WELCOME TO THE
MARKETING SERVICES
PROCUREMENT COMMUNITY

Beroe LiVE is the world’s largest procurement community with
procurement professionals from 7,500+ Organisations. Sign-up today for free-for-life access to world-class
intelligence on 260+ categories.

Already a member? Log in here

Marketing and
Procurement:
Going beyond
conflict

Experts called it the end game for marketing procurement when a leading FMCG company wound up the function to improve its marketing agility

Agencies (suppliers) were supportive of the move over reasons such as procurement seeking longer payment terms and marketers felt it results in improved focus on business growth and decision-making

However, procurement consultants believed in the value that sourcing teams bring to the table

So, what is the

reality……?

Let us look at the facts for a moment:

FMCG, Banking/Finance and Telecom have procurement teams playing a major role in furthering the innovation agenda, driving value and efficiency

Marketers have less time and bandwidth to manage supplier relationships. This is an area where procurement shines

More than 50% of all major advertisers have ceded the function of negotiation and contract management to procurement

Despite one-off events, procurement continues to play a pivotal role in marketing and support marketing teams in managing agency relationship

Turf protection issues, lack of clarity on functions pull back the relationship between marketing and marketing procurement

However, successful procurement teams:

Clearly communicate:
Clearly call out the value they
provide to the marketing team

Are agile and pro-active:
Just like the recent media transparency issue, where procurement pro-actively supported marketing, procurement teams need to come forward and help marketing in all commercial aspects

Hold joint responsibility on ROI:
Procurement and marketing need to
be jointly responsible for ROI rather than cost and top line parameters

What’s
your Alexa strategy?

More than 45%

of US consumers engage with
intelligent agents (IAs) such
as Alexa and Siri

According to Gartner,
30% of all consumer
browsing sessions will be
voice-driven by 2020

Though agencies,
marketers and data
providers have jumped
on the IA bandwagon,
retaining consumer
interest in apps has
been a challenge

But brands can
capitalize on
Alexa data
to
augment in-house data
to identify points of
influence

Power to Procurement:

Embedded consumer analytics solutions empower procurement to focus on ROI while
dealing with agencies and creative functions

Marketing procurement has the opportunity to create shared assets with agencies
in the analytics and measurement space

BLOCKCHAIN -
A SOLUTION FOR
AD-FRAUD?

Digital advertising is plagued by frauds ranging from
 phantom ads to adware

Blockchain is finding traction with several marketers
who are piloting the technology

15% of banks and 14% of financial market institutions intend to implement this in full-scale roll outs in 2017, and the adoption rates are expected to reach 65% within 2020

Peer to peer validation of ad buys needs to garner considerable momentum from stakeholders to tackle ad fraud in a major way

image

PACKAGING AND MARKETING CAN UP
THE BRAND’S IMPACT QUOTIENT

With over 70% of buying decisions being made inside the store, packaging plays a pivotal role in grabbing consumer’s attention and in turning the purchase intent to a buy

Coke created a rage amongst consumers by personalizing bottles with their names. This campaign used packaging as a tool for marketing rather than directly driving sales at the POS

In Australia, where the campaign was launched in 2011, total traffic on Coke’s Facebook page increased by 870% and the brand earned 18,300,000 impressions on social media, while the young adult consumption increased by 7%

Coke integrated multiple media channels including social media, out-of-home advertising (billboards and signage) for its campaign to optimize the fixation of youth / millennials on coke bottles personalized with their names. The kingpin of the campaign became #shareacoke

WATCH OUTS FOR PROCUREMENT:
Facilitate collaboration between marketing and packaging to share:
image

Design innovation

image

Sustainable and
environment-friendly
packaging ideas

image

Anticipate interventions to
influence packaging
cost structure

Procurement espresso - Previous editions

Issue 1 - IT Services Sourcing Week

Issue 2 - Facilities Management Sourcing Week