How to Sell the Benefits of Marketing Procurement Internally

Marketing Procurement is Different Marketing spend is an investment. Marketing services are unique. Marketing decisions are frequently real-time. Marketing can be unpredictable. Marketing is not a commodity. Marketing people speak a different language.

10 Ways Marketing Procurement Delivers Value

Strategic Sourcing Begins by listening carefully to understand business requirements Meets with functional leaders across marketing to clarify annual business objectives and identifies opportunities for collaboration Establishes key sourcing initiatives and gains agreement. –Assembles cross-functional team –Reviews current state, identifies pros and cons –Develops specific requirements and timelines –Ensures there is a shared picture of success –Initiates sourcing project –Negotiates and analyzes contract –Stewards results

Cost Savings Cost reduction: The difference between current year actual costs versus costs of a prior period that results from a specific decision or action by procurement related to a business improvement initiative. Cost reduction savings will measure the absolute savings resulting from these initiatives. Cost avoidance : The difference between current year actual expense and the expense that would have been incurred from a specific decision or action by procurement related to a business improvement initiative. Getting “more for less.”

Risk Mitigation Contract execution/management –Develops consistent contract templates –Protects company from patent infringement and defines ownership of deliverables, IP rights, and so forth –Establishes shared database for supplier contracts –Optimizes reporting routines to support the business planning and supplier management processes Supplier segmentation –Segments the supply base –Proactively develops contingency plans

Budget Management Consults with and manages stakeholder budgets, stretching marketing dollars Avoids scope creep, evaluates agency staff mix, and compares current fees to baseline (year-over-year)

Industry Trends & Benchmarking Industry trends –Understands competitive landscape and emerging trends and technologies to capture market opportunities and spur innovation –Stays informed to make better decisions, spot trends and opportunities, and create a framework to respond to a constantly changing world –Builds enterprise subject-matter expertise Benchmarking –Builds awareness of best practices and defines opportunities for improvement –Gains an independent perspective about your company’s performance against the competition –Helps prioritize opportunities and set performance expectations –Obtains data that sparks discussion on new ideas and practices –Compares one agency to another; aids in negotiations

Supplier Management Establishes appropriate metrics as part of contracting process Monitors/improves agency performance based on a holistic agency relationship management process Determines how to link agency results to rewards through mid-year and year-end agency performance reviews:

Innovation Actively seeks cutting-edge industry information to identify new supplier entrants who offer innovative products, services, and/or processes Leverages agency partners and suppliers to share their best thinking and ideas through innovation summits Researches and applies best practices and case studies to improve organizational efficiency and effectiveness

Spend Visibility/Transparency Identifies cost drivers in collaboration with stakeholders Participates in benchmarking studies and leverages information from prominent industry groups/forums related to cost information (e.g., ANA, 4A’s) For services, requires agency to provide hours by role for the team delivering the scope

Process Improvements Works collaboratively with stakeholders and suppliers to identify process pain points Initiates continuous process improvement focused on increasing efficiency and streamlining business processes Focuses effort on improvements that contribute to company profitability and ROI Creates a win/win for both the parent and supplier organizations Standardizes processes which may drive value without changing suppliers Elevates the briefing process so the agency gets it right the first time

Automated Tools and Leveraging Technologies Business intelligence (e.g., spend analytics, fees, complexity) Standardized, consistent, automated briefing process Automated agency evaluations, reporting, etc. Central repository of historical benchmarks and total hours by agency role Warehouse for creative files, which avoids duplication

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