Why the backslash in front of
gzip? The output you're getting indicates that the shell somehow interprets this as a "whereis" command. That's not what I'm getting in a bash shell (it tries to find the " gzip" command instead and fails), but your system may use a different shell/version/configuration.
I don't think the gzip "-" switch is required, as gzip will default to getting data from stdin when no file is specified, but it shouldn't cause any problems either.
In other words,
Code:
dd if=/dev/sdc bs=2M | gzip -9 > name-of-backup.img.gz
ought to work.