5 North, Inc. is an outsourced sales and marketing company.
Some reasons as to why one company will outsource work to another company are:
- It is more cost effective than doing the work internally.
- It is more time efficient than doing the work internally.
- It could improve the quality of work completed.
By definition, outsourced sales and marketing happens when a company hires an external sales or marketing team. 5 North, Inc. has been hired by Fortune 500 clients, like AT&T, T-Mobile, & Samsung, to manage their sales and marketing targets.
The most important thing every business needs, and the hardest thing for any business to do, is to acquire new customers. That is what we do. We acquire new customers in the best way possible: face-to-face, client-specific presentations and sales.
“Above the line” marketing is considered advertising and branding. Above the line marketing and advertising allows companies to build great brands by trade-marking what their product or service stands for. Geico is a great example of how successful this type of marketing and advertising can be. Above the line marketing is passive, however. Companies do not expect the consumer to act right away at all times after reading or viewing the advertising.
Direct marketing is referred to as “below the line” marketing and a proactive way to get the consumer or business to act now. Clients need the direct marketing proactive approach so they can get the revenue they need to pay their bills and show Wall Street the necessary profits. Our clients need both an above the line strategy and a below the line strategy. The four main channels for direct marketing are: telemarketing, direct mail, email, and face-to-face, client specific sales, as shown in the slide above.
The image below, in the column on the left, lists the different kind of consumer and business segments. The row at the top shows the options for the different channels of direct marketing to reach these segments; these channels of direct marketing are: telemarketing, email, direct mail, and face-to-face sales. Companies, like AT&T, T-Mobile, and Samsung, prefer face-to-face as the best way to acquire a customer. They do not always have the ability to use a face-to-face sales force.
Clients prefer and almost exclusively use face-to-face sales marketing for national, large and medium businesses. Companies put together teams of people that work for months and sometimes years to develop a marketing plan to acquire the business of national, large, and medium companies.
Clients are often forced to resort to telemarketing, email and direct mail for small business and consumer because they usually are not able to make a field sales force work. It is hard to get an internal field sales team to stay motivated to consistently work the necessary law of averages that you need to make the small business and consumer segments work. Also, they are more costly than our model.
There is a niche for companies to supply field sales for big clients for the small business and consumer segments. It is a huge market because small businesses and consumers aggregated is enormous. In order to build a great business it is necessary to find a niche that no one is servicing properly and to be able to do it excellently for the clients. We have this niche with outsourced face-to-face sales. This is 5 North, Inc.’s opportunity for tremendous growth.
The circle has grown even bigger because of macro-economic trends. The Do-Not-Call List for telemarketing; spam filters for email; and a declining direct response rate and increased cost for direct mail. This makes our circle larger and even more important because clients need to make up this decrease from these other channels somewhere else. Face-to-face sales has even bigger potential. The image below illustrates this point.
In addition, we are protected from the two biggest threats to any industry – obsolesces and globalization. If we represent a client such as Blockbuster, whose model is now obsolete, we will work for another client. Also, to do field sales face-to-face in New York City, we need to be in New York City. We cannot be outsourced to different countries, like India, where work could possibly be done for lower costs. We are protected from globalization of countries that can perform the service cheaper because we need to be face-to-face.
Because of our niche in the market, 5 North, Inc. and the companies that we represent have experienced growth during some of the most challenging times in our country’s histoy.