1.The benefits of hiring a local partner
2.When businesses should call a local agency
3.How big companies manage marketing
The benefits of hiring a local partner
You can buy the services of experts directly - this way you save both money and time.Agencies typically will have more collective experience than any owner/manager, and will have access to the finer information of in-house expertise. You don't have a part-time law degree to write your contracts. You're looking for guidance from a lawyer. You're not making your own tax returns — you're asking an accountant for help. Outsourcing positions that need specialized skills makes sense. Purchasing specialist knowledge becomes especially convenient and important when you are entering the new market.
For small to mid sized businesses, expense management especially may mean the difference between success and failure. To ensure liquidity, precise financial reports and better budgeting, cost control and proper expense management are important.
In a company, recruiting is one of the most common expenses. Many firms underestimate the cost of recruiting by between 90 and 95 percent and this is due to the propensity to think about the cost of hiring someone simply in terms of their simple salary. Yet payroll tax, retirement, employee insurance, training and more are still to be accounted for. You've got to pay them after you've recruited them. On average, an accomplished marketing manager will cost you between $60,000 and $120,000 in compensation each year. That excludes learning and development costs, pensions, insurance and all of the other required expenses.And normally it’d take 15-18 month for a business to even be profitable in a new market. So between the business investment costs and employee costs, it could get massive costs.
You may recruit more junior workers, of course, but are they going to have the expertise and qualifications to lead your plan and produce high-quality work? And who's going to tutor them? When they leave, what happens? Or go on vacation?
And while the average retainer for an agency could cost the same as an adequately sized in-house team's staff costs. There's a catch there. It does not incur 'hidden expenses' to recruit an agency and it ensures you waste less time and resources on on-boarding, training and workforce growth.
Hence for a market you are still new and uncertain, it is smarter to hire a local team to help you plan and execute your business plan in the new market with a commitment flexibility.
When businesses should call a local agency
When nothing gets planed or done,
When you have no idea where to start your research or planning in entering the new market, you can call a local agency to help you lay out the plan based on the local market insights.
When you have language and cultural barrier with the targeting market
Creating a business plan itself can be a hard task itself, throwing in a cross cultural environment into the mix makes the task even more sophisticated. What if you have a language barrier? You want to hire someone that is more than a translator, but someone who actually understands business in the local dynamics.
When you need local connections.
Networking and creating new relationships can be as simple as meeting people. But when it comes to networking in a foreign country, it is a whole other story. Especially if the targeting country has a significantly different culture and norms than the country of your company's origin. You definitely want to have someone on sight when creating the new relationships as a mediator.
You can still borrow a help from an agency when you are mature enough in the new market.
When sales and growth are stagnating
If a company is stalling, production is slowing down and you spend much of your time putting out fires instead of being profitable, something has to change.
Sales and development can be stalled by several factors. Marketing, bad customer care or mismanagement may be counterproductive. No matter the symptom, with an agency, you will find the solution. Outsourcing failed parts of a company can revitalize and kick-start growth. Sometimes all it takes is a little outside perspective.
When your expectations outweigh your capabilities,
Often, organizations may have expectations for the future that they can not fulfill with their present capabilities. It may be as easy as not having the necessary workforce or an intrinsic lack of information about how to accomplish these goals. Nevertheless, if you don't have what you need, you can look for expert help.
When you are understaffed
As an add-on to another task, it's tempting to give someone a marketing role as a part-time role. It could be allocated to a salesperson or an office manager. That's a start, but in order to achieve strong business growth, there's no way that part-time marketers will ever do everything they need to do. Marketing is a work on a full-time basis.
When you have unbalanced ratio between sales & marketing teams
For several businesses, the next move is to employ only one marketing guy. This is an addition to a part-time job, but it can be a lonely place, sometimes with a comparatively low status. Microsoft did 18 digital marketing reviews on some of their partners. In several instances, they found that businesses may have 10-20 sales people but only one or two individuals in a marketing position. For the best results, you need balanced sales and marketing teams who actively work together to grow your business.
How big companies manage marketing
According to a research by Gartner, businesses spend an average of 10.2 percent of their annual sales on marketing.
But we've found that a lot of major corporations don't do in-house work. Marketing managers prepare their marketing campaign instead and then collaborate to execute it with a roster of agencies. These businesses have the budgets to finance massive in-house marketing departments, but instead, they all partner with agencies.
Businesses that expand exponentially invest in branding and marketing. They know how to pick, handle, provide good, timely feedback to get the most out of good agencies and provide them with the motivation they need to do their best job.
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