Starting a Marketing Agency: A Case Study

The Beginning

David was always outspoken. He was the uncrowned leader of your little group of close-knit friends. In your communications course, he liked to challenge the teachers. He had a vision and he was driven. You liked that about David. What you sometimes liked a little less was his dauntless attitude - jumping in and thinking later. It got David into trouble sometimes but he always bounced back. ‘We are the future.’ David said to you one day over lunch. ‘We do it our way.’

There were six of you in the group - you, David, Julien, Laura, Beck and Marcel. You were all in your final semester at the college and reckoning day was fast approaching when you all would have to go out into the new world and find a way to make a living. It was a strange time to do this. Nothing was the same. 2 Nothing was guaranteed in this brave new digital world. All of you had spent countless hours discussing this next step. Marcel was keen on moving into the corporate world where intranets and policies and procedures hummed in the background. Laura was drawn to PR and fashion. Julien leaned towards politics and spin doctoring. Beck was pure advertising while you were a filmmaker. David didn’t really ever talk about his particular niche. He was just a leader. And you had ideas … lots of them.

‘Let’s start our own agency.’ David said under his breath in a lecture one day. ‘Yeah? With what?’ You said slightly annoyed. Sometimes David interrupted your serenity. ‘With nothing.’ He answered. ‘It’s called bootstrapping and it’s how a lot of business’ get going. With virtually nothing.’ After the lecture your group convened as usual in the café across the street. ‘About our agency?’ you began, ‘maybe we can do it.’ David explained his vision for the beginnings that included a start up sum of money from each of you, a creative space somewhere and some equipment. ‘My dad has a storage space filled with office stuff like desks and chairs. There’s even this amazing old board table and an IBM Selectric typewriter.’ He said with a laugh. ‘That’ll come in handy for our secretary to use.’ Laura rolled her eyes. ‘I don’t know about this.’ Marcel said. ‘I kind of know what I want to do it.’ David nodded. ‘Well that’s up to you Marcel. There’s always the nervous one in the group I guess.’ ‘OK. I’m in’ Said Marcel smiling. ‘No-one calls me careful.’ 

A New World

For the next few weeks you planned the venture. David’s dad was fine with supplying the office fit out. He was happy to clear the storage. It was premises that were proving challenging. You found a shared creative space called WORK in the inner west that had it all and it was cheap, clean and filled with like-minded individuals. So pretty soon you were there, moving in. ‘Hey …’ Laura said carrying in the old typewriter. ‘What do we call ourselves?’ You all sat down around the boardroom table thinking and drinking coffee. ‘What about The Boardroom?’ You offered. ‘Very corporate.’ Said David. ‘Very staid.’ Said Laura. ‘Very dignified.’ You said. ‘ … and strong.’ Fake it till you make it. You all agreed.

A week after you moved in, the owner of WORK, Nicholas Miles, pulled you up as you were getting your morning coffee from the funky little café on the 1st floor. ‘How you finding it?’ ‘Nice atmosphere. We like it.’ You answered. “Good because I want to be your first client.’ Nicholas said in his pleasant English voice. ‘That’s great.’ You said feeling a mix of anticipation and fear. A real client … this was going to be interesting. ‘Got some time on Friday? Say around 10.00?’ “We’ll be there … here.’ You said with a laugh. You went off to tell the team the good news. 

Friday morning. It’s 9.45 and you are all gathered around the big old boardroom table you use as a meeting place and for strategy sessions of which you haven’t had too many yet. You’re all a bit nervous, as this is your first client meeting. The fact that you know Nicholas and you rent space from him eases the discomfort. At precisely 10.00 am in strides Nicholas. ‘OK. Let’s get into it.’ He says without skipping a beat. ‘Here’s the story.’

Nicholas goes on to give your team an overview of the business and how it operates. ‘This is a creative space predominantly. It’s flexible as there aren’t any leases as such. Small businesses work here together – just like we are doing. In that way we cross-pollinate and help each other while growing our businesses. It’s a social space too with free coffee, kitchen facilities and beer in the fridge for after work … not during.’ He smiles. ‘We are located in the inner city fringe so that the big city isn’t that far away but it’s still far enough to maintain a creative, suburban element - lots of shops, restaurants and cafes around here and plenty of parking. The costs of renting space here is around the number of desks. We charge $80 per desk per week. If you have more than 5 desks we will negotiate, as this is affordable. A business incubator. There are meeting spaces and a space for everyone to congregate and talk. It’s safe and has a safety management system in place. Each tenant has keys to open and close as they need to and there is a facilities manager on hand for any issues. I’m also available but not every day. At the moment our tenants comprise of interactive and graphic designers, programmers and game producers, digital marketers such as yourselves, human resources and marketing consultants and one fashion designer and her partner.’ Nicholas explained. ‘So you want us to develop a campaign to market this space?’ Julien asks. ‘Yes. I’m interested in social media and the way that can be harnessed best for a space like WORK. It’s a 4 real community here and a nice place to do business. I’m also interested in what Google and other ad platforms can offer.’ Nicholas said. ‘OK. What about the budget?’ Julien asked. “How about 6 months free rent! The barter system works here.’ Nicholas said smiling. 

The Young Guns

In response to a simulated business scenario, you will evaluate marketing tools, develop short Marketing Policy and prepare a written proposal. You will then develop samples of convergent tools and techniques.

1. Read the case study.

2. Meet with your assessor to discuss potential, realistic campaign scenarios for Work, and to agree on timeframes for completion of this assessment task.

3. Undertake research into applicable convergent tools and techniques, including some from traditional sectors that may be applied to a divergent media environment. Consult networks and expert advice; review online and print information; review organizational documents such as marketing plans, marketing audits, past campaigns, marketing budgets and relevant policies and procedures.

4. Develop a short Marketing Policy in accordance with legislative requirements and organisation goals. The next part of this assessment requires you to use the results of your research (question 3) and information in Appendix 3 to develop a short Marketing policy for WORK.

Your policy should include, as a minimum:

• Purpose of the policy

• Scope of the policy

• Marketing plan implementation.

• Staff participation and communication

• Responsibilities

5. Prepare a brief, two- to three-page written report describing several combinations of convergent tools and techniques. 

Ensure you:

a. evaluate their cost-effectiveness using a suitable method of numerical analysis; for example, cost–benefit analysis, ROI, cost per thousand (CPM), estimated value, contribution margin, and NPV of investment in media.

b. propose a suite of convergent tools or techniques for use in the campaign based on the above analysis

c. refer to at least two relevant pieces of legislation, regulations or codes in connection with organizational policies and procedures, which tools and techniques will need to comply with

d. refer to any other organizational need or requirement (for example, identified target markets, budgeting concerns), which tools and techniques will need to address

e. select and utilize integrated, cross sector and media divergent marketing communication solutions to meet client requirements

f. Ensure that messages can be unified across an integrated offering g. reference at least three relevant sources of information.

6. Develop samples or examples of convergent tools and techniques characterized by messaging that can be engaged by a target group across multiple distribution points:

a. suitable for use within a divergent media environment

b. suitable for use within a customer-centric environment

7. Participate in a meeting with your assessor to review and confirm the fit-for-purpose and cost effectiveness of samples of convergent tools and techniques