Nick Cloke and Paul Cousins of Catalyst argue the virtues of buying in expertise from a marketing consultancy. However, it is but one side of a controversial issue. If you have a different point of view, we would like to hear from you.
Marketing, noun: the techniques and processes by which. a
product or service is sold, including assessment of its sales potential
and responsibility for its promotion, distribution and development
The latest definition from Chambers 21st Century dictionary may not be a classic summation of `marketing’ but probably reflects the reality of most marketing departments today. It is a broad definition and indicates how marketing has increasingly become a generalist rather than a specialist profession. A brand manager is often more a business administrator or coordinator than an expert in his or her field. How many marketing professionals today are able to elaborate clearly on the difference between a positioning and a proposition, or critically and rigorously analyse research data to produce real consumer insight?
Whilst such talented paragons obviously exist, the demand for them from a broad range of industries has increased dramatically, making them very desirable commodities. Traditionally, it was many an aspiring young marketer’s ambition to enter one of the ‘universities’ of marketing excellence, such as P&G or Unilever, and spend their careers making their mark in the fmcg world. Since it was where marketing as a profession really originated it was within the fmcg sector where the disciplines were most developed and practiced. Increasingly however, retailers, financial services, telecoms, the media industry and now dot-coms have been siphoning off the talent.
The absolute numbers of well-trained individuals in the first place would also appear to be declining. The fmcg giants always had strong graduate recruitment and training programmes, and even the `second tier’ companies had well organised recruitment programmes during the 1970s and 80s. Many of the graduates of these initiatives now hold senior positions in companies throughout the UK and internationally, whether in fmcg or some of the other sectors already mentioned.
The 1990s was a tough time, however, and many of the graduate training programmes, and indeed recruitment generally, were savagely cut back. The consequences of this have been shrinking marketing departments yet, paradoxically, even more tasks to tackle in this technology-driven, multi-channel world. There is now just not the time for this much reduced group to become experts in the many diverse skills that marketers need to ensure their brands remain competitive.
Whilst older marketers might bemoan the present lack of experience and expertise of `the marketing youth of today’ and claim that the knowledge base used to be better, this is not necessarily the case. Today’s cadre of ‘brand management might not be as well versed in certain specific areas of the marketing mix as their forebears, for example NPD and market research, however, they typically have a much broader understanding of business and commercial reaIity. The generalist approach produces rounded individuals who may be better prepared for future progression into general management. Indeed, in many leading companies, it is stated HR policy that future managing directors are to be developed and recruited from within the marketing function.
The problem a marketing director may now face, however, is where to look when he or she needs that specialist marketing experience. It will often not be available to them through their own marketing department, either simply due to lack of resources, as departments have shrunk in size, or through lack of training. This is where the specialist marketing consultancy fits in.
Over the last few years, more and more talented marketers have been moving into consultancy firms, such as Catalyst, who will only employ experienced, well-trained, senior marketers. The advantage for clients is that they can buy in years of marketing training and knowledge to help with specific problems or issues without having to increase the marketing department fixed overheads. Whether for creating and developing new product concepts, repositioning a brand or helping produce an overall marketing strategy, there is a great advantage to tapping into such depth and breadth of experience, which the average marketing department simply lacks. Good marketing consultants can help introduce an effective NPD process and be the catalyst for harnessing and channelling creativity to meet real market opportunities. For the client there is the huge reassurance that these people genuinely know what they are doing, and can be trusted to get on with their task as well as the key people they need to interact with in the company.
Marketing consultancy is now seen as a respected career path for successful marketers. Whilst many in marketing management have moved into consultancy in recent years, it is also now increasingly common to see them move back again to even more senior positions on the client side, taking with them their invaluable experience of process, and the insight that they have gained from a broad range of different markets, companies and brands. In some respects, the consultancies are now providing the training for today’s marketers, a task which used to be solely that of their clients. Maybe things will change and we will go back to huge marketing departments with the time, money and freedom to train their bright young things well and extensively, but I doubt it.
The expansion of overhead is always frowned upon by finance directors. Besides which, it is much more efficient to select a consultancy with specific expertise to deal with a specific issue. So whilst it is as true as ever that there is no replacement for experience, you can now buy it in as you need it.
Winter 2000/2001
MARKET LEADER 11