Download Outsourcing - Bournemouth

Survey
yes no Was this document useful for you?
   Thank you for your participation!

* Your assessment is very important for improving the work of artificial intelligence, which forms the content of this project

Document related concepts

Internal communications wikipedia, lookup

First-mover advantage wikipedia, lookup

Product planning wikipedia, lookup

Market segmentation wikipedia, lookup

Social media marketing wikipedia, lookup

Sales process engineering wikipedia, lookup

Retail wikipedia, lookup

Bayesian inference in marketing wikipedia, lookup

Food marketing wikipedia, lookup

Neuromarketing wikipedia, lookup

Marketing communications wikipedia, lookup

Affiliate marketing wikipedia, lookup

Marketing channel wikipedia, lookup

Target audience wikipedia, lookup

Marketing research wikipedia, lookup

Youth marketing wikipedia, lookup

Multi-level marketing wikipedia, lookup

Sports marketing wikipedia, lookup

Digital marketing wikipedia, lookup

Ambush marketing wikipedia, lookup

Guerrilla marketing wikipedia, lookup

Viral marketing wikipedia, lookup

Target market wikipedia, lookup

Sensory branding wikipedia, lookup

Outsourcing wikipedia, lookup

Integrated marketing communications wikipedia, lookup

Marketing wikipedia, lookup

Direct marketing wikipedia, lookup

Advertising campaign wikipedia, lookup

Marketing plan wikipedia, lookup

Marketing mix modeling wikipedia, lookup

Green marketing wikipedia, lookup

Multicultural marketing wikipedia, lookup

Street marketing wikipedia, lookup

Global marketing wikipedia, lookup

Marketing strategy wikipedia, lookup

Transcript
Outsourcing
‘80% of the marketing department
will soon be farmed out to third-party
suppliers’ Simms Marketing 6/3/2003
Motives for outsourcing
•
•
•
•
Labour flexibility
Unleash market forces
Concentrate on core competences
Transformational outsourcing
Core and peripheral labour-force
Atkinson 1984
Market forces
• Competition for contracts encourages
– cost efficiencies
– quality control
– creative approaches
• breaks down restrictive practices
• privatisation and ‘quasi-markets’ in the
public sector (Johnson and Scholes)
Strategic outsourcing
(Johnson and Scholes)
• Value-chain decisions ‘make or buy’
• Identify core competences leading to
competitive advantages
• Non-core functions can be farmed out to
specialists who do them more cheaply or
better
• But what is a really core competence?
– Customer service? Processing? Marketing?
Transformational outsourcing
Mazzawi (2002) Business Strategy Review 13, 3
• Traditional o-s aimed at reducing cost
• Transformational aimed at improving
performance and agility
• introducing a new business model or
management approach
• contracting for competitive advantage
Dangers in outsourcing
Barthemeley (2003) Academy of Mgt Excellence 17, 2
•
•
•
•
•
•
•
Outsourcing the wrong activities
Poor selection of contractors
Poor contract terms
Personnel issues
Loss of control
Hidden costs
Lack of exit strategy
Outsourcing in Marketing
Simms Marketing 6/3/03 pp22
• 1980s Advertising and Research outsourced
to full service agencies
• 1990s FSAs compete with specialists
– market competition forcing down costs
– balance of power shifts to client
• More staff needed in-house to manage these
relationships (IMC approach)
• Growth of direct marketing and customer
relationship management
• expansion of in-house staff in these areas
What is core?
• Marketing strategy
– you should not outsource the marketing brain
• Marketing services
– arguably the most inefficient process in modern
business
– long slow expensive chain of decision-making
New models
• Co-sourcing
– marketing services activities pass to an agency
• In-sourcing
– marketers recruited for short-term projects
• Surrogate marketing departments
– for SMEs
– define and implement strategy
Considerations in agency selection
Hudson and Jackson in Pickton & Broderick Ch 16
•
•
•
•
•
•
•
Viewpoint - objectivity
Media solutions - bias/neutrality
Expertise
Management and Control
Confidentiality
Speed/Timing
Cost
Implications
• Emphasis changes from managing staff to
managing contracts/relationships
• Problems of training and development
– people are dropped into operational roles earlier
• Concern that a smaller dept means less
influence in the business
• Impact on creativity?
•
Simms Marketing 6/3/2003
•
Hudson and Jackson in Pickton & Broderick Integrated Marketing Communications Ch 16
•
•
•
Barthemeley (2003) Academy of Mgt Excellence 17, 2
Atkinson (1984) Flexible Modes of Organisational Structure
Barthemeley (2003) Academy of Mgt Excellence 17, 2
•
•
Mazzawi (2002) Business Strategy Review 13, 3
Johnson and Scholes