Posted in Marketing and Strategy Terms, Total Reads: 490

Definition: Offloading

Offloading is basically outsourcing some or all of its marketing to an outside company.

Why Offloading?

• Expertise of specialist: Vendors specialise in marketing domain. It is their core competency so the company can rest assured that their marketing work is in expert hands

• Gain third party perspective: Often an in-house marketing team become biased of the product and consumer behaviour and it results in ineffective marketing campaigns. Hiring a third party provides a different perspective

• Experience innovative ideas and creativity: Outsourcing give chance to company to experience new and innovative ideas and techniques provided by vendor companies

• Focus more on core activities like product development without having to worry about marketing aspects of it.

• Target a new market: Offloading can occur at various levels like: local or regional, national or international. So if a product is to be targeted to say international market, it could be a costly affair to do a market research, gain consumer insights, prepare promotional activities etc

• Reduce operational costs: Operational Costs like recruitment, training, salary etc for marketing staff can be saved by handing the marketing to an external vendor whose fees is relatively lesser compared to the in-house marketing costs

Offloading has its own risks, it requires the vendor company to fully understand the company values, distribution channels, pricing objectives and target customers to conform its promotional activities to the company’s image and brand value.



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