Reduced marketing allocations mean marketers need to consider changing directions in marketing services procurement.

Back in the 70’s and early 80’s relying on the ‘Ad agency’ for most marketing services was commonplace.......but Company Marketing Directors and Managers have, over the last decade or so proved effectiveness without over reliance on expensive outside help.

More and more UK companies have gradually built their own marketing resources and brought industry marketing intelligence and control ‘in-house’…. creating significant savings over marked-up agency services and adding, through sales graphs to their company bottom line. Naturally, this success led to year on year increases in allocations of company finances to marketing departments and increased in-house resources to help companies to lower their cost of services and compete in an increasingly competitive, yet upbeat sales and marketing arena.

But, the drop in economic growth from Spring 2001 brought an end to all that and we now see a different situation ……..with a whole different problem.

Like many budgets in recent times, marketing has suffered from the pressure of a flat two and a half year period. And get this…. more and more of today’s smaller allowances are needed to cover the larger Marketing Departments recently created - head count, cars, mobiles, desk space and personal expenses- are all taking their share from a fast evaporating marketing budget.

Today, cash for actual marketing functions is simply disappearing, leaving less and less funding to be used to generate real sales….. reversing what marketing finances was supposed to be doing!

Buying effectively

The ability to select, manage and co-ordinate an increasing number of specialist suppliers, like designers, printers, exhibition contractors or new media specialists is not easy and in-house company buyers struggle sometimes to understand each supply sector or buy effectively in areas outside their knowledge.

Co-ordinating efficiently

In addition, to organise a complete marketing solution across many suppliers is also difficult- where all want more of the marketing budget and each often separated from other suppliers in the same project – there is little, if any, chance to ‘integrate mixed activities into a single solution’. Anyone who has organised an exhibition or event will recognise these common problems- even the company logo colour can differ when three or more suppliers create it!

Some clients are beginning to look for a more cost-effective and resource-efficient approach to marketing services, they want an alternative which they can still control, turn off and on as required and spend only what they have on what they want “…oh! and all at an attractive price too.”

A new direction?

There are agencies out there promoting what is called ‘Integrated Marketing’, but most have just extended their services and do not, in fact deliver what they promise- as they invariably have a bias or core service they prefer.

One organisation, formed in October 2002, avoided the common mistake of service growth through ownership, and simply provides it’s clients project management across an alliance of specialist independent marketing suppliers, joined by a solid philosophy to integrate their collective services into an efficient, serious alternative to traditional agencies. But DirectionGroup provides a close industry understanding and the classic ‘charge by the hour’ flexibility…used by ad agencies. But, now at a much lesser charge and virtually no mark-up.

Many groups now claim to provide ‘media-neutral’ services, but simply do not know how to co-ordinate or work equally strongly across different disciplines. DirectionGroup, however, is able to bridge the gap on clients' behalf because it is itself an end-to-end managed link between true independent specialist suppliers and the client.

An outsourced, well managed network that can link ‘partners of expertise’, like panels on an umbrella, to cover a range of quality marketing services companies can offer real turnkey relief to Company marketers looking to save costs and still maintain (or improve) productivity across a wide range of marketing skill sets.

Project Management

The vital link, of course, is the quality of the Project Management.
A single point of contact is essential, as is expertise and trust in the management of all services offered to clients - ensuring co-ordinated and timely management throughout the project.

For the right type of client, this solution, which applies as well to on as off-line marketing, can instantly improve the way they select and engage the increasingly wide choice of specialist marketing services needed to achieve their marketing objectives. Start to finish Project Management ensures a single, smooth and efficient process is maintained.

So clients can now get the best of both worlds- direct purchase of each specialist service with the lowest collective management overhead possible.

A wide range of specialist services

The services provided through DirectionGroup include: Project Management, Research, Marketing Consultancy, Creative Services and specialist marketing disciplines such as e-Marketing, on/off-line Advertising, PR, Print, Direct Marketing, Digital Media, Logistics, Merchandising, Sales Promotion, Exhibitions/Events and Conferences…and the list is growing.

Marketing has certainly changed over the years and budgets will I am sure, continue to surprise us all, but it is nice to know that the service community has been quick to move in a new direction to meet the tighter, more demanding needs of today’s cautious marketing budgets.

DirectionGroup HQ is based in the Thames Valley, where most of the Group’s Partners concentrate their services. Richard Stephens who founded DirectionGroup, has 26 years experience in design and marketing and is Senior Marketing Consultant at Creative Direction Consultants Ltd.

For further information, please contact:
Richard Stephens
DirectionGroup
Tel: 0118 989 8104
Mob: 07836 587096
Email: richards@directiongroup.co.uk
www.directiongroup.co.uk