Elevating the Role of Marketing Procurement
June 10, 2013
ANA fielded a survey in December 2012/January 2013 to better understand the metrics used to measure the success/contribution of the marketing procurement organization. The survey focused on:
- The metrics, both current and ideal, used to measure the success/contribution of the marketing procurement organization.
- The importance, both current and ideal, placed on each respective metric.
- Alignment of success metrics between procurement and marketing.
There were 113 responses, and virtually all respondents were marketing procurement professionals at ANA member companies. The specific metrics explored in this survey (and corresponding definitions provided to respondents) were:
- Agency/Supplier Performance Improvements
- Cost Avoidance: reduction of a price that would have otherwise been paid if not for the direct intervention of procurement
- Cost Reduction: typically, savings year over year (paid $100K for X last year and $95K this year)
- Improve Brand Health Metrics: could include awareness, Net Promoter Score, purchase consideration, etc.
- Improve Marketing ROI
- Industry Intelligence:awareness of benchmarks and best practices
- Innovation: identify emerging trends and bring new ideas to the organization
- Internal Stakeholder Satisfaction from Marketing
- Process Improvements: both internally and with suppliers
- Risk Mitigation: typically either (a) ensuring the financial stability of a supplier and/or (b) having appropriate contract language to protect the organization/company
- Sales/Market Share Increases
This survey is an initiative of the ANA Procurement Task Force, whose mission is to (a) define and elevate the role of marketing procurement and (b) close the “gaps” on the value of procurement between procurement and internal marketing as well as procurement and external agencies.
We supplemented the qualitative work with qualitative interviews (through March) of about a dozen individuals to probe deeper on specific issues. Those interviewees consisted of survey respondents and members of the ANA Procurement Task Force.
(Please visit our "Also See" section to the right for the PDF of the White Paper.)
"Elevating the Role of Marketing Procurement." ANA, 2013.