Outsourcing of marketing

From CEOpedia | Management online

Outsourcing is now one of the fastest growing management technique. Originally it referred only to the maintenance activities: such as repairs, cleaning, etc. However, nowadays there is the principle, that the company should outsource everything that someone else can do cheaper and better.

Attention to this was drawn by Henry Ford: "If there is something you can not do more efficient, cheaper and better than competitors, it makes no sense for us to do it and we should hire someone who will do it better than we do..."

Lower costs and better performance offered by the service providers arise from larger scale of activities and expertise in the field. An example might be "Nike", company that outsources the production of footwear to companies in Asia.

Outsourced tasks

Today outsourcing of marketing is very popular. Companies outsource tasks such as:

  • development of new products,
  • commercial activities, market research,
  • search of advertising space
  • designing ads, media, etc.

Reasons for implementation of outsourcing

One of the reasons for this is that employment of professionals from every field of marketing is not financially unfeasible. On the other hand, the expectation that present employees will be professional in each area is not real.

Similar situation is when company has limited resources, in terms of the available people, knowledge and materials.

A fresh look from the outside can help companies in overcoming temporary obstacles.

Sometimes the fastest and most effective way to the implementation of the marketing project is to give it outside, where a group of people, experts in their field focus on its implementation.

Outsourcing company allows flexible use of the knowledge and skills of marketing experts in those areas where they are necessary.

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