Episode 5

In this episode of the Outsourced Marketing Department Podcast, Ryan W. Gates is back with Bruce Rowley of RSM Marketing Services on how to get the most out of your OMD. How do you get the ball rolling? What do the first 30 days look like? How do you keep the momentum going? When to scale up and when to hunker down? Listen in as Ryan and Bruce talk about setting your OMD up for success, past experiences in OMD success and how to get the highest value from your OMD.

Transcript

Welcome everyone to the Outsource Marketing Podcast, I’m your host, Ryan gates if you’re new, thanks for joining us, and if you’re returning, then welcome back. Today we’re back with Mike Snider to talk about how large companies use OMD or outsource marketing.

Mike is the co-founder of RSM Marketing Services in Wichita, Kansas, an entrepreneurial company specializing in outsourced marketing with clients across North America. Today we talked about a number of things including systems theory, franchising, and how an OMD works in lieu of an FTE, full-time employee for large companies.

Let’s listen in…

So, Mike, thank you very much for joining me today as we talk about how OMDs work in larger companies.

So in a larger company, that’s dominated by FTEs, full-time employees does the OMD fit best in lieu of full-time employee or is an outsource division more specific to a project? How does that look?

I think that’s a great question and I think that it gets more complicated when you’re inside of a larger company. Now, a larger company has a couple of definitions. First of all, it can certainly be size. Let’s say it’s absolutely it’s a 50 million company, 100 million manufacturing or distribution concern, it can be a number of employees, hundreds of employees can also be markets. We’re all across country, International. It can also indicate marketing support, the in-house team. So size, just to be clear of an outsourced larger client considering an outsourced marketing department in support. You may consider yourself small but you might require a large marketing team, because of what you do in which case, the question really is, is do you require in-house support because of your size.

I guess what I’m asking is, let’s talk about the company, where we’re talking about size of employees. Size, scalability, I think in revenue and market share we can, I think that makes a lot of sense… Actually, at that OMD plays in that market. It’s understanding we’re a large company with a lot of full-time employees that are dominating how that structure looks like. How does an OMD work in that setting?

Okay, so I think that’s a fair question is, is generalized, it down to… Hey, we’re sizable enough of an enterprise here, we’ve got three, four, five, even 10 maybe marketing folks in-house. So in the old days, it used to be… I’ve got my webmaster. Maybe he or she knows a little bit about SEO, maybe they know a little bit about SEM, maybe they are also a technical writer. Or I’ve got my web person, my graphic designer, and my copywriter, but the copywriter is really a technical manual copyrighter. There are technical copywriters. But in our outsource marketing department, we typically have 11 FTES okay? And a lot of those FTEs, most of those FTEs.. Really.. Maybe two of them do what the in-house team does. We certainly have web designers, we certainly have graphic designers and copywriters. But our copywriters are gonna be focusing on probably non-technical things. So the way that we would typically integrate is, think of the word complement. We would complement the internal team of that larger company to do the things very well that they probably either one are doing, or two aren’t doing very well. So, I mean do you see it as a… So in that setting, I… Where it’s okay. We’re in a complement that team to pick up the work generally across the board helping an competing helping and graphic design, helping and strategy and tactics. Or is it much more than MD is? Okay, within our general marketing… We have a project we have a specific division that we’re talking about, and that’s the place where you wanna outsource the marketing to.

So let’s go through a couple of real world examples to help.

Great, okay, so for instance, a recent example.

And it’s really kind of scary once you have knowledge.

So these large companies and even small companies with a couple of SKUs or maybe even 50 SKUs, right?

If you do the SEO analysis, and I’m gonna be tossing around some technical terms here because it does get a little tactical when you start about how are we going to augment fitted with an in-house team with our outsource team.

So again, they’ve got a copywriter but that copywriters full up to her years and a product catalogs, and manuals and all kinds of sales support.

Okay, fine, what about the 200 long tail searches that are recurring at the volume of tens of thousands of a month for the products that they sell.

Sure, they’re not showing up in most of those searches because we need to write copy relevant to those long tails first terms. Oh, but haven’t confused anybody, okay. I call it “death by being pack to death by a 100 chickens. But you gotta go though that process to win being held SEO hostage here, I kind of… And they’re not doing a lot of companies aren’t addressing that opportunity that’s just one opportunity to the quick opportunities.

Yeah, “Oh hey, we have a new distribution partner. Problem is, they want us to do 3-60 videos or videos or even 360 photography on all of our products, we’ve got 100 products and we need those done, in three months there. They have no videographer on staff right or they were using a little… For the answer.

And we have a whole in-house team that is industrial manufacturing and commercial focused, we take the products we get those things done, they hit their schedules, they have a successful new partner channel partner launch, so it just to help me clarify. I’m at a large company and I’m here in what you’re talking about, What’s the differentiation than between how I would picture a typical advertising agency to step in and help my large company versus how an outsource market, department would step in, help my company.

Well, okay this the two answers to that. Typically, first of all, in the ad agency many times, does not have all of the resources they just don’t…

I’m the… A lot of times, no ad agencies traditionally. And I was CEO one, so I know they’re focused on verticals.

Okay, okay, so… And maybe they’re really qualified in the food vertical or the aviation vertical, so we have hundreds of clients, so goes a coast, our vertical is the entrepreneurial spirit, we we support entrepreneurial-minded companies. So in the all kinds… And so, finding somebody who specializes in a vertical it can be expensive it can take a long time, it can also be very expensive. We tend to build our OMD subscriptions on a good value, level and then we pivot when necessary.

The second thing is ad agencies. Having been a CEO of one, they just don’t move very fast. It’s hard to get all the machinery that wasn’t born to move fast spins and execute pivot, and we were built that way, because from the get go eight years ago we dedicated ourselves to serving entrepreneur-minded companies that say, “Hey there’s an opportunity in the market or we like that idea. How do we get that going now, versus… Yes, but then on the agenda next year ’cause we’re doing a brand study for a year and we SIMA research, Benita six months. Those things are good, but typically, for middle market companies, we have to move faster, we’re built for serving companies of all of all industries quickly at a cost-efficient in-house.

So service like… So talking about complementing and everything, you’re speaking about here is MD is the more hands-on process then in a company like that.

Well, that’s fascinating, and I love that answer, because yes, whether it’s a small… And for a large OMD we typically have a tempo and that’s meeting with them every week in so and meeting with them can mean like we just did with another client sitting in with this VP of Sales and the CEO sitting in a meeting with them, and listening and giving strategic guidance back and forth, followed by meeting a couple of days later with the marketing team itself talking about tactical anti-competitive search engine marketing campaigns so you can go from strategic down to tactical very quickly, even involving a at the leadership versus the everyday marketing team and helping to tie and support. ’cause really, very rarely I want that company only has so much I can budget and resource for an in-house and an outhouse team.

Okay, so you look at your key resources that you gotta have an out-In-house team.

And I got… Look at flipping whatever it is for 5-600 a month to an outsource team that can pivot and provide a lot of the opportunist to gain strategic resourcing that you just can’t afford to have on staff.

I also I… We’ve talked a little bit in the past about franchising and the French thing is always near and dear to my heart, it’s the world that I come from, so I… How does… How does the OMB fit into a large corporation and that’s a franchise or… And vice versa, if you are a franchise, so you are a small mom-and-pop business but you are part of a much larger corporation.

Well, thank you, asking that question. That’s a slightly different animal, isn’t it?

Oh, absolutely, now you got two sides to the franchise story. Yeah, so you got the franchise.

So on the franchisee and the answer’s difference.

So first of all, the franchise or tends to act in a like a large MD or get large company, whether or…

Okay, we started with one 37 stores now they’re up to 300 the right so you know you grow together. So with… So what the large franchise or were very good starting all the way with the brand to audience identifications really embracing the value and the tone personality of the brand executing grand TV all the way down to all your pop-in store to even doing your consumer research rabbit design for all the materials and fielding everything out and staying ahead. Going to the annual meetings with the franchise, actually being the outsourced chief marketing officer, giving the speeches to the franchisees, we have been… That embedded with a large franchise that grew very rapidly on the other side with franchisees, with the larger franchisees. You can also have an MD, relationship where you’re doing all of their community relations, you doing all of their community periodical ads. Are you doing the local search engine marketing, and of course, a large MBE the franchise or I might also want some of that tactical support. It just looks a lot different.

Talk to me a little bit about the institutional memory in OMD partnership for the company like this.

You know, I have to say this surprised us, I know ’cause we’re only eight years old, and so that’s not a lot of time in the world marketing and company history, but it’s fascinating because MDs with our company tend to be very sticky the…

I just believe go away, and some people in their careers change.

Yeah, sometimes, in some companies, you may only have re-marketing lead last two years.

And so, you know, so we’re the ones who are always there.

No, and I’m talking large companies, especially large companies. Yeah, people come and they go and they come and they go and they come and they go, and the CEOS don’t necessarily… Or the head shed, they perhaps have more sticky factor”Sure, or they come and go, too. And here what it is, getting recognized as… Thank God there’s somebody with the historical is members.

Yeah, right, so what do we do four years ago with that whatever. Oh yeah, we know.

So we’ve got…

So here… Yeah, not that. So final question, with a larger company that doesn’t utilize a partner like an MD what is potentially being sacrificed?

Well, you know, this is maybe the most important question of the whole interview, you know? So I save it for last, man.

Well, I and I, a good now. Okay, let’s get a little academic. Here’s ways to get things done in the world. And according to systems theory, there’s open systems in closed systems, closed systems are the old… We knew everything we go, Santa at.

Yeah, we don’t need any help right in… No, no ideas outside of that system or that company, think of a company as a system versus an open system which is a wow we embrace the idea that three people make a genius, which is statistically proven Harvard Business Review, a story on it, take any three random people off the street, they can pass the men’s a test, and they don’t know each other, right, but they can work together.

So what we find over and over again is peanut butter and chocolate, or whatever you wanna call it, in and Yang. You take an internal team and you get some outside soul, the pepper and… And the flavoring goes way up. And some very interesting, surprising things happen that change the wherewithal. We see it over and over again. I’m talking real financial breakthroughs based on simple ideas, whether this branding or tactical and execution with the channel, direct to consumer new product development. You name it. That would not have happened in a closed system, or not. We do, we have warrants been here for 30 years. He’s got it, yeah, it’s nothing wrong with Warren, right?

Or doesn’t know at all. And no company knows at all because the market and technologies and the science of marketing is changing so rapidly. It takes a team.

Well, sharing warrant, gets his blinders on as well, I love this idea of three people. Make a genius. So, Mike, thank you very much for talk is today, I always enjoy it much. Appreciate you on thanks for listening to another episode of the outsource market department, podcast, your source for all things OMD if you have questions over the topics covered today, or suggestions for a future topic follow the link in the description of this episode.

I’m Ryan gates and I’ll see you next time.

 

 

 

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