Field Marketing Industry and the Marketing/advertising Industry

escribe the field marketing industry and the marketing/advertising industry as a whole.

The Barrier to Entry for a new entrant in the field marketing industry is very low as starting a field marketing company is very easy as the initial capital required is very low. Thus, the field marketing industry is very fragmented with lots of small companies. Due to over competition in the industry, the maximum market share per firm is 3-4 million euro. However, these firms are hardly profitable once the owner’s opportunity cost is removed. In terms of cost, all firms pay their promo people the same amount of money; However, larger firms are able to get better deals on material and services due to economies of scale. In the field marketing industry, reliable execution of campaign is more important than creativity, flexibility and measurability. Most contracts are of short duration in this industry but there is a lot of repeat business. Personal relations are important in getting contracts though their relevance is decreasing day by day.

Unlike the field marketing industry, the advertising industry is very consolidated. Most leading companies are part of big global marketing companies. Contracts in the adverting agency are much longer and usually run for about 2-3 years. This is because the results of the campaign are intangible and took time to materialize. Advertising agency usually develops a campaign to communicate the brand message and uses different media channels to spread this message. Thus, creativity, reputation and originality of advertising firms matters more that reliable execution. Personal relation plays a less important role as the choice of the advertising agency is made on a global level. Of late More and more marketing agency are moving towards 360-degree marketing. 360 marketing means that one message is delivered through all media channels such as mass media, field marketing, digital marketing etc.