Question

How can outsourced companies overcome distribution demands of global marketing? Does outsourcing the marketing mix and using sourcing agents create international customer service?

Answer 1

Outsourcing of certain marketing functions can be used as a strategic tool to gain competitive advantage in global marketplace. Distribution channels across the markets throughout the globe differ substantially in terms of channel design, mode of transport, buying behavior of the customers, statutory regulations, size of SKUs, seasonalities of demand, region specific operational challenges to name a few. A local partner ( outsourcing agent) offers advantage of local contacts, work related expertise, availability of infrastructure and resources and experience with the territory. An outsourced distribution can monitor the service levels more efficiently, meet the ever changing demands effortlessly and help to grab the new opportunities sooner than the others, often saving on costs and increasing efficiency, offering strategic competitive advantage in these markets.

Outsourcing of the marketing mix and other related functions create and enhance the international customer service by providing the information of the products and services to the customers in their language, in a way that they like and appreciate the most and according to their needs. The local expetise helps to overcome the barriers of culture and local customs in communication, thereby offering better customer connect. Sourcing agents do significant research on the local preferences, cultural elements, buying behavior, competitive products, pricing, promotional strategies, before the launch of the product / service to customise the marketing mix to the local market and present it in most effective way and gain competitive advantage.