To achieve success as an advertising consultant, a person must have branding expertise, a creative mind, and effective interpersonal skills. Persons from marketing field possess certain advantages in starting this business. As an advertising consultant professional, you are supposed to guide businesses in developing an effective advertising strategy to promote goods or services.
Advertising consultant takes on a variety of responsibilities when they’re hired on to a company. Many times, consultants pitch new advertising campaign ideas and help bring plans into focus. As such, these individuals work closely with the creative team at an agency, brainstorming and helping the team realize a client’s vision.
Where to work as an Advertising Consultant
An advertising consultant either can be engaged by a consulting firm or may be self-employed as an advisor opening a firm.
What to do as an Advertising Consultant
- Meeting with prospective clients
- Performing market research about target market demographics.
- Selecting appropriate advertising media
- Creating streamlined and custom advertising campaigns based on needs.
- Design work of all audio-visual/printed advertising tools.
- Creating sample advertisements and finally giving presentations to clients.
- Follow-up analysis.
If you want to start in a small way a laptop is what you require along with your printed visiting card. You can outsource the order to do the technical job of creating to vendors. Advertising consulting business attracts Service Tax Registration. Vendor selection is a crucial issue in advertising consulting business. You will be in need to have a proper network with the vendors who have the expertise and reliability.
You can also start the business taking office with computer, printer, designers etc. all.
Also Check, 20 Highly Profitable Advertising Business Ideas
Advertising Consultant Business Plan
It is the mission of Marrowstone Advertising Consultants to provide comprehensive marketing consultation and creation of advertising campaigns for the nonprofit industry. It is our long-term goal to become THE preferred advertising agency for non-profit institutions nationwide. Our firm is not interested in simply producing a service for our clients. We believe in creating a long-term relationship with them so that the delivery of their message becomes a seamless, thought-provoking experience that engenders action.
The Company Marrowstone Advertising Consultants will be a limited liability partnership registered in the state of Delaware for tax purposes. Its founder is Mr. Curtiss Cole, a former marketing executive with the Boy Scouts of America. Mr. Cole has brought together a highly respected group of marketing, development, and graphic art specialists who, combined, have a total of 35 years of experience with non-profit organizations.
The three-year goals for Marrowstone Advertising are the following:
- Achieve break-even by Year 2.
- Establish a long-term contract with The Nature Conservancy.
- Establish a minimum of 95% customer satisfaction rate to establish long-term relationships with our clients and create word-of-mouth marketing.
1.2 Keys to Success
Marrowstone Advertising’s keys to long-term survivability and profitability are as follows:
- Differentiate our services to nonprofits so that our clients realize that we are able to better serve their needs than a more generic competitor.
- Keeping close contact with clients and establishing a well functioning long-term relationship with them to generate repeat business and a top notch reputation.
- Establish a comprehensive service experience for our clients that includes consultation, analysis of nonprofit’s goals and target markets. Creation of streamlined and custom advertising campaigns based on needs, total design work of all audio-visual advertising tools, implementation, and follow-up analysis.
It is the mission of Marrowstone Advertising Consultants to provide comprehensive marketing consultation and creation of advertising campaigns for the nonprofit industry. Our firm is not interested in simply producing a service for our clients. We believe in creating a long-term relationship with them so that the delivery of their message becomes a seamless, thought-provoking experience that engenders action. Marrowstone understands that nonprofit groups and institutions have special needs in delivering their information and messages to the public and creating inspiration to act on these messages.
Marrowstone Advertising Consultants will be a limited liability partnership registered in the state of Delaware for tax purposes. Its founder is Mr. Curtiss Cole, a former marketing executive with the Boy Scouts of America. Mr. Cole has brought together a highly respected group of marketing, development, and graphic art specialists who, combined, have a total of 35 years of experience with nonprofit organizations. The company has a limited number of private investors and does not plan to go public.
The company has its main offices in Reston, Virginia. The facilities include a design lab, conference rooms, and office spaces. The company expects to begin offering its services in January. The company’s main clients will be small and start-up non-profit institutions and local governments. By focusing on institutions such as these that have special needs, we believe we will be able to better serve our clients and produce a superior service that is more effective than other advertising firms.
2.1 Start-up Summary
Start-up assets required are $122,300, which includes cash needed to support operations until revenues reach an acceptable level. Start-up expenses are $31,700. Most of the company’s liabilities will come from outside investors and management investment, however, we have obtained $16,000 in current borrowing from Bank of America Commercial Investments, the principal to be paid off in two years. A long-term loan of $45,000 through Charter Bank of Richmond will be paid off in ten years.
2.2 Company Ownership
The company will have a number of outside private investors who will own 27% of the company’s shares. The rest will be owned by the senior management including Mr. Curtis Cole, (25%), Ms. Jennie Marks (20%), Mr. David Danielson, (20%), and Mr. Milo Winn (8%). All other financing options will come from loans.
Marrowstone Advertising Consultants offers a complete, custom advertising campaign that covers all audio-visual and printed media. Examples include radio and television ads, billboards, building advertisements, brochures, direct mailing, business cards, etc. Our proven and effective seven step process to building a winning campaign incudes the following:
- Initial consultation.
- Analysis of nonprofit’s goals and target market demographics.
- Creation of streamlined and custom advertising campaigns based on needs.
- Total design work of all audio-visual/printed advertising tools.
- Implementation (usually through subcontractors).
- Follow-up analysis.
Each project is customized to our client and its scope, length, depth, reach, and cost are unique.
Market Analysis Summary
Marrowstone Advertising Consultants will be concentrating on three main types of nonprofits who operate in the environmental, youth development, and cultural awareness fields. This is because these types of organizations have the greatest needs and/or are the best capitalized in the nonprofit industry. Profitability and growth in this little-tapped market are expected to be strong, as evidenced by the fact that over the past 15 years the U.S. has seen an explosion of nonprofits in new fields such as environmental awareness.
Furthermore, with the greater capitalization of such agencies, we are seeing a widening gap between these organizations needs and what conventional advertising companies can provide. An analysis of the market using the five forces of profitability indicates that there will be a short time where the growth of market share and profitability will be extremely high while demand outstrips supply. As new entrants move into the market this opportunity will disappear. This is the time for Marrowstone to create its reputation and niche in the industry.
4.1 Market Segmentation
There are various nonprofit institutions nationwide that concentrate on various public issues. Marrowstone will be focusing on the following groups of clients:
- Environmental nonprofit institutions.
- Youth development nonprofit institutions.
- Cultural nonprofit institutions.
We are concentrating on these specific market segments for a variety of reasons. The environmental segment which includes organizations such as the Sierra Club and the Nature Conservancy is the fastest growing segment at the moment, and Marrowstone’s management concludes that in the near future, they will also include some of the largest nonprofits in the nation. Youth development nonprofits such as the Boy Scouts, Camp Fire girls, 4-F, and The Boys and Girls Club includes some of the largest and most well-capitalized nonprofit organizations in the country.
Finally, although they tend to be small in size, there are a huge number of cultural nonprofits such as museums. The market analysis table and graph which follows show the number of each type of organization in the greater Washington D.C. area. This will be our initial geographical focus for the first three to four years of our company’s existence. Later, as we expand to a nationwide scope, our future business plans will include all our potential clients across the country.
4.2 Service Business Analysis
The advertising industry for nonprofits is at the moment, an unfulfilled market with demand greater than supply. Many nonprofit organizations have found that only the largest and most expensive advertising agencies will enter into contracts with nonprofits and this leaves a great void which must be filled by in-house advertising. Marrowstone believes that the greatest threat at the moment is in new entrants to the market who will also perceive this opportunity.
The most likely entrants will be pre-existing advertising agencies wishing to horizontally integrate and enter new sub-markets. However, the one major disadvantage to new entrants is that all firms engaged in contracting to advertising agencies face significant switching costs when bringing on a new advertising partner. Furthermore, Marrowstone understands that in this industry there is a significant learning curve that creates declining “unit” costs as firm gains more cumulative experience in the field itself and with long-term clients specifically.
Rivalry among different advertising agencies as stated before is quite intense. The advertising market as a whole is mature with low growth. Most of the largest agencies are mutually dependent when it comes to jockeying for position and market share. The fact that there are so many diverse and seemingly “generic” or general advertising agencies makes this a cutthroat industry. The threat of clients backwardly integrating so as to have all their advertising done in-house is one of the major factors that buyers use to indirectly control price in this industry, and increase competition among firms. This must always be foremost in the minds of Marrowstone’s management when offering services and setting prices.
4.2.1 Competition and Buying Patterns
Competition includes all potential advertising agencies that are willing to accept non-profit contracts and nonprofit organizations that handle all their advertising in-house. Practically speaking, this means the largest advertising agencies such as Werner & Voss, Price, Waterhouse, & Cooper, and other large, nationwide agencies that hold significant market share. The advertising agency industry is highly fragmented, with a large number of small companies that mainly cater to small firms and a few large companies that seek the largest contracts from companies such as McDonald’s, GM, etc. This makes competition within the industry very intense. Through our niche strategy, we intend to avoid such a debilitating environment and avoid its drawbacks such as price wars, etc.
Buying patterns and needs
Companies usually enter into contracts with advertising agencies based on their reputation of professionalism and effective campaigns in the past. This reputation is difficult to obtain by new advertising firms unless its personnel brings it with them from previous firms such as ours. Price and scope are also important reasons for accepting contracts, especially if the company is small. nonprofit organizations have very different needs than other firms. Companies offering a product or service need to inform the public about the benefits of their product/service and then inspire them to purchase by leading them through an implicit or explicit cost-benefit analysis.
On the other hand, nonprofits must appeal to a person’s higher sense of community duty in order to obtain contributions. Advertisements must be a thought-provoking experience that engenders action. This is a far more difficult task to achieve than ordinary marketing and usually, requires more resources and time than product/service marketing. Many advertising agencies do not desire to accept these types of contracts and leave it to the nonprofit organizations to create their own marketing. This leads to higher costs, more emphasis on obtaining contributions, and less effective management of the organization’s goals.