by: Julie Lucido, CEO
Who can use a creative agency?
Any company with short-term and long-term plans for maintaining and growing their business should consider the potential in partnering with an agency. They can not only help you communicate your authentic voice and sell your products effectively, they can help guide you through existing marketing channels, and take advantage of new ones. They can focus your marketing efforts in ways that save time and money. To be fully prepared to compete and grow, it makes good business sense to partner with a savvy, market-specific creative agency.
For example, take Company X. They have been running a medium-sized business for quite a while, and as it has expanded over the years, the owners find themselves spending more and more time dealing with all the tasks associated with that expansion, giving marketing a lower priority. They utilize a limited number of marketing outlets – they take out ads in a trade paper, and they attend occasional trade shows. They set up a basic website a few years ago that describes their products and contains contact information, along with shipping schedules and costs. But they haven’t updated the site lately, and the blog they created hasn’t been refreshed in six months. They don’t pay attention to their position in the online marketplace, and get little feedback in terms of what their ad buys are really achieving. They have some brochures that were created a few years ago, and they’re already outdated. And they are noticing that some of their colleagues and competitors are looking a lot more sophisticated than they do in terms of website and brochure design — plus Company Y and Z have twenty times more fans than they do on Facebook. Company X is starting to look like a small player in comparison.
Company X understands that more effort is needed in marketing communications, but it’s gone beyond the point where they can manage this important facet of their business in-house. They just don’t have the man hours and expertise to handle outreach, and to use other marketing channels in an effective way. They realize it’s time to take their company to the next level — but where to begin? What can they expect from an agency, and how do they find the right partner?
What can an agency do for you?
Quite simply, an agency gives you your best possible presentation to the world. And an agency can grow your business. You not only want to look good, of course, you want to sell. There’s a saying in the marketing field: You wouldn’t hire a temp to fix your plumbing or wire the electricity in your house. And when it comes to marketing and advertising, it’s critical to use professionals there, too. Doing marketing the wrong way not only makes you look bad, it can hurt your business – and it can take years to recover from the wrong marketing decision. A good agency does more than create a sharp, professional website, compelling ads and attractive brochures – they open the door to the next level of volume. And help you grow from there.
How do you select the right agency?
To begin the process of connecting with the right agency for your business, think about who you are, and what your goals are. You must identify your core beliefs, strengths and weaknesses, and align them with the agencies you meet to find right long term partner. When considering an agency, look at what they do: Are they well-established in your market niche? What other clients do they represent? Do they work with clients long-term, guiding them through a complete marketing plan? Do they have examples of campaigns they have run both offline and online? Do they do more than design brochures and websites, and do they represent clients fully in all marketing channels available? You should be asking these questions, and getting detailed answers. They should take the time to explain what a professional marketing plan looks like. And they should display a thorough knowledge of the challenges and opportunities in your field. Use your gut instinct in selecting a potential agency partner, but also ask the hard questions.
What does a marketing budget look like?
And what can a client expect from the investment? There is a wide range of cost and budget options to consider here. Costs will vary by both type of agency and results you seek; you and the agency will come to an agreement as to what is a practical goal, based on various models your agency will present. How do you come up with a budget? While there is no one answer that applies to all kinds of businesses, one rule of thumb is a business-to-business firm may spend 2 to 5 percent of their gross annual sales on marketing; yet some in some competitive industries, firms may spend as much as 20 to 50 percent of revenue when launching a new company, service, or product. For example, an average B2B company usually spends 10 percent of their gross sales for the year on marketing each new product or service, or 20 percent of the new product’s sales target. In “maintenance” mode, or in the off-season, budgets may skew towards the low end. And B2C products and services usually spend a higher percentage than B2C. You should consult with your agency to get an average estimate based on what other clients typically spend in their market vertical, or refer to industry publications for additional data.
There are many factors that will influence your budget decision, including which industry you’re in, and how much and how fast you want to grow. A good agency has knowledge of your industry to help you evaluate a practical set of costs.
You may already have a rough budget in mind, and the agency will present a variety of options to match that budget, with suggestions on what directions to take based on their experience with similar campaigns they have done. You’ll need to talk about short- and long-term plans on how best to use the budget, and what you may expect in terms of results. You should receive a detailed proposal on how it your campaign will take shape for you to approve or change. No matter what budget you have set aside for marketing, your agency will come up with the best possible way to make those dollars work, and stretch your budget to utilize the most cost-effective channels.
The only stat I have seen differently is the marketing budget. I have often heard (and said) 2-5% of the gross annual sales. Higher when launching a company, service, or product, and on the lower end when in maintain mode and it can fluctuate seasonally of course. And your note it can be much higher of course is true as well as it depends on industry and marketing goals.
Without numbers hard to tell if it ends up being any different. Maybe source the couple of ways people do it?
How do you finally decide?
In your agency search, while you are assessing the strengths and talents of the agency you’re talking to, think also about the people skills they display. Be sure to meet the actual team members you’ll be dealing with on your campaign. You’re going to be working with them in a process that could stretch over years – and you want the right chemistry, so you can partner with them successfully through any situation. They may be the best in their business, but if they don’t get along with people that well, or if something doesn’t feel right, meet with an agency team that does feel right.
Marketing is an important investment. It’s an investment in time, money and personnel that must be worked at to perform at its peak efficiency. It’s an awesome force in business when it’s done well. And it all starts with the search for the right agency.
As owner of Marketing Plus for the past 10 of its 30 years, Julie has applied her 16 years of produce industry experience. Her commitment to excellence resonates on a daily basis. She has developed award winning domestic and international marketing plans and campaigns. Having grown up in the produce industry, her close ties and knowledge base has created long-term relationships with clients, media contacts, and tradeshow personnel.
A graduate of University of California, Santa Cruz with a major in Theatre Arts, followed by postgraduate work at the University of California, Davis in Marketing, she brings a strong creative approach to all projects and ability to lead a winning team.
Julie is an active member of the Produce Marketing Association (PMA) Fresh Summit Committee, PMA Exhibitor Advisory Committee Chairman, volunteers with SCORE, President of the Junior Company Foundation Board, member of FPFC, member of the Fresno Advertising Federation and American Advertising Federation, and member of the Certified Trade Show Manager program through the University of Illinois. You can reach Julie by visiting www.marketingplus.tv or email her at julie@marketingplus.tv.
