We are in an era of massive disruptions in markets, media, management approaches and business models. These disruptions are being caused by rapid technological changes on the one hand and tectonic shifts in customer preferences and societal behaviour on the other. Marketing knowledge and practices have to advance at a significantly higher pace to address the changing context of market behaviour. Handbook of Advances in Marketing in an Era of Disruptions is meant to share ideas and new knowledge that are relevant to this world of disruptions. Leading scholars from around the world, who have keenly observed the changing market environment, business policies, parameters, theories, methods and practices, have put forth their theses on how marketing thinking needs to evolve to keep pace with the market reality.
Chapter 23: Value of Outsourcing Sales and Marketing by CPG Companies in the Age of Retail Disruptions
Outsourcing by consumer product goods (CPG) companies to sales and marketing agencies (SMAs) has been prevalent for almost 100 years. These agencies leveraged local knowledge and relationships to facilitate sales of CPG brands at retailer headquarters and through local stores. Because of high costs of managing field and store-level sales and marketing activities, CPG manufacturers have preferred to use the SMAs, which can spread the cost over multiple brands and product categories. It is estimated that 90 ...