Marketing: Hire agency or do it in-house?

There's always been a debate about whether it makes more financial sense to hire a marketing professional to promote your business or to handle marketing efforts internally. As with anything, there are pros and cons to each approach. Here are the three most common ways companies handle marketing:

Hiring an in-house marketing manager

Pros:

* You get to interview and hire the individual whose qualifications and personality match your workplace, your personal philosophy and your existing staffers.

* This person will become familiar with the needs of your company and will coordinate marketing efforts to reflect the company's overall image.

* An in-house person will be accessible on a regular basis.

* An individual working directly with you will have the ability to act quickly on changes in marketing direction and message.

* A marketing manager on payroll can be assigned a wide variety of marketing responsibilities, from fielding sales calls to coordinating social media platforms. They will likely be paid on salary and will work with the budget you have earmarked for advertising, so there are fewer "surprise costs" associated with implementing and maintaining a marketing campaign.

Cons:

* An in-house marketing position will likely include costs related to not just salary, but benefits, retirement, health care and vacation time. If this person goes on vacation, maternity leave or becomes ill, you will have to take steps to cover marketing responsibilities during that time.

* If an in-house marketing person is terminated or quits, there will be time and money associated with screening, hiring and training a replacement, which could have a negative impact on the momentum of your marketing efforts.

* If business becomes slow and your marketing budget has to be eliminated, you will have to choose between letting the marketing manager go or finding additional work for him or her in your company.

Hiring an advertising and marketing agency

Marketing firms are going with the flow of the economy these days and offering a wide range of package and individual services.

Pros:

* Advertising agencies employ individuals who have a wide range of knowledge, skills and expertise in various marketing and advertising areas.

* Advertising and marketing firms have a good handle on the demographics of a given area and can provide sound advice on the advertising vehicles and marketing platforms that will work best for your industry.

* Marketing firms usually have teams assigned to clients, so if one member of the team is sick or unavailable, chances are good that someone else knowledgeable about your marketing campaign will be available to assist you.

* Ad agencies have existing contacts with media outlets and can make "bulk buys," reducing the advertising rates you would pay if you tried to make the buy on your own.

Cons:

* You likely won't have the same level of day-to-day interaction with your marketing team as you would with an in-house marketing rep.

* You will probably enter a contractual agreement, which will be hard to break if finances become an issue.

* Costs will always be slightly higher with an ad agency.

Hiring an independent marketing consultant

Utilizing the skills of an independent marketing professional positions you in-between an in-house person and a full-fledged marketing agency.

Pros:

* An independent marketing consultant is usually someone with a good deal of proven experience in the field.

* You are not responsible for paying a consultant's taxes, social security, health care costs or vacation time.

* You don't have to provide workspace or equipment for an independent contractor.

* You can develop a contract in such a way that if business slows, you are under no long-term obligation to retain the services of an independent contractor.

Cons:

* An independent contractor must be screened very carefully before hiring, because this individual will be acting in a fairly autonomous role representing your business.

* Special care must be taken in determining how services will be paid for. Will the marketing rep work on a per-project or hourly basis? Will he or she make media buying purchases and be reimbursed by you, or will bills for advertising buys be sent directly to you? Will there be a certain budget to work with? How much autonomy will your representative have to make marketing decisions?

* You probably won't have daily in-person contact with a consultant, so you'll need to develop a reporting or meeting system to track progress.

In all, there are pros and cons to every approach. Do your homework and select the option that works best for your business.

Dave Archer, a veteran of the marketing industry, is president and chief executive officer of Nevada's Center for Entrepreneurship and Technology. Contact him through ncet.org.