncertain whether they got value from the agency.

    Also the large cost of the placements make it seem like the overall project was expensive yet the agency may not have been the primary reason for the high total.

    Finally, if you hire an ad agency they will look for ways to design and place ads. If you first explore all the options of marketing, you may choose some methods instead or in addition to advertising that will be more effective.
    Hazel Wagner
  • Posted by Ali Mustafa on 4/21/2007 at 8:05 AM Accepted
    Hi

    I work for a leading retail company in Kuwait where I handle all the advertising of the company, We tried to take up marketing functions in-house but still we have to depend upon outside assistance in many ways, take for an instance we got designers in-house, but we look for fresh creative and ideas from advertising agencies for launching a new brand or new services. So we do consult outside professionals time to time. Agencies are costly but it’s not a problem when they charge for something which is nice and worth it. Though outside agencies should try to understand the clients requirements, challenges and ask what they want to accomplish instead pushing their ideas more on them.
    Hope it helps

    mustafa
  • Posted by Deremiah *CPE on 4/22/2007 at 12:03 PM Accepted
    Hi Barq,

    hope you're having an amazing life. Great input Randall as usual.

    Are there in-house pressures that inhibit you from seeking an independent assessment of (and answers to) your company’s marketing challenges? Are there other issues or attitudes that inhibit you from seeking the counsel of “outside the company” marketing specialists?

    1. Sure now a days Barq most people are inhibited by their organizations to seek outside intervention primarily because purse strings have been tightened. But that's the very reason why they need good counsel to help them with their marketing challenges.


    THE BIGGEST PROBLEM IS THE INSTAMATIC MARKETING MENTALITY... savvy business people need to humble themselves and listen to somebody who knows more.

    2. Besides that there is a lot more do-it yourself mentality during this time of business development. People have that "instamatic camera Mentality". The kind of atmosphere that makes everybody think there a photographer just because they're totting an instamatic camera. Fortunately for me I've been shooting photography since I was 12. But for some projects I still call in a professional photographer because I know that while I have more than a couple of thousand dollars worth of equipment most professional photographers have camera lenses that run that much. The problem again is EVERYBODIES got a camera so EVERYBODY thinks they're a photographer. Well after seven years of working on my own in photography I took some classes in college underneath the tutledge of a gentleman by the name of Peter Fikaris. I don't know where Peter is today but he taught me a whole lot and I'm still learning BUT I know when I need to call in a professional. Just because you've got an instamatic camera doesn't mean you can do wedding pictures. Give me a break. Like wise most people need to call in a professional marketing person but they've got an "Instamatic Marketing Mentality"...I hope you follow me.


    THE BIGGEST PROBLEM IS THE INSTAMATIC MARKETING MENTALITY... knowledgeable Marketing Experts need to humble themselves and listen to their customers who know a little bit more than they're supposed to know.

    3. The other problem is that marketing experts need to humble themselves and realize that business people are more savvy than they use to be about marketing. It's like doctors these days who think they can tell there customers anything and then they get offended when their patients challenge them because they know a little more than the doctor expected them to know. It often creates conflicts that need to be handled gently instead of from an arrogant know-it-all position. Those marketers who are gentle reflecting great social skills will acquire more customers during this time. Because people want to be handled respectfully.

    Thanks again Barq for asking such a wonderful question. You don’t have to give me any points at all because I participate for the love of the experience. I like making people happy. Now if there is anything I can do for you or anything I can do to make you happy please feel free to contact me. REMEMBER... our only real problem in life is our failure to be "MORE Creative" than we’ve ever been. If you “Invent” your opportunity YOU WILL most definitely create your future. I'm only an email away from you if you need my help Steve. Is there anything else I can do for you?

    Your Servant,

    Deremiah, *CPE (Customer Passion Evangelist)

    *Caring Promotes Exuberance
  • Posted on 4/23/2007 at 6:58 AM Accepted
    Hi Barq,

    In the real world perception is usually reality. Ad agencies have fallen victim of this.

    Especially in the small companies where cost cutting is the order of the day. The perception is ad agencies are for only the giant companies and are expensive for nothing.

    Its hard to see the value added by an agency especially if you beleive you can do what they do yourself. (Why hire a chef when you can make themeals your self... unless you can comfortaby afford it).
  • Posted by telemoxie on 4/23/2007 at 7:30 AM Accepted
    I think a major underlying issue here is a matter of degree. You ask why folks don't solicit help. Most marketing buyers I talk maintain extensive vendor files and are open-minded. Maybe the real issue is that they do not solicit ENOUGH help...

    As a supplier of marketing services, you would complement my personal and in-house skills and capabilities. If I, as a marketing buyer, were to apply your talents and potential in the most effective manner, I would need to begin by exposing my weaknesses - by telling you what I do NOT know, by explaining the issues I could NOT resolve, by describing my inabilities to meet certain goals - while also providing the technical and market details you need to understand my position in the market.

    If I were to be this open and this honest and transparent, in hopes of effective help, I would lessen the need for my personal involvement in the project, and give you all the ammunition you need to have lunch with my boss, to expose my weaknesses, and to position yourself as a more comprehensive solution -

    - and so I believe the number one issue which blocks effective and productive use of agencies is fear. You will need to begin by establishing a relationship of trust.
  • Posted on 4/23/2007 at 10:33 AM Accepted
    Hello BARQ,

    Are there are in-house pressures that inhibit you from seeking an independent assessment of (and answers to) your company’s marketing challenges?
    Yes there are and here are a few...
    1. Budget
    2. Getting everyone on board to have one specific Marketing Company to handle our marketing functions.
    3. Getting everyone to believe that we can communicate directly to a Marketing Company and that they will receive our ideas and goals properly.

    Are there other issues or attitudes that inhibit you from seeking the counsel of “outside the company” marketing specialists?
    Absolutely.......
    1. Marketing Companies are too expensive.
    2. They are too artsy and will not be able to duplicate what we are looking for. Instead they will get on a creative streak and bully or pressure us into accepting their product and not what we want. In lieu of dealing with this pressure we opt to do it in house.
    3. Why have someone else do it when "I" think that "I" can do it better?

    Another great series of questions!

    Promo Chic
  • Posted on 4/24/2007 at 4:31 PM Accepted
    Hello BARQ,
    You bring up a good point and I don't think they are resistant to being challenged, but for some people, they don't want the hassle of having to challenge someone that is working for them. Now granted, a Marketing Agency is going to have some great ideas, don't get me wrong. They might even have ideas that the client hasn't thought of. They also have that uncanny ability to think outside of the box because, well, they are outside of the box. The thing is that when one has to deal with the hassle and toggle of going back and forth they stop to evaluate if it is worth it. If the client hasn't seen the worth in the beginning, it may not work out. Same thing goes for my Boss. If he hasn't been blessed with something that is knock your socks off fabulous in the first presentation, you can kiss it goodbye. I think that is where Marketing Companies fall short sometimes at the first presentation or they present too many options.

    Promo Chic
  • Posted on 4/25/2007 at 4:49 AM Accepted
    Well,mostly it has to do with pressures of execution. Any work that needs to get done typically needs to get done RIGHT NOW. An agency briefing, the time taken for them to brainstorm, iterate and the lacklustre results on multiple occasions prompt such issues & attitudes.
    The cost could also be a consideration though i doubt it will be the main one.
  • Posted on 4/30/2007 at 1:29 PM Accepted
    BARQ, I can see your point. I never thought about that before. You are right that there is a limited amount of staff that gets the chance to give their input as to what they want. Without complete knowledge on the agencies behalf as to what is needed and wanted, it is difficult for the agency to be able to communicate that.

    Thank you for the response. I will remember this when we work on our next project. I guess doing my own internal homework can help.

    Promo Chic
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