Why Phoenix Integration outsourced its marketing

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Phoenix Integration, a maker of process integration and design optimization software, is realizing efficiencies in the down economy by outsourcing almost its entire marketing function.

“We are a small company with just under 40 employees, and we can’t absorb the overhead of having a large marketing department with multiple resources,” said Chris Randazzo, VP-sales and marketing at Wayne, Pa.-based Phoenix.

Three years ago, Phoenix partnered with nearby TME (Total Marketing Experience) Communications to handle its marketing.

“I outsource almost 90%,” Randazzo said. “They handle everything from product marketing to outward-facing lead development to PR. It is a cradle-to-grave solution.”

TME was founded in 2003 by Jim Tagliaferri, brand strategist and creative director at the agency, who assembled a team of technology marketers and creative professionals to assist small and midsize technology companies with their marketing needs.

“Our ‘remote cubicle marketing’ model is essentially an outsourcing model,” Tagliaferri said. “Clients either outsource their entire marketing function to us or we complement their internal resources.”

TME charges a fixed monthly fee (that varies by client) to provide services that include a dedicated project manager, creative talent, brand management, marketing materials, regular status sessions and coordination of all sales and marketing activities. The company currently claims 10 clients using the total outsourcing model.

For Phoenix, TME develops everything from product positioning strategy to sales collateral to event coordination.

Phoenix’s product development team, based in Blacksburg, Va., releases three or four new software products a year.

“We put together a technical product positioning document, which comes out of R&D,” Randazzo said. “TME translates that to marketing-speak and develops all of our go-to-market deliverables. They are tightly in tune with what we’re doing in product development.”

Currently, TME is handling Phoenix Integration’s participation in MSC.Software’s Virtual Product Development User Conference, which will take place in Munich this week. TME is handling event registration, sales collateral, booth materials and development of a movie that will be shown at the event.

“One of the greatest benefits [of outsourcing] is not having to hire the infrastructure and technical resources to support a marketing department,” Randazzo said. “For a sub-$10 million company, the ability to be nimble is very important.”

Prior to outsourcing its marketing, Phoenix had a marketing team that included a junior marketing manager and marketing coordinators. With outsouring, it has gained access to a diverse team for the cost of one employee, Randazzo said.

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