In these lean, mean times, companies have come to outsource numerous functions, from accounting to customer service. But except for advertising services, marketing functions have stayed inhouse…at least until now. In last week’s “Harvard Business School Working Knowledge” e-newsletter, Harvard professor Gail J. McGovern was interviewed about what she’d previously noted is a trend toward outsourcing marketing.
“In a recent poll of marketing executives, 53% reported plans to outsource most of their marketing activities,” McGovern said. “The benefits to business include cost savings and improved quality. Additionally, many firms lack ‘left-brain’ analytical skills inhouse, even though those skills are becoming more important than ever in an age of one-to-one marketing, and find that outside expertise is often needed.”
But McGovern doesn’t advocate outsourcing all marketing functions. “Some aspects of marketing are less amenable to outsourcing—those that directly drive marketing strategy,” she noted. “The CEO and top managers still need to meet regularly with customers. Companies need chief marketing officers to drive marketing strategy and make the most of the company’s customer relationships. And companies still need flesh-and-blood employees to win and service major accounts.”
Network
