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.
You must be logged in to submit a comment.