Marketing consultants bring
instant expertise -- for a price
By Ellen Birkett Morris • Bankrate.com

In an age of rapid change, small-business owners must be ready to adapt their marketing efforts at a moment's notice. But business owners, especially new ones, may lack the experienced staff necessary to do the job.

Enter marketing consultants.

Marketing consultants are experienced professionals engaged by companies on a short-term basis to meet pressing marketing needs.

A variety of duties
When the Rubber Manufacturers Association wanted to develop a membership program and revamp its image, it hired a marketing consultant from McKinley Marketing Partners Inc.

"We were launching a new membership campaign and needed not only the expertise, but the added staff," says Kristen Udowitz, the association's vice president of communications and marketing.

Udowitz says her organization benefited from having an experienced person who was dedicated to that project and couldn't be called away on other issues.

The consultant stayed on for six months. She mapped out a membership marketing strategy, put together mailing lists, found a mail house and helped create brochures, direct mail pieces and Web site content.

"She did everything from initial planning to stuffing envelopes," says Udowitz.

A little help or a lot
Depending on the consultant, a small business can get assistance on both the macro and micro levels.

"Support takes the form of anything from strategic planning to a complete implementation of an advertising program," says David Schnitzer, president of Martech Consulting Group.

For example, Schnitzer says, a telecommunications company had just hired a new marketing director and asked Martech to work with her to develop a strategy for a new line of business products they were launching.

"During eight months, we developed not only a solid strategy for building the product line through customer relationships, but were producing tools to further those relationships as well," says Schnitzer.

What you need, when you need it
Marketing consultants also tout their versatility, flexibility and ability to match the right skills with an organization's needs.

Jim Deupree, founder and chief executive office of ePlaced.com, which helps consultants bid on corporate projects, says smaller companies that experience cyclical marketing needs can engage consultants when their needs are high.

Retailers, for example, need marketing expertise more in the second and third quarter, Deupree says. They tend to focus more on planning in the first quarter and fulfillment in the fourth.

Marketing consulting companies often have a pool of talent large enough to match a client's needs in terms of skills availability and rates, says Michelle Boggs, president and chief operating officer of McKinley Marketing Partners.

A consultant's level of expertise is often the strongest selling point.

"They know what works and what doesn't, so you are not wasting time or money on mistakes," says Udowitz.

This expertise can carry a high price tag.

The cost of consulting
Per-month costs for a consultant run from $5,000 to produce limited press releases and promotional materials to $20,000 for a full-fledged campaign and clipping service.

Marketing consultants typically cost from $75 per hour with limited experience to $150 to $180 an hour with extensive experience.

"Many times they are willing, and even prefer, to have a retainer approach; for example, 20 to 25 percent of their time for a fee of $5,000 a month," says Deupree. "The more senior marketing consultants almost always want a one-year term, because they realize that they can't really serve a client well without getting to know the market and the issues, and one to two months isn't enough time to do that."

Boggs cites an hourly range of $85 for a manager level marketing consultant to $200 for a senior vice president level marketing consultant.

She says McKinley consultants charge an average hourly rate of $100.

Making the most of your money
Both consumers and marketing managers agree that there are ways to get more bang for your buck.

"Meet with them first. Chemistry is very important. We were lucky," Udowitz says. Their marketing consultant "was just our kind of person. We also were very clear of what our expectation were and had it in writing so there were no misunderstandings."

Boggs suggests that small-business owners should introduce prospective consultants to key staff members involved in the project, clearly define objectives and expectations, and acquaint the consultants with the corporate culture and procedures.

Deupree says a key mistake startups make is bringing in a marketing consultant too late in the process, after they have made too many key decisions.

The result, according to Deupree, can be an ineffective, inconsistent marketing campaign.

"Early to bed, early to rise, early to projects is our best advice. The sooner we are brought in on a project, the more we understand it. And the more we understand it, the better the outcome," says Schnitzer.

And, of course, Deupree says, "Be open-minded and listen to the expert."

Ellen Birkett Morris is a freelance writer based in Kentucky
To comment on this story, please e-mail the Bankrate.com editors

-- Posted: July 10, 2000