One of the profound things I learned after 13 years studying “Marketing” at Uni, from tutoring & lecturing in “Marketing” to MBA students and debating “Marketing” with my peers, is the commercial advantage of using academic knowledge that has meaning and relevance in the commercial environment.
FOR MARKETING CONSULTANTS
One of the things taught in higher Economics is that “super-normal” profits only comes to businesses that fall into the economic industry-classification of “Monopolies” or “Monopolistic Competition” (e.g. Oligopolies), while industries where competitors, existing in “Perfect Competition”, inevitably will not maintain long-term “super-normal” profits.
Likewise, in Strategic Marketing Industry Life Cycle Analysis, we KNOW that high margins and premium pricing is much more difficult in “Market Maturity” than in “Growth” and that all industries are likely to enter “Industry Shakeout” at early Maturity stage, primarily because it is more profitable to merge, than it is to grow organically.
Experts among us might shout “in professional services, price is a yardstick of quality” and “Price is in-elastic” but only when the service is heterogeneous in the mind of the buyer.
Product Management “Product Analysis” theory tells us that augmented product metamorphosises into actual product over time – in the case of Marketing Consulting this means clients expect Marketing Consultants to know more, deliver more, contribute more, be more…
History shows formidable marketing successes over the past 40 years have routinely originated by applying higher-level strategic marketing models, so are we NOT being negligent in ignoring these rules in any marketing consulting business, and industry?
There is a saying, “Only a fool knows everything” that might convert to, “Everybody has something uniquely special they can contribute”… Even Philip Kotler said, “Marketing takes a day to learn and a lifetime to master”, although I’d debate this… I believe Marketing takes a lifetime to learn and is impossible for a single individual to “master”.
Why No Single Marketing Consultant Has ALL the Answers
Think about it… There are 8 “P’s” of Marketing… The 4 “P’s” that everyone (who does a basic business course) learns: Price, Product, Place & Promotion…. are the simplest, but even these simple topics are complex and extensive.
For instance, JUST “Promotion” breaks down to:
2. Public Relations,
3. Sales Promotions, and
4. Personal Selling
… AND, that small subset called “ADVERTISING”, requires professional training in Mass media (Digital, TV, Radio, Print to name a few), direct marketing (CRO online, post, off-the-page, and others), web (YouTube, SEO, PPC, SEM, SMM, CRO, content)… each requiring creative, production, media buying and implementation skills…. coordinated with position, targeting, segmentation, buyer behaviour, buyer adoption stage… and 1001 other professional specializations.
… BUT PROMOTION ALSO INCLUDES Public Relations, Sales Promotions, and Personal Selling… which are all (if not more) as complex and arduous as advertising.
How can an Advertising Expert be a Marketing Expert?
Look at “PRODUCT”… there’s branding, portfolio management, new product development, market research management, packaging, product typing, product differentiation, product management… and on… There’s Boston Matrix, Ansoff Matrix, Brand Equity Management, the Product-Service continuum, levels of involvement, etc, etc and all these vary across 2-5 segments!!!
How can a Product Management Expert be a Marketing Expert?
“PLACE (Distribution)” and “PRICING” are even more complex and divergent… and that is before we move into PEOPLE, PROCESSES and so on…
… and then the synergy can be lost by silos that divide (and cannabalise) marketing efficiencies…
What Would Marketing Consultants Do (in Theory) to Maximise Their Value, their Efficiency & Their Profits?
The business world NEEDS to understand & adopt adopt the “Hierarchies of Marketing” – or some model like it – because, right now, the profession nurtures those who “don’t know how much they don’t know” as employers, naive of the depth and breadth of the discipline of “Marketing”, hire one person to be a jack of all trades instead of many that they should really recruit. (Feel free to request a copy of my [free] e-book, “The Four Faces of Marketing”.)
There is opportunity businesses to make HUGE bounds forward by NOT hiring a ‘gun’ Marketing Manager, for say $170,000 pa, but appointing a Marketing Consultancy for the same money and getting a team of leading experts who collaborate and delegate work to team member/s best qualified to deliver exceptionally good output.
There is a HUGE win/win here… the customer gets BETTER STRATEGIC MARKETING input, and generates better marketing OUTPUT, makes more money, re-invests more… and the marketing firm shares success accordingly.
The only ‘catch’ is the marketing consultancy HAS to deliver exceptional, extraordinary marketing… which no individual can possibly do.
My colleagues and I incorporated Launch Engineering 10 years ago and brought in the best possible minds we knew – in the key areas of Market Research, Information Management, Digital Implementation, and so on, but a small, boutique firm will always reach a flattened sales curve: The world isn’t quite beating a path to our firm’s door as much as we’d like. Why? Well there’s a host reasons that go beyond this post, albeit great strategists cannot yet be 100% brilliant in all operational marketing disciplines.
Should boutique marketing consultancies merge, or compete, and why?
If other marketing consultancies, reading this, see some merit to the points I’ve made, perhaps they would care to offer some feedback and comment… … and tell me, “Should boutique marketing consultancies merge or compete, and why?”
If you’ve read this far and want to delve deeper into Marketing “science”, PLEASE read (for free) about the Hierarchies of Marketing, and other marketing issues, in this e-book by downloading from this address…