What is a marketing communications agency and how do you know when you need one? As a colleague of mine used to say (in response to virtually any query, unfortunately), "That depends." Why is that a good answer in this case? Because marketing communications needs to be specific - to your brand, your business needs and your marketplace. Defining a marketing communications agency, however, is like describing the shape of a liquid.
Marketing communications encompasses everything your company says about itself and what it sells. It can take the form of ads, direct mail, brochures, white papers, spec sheets, newsletters, trade shows, websites, public relations, live events, product demos, new employee handbooks, corporate videos... the list goes on. Some companies handle all their marcom work in-house, some do only a portion, and some do none at all, relying on outside resources to supplement in-house capabilities or functioning as an offsite, virtual department. So, the type and number of activities an agency performs defines what a marketing communications agency is - for that particular company at that particular time.
What agencies do... what companies need
A marcom agency - because it looks at all the appropriate options for each client, not just advertising or direct or P.R. - should be able to help with the strategic essentials: branding, positioning, differentiation, demographic segmentation, message development, packaging, channel identification, and so on. It can, of course, implement the tactics - the ads, mailers, collateral, websites, news releases, etc. Not every agency offers such a broad array of capabilities (and your company may not need them). So, first, you need a sense of what your company requires... and what the CEO thinks the company requires. Those two perspectives aren't always in harmony.
If the CEO thinks, "The only thing this company needs is the people to make the product and the people to sell it," you have a problem. You had better make some allies pretty quick in both sales and product development. Other chief executives, fortunately, understand that there is no business without marketing. Any product or service created in response to a customer need, any revenue goals tied to a product or service, any literature that describes the things you make or the tasks you perform, and any customer service or support you provide once a sale is complete are all part of marketing. And marketing communications can play a role at every stage.
Questions to ask... about your company
To determine whether you need a marketing communications agency to play the various roles, answer these questions.
How well does your product literature explain the advantages of your products?
1. Only our product people understand it.
2. The sales team has to do a lot of explaining.
3. The differentiating functionality is clear to any reader and the benefits are obvious.
What is the response rate to your ads and direct mail?
1. We have no idea.
2. Not as good as we'd like.
3. We measure every outbound communication and modify our schedule to optimize qualified leads.
What does your company think its brand is?
1. The name and logo.
2. The name and logo and the company's or products' reputation.
3. Everything that characterizes the company, its products, the way it does business, and how it treats its customers, partners and employees.
How do prospects think your products compare to the competition?
1. Sales might know.
2. Pretty well, probably, because sales are okay.
3. Our products are seen as a good value for the price but lag behind the category leader in terms of innovation.
Who's in charge of product names, taglines and other product/company identifiers
1. The product managers and salespeople.
2. We have contests, and the executives pick their favorites.
3. All our nomenclature is related to the overall brand, market perceptions and competitive requirements.
How are ads, direct, collateral, events, PR and online activities integrated to maximize awareness, preference and lead generation?
1. Integrated?
2. We do what everyone else does until the budget gets cut.
3. We develop targeted programs that consistently reinforce the product and company messages to achieve the greatest reach and penetration among our most likely buyers.
If you picked all "3s," you're in great shape. Anything less and you are a good candidate for professional assistance from an agency.
The people at the marcom agency can help you focus objectively on prospects' and customers' expectations and requirements, present information in terms that are meaningful to your target audience, and establish awareness of who you are... and how you differ in positive ways from "the other guys."
Questions to ask... about an agency
Of course picking the right agency for your company is a separate matter. Here are key things to consider.
What is its record of success?
The more specific an agency can be about the results of the programs it has created for clients, the more likely it is that the agency be focused on monitoring your own company's success.
What is the agency's mix of clients?
If it specializes in a particular vertical industry, check for potential conflicts with other accounts that may be competitors. Examine its portfolio. See whether similar companies are clearly differentiated so it's clear what makes each one unique. If the client mix spans several industries, make sure the agency's work clearly communicates the product advantages and brand characteristics of its clients in those industries.
Is its working style compatible with yours?
If your company has a collaborative environment where everyone contributes, the agency should be able to become part of that process. If you just want a group of people who will do what you tell them to do, make that clear right away. And if you expect the agency to provide sound business judgment about what to communicate and how to do it, be sure it can provide that.
What services does it provide?
If you rely on market research, do a lot of online marketing or rely on customer case studies to appear in trade publications, be certain that the agency offers those services, either directly or through a partner whose work it manages. If the agency work with partner firms - to handle email marketing logistics, for example - be sure it takes full responsibility, just as if its own staff did the work. Be ready to compare apples to oranges, too. If you need a lot of P.R. with intensive media contact, examine how well the marcom agency is likely to handle that work when compared to a dedicated P.R. firm.
How does it charge for its work?
Agency pricing can range from monthly retainers to hourly fees. Some retainers are applied against staff time. Others simply ensure that the people working on your account stay up to date on your company, industry and marketplace so they're as knowledgeable as you are. If an agency will function as an extension of your company, a retainer is just the salary and overhead you'd pay for an in-house department. However, if you simply want good writers and artists who can improve the look and clarity of communications pieces you conceive, it may make more sense to work on a project or hourly basis.
What kind of relationship do you want with an agency?
If the agency will be just another supplier, and your purchasing people insist that every project get three bids, an agency probably isn't for you. Hire freelancers. However, if you want a long-term association, need to trust that your company's best interests are always considered, and want to work with people who understand your business as thoroughly as you do, take a look at the length of time the agency's been serving other clients.
Made for each other?
This is a lot of analysis, but it will help you find the right mix of capabilities and chemistry. Just keep one thing in mind: agencies are trying to find the same thing. So, even when the economy reduces the business available, the best agencies - if your requirements don't play to their core strengths, don't offer them the opportunity to produce really good work and don't provide a sufficient profit - may turn you down. That's the nicest thing they can do - for you and themselves. Think of it this way, if they're the fastest two-seater on the highway, but it's clear that your business needs a two-trailer semi, no one will be happy with the outcome, least of all you.
Peter Altschuler handles client marketing strategies and creative direction at Wordsworth & Company, a marketing communications agency in Santa Monica, California, that specializes in Making Products and Services Irresistible(tm). For a free guide that outlines how they do it, email Peter at altschuler@wordsworthandco.com or call him at 310.452.1022.
