5 Major Signs It’s Time to Consider Outsourcing Marketing

June 30, 2023
|By Gretel Digo

outsourcing marketing

Determining whether to keep marketing functions in-house or hire a third party is a crucial decision for businesses. Each option carries its own advantages and disadvantages, and it ultimately falls upon the manager or chief marketing officer to assess the cost-effectiveness and efficiency of performing marketing activities internally or externally. If you find yourself struggling to make a decision, it is worthwhile to consider the following scenarios to determine if you should consider outsourcing marketing:

#1. Revenue Growth is Sluggish or Stagnant

While the marketing department is not solely responsible for revenue growth, partnering with a service provider can invigorate and accelerate growth by assisting with certain in-house marketing activities. A key metric for evaluating a successful marketing campaign is a positive return on investment (ROI). Many service providers use ROI to enhance overall performance, offering outsourced marketing services that contribute to the company’s bottom line. If you are already tracking revenue growth in relation to marketing expenditures and experiencing lackluster results, collaborating with a service provider may be the best solution.

#2. Your Marketing Processes Lack Structure and Are Improvised

While any marketing department can hastily put together a promotional campaign, the outcome may not always be optimal, particularly when your team is overwhelmed and inclined to cut corners. Ideally, a well-executed marketing campaign involves brainstorming, comprehensive market research, and iterative testing, leading to the implementation of the most effective strategies. If your campaigns consistently appear makeshift or poorly designed, enlisting the expertise of an outsourced marketing provider can optimize your marketing processes and maximize your resources.

#3. Workload is Consistently Overwhelming

Marketing departments often experience periods of varying workload intensity. However, if you find that you and your marketing team are constantly stressed and struggling to meet deadlines due to an unrelenting volume of work, it is advisable to seek external assistance. A marketing service provider can undertake certain tasks while also helping you stay abreast of marketing strategies that drive competitive advantage. Additionally, you can even delegate research and analytics responsibilities to the marketing firm, enabling your staff to concentrate on critical projects.

#4. Your Marketing Team is Understaffed

Many organizations rely on a limited number of dedicated personnel to handle all marketing activities, leading to challenges such as extended turnaround times and reduced productivity when individuals are tasked with responsibilities beyond their expertise. In such cases,you might consider outsourcing marketing — either to supplement your existing team or to handle specific marketing functions. This approach is particularly beneficial for startups and small to medium-sized businesses that may not have the budget to hire full-time employees. By collaborating with a service provider, you can access the necessary talent, resources, and expertise tailored to your current business needs.

#5 Despite Your Best Efforts, You Continue to Experience Poor Results

If your diligent efforts consistently yield unsatisfactory outcomes, it may be time to entrust an external expert with the entirety of your marketing responsibilities. Engaging a marketing service provider offers more flexibility compared to hiring a full-time employee. If the outsourced engagement fails to deliver the desired results, you can discontinue the arrangement without the complexities associated with terminating a permanent employee who underperforms. Marketing service providers typically offer a range of contract options and can develop custom solutions that align with your budget and goals. This means you don’t have to choose between solely internal or outsourced marketing; instead, you can gradually outsource specific marketing functions, starting with non-core activities, and progressively expanding to more critical aspects when you feel confident and see a pressing need for process improvement.

Compelling Benefits of Outsourcing Marketing

Companies recognize the importance of marketing in driving product sales and generating revenue. However, achieving the ideal blend of talent, expertise, technology, and strategic planning to elevate marketing efforts, enhance profitability, and maintain consistent, high-quality outcomes is a challenge for many. Some organizations mistakenly believe that running an effective marketing campaign needs a substantial budget accessible only to larger, well-established companies. Contrary to this belief, outsourcing marketing activities offers significant advantages without straining limited resources. In addition to streamlining marketing processes and fostering revenue growth, here are the top reasons for outsourcing marketing:

#1. Enhance Focus

While larger organizations or those with substantial marketing budgets may handle all marketing functions internally, startups and resource-constrained firms often find it overwhelming. By outsourcing certain functions to experienced third parties, you and your team can concentrate on core activities and leverage your strengths, such as product development or refining promotional strategies.

#2. Expand Your Audience

Internal marketing efforts may restrict your reach to just a few channels. For instance, a brick-and-mortar store might rely solely on traditional print advertising, while an e-commerce startup may primarily focus on SEO and low-cost digital marketing techniques. Restricting your marketing channels limits your potential to connect with a broader audience. Marketing vendors typically possess expertise across various channels, enabling you to expand your reach and increase conversions.

#3. Gain In-depth Understanding of Buyer Behavior and Market Trends

 Research and analytics play a crucial role in deciphering customer preferences, monitoring competitor activities, and devising strategies for outperforming them. Although these activities are core to marketing, many companies prefer to outsource market research and data analysis to external experts who can deliver superior results at a lower cost.

#4. Access World-class Marketing Capabilities

Establishing a high-performing marketing department from scratch can be costly. In addition to finding top-tier talent, attracting and retaining them can be particularly challenging, especially in certain locations. For many SMEs and even some larger organizations, this becomes a resource-intensive endeavor. Alternatively, outsourcing a marketing firm that possesses skilled staff, cutting-edge technology, and advanced capabilities can provide world-class results at a significantly lower cost.

#5. Control Costs

Outsourcing marketing enables organizations to allocate resources to revenue-generating activities and convert fixed capital investment into variable operational expenses. The cost advantages offered by service providers remain one of the primary drivers for outsourcing marketing functions. Moreover, additional savings can be achieved by partnering with vendors located in emerging economies.

# 6. Optimize Marketing Strategies

Many companies lack a robust marketing plan that consistently delivers results. Instead of solely relying on your internal marketing team, it is beneficial to hire an experienced third party that possesses a deep understanding of your market and can recommend the most suitable strategies for your business. Look for a service provider with a proven track record in your industry to develop and test these strategies. If you are hesitant about a long-term outsourcing commitment, consider starting with a small research project or study, gradually expanding as you become satisfied with their performance.

#7. Share Risks

Outsourcing marketing enables companies to transfer certain risks to the service provider, such as technology disruptions, price and demand fluctuations, mergers, corporate restructuring, and underperformance. When all marketing activities are kept in-house, the responsibility for dealing with such issues rests solely on your shoulders. On the other hand, working with a third party entails shared responsibility, allowing you to mitigate risks collaboratively.

To learn more about outsourcing, you can read our Top 8 Qualities of an Outsourcing Company in the Philippines article. We invite you to follow us on social media and to visit our website to learn more about our services.

About Us: Sourcefit is a widely recognized US-managed business process outsourcing company based in Manila, Philippines. We proudly serve over 100 clients with a workforce of more than 1,300 employees. Our global centers can serve multiple markets, and our staff is highly proficient in English, Spanish, French, and Portuguese. Whether you need a few or many employees, we can help you achieve your business goals and build high-quality offshore teams.

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Sourcefit’s commitment to excellence has been recognized through numerous industry awards and certifications.

We recently received the Fortress Cyber Security Award from the Business Intelligence Group. Sourcefit was also honored with the prestigious recognition of Best Outsourcing Solutions Provider in the Philippines during the 2023 Business Excellence Awards.

Other awards include: FT ranking of 500 high-growth Asia-Pacific, The Marketing Excellence Awards, Inquirer Growth Champion,  HR Asia Awards, among others.

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