What is Marketing Consulting?
Marketing consulting is a specialized consulting service aimed at providing recommendations for business growth and development based on analytical data about the company. If this definition seems complex, let’s simplify it.
Often, businesses struggle to determine their next steps and the tools needed for progress, perhaps due to lack of time as their team tries unsuccessfully to identify growth areas while being bogged down with operational concerns. In such scenarios, an objective, external perspective is crucial for gaining a strategic overview of the company.
Challenges with Business Consulting
Business consulting services have sometimes been discredited due to unscrupulous consulting firms offering ineffective advice without considering if a development plan suits a specific company or if it can implement such ideas.
It’s not as simple as directing a company toward a new path. It requires performing essential marketing research, delving into the client’s business, and examining the product’s strengths and weaknesses to find growth opportunities. Additionally, hands-on experience in developing and implementing marketing strategies is essential.
Marketing consulting doesn’t typically include creating and executing marketing strategies. Consultants offer business development recommendations, suggest using internet marketing tools, reveal development prospects via competitor case studies, and develop activity plans. The execution of these plans usually falls to the company’s in-house team. Without a willingness for change, the marketing department might resist the consulting agency’s efforts.
Is Your Business at a Standstill?
If business processes are faltering and competitors are catching up, it might be time to seek external consultation. Consulting could be beneficial in situations where:
– You need to set goals for growth and development direction.
– Your website is outdated, lacking a digital strategy.
– Communication issues with customers lead to lost sales.
– Ineffective ad campaigns fail to generate leads and deals.
– The business is at a crossroads and in need of fresh ideas.- Dealers pressure you to lower prices, threatening to switch to competitors otherwise.
Growing Your Business and Maximizing Profit
You manage current tasks well but plan on advancing to a new level. Consulting can support this. Consider seeking an outside expert when:
1) Opening a new business or direction.
2) The existing strategy is outdated and requires updating for current conditions.
3) Profits exist but there’s uncertainty about their origin; analysis could enhance company efficiency.
4) A new product or brand requires a new promotion concept.
5) Entering new markets mandates thorough preparation and market-specific understanding.
When Consulting is Unnecessary
There are scenarios where business consulting is unnecessary and potentially wasteful. Three examples include:
1) Launching a startup and seeking consultants to assess work effectiveness; without sufficient sales analytics, there’s little to evaluate.
2) Hiring a consultant to monitor and control the marketing department; the solution should be internal.
3) Business underperforming significantly, feeling outpaced by competitors; consulting might be more about managing decline than revival.
What Does Marketing Consulting Include?
This service encompasses various detailed activities:
1) Strategic Marketing: Aligning and implementing long-term strategies and effective promotional methods, finding distribution channels, and handling pricing issues.
2) Pricing: Developing a pricing policy beneficial for both the company and its customers.
3) Market Research: Analyzing business development and the competition.
4) Marketing Department Creation: Establishing or reforming a department with skilled professionals and offering training programs.
5) Branding: Developing the company’s brand, logo, slogan, style guide, and identity.
6) Promotio: Organizing events to popularize company products and services.
7) Distribution: Addressing product distribution expansion.
8) Product Consulting: Developing and implementing product strategies and offering consultation on these initiatives.
Characteristics of Marketing Consulting Services
Marketing consulting has unique traits that distinguish it from general service marketing, influencing strategy development:
– Services are B2B: Managers seek services to enhance business efficiency, not personal fulfillment.
– Professional consumers: Company partners often make the best sellers, actively involved in projects.
– Limited consumers: Typically utilized by major, growing companies.
– Close client-provider relationships: Consultants often integrate closely with client workplaces.
– Consulting costs form a small client expense fraction, aren’t essential for companies.
– Geographic concentration: Over 80% of clients are in major cities like Moscow.
– Brand influence: Branding remains a significant market entry barrier.
– Personal recommendations outweigh direct advertising effects.
– Client loyalty is high: Satisfied consumers rely on their consultants.
– Consulting sales cycles are long, requiring significant evaluation.
– Service uniqueness: Price isn’t the primary competition factor due to low price elasticity.
– Confidentiality is critical: Strict confidentiality is a priority.
– High mobility: Services require no capital equipment, meaning location-specific advantages are minimal.