marketing

What is The Difference Between a Fractional CMO and an Outsourced Marketing Agency

Many companies reach a stage in their growth where they recognize the need for dedicated marketing leadership and expertise, but aren’t yet ready to commit to hiring a full-time Chief Marketing Officer (CMO). Two options that deliver marketing horsepower without the price tag of a senior-level salaried executive are the fractional Chief Marketing Officer (fCMO) model and outsourced marketing agencies. But what’s the difference between these two alternative arrangements and which choice is best for driving business growth?

A Fractional CMO Provides Strategic Leadership

A fractional CMO is an experienced marketing executive who provides strategic leadership and direction in a part-time capacity. They work closely with company leadership to develop an overarching brand and marketing strategy based on business goals. Key responsibilities of an fCMO typically include:

  • Auditing the existing marketing function and developing an integrated marketing strategy aligned to broader business objectives
  • Establishing data-driven systems to set marketing priorities and monitor performance
  • Optimizing branding, positioning, and messaging
  • Identifying target customer personas and profiles
  • Directing lead generation, content marketing, and campaign activation
  • Guiding product marketing activities like pricing and packaging
  • Managing external marketing partners and agencies
  • Setting marketing budgets and controlling spend

The most successful fCMOs act as integrated members of the executive team, albeit in a project-based role. They bring an outside perspective but take the time to deeply understand the business before making recommendations to strengthen marketing operations.

Marketing Agencies Execute Tactical Plans

Alternatively, outsourced marketing agencies provide purely tactical support to execute activities within a marketing plan. They specialize in specific capabilities like social media marketing, search engine optimization, pay-per-click campaigns, email marketing, or content creation. When you engage a marketing agency, you pick and choose the tactical services you want to outsource based on internal resource gaps.

Some of the functions routinely outsourced to marketing agencies include:

  • Content creation including blogs, articles, website copy, etc.
  • Social media management across platforms like Facebook and Instagram
  • SEO to improve organic search visibility
  • PPC campaign management on Google, Facebook etc.
  • Email marketing from design to deployment
  • Webinars and event production
  • Graphic design for ads, branding assets, presentations
  • Marketing analytics and reporting

The level of strategic input from outsourced marketing partners can vary substantially depending on the firm. Some act solely as vendors executing tactical work while others take a more consultative partnership role. However, the fCMO model explicitly incorporates an integrated strategic role beyond delivering marketing tactics.

Assessing Your Company’s Needs

Determining whether a fractional marketing executive or outsourced agency makes the most sense depends significantly on your organization’s size, internal capabilities, and business lifecycle stage.

Early-stage ventures typically benefit more from the strategic oversight of an fCMO who can establish processes, focus efforts on the highest-impact activities, and align newly inbound leads and content to the core business. The fCMO role also helps cement branding, positioning, and external messaging in these formative years.

For established enterprises with in-house marketing teams already centralized around a senior marketing leader, outsourced agencies often make more sense. Internal executives can set strategy and manage partnerships with specialized agencies to cost-effectively scale particular capabilities as needed. The built-in control mechanisms also help larger organizations maintain brand integrity and efficient spending.

The Verdict - Which Should You Choose?

Companies seeking to infuse high-level marketing experience without the price tag of a VP or CMO salary will derive more enduring value from a fractional Chief Marketing Officer. True senior-level expertise coupled with tighter integration into setting business direction provides fCMOs more latitude to build, strengthen, and scale marketing operations for long-term impact.

Outsourced agencies certainly have their place for targeted projects requiring particular technical skills or campaign burst capacity. But for most mid-sized companies lacking marketing leadership, fractional CMO engagement provides the right mix of strategic perspective and senior custodianship of the brand to support lasting growth. The periodic injection of expertise also accelerates marketing maturity faster than slowly trying to assemble all the capabilities in-house.

Getting marketing right is essential for driving the business forward. With pressing growth objectives but limited budgets, establishing a productive partnership with a fractional CMO emerges as the most efficient way to skill up, build for the future, and ignite sustainable momentum.

If You Need a SaaS Fractional CMO, We Can Help You

If your company needs a B2B SaaS Fractional CMO, consider working with Peter Geisheker, CEO of The Geisheker Group. Peter has been providing Fractional CMO services for over 20 years.

Peter Geisheker

CEO of The Geisheker Group Marketing Firm.