In-house marketing refers to an exclusive approach to marketing. It is employed by companies like BBC and Coca-Cola. It is preferred by companies for two main reasons: greater budget control and for retaining brand identity.
Although marketing agencies provide top-notch services, in-housing has its own set of benefits. If you’re an aspiring marketer and you’re confused about which way to go, in-house or agency, keep reading to find out more so you can make an informed decision. Â
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What Exactly Is In-House Marketing?
As the name implies, In-house marketing is an approach whereby all marketing activities are undertaken by the company’s own marketing team. The team works exclusively for the company in marketing the products/services.
From managing socials to PR, every activity is overlooked by the company’s very own marketing department. This works both for and against companies. To determine whether this is the right approach for your brand, you should weigh out the advantages and disadvantages before coming to a decision.
Its counterpart,agency marketing, works a little differently. This approach has a broad clientele and operates independently. The marketers work in close association with the company but are not employees of that company. The company outsources its services.
Now that we’ve explained In-House marketing to you let’s discuss the pros and cons.
Benefits of In-House Marketing
There are numerous benefits to in-house marketing when compared to outsourcing options. The number one reason is that it is more cost-effective. This is the primary reason why companies choose this approach.
To save on outsourcing costs and to stay true to the brand identity, in-house marketing is the preferred route. This is commonly opted for by those companies that want to keep their marketing activities within the company. This helps them in building their brand identity.
Many companies employ a hybrid marketing approach by having an in-house team and the assistance of agency specialists. This can make marketing far more effective instead of relying on a single approach.
Budget Control
This is the number one reason why companies pick in-house advertising. There’s a great deal of saving with this option. As opposed to an ad agency, the revenue generated from a campaign goes directly into the company’s pocket.
However, in-house marketing is still a costly endeavor. The only difference is that there’s greater budget control which leaves more room for savings. The expenditure required to set up a marketing team can account for high initial costs.
However, the costs associated with creating a marketing campaign and carrying out other marketing functions are far less.
Familiarity With the Brand
In-house marketing is a plus for companies in terms of brand identity. This is because an in-house team is more familiar with the brand’s vision, which they can effectively showcase in the marketing campaign. Marketing agencies are outsiders who are unfamiliar with the brand.
It can be difficult to communicate the brand image to the agency as they may not be able to fully comprehend what the brand stands for. They might apply the same old marketing tricks with the ‘one-size-fits-all’ approach. This is where in-housing benefits the company. They have a deep understanding of brand values.
Increased Efficiency
An agency handles marketing activities for numerous companies, which can make it difficult for them to deliver services on time. To be free from this hassle, an in-house team works best. This is because they work exclusively for the company and handle only their activities.
This way, companies benefit from increased efficiency. The communication stays within the company, which can speed up marketing campaigns. The use of software tools like Slack and Trello has made both management and communication a lot simpler for in-house employees.
Downsides of In-house Marketing
In-house marketing comes with one apparent downside, and that is that the employees working within the company may have little expertise in the field. This can disadvantage them in terms of the latest technologies or trends related to advertising.
Limited Expertise
You cannot compare the expertise of a marketing department with that of a fully-operating marketing agency. Those marketers who work in agencies have a lot more experience with marketing practices and are up-to-date with the latest software tools.
If there’s a team tasked with carrying out all the marketing duties of a company, then a creative block is only expected. If companies do not seek the help of ad agencies to get fresh new perspectives on marketing, then they keep using the same old tried-and-test strategies.
There’s little room for innovation with this approach. In contrast to agency specialists, in-house marketers may not be aware of technological advances in marketing since they only deal with one company.
Training
Unlike a marketing agency, an in-house marketing team requires training. This can prove to be not only costly but also time-consuming. It requires trainers to direct a lot of focus into building a strong team of marketers.
At the same time, this can prove to be highly rewarding once done. It is only challenging when one initiates an in-house marketing approach. There are so many software tools at the disposal of trainers to simplify the training process. This can also add to the expenses of the company.
In-House Marketing: Examples
Here are a few examples of international companies that have employed in-house marketing for the purpose of growing their business and improving customer relationships. They have been successful in their efforts so far.
These companies have managed to create a brand name for themselves by using both popular and unconventional strategies. Their efforts are marked by customer-centricity. Keep reading more to find out how they have used in-house marketing.
The popularity of these companies, in terms of their marketing, is a testament to the effectiveness of in-housing. It is employed by corporations for all the right reasons.
Content Factory by Coca-Cola
Coca-Cola is a popular brand in the marketing world. They have an in-house division that overlooks marketing functions across different markets around the world. This makes one wonder how it’s possible to operate in different markets with this approach.
There is some contact with outside agencies to realize the marketing objectives. This hybrid approach can be a better option than relying entirely on in-housing. In-house marketers can find inspiration from agency specialists who have a vast knowledge of marketing tactics.
Netflix
This mega-company has also employed in-house marketing. Its marketing budget is considerably high, but it seems to be worth it considering the success of this corporation. This is just another example of a well-reputed company making use of in-house tactics to generate revenue.
The user-centric approach of Netflix is a hit with the audience. Its ease of access and the feature of gift cards are two examples of incredible strategies that it has incorporated. To promote its services, Netflix has made use of personalization as a marketing tactic.Â
BBC Creative
This broadcasting corporation has a well-known in-house marketing agency called ‘BBC Creative.’ Their creative billboards are just one example of the creative talent of their in-house team. This company’s marketing approach is relatively new, but it has managed to come up with innovative new strategies.Â
The In-house team has managed to receive top awards in recognition of their marketing efforts. This goes to show the power of such an approach. This company has managed to thrive in a highly competitive marketing environment, which should reassure marketers of this approach.
In the upcoming year, in-house marketing will only become more popular.
Outsourcing Marketing: Examples
Microsoft
This tech company outsources marketing services from different parts of the world. A successful brand like Microsoft avails the services of agencies based in the USA and other countries. The decision to outsource is based on convenience, as it can get challenging to manage international sales operations.
Toshiba
This Japanese mega-company outsources some services for the purpose of marketing/sales operations. It is a well-known international brand that takes advantage of marketing agencies to promote its tech products.
How to Transition From Agency to In-House
If you want to save your business from the brunt of inflation, consider shifting to In-house marketing. This will not only save you costs but allow you to have more control over your brand identity. Here’s how you can make a seamless transition.
Hybrid or In-House: Make Up Your Mind
For starters, you will need to assess the route you’re taking in terms of its viability. You need to consider factors like long-term business goals, budget and product/service innovation.
In addition to this, you should consider all the services your business outsources and determine which marketing activities require the expertise of agency specialists and which do not. By doing so, you can determine whether you can make a full transition or work with a hybrid approach.
In the beginning, you will require time to establish your in-house team, therefore it would be better to avail the services of digital marketing agencies until you get back on your feet. After building a marketing team and outlining your objectives, you can take full control.
Prepare Your Team for the Role
There’s a great deal of preparation involved with building a marketing team. The training process can be tiresome and costly. It requires employers/managers to start from scratch. This can be a good thing as it can allow the team members to understand the brand values better.
The advantage to in-housing is that teams are only concerned with a particular brand, this allows them to translate the brand identity in social media campaigning or billboard advertising in an effective manner.
To prepare your team for the role, you will need to embark on a full-scale training programme. This can include mentorship and dialogue simulation. There is the added bonus of in-house technology so employees don’t have to acquire additional technological expertise.
The Relevance of In-House Marketing in 2023
In-house marketing will not be losing relevance anytime soon. In 2023, this approach is only set to gain more popularity. This is because marketing agencies cost an arm and leg for their services. If a company has its own marketing team, then it can simply plan its budget accordingly.
This approach gives companies a competitive edge over other companies. The exclusivity of this type of marketing strengthens the brand identity. By keeping the marketing functions in-house, it keeps customers intrigued about the latest marketing tactics.
If you would like to share your thoughts on In-housing and its benefits, comment down below!Â
