Finding a partner has its challenges. As an entrepreneur or small business owner, you know your products and understand what its takes to make a profit.
However, chances are you are not a trained marketing strategist, media buyer, designer, or copywriter. Market segmentation, targeting, and positioning may be foreign to you. Or, you may lack the external perspective needed to create compelling and creative marketing strategies that create loyal and profitable customers. But when it comes to realizing the need for a marketing partner, getting help is one indication of success!
If you lack the expertise internally or are searching for an outside perspective, a marketing consultant or agency may be a wise investment. A key aspect of selecting the right marketing partner is matching their expertise and capabilities to your needs. Answers to the following questions can help streamline the process and evaluate potential candidates.
1. Do you handle accounts our size?
Since advertising agencies and marketing consultants are in business to make a profit, the account size can be an important aspect for the agency. Agencies that have a hefty overhead structure must search for clients that can support their internal cost structure. Although most agencies will say "no business is too small for us," the reality is that if your marketing budget compared to the agency's larger clients is not comparable, your business will play second (or third) fiddle to the big guys.
It is best to find a marketing consultant or advertising agency whose client profiles and expenditures are similar to your company's profile and marketing expenditures so that you are truly an important client and not just another name on the client list.
2. What is your fee structure?
Most agencies and consultants work on an hourly fee and charge anywhere from the mid $60s and climb up to more than $300 per hour. The fees charged are based primarily on experience offered and overhead structure. The hourly rate is usually built into a project fee based on the number of hours estimated to complete the work. Other billing schemes use a monthly retainer or fee providing for simplified budgeting and cash flow management.
Additional revenues are found with media commissions and mark-ups on printing and other outside services. Be sure to understand how agency fees are calculated and what mark-ups are applied to outside services. For most small business owners, these incremental fees can add up to a lot more than what was bargained for.
3. What is your experience with marketing small businesses?
Running a commercial during the Super Bowl or placing an ad in Business Week sound like fun marketing promotions and can be a major ego booster. But for small businesses, they are totally unrealistic. Unlike those that have money to burn, as a small business your marketing investments and initiatives must clearly communicate why someone should buy from you and motivate your audience to take action. Less image, more action. Each dollar spent should result in sales (or action leading to a sale) and build customer relationships. Your marketing consultant or agency should be able to demonstrate its abilities to market small businesses and provide a measured return for your marketing investments.
4. Can you supply me with a list of current and former clients?
The answer to this question will allow you to not only talk with current and former clients, but show you the type of clients the agency or consultant has experience working with. In some cases, there are confidential relationships with clients that cannot be shared. However, any firm worth its rate (and your time) can provide you with clients who have agreed to serve as a reference.
5. What are you best at?
If there is a fit between the agency or consultant's strengths and your needs, you have found a qualified candidate. Beware of those firms that say "we do it all." Those that "do it all" tend to do nothing extraordinary. No specialization means mediocre results from an unfocused agency or consultant. Choose a specialist who can demonstrate their specialty.
6. What makes your firm the best firm for my marketing business?
Every candidate should be able to clearly define what makes them different and how that applies to your needs. It could be experience in your market category or expertise in the particular service (e.g. marketing strategy, newspaper advertising, direct mail, internet marketing, etc.) you are looking to utilize. Look for the marketing pro that best fits your needs and is able to deliver proven results.
Final thoughts...
There are many more questions to ask that are specific to your situation, but those listed above will give you a good place to start.
The best advice for working with your chosen advertising agency or marketing consultant is to trust them. They will be a true resource for you to grow your business and to meet your sales and profit goals. |
