Disadvantages Of Outsourcing Marketing

A study conducted a few years back indicated that most of the businesses tend to allot 99.4% on the marketing of their products and the remaining very small part on doing research. However, by increasing the amount spent on research by 2 to 3%, these businesses can get better results. In the fast-developing world today, this has become more difficult for the business institutes because they have to face the severe competition for marketing their products. In these circumstances, it becomes necessary to rethink the outsourcing marketing and understand well the possible disadvantages of outsourcing marketing.

Most Big Companies Prefer In House Marketing

As of now, most of the mega corporations prefer the in-house marketing strategy. They do not believe in outsourcing marketing. However, few companies have chosen the option of outsourcing marketing to promote their products. To understand whether you should opt for outsourcing marketing or not, you must consider all aspects of outsourcing marketing carefully. One may feel that putting more stress on the disadvantages of the outsourcing marketing is a kind of negative thinking; but as a preventive major, you need to consider the disadvantages also well in advance.

Three Major Disadvantages

There are three main disadvantages of outsourcing marketing. First, you are the best judge of what a customer requires from you and your product. Second is that feedback from the market comes to you through an intermediary channel so you lose the controlling power. Third, every company has its own style of functioning. Therefore, you cannot expect that the company that you are going to choose for outsourcing marketing will work according to your method.

Marketing research companies may perform the research in an unbiased way because it is a neutral third party, yet they lack the insight of your business that you or your employee might possess. No matter how informed the professionals at the company that is providing outsourcing marketing are, they are not as efficient in providing outcome of the market research and analysis as an employee of your company can be. There is no doubt that these companies are capable of contacting a large number of consumers, but do not forget that they are not always representing you exclusively. Although you get the marketing research report very quickly, sometimes in this haste they may authorize an inexperienced person to write such reports.

Marketing Companies Take Advantage of Your Dependence

Furthermore, when you start outsourcing marketing, you are broadcasting to the world your dependence on third-party organizations. The more your dependence will increase, the more your marketing expenses increase because this third party will also start demanding more money. Another disadvantage of outsourcing marketing is that these third parties tend to resist when you try to apply some innovative idea or wish to provide specific training.

Alexander Gordon is a writer for http://www.smallbusinessconsulting.com – The Small Business Consulting Community. Sign-up for the free success steps newsletter and get our booklet valued at $24.95 for free as a special bonus. The newsletter provides daily strategies on starting and significantly growing a business.

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