Introduction to Marketing Process Outsourcing

A lot has been said and written about how outsourcing companies have changed the way business is done. It is an acknowledged fact that BPO and KPO firms are contributing immensely to the growth of business organisations worldwide. They are helping organisations to focus on their core activities by managing all supplementary activities. Organizations are now turning their focus to marketing processes as the next avenue for adopting an outsourcing model.

In marketing, the main challenge for any organisation is the need to liaison with a lot of marketing agencies like PR agencies, Ad agencies, Media Houses, Research firms etc. so as to meet their marketing objectives. These agencies when they work in isolation work on their specific objective rather than the overall objective of the organisation. This makes it difficult for organisations to reach their goal. Marketing Process Outsourcing (MPO) firms are trying to address this gap by offering their specialised services as a one stop shop.

Nowadays organisations have started to outsource their marketing activities so that they don’t need to engage multiple agencies so as to meet their marketing objective. This trend is seen more with local organisations especially small and medium enterprises rather than big multinational companies.

MPO firms are helping these small organisations to market their products as these organisations often find it difficult to market their products in global markets even if they have good products. MPO firms work as the marketing arm of organisation and address the critical functions of marketing that is segmentation, targeting, positioning, product pricing, channel management and so on. The main advantage that these outsourcing firms give is that it will give the client more control over operations. As the market space is becoming more and more competitive, it is imperative that organisations success depends on how far they have understood the needs of their customers and what is the value being delivered.

Some of the MPO firms which are offering their service are

  • CMO Axis: CMO Axis is said to be the first firm in India offering MPO services and is the Winner of Powerful Ideas of Economic Times. They were also awarded the Start up of the Year 2011 by TiE. The services offered by a typical firm like CMO Axis include Marketing Shared Services, Integrated Sales & Marketing, Outsourced CMO office and Virtual Marcom Engine.

The other firms operating in this space are

MPO is still considered to be in its beginning stage and is estimated to be a Rs. 1200 crore market. Even though more and more enterprises like Mahagun and Sobha are outsourcing their marketing activities to firms like Wital See Marketing there are still many firms which are a bit sceptical about the whole process. Measuring the success of marketing programs run by MPO’s is going to be a critical factor in MPO engagement model. Firms who will master this are certainly going to succeed in the market place. MPO firms have to try hard to create their own space in the BPO industry, but opportunities look promising for blooming of this segment.




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