Now is the season to be on the lookout for the thieves. In rocky economic times, they come out to prey on companies eager to hold on to current customers and find new ones, introduce new products and services, or simply increase their market share.
It's easy to identify these wolves in sheep's clothing. They call themselves 'advertising agencies,' 'public relations practitioners,' and 'design studios.' In tough times, most are in worse shape than the people they pretend to help. As a result, they will do almost anything to entice prospects into their lairs.
Far too many of these ill-conceived, poorly managed, and under-talented operations are, in fact, highly skilled in the one aspect of the business they care about the most: taking your money before you can figure out you've been taken to the cleaners.
Quite honestly, they do well because too many of their prospects are greedy, gullible, and far too fascinated with the 'ad biz.' These clients often dream of vaulting to the top in one great, graceful leap and demand instant success. They are often delightfully eager victims.
The agencies use a number of techniques to raid a company's treasury. A favorite gimmick is to offer the 'complete campaign'-a series of ads (print, radio, and TV, of course), a corporate identity program (that means a new logo, which will be used on everything from business cards to trucks- think of that invoice!), a bevy of brochures (including a glitzy, full-color corporate brochure, direct-mail materials, mailing lists), and on and on.
All this is presented under the rubric of 'Let's get you moving fast, so you can achieve those wonderful, new sales records.' It sounds so very 'proactive,' as the ad folks say.
But there's one thing they don't tell you. Their real goal is to get you for as much as possible up front and bill you before the program begins. By the time you figure out that all the stuff you paid for hasn't brought in one new customer, the agency has been paid and has moved on to the next sucker.
Does this really happen? Every day. Recently, a marketing firm created a program for a statewide bank that achieved its goal at a total cost of just over $6,000. The program, therefore, was a measurable success. At the same time, the bank's ad agency had just finished spending $10 million on a national advertising campaign that produced less than a handful of second-rate leads. Remember the campaign for the Infiniti automobile? Another failure-but 'breathtaking.'
All this does not mean that you shouldn't hire a marketing agency for your company. But before you do, consider these 10 commandments:
1. Don't hire an agency that insists your company's image needs to be changed. By suggesting that you're out of tune with the times, the agency is merely trying to frighten you into spending a lot of money on an expensive new logo or, as they call it, 'the corporate identity program.' Of course, there are the times when a company's identity needs a fresh, new look, but that should be an evolving process.
2. Don't hire an agency that disparages and criticizes your current advertising. If the agency people snicker and exchange knowing glances, you're being set up. It's posturing designed to sell you expensive (and most likely impotent) ads that are no better than what you're using right now.
3. Don't ever hire an agency that recommends creating a corporate brochure.
The big, heavy duty, full-color brochure is an ad agency's best money-maker. It's full of frighteningly creative copy, expensive art work, and magnificent photography (particularly photos of the CEO-so he will authorize payment without questioning a single item on the ridiculously outrageous invoice).
The paper stock is special (that means expensive), and the full-color printing, the die-cut cover, and the embossing all combine to make this a piece de resistance! As soon as the bill's been paid, you discover that the marketing budget for two quarters has been depleted. For some smaller firms, the entire budget has been wiped out for the next three years!
Now you can look at row after row of cartons filled with your fancy brochures. 'Why did we order so many?' you ask a few months later. 'It was the best per-unit price,' says the agency. 'But we won't use all these in 10 years-if then,' you say to yourself. 'Anyway, we just got a new CEO, so the photo needs to be changed!'
Ironically, the big expensive brochure is an easy sell. The fantasy of having a brochure to drive the competition crazy is irresistible; for some reason, clients think hundreds of doors will open for them like magic the moment they step forth with their elegant brochure. Don't let your corporate ego fall prey to such a fantasy.
4. Don't hire an agency that states, 'For a business of your type and size, here's what you should be spending on advertising.' If you don't watch out, the agency will have you talking about 'industry standards' and making budget recommendations to top management that will come back to haunt you.
There are no industry standards that mean anything. Other businesses of your type have nothing to do with you; they may reside in other parts of the country, where business conditions are different, or have their own unique issues to deal with. Building a valid marketing budget requires a keen understanding of your goals and objectives, what you are attempting to accomplish over a period of time, the media involved, and a dozen other key issues-not 'what the other guys are doing.'
5. Don't hire any agency that tries to impress you with all the awards it has won. Remember the agency that spent $10 million of its client's money just to bring in a handful of miserable leads? Its walls are covered with awards-some of the most prestigious in the business. They are there for only one reason: to dazzle prospective clients like you into thinking that this is the hot agency.
In reality, ad agencies like this have only one goal-to get more awards, leading to more business. For the agency, not for you.
6. Don't hire an agency that makes impossible promises. For instance, no legitimate ad agency makes promises to get you on the front page of The Wall Street Journal because this is impossible to deliver. First-class publications are concerned with the quality of the story. Period.
Ad agencies have reputations with editors-mostly bad. Public relations folks are known to deal in 'puff and fluff'-even, pardon the expression, to lie to editors to make the client happy! As a result, their reputations keep them from getting the attention of wary editors.
And you don't want to be published in a periodical that bows to pressure.
There are magazines that prey on companies that want media exposure. 'Sure,' they say, 'we'll do your story, even give you a cover photo. All we ask is that you buy $4,000 in reprints.' This rip-off happens every day. I know one company that had to write its own story!
(As an aside, if you spend all the money recommended by your agency, you and your company may be in The Wall Street Journal, the New York Times, and a dozen other publications without any help from the ad agency: as today's business bankruptcy story!)
7. Don't hire any agency that shows you pretty pictures of what they've done for other clients. It's easy for otherwise bright, perceptive people to fall for this particular brand of sheer nonsense. Unfortunately, some first-rate design studios are the worst offenders when it comes to pretty pictures, although they call it 'top-notch creativity.'
Sure, there are gobs of dynamite art work-but what about the message? What's the goal? What's being accomplished and how does it fit into the overall marketing program? These are all the wrong questions as far as the studio is concerned because all it wants to do is sell its wares- and win awards.
8. Don't hire anyone who says, 'Don't worry about the money.' An ad agency only says something like this to head off your question, 'What's all this going to cost us?' A top-quality agency will give you an honest budget. It may be higher or lower than what you're spending now-but it will always be related to goals and objectives, which is what your company needs to succeed in the marketplace.
You can be sure that you're going to wind up spending a ton of money if there's no budget. You'll wake up one night and scream, 'I've been had by those SOBs.' And if it's any comfort, you'll be right.
9. Don't hire the agency that wines and dines you. If you're hungry, bring a sandwich to work, but don't allow the agency to woo you with anything other than solid effort. To them, wining and dining take the place of hard work, taking your mind off the truly second-rate job they're doing.
Of course there's nothing wrong with having lunch or dinner with your agency people. But should you begin feeling that the razzle-dazzle is becoming rather pronounced, you can bet you're not getting what you need when it comes to marketing, advertising, and public relations. Beware.
10. Don't hire an agency that lets you know (subtly of course) that you'd be darned lucky to be its client! This is the worst scam of all because it's born of a deliberate arrogance, designed to make you feel utterly incompetent-so the agency folks can keep the upper hand and land the account. Here's a final word of caution. If you find yourself starting to utter agency jargon, you've bought the baloney. Here are a few examples:
'Our spring flight will include . . . .'
'This buy gives us an excellent CPM.'
'I really feel the creative was a bit weak.'
'The situational analysis was on target.'
If you start talking this way, there's no hope and you deserve what you're going to get: big bills and tiny results. Besides, your mother warned you about people like this.
All this may seem frightening or frustrating. Aren't there reputable agencies honestly concerned about their clients, agencies with the marketing know-how to create and implement the right program for your company? Of course there are-plenty of them.
The Right Agency for Your Company
Now for the second set of 10 commandments. Follow these and you'll find an ad agency that meets your needs. Furthermore, you can be confident that you're receiving the service you need at a fair and equitable price.
1. The right agency will never come knocking at your door. You'll have to go find it. They won't be standing in line attempting to seduce you with all sorts of portfolios or impress you with feigned professionalism. The agency you want will be busy working for its clients, but it will also be good at communicating its message in ways that seem to grab you. You'll make the call.
2. The right agency will make you work. If the agency makes it clear that it requires regular meetings, don't feel these folks are trying to create extra work for you. This agency has learned that the only way to stay in tune with what's going on in your shop is to be there and to get inside your head. Otherwise, the only time you'll meet with your agency is at the mailbox when its invoice arrives.
3. The right agency will be effective at its own marketing. Is it trying to drum up business by making cold calls? Do its representatives spend their time trying to get in with the right people in order to grab an account? In other words, find out what the agency is doing to communicate its own message. Is it working? Does it seem to make sense? If the agency can't market itself (and 95% fall on their faces at marketing), then how in the world is it going to market your company, product, or service?
4. The right agency is relationship oriented. Does it appear to do 'jobs' or does it have well-established, long-term relationships with its clients? If the latter is true, you can have a high degree of confidence that it wants to work with you over a period of time. The agency is not trying to make a quick buck to pay the overdue media bills.
5. When you meet the right agency for the first time, the time will be spent with you doing 95% of the talking. Agencies that show up with a creative, complete presentation may have done their homework-but probably not. More than likely, they've figured out what turns you on and that's what you get-not what will be most beneficial to you out in the marketplace.
Frankly, it is much better if you become part of the process. There's nothing mysterious when it comes to creative advertising efforts. Your insights may be just what's needed for the agency to hit the target.
6. The right agency will make it clear that you know your business and it knows marketing. If the agency folks are eager to learn about your business, you're on the right track. Learning breeds new insights; it creates the conditions for true breakthroughs. You're going to get superior direct mail, advertising, and public relations because you have engaged a group of curious people who understand the marketing process.
7. The right agency will articulate a marketing philosophy that makes sense to you. There are two critical issues here. The first focuses on whether the agency even thinks in terms of a marketing philosophy. If you ask them to articulate their views and you get a confused answer, go no further! On the other hand, if the agency seems eager for you to understand and appreciate its ideas, you've probably found the right people.
8. The right agency will present a commitment and capability for implementing a proper 'marketing mix.' The right agency recognizes the need to penetrate the market utilizing a variety of techniques. It won't be all advertising, all in direct mail, or all in public relations. The program will implement an array of marketing techniques. If the program seems complicated at first, listen carefully. What's being described may be the real thing.
9. The right agency will make you feel comfortable. When all is said and done, there's something good about feeling comfortable. The right agency won't give you a whopping sense of inadequacy and won't try to put you down. You will come away seeing you and your marketing company as true partners in the marketing process.
10. The right agency won't try to break your bank. If the agency is relationship oriented, your marketing plan won't be 'front-end loaded' when it comes to spending money. Certain start-up costs are normal and to be expected, but the agency will work within a budget and even chide you should you try to raid it for the CEO's pet project! The right agency will respect both you and your money. By now, it should be clear that a company's future is too important and its dollars too valuable to be wasted by people who want only your money. At the same time, proper marketing can make all the difference in the world to a firm's success. Finding the right people who will stay with you over the long haul, be there in the moments of crisis, and work as your partner is the all-important task.