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Value of Sales and Marketing Outsourcing in Consumer Packaged Goods Industry
A study (available here) conducted by the Institute for Customer Relationship Management (iCRM), Duluth, Georgia and the Center for Business and Industrial Marketing (CBIM), Georgia State University, Atlanta, Georgia.
MSM conference details at the GMA website: http://www.gmabrands.com/events/2006/msm/msm06.cfm Final study results were presented by Atul Parvatiyar, Ph.D. at GMA's 2006 MSM conference, September 25-27, West Palm Beach, FL. Study Background The purpose of this study is to determine the nature and extent of value created for CPG manufacturers and retailers by outsourcing sales, merchandising and select marketing functions to specialized sales agencies. The study's results discuss how mutual value is produced and enhanced by outsourcing strategic and tactical marketing tasks. Manufacturers and retailers also learn how their marketing can be made more efficient and effective if they focus on their core competencies relating to manufacturing, distribution, procurement and branding, while allowing specialized agencies handle sales and marketing services. The study further examines the comparative value of specialized tools, technologies, processes, people skills and economies of scale in sales agencies that produce this outsourced value for manufacturers and retailers.