The Argument For Outsourcing: Area Of Business - Marketing

ROI - such a simple concept.  Yet many business professionals and company executives struggle to determine the best way to measure ROI when applied to the company’s marketing strategy.  Arguably, the intangibility of marketing makes it difficult for most people to gauge M-ROI (marketing return on investment) based on traditional business models.  Though it could be said that the strategy behind the marketing has a position on all levels of business model infrastructure.

Consider this, with little hesitation business professionals outsource the company’s legal needs to skilled attorneys, or the financial concerns of the company to a certified public accountant.  Outsourcing in this way makes perfect sense.  Certainly, marketing is an outsourceable, business impacting area that often requires the knowledge of an experienced professional.  Outsourcing the company’s marketing needs to a strategic marketing firm has many advantages.  

The most obvious advantage is in the overall cost savings to the company.  Most marketing consulting firms offer mid-sized companies a flat fee, annual engagement invoiced on a monthly basis.  While engagement fees vary depending on the firm chosen and scope of marketing objectives, let’s use a base example of $15K per month for the high end and $3K per month for the low end as the fee range. 

Using the high end of the engagement fee range, the annual cost of outsourcing compared to hiring, training and managing a full marketing department represents an immediate savings of no less than 55% to as much as 75%.  At the low end of the range, outsourcing savings jumps up to 91% - 95% over the cost of having a fully staffed marketing department.  Clearly, this is a compelling argument for outsourcing your marketing!

In House, Fully Staffed Marketing Department: [Estimated Cost Per Year: $395K-$698K]

Director of Marketing: Directs and oversees an organization's marketing policies, objectives, and initiatives. Observes changes to the marketplace and industry and adjusts strategic approach and marketing plan accordingly.  [Salary range: $92K-$204K]

Manager of Brand: Manages, develops, and implements product and/or services marketing activities to maximize sales of an assigned product line.  [Salary range: $62K-$107K]

Website Developer: Designs and constructs web pages/sites including incorporating graphic user interface (GUI) features and other techniques. Maintains and provides ongoing design of the website, promos and ad banners, seasonal content specials and custom chat launcher design for partners.  [Salary range: $46K-$83K]

Researcher/Analyst: Prepares marketing strategies and programs for a product or product line. Evaluates product performance to help develop and update company goals and objectives. Advises sales team on any relevant product concerns. Recommends changes to current product development procedures based on market research and new trends.  [Salary range: $41K-$56K]

Graphics Designer: Uses knowledge of current graphic design software to produce graphic art and visual materials for promotions, advertisements, films, packaging, and informative and instructional material through a variety of media outlets. Generates and manipulates graphic images, animations, sound, text and video into consolidated and seamless multimedia programs. [Salary range: $35K-$55K]

Public Relations Manager: Prepares and distributes information regarding an organization through newspapers, periodicals, television and radio and other forms of media.  [Salary range: $32K-$50K]

Marketing Assistant: Coordinates and assists with the marketing activities of a product or business line that could include advertising, direct mailing, printing, customer events, and trade shows.  [Salary range: $31K-$53K]

Professional Copywriter: Writes, proofreads, and edits copy brochures/print and other forms of documents. Could assist in estimating production costs, overseeing work done by external suppliers, and preparation of the marketing program. [Salary range: $31K-$50K]

Administrative Coordinator: Performs a variety of administrative functions. Schedules appointments, gives information to callers, and takes dictation. Composes memos, transcribes notes, and researches and creates presentations. Generates reports, handles multiple projects, and prepares and monitors invoices and expense reports. Assists with compiling and developing budgets. [Salary range: $25K-$40K]
* Information provided in whole or part by Salary.com

Other Advantages To Outsourcing Your Company’s Marketing:

1. Access to marketing specialists with the know-how, skills and resources your company needs to stay competitive in today’s turbulent marketplace
2. Trusted business advisors to help the company make key decisions that support the viability, sustainability and profitability of the business
3. A robust extension of the company without the overhead, head count, liability and risk of managing a growing workforce
4. Company cash flow is not crippled by the rising cost of staff training, memberships, certifications, salary increases, performance bonuses, etc.
5. Executives and managers can re-focus on the leadership of the company instead of trying to divide their time

 You know your business better than anyone, but how well do you know your clients?

Do you know what it takes to keep your clients loyal to your company?

Do you know how to track and interpret trends that impact your company
and your clients’ purchasing decisions?

If your company has one person who plans, implements, executes, monitors, measures and manages the company’s strategic approach to marketing, he/she needs to be an experienced marketing strategist.  If not, your company could be loosing more business than it is winning. 

If that one person is a marketing professional, then chances are he/she is overwhelmed and overloaded and would benefit greatly from outsourced marketing support . . .  an extra set of experienced marketing hands.

Simply put, outsourcing your marketing is good for the company, good for the bottom line and good for your clients.