Marketing is an Investment to be Maximized & Not a Cost to be MinimizedMarch 4, 2013
By Bill Duggan, Group EVP, ANA
Gerry Preece (former P&G marketing procurement) and Russel Wohlwerth have recently published “Buying Less for Less … How to avoid the Marketing Procurement dilemma” and the key thinking in the book is outlined below.
Too often good procurement pros have approached the marketing space with misguided goals – goals to cut costs and reduce spending. After much diligent work, some think they succeed, but that is an illusion.
They think they can achieve buying more for less. But because talented people are the core of marketing costs (and talent has a cost), the new low prices actually translate into procurement buying less for less.
The marketing procurement dilemma is that the job isn’t to procure; the job is to invest. Marketing is not a cost to be minimized. It’s an investment to be maximized. When procurement adopts the mindset of an investor, they contribute greatly and CMOs and brands win. They succeed when they “invest” more and when they “buy” less.
The book is worth the investment (it’s not a cost!) and is only $9.95 on Amazon.
Gerry will be a speaker at the 2013 ANA Advertising Financial Management Conference.
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