What are In-House marketing teams and external advertising agencies?
In-House marketing deals with conducting an operation within a business using the companies and employees to perform various tasks without hiring people from outside the business. On the other hand, external advertising involves advertising a company’s product(s) externally by involving advertisers on a commission.
In this case, we will have simple an illustration based on our article’s main topic. So, there is a father , his sons and the sons’ wives. The father owns the Freshly Company which he runs with his sons. He later on retires after experiencing disappointments due to the many losses the business had incurred. He requests his sons to take over his business. The sons happen to marry. They introduce their wives into the business and after a few months of statistics, it is noted that there are profits made. Throughout this article we will use these characters. The father and his sons will stand in for in- house marketing and the sons’ wives will be the external advertising agency.
The father and his sons preferred managing the marketing part of the company on their own :
- It was cost effective since the sons were the only employees running the marketing campaigns. This saved them on the amount of money they would use to pay external employees.
- It was much obvious that the entire Freshly Company employees had general knowledge and created marketing campaigns at their wish.
- They knew the financial pressures on the company and created marketing content and campaigns in line with their budget. If need be, they would even pause the marketing campaign for sometime.
From the outside it looks obvious that in-house marketing team can bring profits. In reality, its not so. In-house marketing team saves lot of money, but that doesn’t mean the company makes profits, may be its reducing the losses.
Some of the challenges the company had encountered, before the wives joined the company, were:
- They did not have exposure to new perspectives. They did whatever they can, not what they should be doing.
- They also had no exposure to other advanced skills of running the marketing campaign
- Marketing the company deviated son’s efforts from their core skills.
Why are external advertising agencies highly preferred?
- The wives happened to bring creative ideas and attracted the right kind of customers to their business.
- The new ideas led to an improvement In terms of brand development. This acted as a company symbol thus enabling them to price better.
- Much Time was saved since the Sons were able to devote their time to running of the company and marketing was left to their wives.
The wives came in as a boosting deal for the company since they understood their husbands business and kept track of it.They focused on the products and created ideas to promote it through right medium on effective marketing platforms.
How external advertising agencies can collaborate with In-House marketing teams.
The external advertising agencies are more effective and they do bring forth much profit to the company. If at all one has an in – house marketing team, it is advisable to also engage an external advertising agency. One can also choose to incorporate the external advertising agency from the beginning since it is evident that many profits are made.