Continued from page 1
Outsourcing allows companies to focus their resources and control their head count. This form of operations allows
company to hand over full responsibility for
outsourcing function within clearly defined management guidelines and then monitor
performance. When you break down
costs of a full marketing department internally, versus
cost of outsourcing with an external partner,
business case begins to tip in favor of not allowing
“Context” to conceal
“Core.” The following elements would be common to build out a high-quality and stable relationship in a typical small organization with gross sales revenues of $20 million.
Annual Salaries for a full marketing department and programs can cost approximate $1,350,000 annually vs. $1,050,000 to outsource
same or better activity.
Consider
example of a high performance marketing partner that offers you results, flexibility, and reduction in staff and overhead. Companies can typically have equal if not better results, while maintaining product and service quality for a fraction of
cost by turning to an expert in sales and marketing. And what is
cost of a bad hire? The commonly referenced cost of a bad hire is 2.5
times annual salary. In most small to mid-sized organizations, marketing can be outsourced while they focus on
core.
Cost is clearly
most popular reason for outsourcing. However, strategic reasons such as improving company focus on core business and improving quality are next. Why companies decide to let “Context” take over and drive
business can usually be attributed to lack of information. Many businesses and marketing specialists believe that by keeping everything internal
sales growth is more efficient. It’s hard to find sales and marketing experts that have years of experience and are all aligned with
top line growth objectives. Companies who are not using marketing as part of their “Core” focus usually do not have
teams of marketing experts to handle
needs of their marketing. As a result,
“Context” begins to take over leaving less and less room for
“Core.” So, is it worth “controlling” all of your marketing functions? Is this an area of your business that is core to your success? Probably not. It is important for a company to focus on
things that add value and make it competitive. If you build software, stick to doing those things that help you to build better software, and outsource all those things that can be outsourced. The more focus you place in “context” areas,
harder it becomes for you to do your “Core” well. When you take into account
cost of what it really takes to do it right,
business case cannot be ignored.
George Schildge is
president and CEO of Matrix Marketing Group Inc., a full-service marketing firm that specialize in helping small to mid-sized business-to-business firms grow profitably and build their business through effective growth planning and marketing. He can be reached at press@matrixmarketinggroup.com or www.matrixmarketinggroup.com or (303) 325-8888.

George Schildge is the president and CEO of Matrix Marketing Group Inc., a full-service marketing firm that specialize in helping small to mid-sized business-to-business firms grow profitably and build their business through effective growth planning and marketing. He can be reached at press@matrixmarketinggroup.com or www.matrixmarketinggroup.com or (303) 325-8888.