Examining the benefits of outsourcing 2.0 group
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Examining the benefits of outsourcing 2.0 group Examining the benefits of outsourcing 2.0 group Document Transcript

  • 111 Congressional Blvd., Suite 150 Carmel, IN 46032 317.577.1804 Carm Understanding the Benefits of Outsourced Marketing Services By Kim LaSalle, Brand Marketing Director 2.0 Group As a small, independent agency 2.0 Group is often selected to represent business start-ups and medium- sized companies that are hiring an agency for the first time. It's not uncommon for these business owners to worry about the expense of outsourcing. And with good cause. It's critical that every dollar you spend produce a solid return on investment. We often hear questions such as:  How much should we spend on our marketing and public relations programs?  Is it more cost effective to hire an individual or engage an agency?  Should I build a marketing team in house or outsource? Few companies have all the marketing expertise they need in house. While outsourcing marketing might offer a challenge to new or growing companies, Professor Gail J. McGovern of Harvard Business School notes that about half of American companies outsource marketing and this trend is on the rise. "The outsourcing of marketing activities is catching on," said McGovern." In fact, in a recent poll of marketing executives, 53 percent reported plans to outsource most of their marketing activities." The benefits to business include cost savings and improved quality. Moreover, many companies lack "left-brain" analytical skills in-house, even though those skills are more important than ever in this age of one-to-one marketing. Some business owners believe they can hire one person internally to provide the same services as an agency. While we encourage our clients to invest in internal marketing expertise, we gently remind them that one person can't be expected to provide the same service that is provided by a team of agency professionals. That would require the individual to provide a very rare combination of skills and experience:  Product Manager  Strategist  Quantitative/Qualitative Research Analyst  Creative Director  Production Specialist  Media Buyer  Ad and Features Copywriter  Public Relations Professional  Analyst  Graphic Designer  Web Graphics Designer  Social Media Specialist  Programmer (versed in multiple languages and  Project Manager technical skills)  Brand Manager  Direct Response Specialist  Email Marketer  Marketing Operations Analyst According to Salary.Com, a Marketing Director in Indianapolis with at least 10 years experience can expect to command an annual salary of no less than $90K. The median salary is $134K. (See page 2) When you add insurance benefits and overhead like technology and office space you significantly add to expenses beyond salary. There are also other resources your marketing director will need such as wire distribution services, professional membership fees, and media databases (which can costs thousands of dollars per year) that add to the overall costs. 1
  • 111 Congressional Blvd., Suite 150 Carmel, IN 46032 317.577.1804 Carm As it's highly unlikely that one person on staff will have all the bandwidth or skills provided through outsourced agency services, we checked average salaries for other job titles as well: (Continued on page 3) Salary.Com Job Description: Marketing Director Directs and oversees an organization's marketing policies, objectives, and initiatives. Conducts market research and develops marketing plans for specific products, services, or business lines. Reviews changes to the marketplace and industry and adjusts marketing plan accordingly. Requires a bachelor's degree with at least 10 years of experience in the field. Familiar with a variety of the field's concepts, practices, and procedures. Relies on extensive experience and judgment to plan and accomplish goals. Performs a variety of tasks. Leads and directs the work of others. A wide degree of creativity and latitude is expected. Typically reports to top management. Salary.com's data is proprietary and based on employer-reported data. It does not contain data from individual site users, placement agencies, job postings, or any other sources that would traditionally be characterized as "unreliable" by compensation or human resource professionals. To determine the market pay ranges, Salary.com's compensation consultants have collected and reviewed data covering more than 29 million individuals working at more than 16,000 companies. 2
  • 111 Congressional Blvd., Suite 150 Carmel, IN 46032 317.577.1804 Carm More than 90 percent of the jobs in the Salary Wizard report market pay levels based on more than 100 incumbent salaries Salary.com's team of compensation consultants reviews available, applicable market pay data to determine the true market for each job in the Salary Wizard. Creative Director: Salary Range $66K - $122K; Median Salary of $93K Responsible for directing creative work including audience promotions and advertising. May oversee print production, graphic art, and desktop publishing. Assists with audience research and develops creative briefs and design concepts to meet business objectives. Requires a bachelor's degree with at least 7 years of experience in the field. Familiar with a variety of the field's concepts, practices, and procedures. Relies on extensive experience and judgment to plan and accomplish goals. Performs a variety of tasks. Leads and directs the work of others. A wide degree of creativity and latitude is expected. Typically reports to top management. Creative Director - Web: Salary Range $108K - $188K; Median Salary of $123,900 Directs web-based creative work. Develops creative briefs and design concepts to meet the business objectives of the organization. Responsible for establishing creative direction for the entire line of online services, products, and programs. Requires a bachelor's degree with at least 5 years of experience in the field. Familiar with a variety of the field's concepts, practices, and procedures. Relies on experience and judgment to plan and accomplish goals. Performs a variety of tasks. Leads and directs the work of others. A wide degree of creativity and latitude is expected. Typically reports to a head of a unit/department. Senior Graphic Design Specialist: Salary Range $43K - $70K; Median Salary of $56,300 Uses knowledge of current graphic design software to produce graphic art and visual materials for promotions, advertisements, films, packaging, and informative and instructional material through a variety of media outlets such as websites and CD-ROMs. Generates and manipulates graphic images, animations, sound, text and video into consolidated and seamless multimedia programs. Must remain abreast of technological advances in the field and be able to identify areas of use in the organization. May require a bachelor's degree or its equivalent and at least 4 years of experience in the field or in a related area. Familiar with standard concepts, practices, and procedures within a particular field. Relies on limited experience and judgment to plan and accomplish goals. Performs a variety of tasks. Works under general supervision; typically reports to a supervisor or manager. A great deal of creativity and latitude is expected. Account Executive, Advertising: Salary Range $53K - $91K; Median Salary of $64,900 Maintains relationships and favorable contacts with current and potential advertising accounts. Targets potential advertising clients and develops relationships in order to acquire new advertising accounts. May require a bachelor's degree and at least 3 years of experience in the field or in a related area with a high volume of sales. Familiar with a variety of the field's concepts, practices, and procedures. Relies on extensive experience and judgment to plan and accomplish goals. Performs a variety of tasks. May lead and direct the work of others. A wide degree of creativity and latitude is expected. Typically reports to a supervisor or manager. Cost to ROI Comparison We expect that smaller companies may pay somewhat less than larger ones for marketing professionals. However, when you consider competitive wages for these positions, the cost-to-ROI comparison between agency and in-house staff becomes significant. At 2.0 Group, we usually recommend small to medium businesses be prepared to spend at least $5,000 per month minimum in order to implement an effective marketing or PR program that can actually help them grow. We offer a team of 8 marketing professionals with a wealth of knowledge at all levels of experience. Realistically, you couldn’t hire that many marketing professionals for $5,000 a month anywhere. 3
  • 111 Congressional Blvd., Suite 150 Carmel, IN 46032 317.577.1804 Carm So the next time you’re weighing the costs of hiring an individual or an agency, remember how many internal people and resources you’ll need in order to match the service and professionalism provided by the team at 2.0 Group. About 2.0 Group (www.2-0group.com) 2.0 Group is a full-service marketing communications firm based in Carmel, IN. Minority owned and operated, services include Advertising, Branding, Creative Development, Market Research, Web and Video Production. For additional information, call 317.577.1804 or visit www.2-0group.com. 4