Metrics & Procurement

May 7, 2014

By Bill Duggan, Group EVP, ANA

ANA’s new research, “Optimizing the Procurement & Marketing Relationship,” looks at the relationship between procurement and marketing.

There was a notable disconnect when respondents were asked to rate the importance placed on various metrics.

  • Marketing placed its highest importance on the business metrics of sales/market share increases, improving marketing ROI, and improving brand health metrics. 
  • Marketing procurement focused on cost reduction, process improvements, risk mitigation, and cost avoidance.
  • There was equal emphasis from both marketing and procurement on innovation, agency/supplier performance, internal stakeholder satisfaction, and industry intelligence

A key learning in this research: better alignment between marketing and procurement on success metrics is required. While cost is important, procurement should pay closer attention to the metrics of highest importance to marketers – specifically sales/market share increases, improving marketing ROI and improving brand health metrics.

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