Marketing outsourcing: new markets
Over the last few decades, outsourcing has been considered a necessary way to achieve a considerable competitive advantage. Indeed, outsourcing has become an essential aspect of business strategies affecting many areas, including marketing.
The advantages of outsourcing functions of marketing departments are many, mainly profits and knowledge. In fact, nowadays 53% of companies declare to outsource some parts of their marketing functions to specialized marketing agencies.
When expanding abroad, it is important to consider two levels of challenges: language and culture. On the one hand, many countries are English-speaking or have a higher degree of knowledge of the language, making the entrance to the market more fluid. On the other hand, there are still many developed countries with deeply rooted cultures and business practices. This makes countries with a powerful mother tongue and deep cultural treats such as Italy, be more challenging.
According to the latest survey conducted by the European Union (Spring 2012), 66% of the Italian population declares not to have sufficient knowledge of English to be able to hold a conversation. Moreover, future prospects are not encouraging, given that 28% of respondents state not to be sufficiently motivated to study more languages. In this context of extreme localization, how can marketers conduct their strategies effectively in a country as closed as Italy?
It is well known that Italy is one of the strongest markets in Europe, but it remains impenetrable for many companies because of the cultural and language barriers. The solution lies in entering from within the market. Italy has great marketing strategists with international background; so numerous small Italian marketing agencies are starting to consult and coach firms that have outsourced them part of their marketing department. By doing so, these agencies, which deeply knowledge of the market and the consumers, help the marketers introduce their products. As a result, firms manage to brutally reduce costs and errors, to position their product into the Italian market in the desired way, hence achieving results.
Time starts to run. Ready? Steady? Go!