Outsourcing marketing is also fast becoming a popular trend. Since marketing is the life-wire of any business, companies and businesses are adopting the most result-oriented strategies to achieve more aggressive marketing. And, marketing outsourcing is one of the effective strategies that businesses are leveraging to carry out more aggressive marketing, which ultimately helps companies to achieve competitive advantage.
Overview of Marketing Outsourcing
Marketing outsourcing is the act of using a third party who is specialized in marketing, to carry out the marketing functions of an organization. Typical marketing functions that can be handled by outsourced marketers include product awareness creation/promotion, product campaign, social media marketing, online marketing, email marketing, and even actual sales.
Why Should You Outsource Marketing?
As hinted above, one of the reasons companies are increasingly outsourcing marketing is to achieve competitive advantage. Other reasons include the following;
Cost Saving: This is the top reason for leveraging outsourced marketing services. A company is more likely to save more by leveraging the marketing expertise of an external marketing executive than hiring such expert in-house. By by-passing overhead costs and other costs associated with hiring employees in-house, the company is able to cut cost by taking advantage of outsourcing to carry out its marketing functions. Avoiding Unnecessary Cost: For instance, a small business is better off outsourcing marketing when it wants to promote its products, new line of product, or achieve business expansion. This is because, after the promotion and sales campaign period, those marketing services may not be needed in the meantime.
So, by hiring marketers just for the campaign, the company would only pay for the services it has used. On the other hand, full-time marketing employees will continue to earn salary whether or not they have much to do. The cost of hiring marketers in-house gets even higher when you think of the compulsory employee benefits that you must extend to full-time employees.
Affordable Expertise: Small businesses in particular may not have the financial capacity to hire a marketing executive who is vast in modern marketing strategies. But, through outsourcing, small businesses can gain access to marketing expertise that they may not be able to afford on a full-time basis.
Today’s marketing outsourcing providers are vast in modern marketing strategies, including online marketing techniques such as social media marketing, video marketing, SEO and more. A company or business is able to leverage such vast knowledge in an affordable manner.
Shared Risk: By using external expertise to accomplish marketing functions, a company is sharing the risk involved in marketing, and by extension the entire business. However, in order to enjoy the shared risk benefit, there must be proper contract binding both parties to the project. Consequently, you can make claims on damages and legally hold the outsourcing marketing provider responsible for breach of contract.
Daven Michaels is a New York Times Best Selling Author and CEO of premiere global outsourcing company, 123Employee. The company employs hundreds of young bright individuals on three continents. His International event, Beyond Marketing Live! Inspires entrepreneurs build & grow their business with revolutionary new theories and systems allowing them to design the business and personal lifestyle of their dreams.