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Topic : Startup Guide for Entrepreneurs
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Startup World

 
Created by : Sudeep Tarafdar, Senior Consultant, IBM  | 09 05 2009 07:32:06 +0000
Industry : Management & Strategy ConsultingFunctional Area : Getting Started(Entrepreneurship)
Activity:  344 views;  last activity : 01 04 2011 15:38:56 +0000

Many new companies are doing well in their technology part but when it comes to marketing its a big flop. Now it has become a trend for the start ups to  relay on the SMM (social media marketers)for their entire marketing part. Finding   guys to walk around the  market with their  product is the another path selected by start ups for marketing. The work of marketing department is completely given to the hands of another person. Risk of marketing is handed over to some one else by start up  companies.

what do you say? Should start-ups outsource marketing?

 
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In my opinion, startups are really benefited by outsourcing marketing. Its true that marketing is the core function. But before concentrating on that core subject their are many other things to be taken care of production, purchasing dept. etc.  There will be some thing to market only if these areas  are properly maintained . So its always better to hand over the marketing work to a second person and concentrate on the other work. Getting help from the second person for marketing has its own advantages which can really create new customers for the startups.


By Veena Gupta, Analyst, Blackstone Group  09 05 2009 08:16:26 +0000
 
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I believe It is  not a good idea to completely out source marketing part. One should understand that marketing is the core function of marketing and not a suppot function. A start up company should really work on its self on marketing to capture the market. Companies can themselves improve their marketing by giving high quality products,attractive packages,attractive names etc. It will help to retain the existing customers and there by later on creating new customers.


By Sudeep Tarafdar, Senior Consultant, IBM  09 05 2009 07:32:06 +0000
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yes. we can but we must ensure that the brand image should not become a puppet in the hands of the person outsider to company.
By faiz ahmad, MBA/PGDM student, kerala agricultural university  | 01 04 2011 15:38:55 +0000
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Yes i strongly agree that startups should outsource marketing.Firstly,it saves time,money and for sure the overheads of the company.Secondly- there are also many other departments to be taken care off like Production,purchase and Finance to name a few.Moreover,in todays scenario many MNC's outsource there marketing jobs,still if they have a full fledged marketing dept.I'll not say that its the marketing fault its just that there are so many works which need to be outsourced. I think it would be a good option for Startups to outsource marketing
By upasana sah, Asst.Manager,Marketing, Dabon International Pvt Ltd, Group Soparind Bongrain  | 01 04 2011 09:50:37 +0000
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a very useful debate especially for young budding technoprenuers. I agree with the points pointed by the respective experts . The only concern in this is that a start up runs with lots of contrainnts especially the monetary ones . Spedning upon huge marketing campaigns initially is out of question . The platforms that can be useful here are the "social ones " which really help in the "viral " marketing. For instance Notion ink with their Adam tablet have done a remarkable job and the blog hits are the no 2 on wordpress with thousands of fans following actively. So much so that all the orders of Adam have sold out . I hope this helps as an inspiration for technoprenuers . thanks Sudeep for such a wonderful debate .
By Shaikh Mohd. Laeeq, Technical Associate R&D , ThinkLABS Technosloutions Pvt. Ltd.  | 01 03 2011 10:54:39 +0000
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I usually am in favor of outsourcing because it ensures quality and timely completion of the outsourced need (obviously keeping in mind that the outsourcing company is trustworthy). Therefore, I completely agree with Mr. Bhave and Ms. Gupta that marketing too can be outsourced.

Though a core function, every business requires a specific kind of marketing and hence, it should be left to the experts. I agree it can be costly but this is where the priorities can be set with external consulting and help. Once this is done, and once your initial goal is achieved (say, your product developed) then you can focus on marketing yourself!


By Manish Sagar, Head - Business Development  | 09 07 2009 17:16:39 +0000
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I agree with you Veena. Effective marketing requires time, energy and focus. Most of the times marketing technics are time consuming and labor intensive.  So finding a market,preparing brochure,design and update of website etc is time consuming. Time is valuable for the start-ups. Hiring an outsource marketing company ,allows business owners to focus on many other priorities.


By Esha Johar, Risk Analyst, Irevna  | 09 05 2009 08:43:41 +0000
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Initially, for start ups outsourcing Marketing functionality is definitely a good idea. In fact this is where the Consultants come into play big time!!

Because of the nature of atart ups, being funded, the epenses are closely watched and controlled! The ROI is calculated on virtually a monthly basis. The investors are definitely bothered if not worried regarding their investments. Marketing is not a very affordable department of such ventures and they definitely afford a retained agency (advertising, keeping in mind the nature of products and the brand key) on a monthly basis.

Outsourcing Marketing gives the strat ups options of keeping the Consultant engaged on a much lesser cost as the overheads of an agency would not afford the retainer a Consultant can. Also, the Consultants can be engaged on various stages on project adbancement basis hence saving humongous costs!! I feel that its a brilliant idea!


By Makrand Bhave, Marketing & MICE, WIZCRAFT International  | 09 05 2009 08:22:57 +0000
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Context here is a start-up so we can safely assume that there are very limited resources including raw material and money. Hence aggressive marketing or mass marketing can create pressure on supply chain and lead to deterioration of quality. Therefore start-ups need to market themselves by the channel of 'word-of-mouth'. Stated that, word-of-mouth marketing can only be achieved through quality product and service delivery and hence outsourcing marketing function at this stage is not a feasible option.
By Saurabh Kotwaliwale, Manager - Corporate Strategy  | 01 04 2011 10:57:02 +0000
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Marketing is one of the core functions which carry significant strategic value, for any Company that sells products. Just like trade secrets, marketing also insists for maintaining a high degree of confidentiality. Outsourcing this function will just have negative repercussions.


By Resmi Maxim, GENERAL MANAGER - OPERATIONS, SI PROPERTY (KERALA) PVT.LTD.,  | 11 06 2009 04:28:46 +0000
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