Thesis Executive Summary
Current Trends in Professional Services Marketing:
To Contract or Not to Contract?
© 1997 Professional Services Marketing
By Terrie S. Wheeler

The Research Question
Is there a trend among professional services organizations to outsource all or part of the internal marketing function?

The Results: An Overview
The answer to the research question is an unequivocal "yes." An overall response rate of 58% was received. Of those responding, 43% were president/CEO-level executives in professional services firms. The remainder of responses were received from other decision makers including marketing executives (23%), practicing professionals (20%), and firm administrators (9%). Responses were received from the top accounting, architectural, business consulting, engineering, legal and technology firms in the state of Minnesota.

When asked to respond to the question, "If proven cost-effective, would you consider outsourcing all or part of the firm's marketing function to an outside services provider?" over 70 respondents said, "yes," representing 56% of total respondents. Data was collected on the types of services handled predominantly in-house, versus those generally contracted for externally.

Services predominantly handled in-house, regardless of the existence of a marketing department include:

• Client Communications (85%)
• Internal and Employee Communications (83%)
• Marketing Database and Client Information Management (80%)
• RFP Responses and Proposal Development (80%)
• Firm-Wide Strategic Planning and Positioning (79%)
• Individual Business Development (79%)
• Seminar and Special Event Planning (76%)
• Announcements (76%)
• Newsletters (71%)
• Practice or Industry Group Marketing (71%)
• Firm Brochures and Capabilities Pieces (71%)
• Seminar and Event Invitations (71%)
• Trade and Professional Association Program Development (67%)

Those services contracted for in 1996 by 30% or more of respondents included:

• Public and media relations (38%)
• Advertising (32%)
• Firm brochures and capabilities pieces (37%)
• Marketing and Client Service Training - Professional Level (36%)

Services which may be pursued in 1997/1998 include:

• Internet Web-Site Development (22%)
• Client Satisfaction Program Development (19%)
• Public and Media Relations (18%)
• Marketing Training - Professionals (16%)
• Marketing Training - Staff (15%)
• Advertising (14%)
• Competitive Market Research (14%)
• Firm-Wide Strategic Planning (13%)
• Individual Business Development (13%)
• Firm Brochures and Capabilities Pieces (13%)

Project Significance
This project is significant for a number of reasons. First, the response rate of 58% demonstrates more than a passing interest among professional services executives in the concept of outsourcing and contracting for marketing services. This is demonstrated by the fact that 70 respondents, or 56%, would outsource all or part of their firm's marketing function if it was cost effective to do so.

Another significant result of the survey is the analysis of the criteria upon which professional services firms evaluate outside marketing services providers. The author's hypothesis was that industry experience and professional services marketing expertise would be the overriding factors when selecting outside marketing counsel. The survey results validated this hypothesis.

In order of importance, respondents selected the following variables:

• Demonstrated expertise in professional services marketing
• Industry knowledge
• Creativity
• Written and verbal communication skills
• Twin Cities-based location
• Low cost
• Fast turnaround on work
• Ability to work as a team with current marketing staff
• Ability to handle many different projects
• Impressive portfolio

The survey was completed by professionals in the following industries:

The following reflects the position level of respondents:

Total number of billing professionals (lawyers, accountants, engineers, etc.) in respondent's firm:

The majority of respondents, 82%, are in firms with under 100 billing professionals. Approximately 9% of respondents are in firms with between 101-200 professionals; and 9% are in firms with over 200 billing professionals. The minimum response was 1, with a maximum of 700 billing professionals.

Does the respondent's firm internally staff a marketing department?

The majority of respondents staff an internal marketing department. It was surprising to the author that 38% have no in-house marketing professional on staff. Analysis will be done on this group's propensity to outsource marketing services. The hypothesis is that those firms without in-house marketing support would be more inclined to externally contract for marketing services.

If yes, how many full-time employees are in the respondent's marketing department?

Of those responding, the majority have 2-4 in-house marketing professionals on staff. However, 30% of those responding only have one marketing professional on staff, with 23% of respondents fully staffed with marketing departments in excess of five people.

On the following chart, respondents identified the marketing services currently performed in-house, services contracted for during the past year, and services they may choose to pursue in the future.

If proven cost-effective, would the respondent consider outsourcing all or part of the firm's marketing function to an outside marketing services provider?

This question directly answers the research question: Is there a trend among professional services organizations to outsource all or part of the internal marketing function? The answer is yes. The majority of respondents, 56%, would outsource all or part of the marketing function if proven cost-effective.