Future of Sourcing - Marketing https://www.futureofsourcing.com/tags/marketing en A Road Map for Selecting Marketing Technology https://www.futureofsourcing.com/a-road-map-for-selecting-marketing-technology <div class="field field-name-field-image field-type-image field-label-hidden"><div class="field-items"><div class="field-item even" rel="og:image rdfs:seeAlso" resource="https://www.futureofsourcing.com/sites/default/files/articles/Marketing%20technology%20%281%29.png"><a href="https://www.futureofsourcing.com/sites/default/files/articles/Marketing%20technology%20%281%29.png" title="It’s no secret that marketing has become heavily dependent on technology and that the number of marketing technologies has been growing at an exponential rate. " class="colorbox" rel="gallery-node-1901--3vER_yWUEQ"><img typeof="foaf:Image" src="https://www.futureofsourcing.com/sites/default/files/styles/juicebox_medium/public/articles/Marketing%20technology%20%281%29.png?itok=VAm1teUt" width="624" height="325" alt="It’s no secret that marketing has become heavily dependent on technology and that the number of marketing technologies has been growing at an exponential rate. " title="" /></a></div></div></div><div class="field field-name-field-related-news field-type-entityreference field-label-above"><div class="field-label">Related news:&nbsp;</div><div class="field-items"><div class="field-item even"><a href="/four-critical-attributes-of-marketing-software">Four Critical Attributes of Marketing Software</a></div></div></div><div class="field field-name-body field-type-text-with-summary field-label-hidden"><div class="field-items"><div class="field-item even" property="content:encoded"> <p>It&rsquo;s no secret that marketing has become heavily dependent on technology and that the number of marketing technologies has been growing at an exponential rate.</p> <p>The inaugural (2011) version of Scott Brinker&rsquo;s marketing technology landscape graphic contained roughly 150 solution providers. The <a href="https://chiefmartec.com/2020/04/marketing-technology-landscape-2020-martech-5000/">2020 version of the graphic</a> includes 8,000. &nbsp;This indicates the marketing technology landscape has grown by an astounding 5,233% since 2011.</p> <p>The growing dependence of marketing on technology means marketing leaders are frequently acquiring technology tools.</p> <p>In <a href="https://chiefmartec.com/2019/12/marketers-rip-replace-martech-apps/">a 2019 survey</a> of marketers by Martech Today and Scott Brinker, an overwhelming 83% of respondents said their organization had upgraded or replaced at least one marketing technology application in the previous 12 months. In this environment, marketing procurement professionals need to be proficient at sourcing technology products and services.</p> <p>There is an abundance of resources available that describe the &ldquo;right&rdquo; way to select and acquire technology. Vendors often produce buying guides for the types of technologies they offer. Technology-oriented consulting firms have created &ldquo;frameworks&rdquo; and &ldquo;models&rdquo; describing the technology buying process.</p> <p>One of the better resources I&rsquo;ve seen is &ldquo;<a href="https://www.amazon.com/Right-Way-Select-Technology-Finding/dp/1933820543/ref=sxts_sxwds-bia-wc-drs1_0?crid=D8VJPGFFXE1&amp;cv_ct_cx=the+right+way+to+select+technology&amp;dchild=1&amp;keywords=the+right+way+to+select+technology&amp;pd_rd_i=1933820543&amp;pd_rd_r=5311b146-b39a-46e1-85c8-37601100a5ca&amp;pd_rd_w=iWqDt&amp;pd_rd_wg=BGJbc&amp;pf_rd_p=c33e4373-edb9-47f9-a7e6-5d3d6a7a4ad0&amp;pf_rd_r=QW2YBKZ1Z1SN9DR2Q0H0&amp;psc=1&amp;qid=1606141874&amp;sprefix=The+Right+Way+to+Se%2Caps%2C178&amp;sr=1-1-5e875a02-02b1-4426-9916-8a5c26cd5a14">The Right Way to Select Technology</a>&rdquo; by Tony Byrne and Jarrod Gingras. Tony Byrne is the founder and Jarrod Gingras is the managing director of <a href="https://www.realstorygroup.com/">Real Story Group</a>, a technology research and advisory firm. Real Story Group is a &ldquo;buy-side&rdquo; analyst firm. It works exclusively with enterprise technology customers. The firm emphasizes that its advice is truly vendor agnostic.</p> <p>The buying process described in &ldquo;The Right Way to Select Technology&rdquo; is grounded in principles of user-centered design, which means the process&rsquo; objective is to identify the technology solution that is the &ldquo;best fit&rdquo; for a specific organization based on its particular business objectives, needs and capabilities.</p> <p>&ldquo;The Right Way to Select Technology&rdquo; provides a clear road map for making smart technology buying decisions and contains a wealth of practical suggestions and tips. It&rsquo;s impossible to adequately summarize the entire book in this article, but here&rsquo;s a brief overview of several of the book&rsquo;s main points.</p> <h1>Start With a Sound Business Case</h1> <p>Every technology selection process should begin with developing a sound business case.</p> <p>Too often, marketers decide to acquire a new technology application based on an intuitive sense of what they need or on what they see other successful companies using. Then they prepare a formal business case to justify their decision.</p> <p>This approach isn&rsquo;t uncommon, but it&rsquo;s backward. Developing a business case first forces you to think through your assumptions about what technological capabilities you truly need.</p> <p>Byrne and Gingras argue that one key to developing a sound business case is to identify your top two or three business objectives and keep them front and center throughout the selection process. By focusing on these key objectives, you are less likely to become distracted by the multitude of details that will inevitably arise during the course of the buying process.</p> <h1>Identify Critical Requirements</h1> <p>Identifying and documenting requirements are essential steps in any technology selection process.</p> <p>Byrne and Gingras write that many selection teams approach this task by developing a large and detailed requirements document. The authors contend that this approach doesn&rsquo;t work very well for multiple reasons. First, it can be difficult, if not impossible, to identify all important requirements at the beginning of a selection process. Secondly, a &ldquo;check box&rdquo; list of requirements often fails to capture important requirements relating to how real people will interact with a technology application.</p> <p>Byrne and Gingras recommend capturing requirements through user stories and effective vendor questions. A user story is a short, real-world narrative that describes your company&rsquo;s available data, work processes, business needs and desired business outcomes. It speaks from the perspective of a specific user persona, which can be defined as an archetype of a type or group of users. User stories capture how real people will interact with a technology application and what they need to accomplish.</p> <p>As valuable as user stories are, they are not always the best way to articulate your requirements, particularly those relating to technical issues. The authors recommend posing questions to prospective vendors to address these types of topics.</p> <p>The key to making your questions an effective tool for articulating requirements and gaining meaningful information is to use open-ended questions rather than yes/no questions. As Byrne and Gingras put it, &ldquo;In particular you advance the conversation by converting all your &lsquo;Does your . . .&rsquo; checklist items into &lsquo;How does your . . .&rsquo; questions.&rdquo;</p> <p>As its title suggests, &ldquo;The Right Way to Select Technology&rdquo; is not focused exclusively on marketing technology. In fact, the process described in the book works equally well for a wide range of technologies, including sourcing and procurement solutions.</p> </div></div></div><div class="field field-name-field-tags field-type-taxonomy-term-reference field-label-inline clearfix"><div class="field-label">Tags:&nbsp;</div><div class="field-items"><div class="field-item even" rel="dc:subject"><a href="/tags/marketing-technology" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Marketing Technology</a></div><div class="field-item odd" rel="dc:subject"><a href="/tags/marketing" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Marketing</a></div><div class="field-item even" rel="dc:subject"><a href="/tags/vendor-relations" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Vendor Relations</a></div></div></div><div class="field field-name-field-addthis field-type-addthis field-label-hidden"><div class="field-items"><div class="field-item even"><div class="addthis_toolbox addthis_default_style " addthis:title="A Road Map for Selecting Marketing Technology - Future of Sourcing" addthis:url="https://www.futureofsourcing.com/a-road-map-for-selecting-marketing-technology"><a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_linkedin"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_facebook"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_twitter"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_googleplus"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_pinterest_share"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_reddit"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_email"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_print"></a> </div> </div></div></div><div class="field field-name-field-region field-type-taxonomy-term-reference field-label-inline clearfix"><div class="field-label">Region:&nbsp;</div><div class="field-items"><div class="field-item even"><a href="/regions/global" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Global</a></div></div></div> Tue, 29 Dec 2020 16:04:51 +0000 Sarah Scudder 1901 at https://www.futureofsourcing.com https://www.futureofsourcing.com/a-road-map-for-selecting-marketing-technology#comments No, It’s Not Enough to Just Use GL Codes to Classify Your Spend Data—Here’s Why https://www.futureofsourcing.com/no-it%E2%80%99s-not-enough-to-just-use-gl-codes-to-classify-your-spend-data%E2%80%94here%E2%80%99s-why <div class="field field-name-field-image field-type-image field-label-hidden"><div class="field-items"><div class="field-item even" rel="og:image rdfs:seeAlso" resource="https://www.futureofsourcing.com/sites/default/files/articles/GettyImages-1127256104%20%281%29.jpg"><a href="https://www.futureofsourcing.com/sites/default/files/articles/GettyImages-1127256104%20%281%29.jpg" title="Finance departments use GL codes to track spend. " class="colorbox" rel="gallery-node-1893--3vER_yWUEQ"><img typeof="foaf:Image" src="https://www.futureofsourcing.com/sites/default/files/styles/juicebox_medium/public/articles/GettyImages-1127256104%20%281%29.jpg?itok=mrb6VCxs" width="1024" height="683" alt="Finance departments use GL codes to track spend. " title="" /></a></div></div></div><div class="field field-name-body field-type-text-with-summary field-label-hidden"><div class="field-items"><div class="field-item even" property="content:encoded"> <p>Finance departments use GL codes to track spend. We&rsquo;re looking at items like office supplies, marketing or maybe a specific project within the business. However, what finance are looking for and what procurement are looking for can be two quite different things.</p> <h1>The Trouble With GL Codes</h1> <p>Firstly, if you&#39;re only using your general ledger codes, I can almost guarantee they are wrong! In my experience working with GL codes, I would say 90% of them are unreliable. You&#39;ll almost always find something classified under a GL that shouldn&#39;t be there.</p> <p>More often than not, they&rsquo;re used by people who don&#39;t necessarily understand or know what they&rsquo;re logging or the importance of accuracy. The result? Items logged under random GL codes.</p> <p>This is particularly the case within large corporates where, for example, the sales team has run out of budget. Let&rsquo;s imagine sales have maxed theirs out, but they&rsquo;ve just placed an order for new leaflets. How? It&rsquo;s been snuck into someone else&rsquo;s budget under a different GL code. Think about marketing and sales. Would an order for 5,000 leaflets really look out of place in a sales budget? Probably not, unless you look a bit closer. While the use of GL codes is good for finance to give them an overview, it&#39;s not great for procurement.</p> <p>With inaccurate spend data or spend data with limited visibility, you will struggle to negotiate better deals with suppliers. How can you negotiate when you don&rsquo;t have a true picture of what you are spending? It&rsquo;ll also be hard to reduce spend, check compliance and make sound business decisions.</p> <h1>Accurate Spend Data Keeps It Ethical</h1> <p>We also, unfortunately, need to mention the possibility of fraud or embezzlement. It&rsquo;s not pleasant to talk about and no one wants to think the worst of their staff, but it can and does happen.</p> <p>Someone may have tried to mislead or take advantage of you in some way. If the spend data is messy or they&rsquo;ve been clever, it can be difficult to spot when just using GL codes. This is another reason why it is a smart idea to also classify your spend data. It is usually best to have an external party review it because then nobody has a vested interest in hiding what&#39;s in the data&mdash;they&rsquo;re just classifying it!</p> <h1>Keeping It Orderly</h1> <p>I personally prefer to use the supplier name and invoice line description to classify items. I believe that&rsquo;s the best way to get the most accurate information out of your data and make the best business decisions. Be warned. Some companies might actually classify your spend data based on the GL code. I wouldn&#39;t recommend that for the reasons outlined above. It&rsquo;s not a quick and simple process. Accurate classification can take hours, maybe even weeks. Yet, it&rsquo;s worth the wait when you get back your brand new, shiny data set with your well-organized information.</p> <h1>Smart Data Classification Can Save Money</h1> <p>While you may think GL coding is enough, and although you may be put off by the upfront cost of having your spend data classified, I can almost guarantee it will save you money in the long run. The benefits to your business stand to be massive.</p> </div></div></div><div class="field field-name-field-tags field-type-taxonomy-term-reference field-label-inline clearfix"><div class="field-label">Tags:&nbsp;</div><div class="field-items"><div class="field-item even" rel="dc:subject"><a href="/tags/finance" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Finance</a></div><div class="field-item odd" rel="dc:subject"><a href="/tags/gl-codes" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">GL codes</a></div><div class="field-item even" rel="dc:subject"><a href="/tags/spend-data" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Spend Data</a></div><div class="field-item odd" rel="dc:subject"><a href="/tags/data-classification" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Data Classification</a></div><div class="field-item even" rel="dc:subject"><a href="/tags/marketing" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Marketing</a></div><div class="field-item odd" rel="dc:subject"><a href="/tags/procurement" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Procurement</a></div></div></div><div class="field field-name-field-addthis field-type-addthis field-label-hidden"><div class="field-items"><div class="field-item even"><div class="addthis_toolbox addthis_default_style " addthis:title="No, It&amp;rsquo;s Not Enough to Just Use GL Codes to Classify Your Spend Data&amp;mdash;Here&amp;rsquo;s Why - Future of Sourcing" addthis:url="https://www.futureofsourcing.com/no-it%E2%80%99s-not-enough-to-just-use-gl-codes-to-classify-your-spend-data%E2%80%94here%E2%80%99s-why"><a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_linkedin"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_facebook"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_twitter"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_googleplus"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_pinterest_share"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_reddit"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_email"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_print"></a> </div> </div></div></div><div class="field field-name-field-region field-type-taxonomy-term-reference field-label-inline clearfix"><div class="field-label">Region:&nbsp;</div><div class="field-items"><div class="field-item even"><a href="/regions/global" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Global</a></div></div></div> Tue, 24 Nov 2020 19:46:01 +0000 Susan Walsh 1893 at https://www.futureofsourcing.com https://www.futureofsourcing.com/no-it%E2%80%99s-not-enough-to-just-use-gl-codes-to-classify-your-spend-data%E2%80%94here%E2%80%99s-why#comments Demonstrating the Value of Marketing Procurement https://www.futureofsourcing.com/demonstrating-the-value-of-marketing-procurement <div class="field field-name-field-image field-type-image field-label-hidden"><div class="field-items"><div class="field-item even" rel="og:image rdfs:seeAlso" resource="https://www.futureofsourcing.com/sites/default/files/articles/GettyImages-852812526%20%281%29.jpg"><a href="https://www.futureofsourcing.com/sites/default/files/articles/GettyImages-852812526%20%281%29.jpg" title="The COVID-19 pandemic has created challenging conditions for many business enterprises, and it has elevated the importance of maximizing the value produced by every dollar of marketing spend." class="colorbox" rel="gallery-node-1892--3vER_yWUEQ"><img typeof="foaf:Image" src="https://www.futureofsourcing.com/sites/default/files/styles/juicebox_medium/public/articles/GettyImages-852812526%20%281%29.jpg?itok=ELMRnaQO" width="1024" height="684" alt="The COVID-19 pandemic has created challenging conditions for many business enterprises, and it has elevated the importance of maximizing the value produced by every dollar of marketing spend." title="" /></a></div></div></div><div class="field field-name-body field-type-text-with-summary field-label-hidden"><div class="field-items"><div class="field-item even" property="content:encoded"> <p>Earlier this year, the <a href="https://wfanet.org/">World Federation of Advertisers</a> (WFA) published <a href="https://wfanet.org/leadership/project-spring">an important report</a> on the current state of marketing procurement. The report is part of an ongoing initiative called &ldquo;Project Spring&rdquo; that is being led by the <a href="https://wfanet.org/sourcingboard">WFA Global Sourcing Board</a>. The Project Spring initiative&rsquo;s goal is to &ldquo;transform the value proposition of marketing procurement.&rdquo;</p> <p>The first portion of the WFA report describes the results of a 2018 survey of senior marketing procurement executives that examined how marketing procurement functions are structured, how they operate, and how they are perceived within the organization and by external partners. The balance of the report focuses on what marketing procurement professionals need to do to increase the value they create for the business and enhance the perception of their work.</p> <p>Based on the survey results and several subsequent workshops involving groups of marketing procurement professionals, WFA identified four categories of challenges that must be addressed in order to enhance perceptions of marketing procurement&mdash;process, people, performance and partners.</p> <p>In a poll conducted at last year&rsquo;s ProcureCon Marketing London conference, more than a third of the audience indicated these four groups of challenges were equally important to address. The remaining two-thirds of attendees were fairly evenly split on the importance of each category. Twenty-two percent gave top priority to performance, 16% to process, 14% to people and 13% to partners.</p> <p>The challenges WFA identifies are all important, and I plan to discuss each of them. In this article, I&rsquo;ll address the process challenges and WFA&rsquo;s recommendations for navigating them.</p> <h1>Process</h1> <p>The WFA survey identified several operating characteristics of marketing procurement that are associated with a more favorable perception of the function. For example, survey respondents indicated their business colleagues were more likely to recognize the value marketing procurement can deliver beyond just cost savings when:</p> <ul> <li>the marketing procurement team is involved in the early stages of the sourcing process;</li> </ul> <p>&nbsp;</p> <ul> <li>there is a mandate (in some form) from senior company management to involve procurement in sourcing the products and services required by marketing, and the spend threshold for procurement&rsquo;s involvement is set at a low level;</li> </ul> <p>&nbsp;</p> <ul> <li>the marketing procurement team has a high level of visibility of marketing spend; and</li> </ul> <p>&nbsp;</p> <ul> <li>the marketing procurement team is addressing a substantial percentage of total third-party marketing spend.</li> </ul> <p><strong>Early Involvement: </strong>In discussions with WFA, marketing procurement professionals were emphatic they could deliver value to the business at all stages of the sourcing process and that early involvement is key to maximizing the value procurement can create. Therefore, WFA recommends marketing procurement professionals should strive to become involved early in the sourcing process and maintain their involvement at all stages.</p> <p><strong>Senior Management Mandate: </strong>The 2018 survey found that having a mandate from senior company management to involve procurement in sourcing the products and services required by marketing was strongly associated with a more favorable view of the function if the threshold for procurement&rsquo;s involvement was set at a low spend level. WFA recommends marketing procurement professionals should seek to obtain a mandate from senior leadership or expand the mandate if one already exists.</p> <p>However, WFA points out that a mandate can be a double-edged sword. If procurement is successful in persuading senior management to create or expand a mandate and then doesn&rsquo;t deliver increased value, procurement likely won&rsquo;t be given a second chance. Therefore, marketing procurement leaders must be certain their team has sufficient bandwidth to manage the expanded role.</p> <p><strong>Spend Visibility: </strong>To identify opportunities for value creation, marketing procurement professionals must understand where and how marketing dollars are currently being spent. The more comprehensive that understanding is, the more likely it is procurement can identify ways to create business value. Therefore, WFA says procurement professionals should work toward obtaining accurate and comprehensive information about total third-party marketing spend.</p> <p><strong>Addressable Spend: </strong>Clearly, procurement&rsquo;s ability to create value for the business is directly related to the proportion of total third-party marketing spend that it is involved in managing. As such, WFA recommends procurement professionals seek to increase the level of marketing spending they are addressing.</p> <p>The COVID-19 pandemic has created challenging conditions for many business enterprises, and it has elevated the importance of maximizing the value produced by every dollar of marketing spend.</p> <p>As we near the end of 2020, there is hope an effective vaccine for COVID-19 will soon become available. However, even with a vaccine, it will still be critical to optimize marketing spending in 2021.</p> <p>These circumstances have presented marketing procurement with a unique, if unwelcomed, opportunity to demonstrate how it can deliver value to the business. The WFA recommendations outline an effective strategy for meeting this challenge.</p> </div></div></div><div class="field field-name-field-tags field-type-taxonomy-term-reference field-label-inline clearfix"><div class="field-label">Tags:&nbsp;</div><div class="field-items"><div class="field-item even" rel="dc:subject"><a href="/tags/covid-19" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">COVID-19</a></div><div class="field-item odd" rel="dc:subject"><a href="/tags/marketing" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Marketing</a></div><div class="field-item even" rel="dc:subject"><a href="/tags/marketing-procurement" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">marketing procurement</a></div><div class="field-item odd" rel="dc:subject"><a href="/tags/spend-visibility" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Spend Visibility</a></div><div class="field-item even" rel="dc:subject"><a href="/tags/world-federation-of-advertisers-wfa" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">World Federation of Advertisers (WFA)</a></div></div></div><div class="field field-name-field-addthis field-type-addthis field-label-hidden"><div class="field-items"><div class="field-item even"><div class="addthis_toolbox addthis_default_style " addthis:title="Demonstrating the Value of Marketing Procurement - Future of Sourcing" addthis:url="https://www.futureofsourcing.com/demonstrating-the-value-of-marketing-procurement"><a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_linkedin"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_facebook"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_twitter"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_googleplus"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_pinterest_share"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_reddit"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_email"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_print"></a> </div> </div></div></div><div class="field field-name-field-region field-type-taxonomy-term-reference field-label-inline clearfix"><div class="field-label">Region:&nbsp;</div><div class="field-items"><div class="field-item even"><a href="/regions/global" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Global</a></div></div></div> Tue, 24 Nov 2020 19:17:15 +0000 Sarah Scudder 1892 at https://www.futureofsourcing.com https://www.futureofsourcing.com/demonstrating-the-value-of-marketing-procurement#comments WFA Research Benchmarks the State of Marketing Procurement https://www.futureofsourcing.com/wfa-research-benchmarks-the-state-of-marketing-procurement <div class="field field-name-field-image field-type-image field-label-hidden"><div class="field-items"><div class="field-item even" rel="og:image rdfs:seeAlso" resource="https://www.futureofsourcing.com/sites/default/files/articles/WFA%20Marketing%20Procurement.jpg"><a href="https://www.futureofsourcing.com/sites/default/files/articles/WFA%20Marketing%20Procurement.jpg" title="Eighty-five percent of respondents agreed marketing procurement drives improvements, and 76% agreed it provides demonstrated value." class="colorbox" rel="gallery-node-1878--3vER_yWUEQ"><img typeof="foaf:Image" src="https://www.futureofsourcing.com/sites/default/files/styles/juicebox_medium/public/articles/WFA%20Marketing%20Procurement.jpg?itok=lNY2bY8e" width="1024" height="683" alt="Eighty-five percent of respondents agreed marketing procurement drives improvements, and 76% agreed it provides demonstrated value." title="" /></a></div></div></div><div class="field field-name-field-related-news field-type-entityreference field-label-above"><div class="field-label">Related news:&nbsp;</div><div class="field-items"><div class="field-item even"><a href="/managing-marketing-procurement-through-a-kraljic-lens">Managing Marketing Procurement Through a Kraljic Lens</a></div></div></div><div class="field field-name-body field-type-text-with-summary field-label-hidden"><div class="field-items"><div class="field-item even" property="content:encoded"> <p>This summer, the <a href="https://wfanet.org/" target="_blank">World Federation of Advertisers</a> published an illuminating report about the current state of marketing procurement and how the function needs to evolve to realize its full potential. The report is part of an ongoing initiative led by the <a href="https://wfanet.org/sourcingboard" target="_blank">WFA Global Sourcing Board</a>. The initiative, Project Spring, is &ldquo;designed to transform the value proposition of marketing procurement.&rdquo;</p> <p>According to WFA, &ldquo;The vision for Project Spring and the Sourcing Board is that procurement should become the <strong>trusted partner of brand investment strategy and play its part in driving the business forward</strong>.&rdquo; (Emphasis in original)</p> <p>Conducted in the third quarter of 2018, <a href="https://wfanet.org/leadership/project-spring" target="_blank">the Project Spring report</a>&nbsp;is largely based on the results of a survey of marketing procurement VPs and directors. Respondents were affiliated with 65 companies representing more than 16 industry sectors. While this survey is now two years old, it is one of the most recent studies available that focuses exclusively on marketing procurement.</p> <p>The first portion of the report describes several operational characteristics of the survey respondents&rsquo; marketing procurement function and addresses how marketing procurement is perceived in the respondents&rsquo; organization. The balance of the report discusses how marketing procurement can improve its performance and enhance the way it is perceived both within the organization and by external business partners.</p> <h1>The Operational Attributes of Marketing Procurement</h1> <p>In this article, I&rsquo;ll describe some of the major survey findings about how the marketing procurement is structured, how it operates and how it is viewed across the organization.</p> <h1>Where Marketing Procurement &ldquo;Sits&rdquo; in the Organization</h1> <p>An overwhelming majority of survey respondents stated marketing procurement resides either in an operations/supply chain function or in the finance function of their organization.</p> <p>Fifty-one percent said marketing procurement reports to operations/supply chain, while 32% noted marketing procurement reports to finance. The dominant position of operations/supply chain and finance does not change regardless of how long the marketing procurement function has existed or how much the organization spends on marketing.</p> <h1>When Marketing Procurement Gets Involved in the Sourcing Process</h1> <p>In this survey, respondents were nearly evenly split when asked when their marketing procurement team normally first becomes involved in the sourcing process.</p> <ul> <li>31% said at the budget planning/initiation of requirements stage</li> <li>21% said at the first contact with potential suppliers</li> <li>25% said at the RFI stage</li> <li>15% said at the RFP/commercial structure stage</li> <li>8% said other</li> </ul> <p>There was, however, a distinct pattern based on the reporting structure. Among the respondents whose marketing procurement team reports to operations/supply chain, the largest segment of respondents reported they normally get involved at the budget planning/initiation of requirements stage of the sourcing process. When marketing procurement reports to finance, the greatest segment of respondents said they normally get involved at the RFI stage.</p> <h1>Mandatory Use of Procurement&nbsp;&nbsp;</h1> <p>Eighty-four percent stated their company has a mandate for marketers to involve procurement in sourcing projects. However, the involvement threshold varied significantly.</p> <ul> <li>No minimum threshold (23% of respondents)</li> <li>More than $25,000 (6%)</li> <li>More than $50,000 (23%)</li> <li>More than $75,000 (3%)</li> <li>More than $100,000 (34%)</li> <li>More than $250,000 (11%)</li> </ul> <h1>Visibility of Spend/Amount of Spend Addressed</h1> <p>Fewer than half of the respondents claimed they have full visibility of their company&rsquo;s total marketing spend. On the plus side, a substantial majority of respondents are addressing more than half of their company&rsquo;s total marketing spend. Seventy-three percent said they are addressing more than 60% of the total marketing spend, while one-third of the respondents report they are addressing more than 80%.</p> <h1>How Marketing Procurement Is Perceived</h1> <p>Perhaps, understandably, the participants were highly positive about the contribution marketing procurement makes to the business. Eighty-five percent of respondents agreed marketing procurement drives improvements, and 76% agreed it provides demonstrated value.</p> <p>These survey respondents were also confident that marketing procurement is viewed in a generally favorable light by other parts of the business. A quarter of the respondents believe marketing&rsquo;s perception of marketing procurement was extremely positive, and another 62% said the perception was somewhat positive. One-third reported the perception of marketing procurement by their financial colleagues was extremely positive, while another 52% said the perception was somewhat positive.</p> <p>Survey respondents were less confident about how external business partners view marketing procurement. For example, only 3% said external agency partners perceive marketing procurement in an extremely positive way. Meanwhile, only 40% said agencies have a somewhat positive perception of the function.</p> </div></div></div><div class="field field-name-field-tags field-type-taxonomy-term-reference field-label-inline clearfix"><div class="field-label">Tags:&nbsp;</div><div class="field-items"><div class="field-item even" rel="dc:subject"><a href="/tags/marketing" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Marketing</a></div><div class="field-item odd" rel="dc:subject"><a href="/tags/procurement" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Procurement</a></div><div class="field-item even" rel="dc:subject"><a href="/tags/marketing-procurement" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">marketing procurement</a></div><div class="field-item odd" rel="dc:subject"><a href="/tags/sourcing" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Sourcing</a></div><div class="field-item even" rel="dc:subject"><a href="/tags/supply-chain" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Supply Chain</a></div></div></div><div class="field field-name-field-addthis field-type-addthis field-label-hidden"><div class="field-items"><div class="field-item even"><div class="addthis_toolbox addthis_default_style " addthis:title="WFA Research Benchmarks the State of Marketing Procurement - Future of Sourcing" addthis:url="https://www.futureofsourcing.com/wfa-research-benchmarks-the-state-of-marketing-procurement"><a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_linkedin"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_facebook"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_twitter"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_googleplus"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_pinterest_share"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_reddit"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_email"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_print"></a> </div> </div></div></div><div class="field field-name-field-region field-type-taxonomy-term-reference field-label-inline clearfix"><div class="field-label">Region:&nbsp;</div><div class="field-items"><div class="field-item even"><a href="/regions/global" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Global</a></div></div></div> Mon, 26 Oct 2020 22:13:55 +0000 Sarah Scudder 1878 at https://www.futureofsourcing.com https://www.futureofsourcing.com/wfa-research-benchmarks-the-state-of-marketing-procurement#comments Four Critical Attributes of Marketing Software https://www.futureofsourcing.com/four-critical-attributes-of-marketing-software <div class="field field-name-field-image field-type-image field-label-hidden"><div class="field-items"><div class="field-item even" rel="og:image rdfs:seeAlso" resource="https://www.futureofsourcing.com/sites/default/files/articles/Marketing%20Software.png"><a href="https://www.futureofsourcing.com/sites/default/files/articles/Marketing%20Software.png" title="Four Critical Attributes of Marketing Software" class="colorbox" rel="gallery-node-1818--3vER_yWUEQ"><img typeof="foaf:Image" src="https://www.futureofsourcing.com/sites/default/files/styles/juicebox_medium/public/articles/Marketing%20Software.png?itok=AR0Unsxz" width="624" height="325" alt="Four Critical Attributes of Marketing Software" title="" /></a></div></div></div><div class="field field-name-field-related-news field-type-entityreference field-label-above"><div class="field-label">Related news:&nbsp;</div><div class="field-items"><div class="field-item even"><a href="/a-vital-step-to-managing-marketing-spending-during-a-pandemic">A Vital Step to Managing Marketing Spending During a Pandemic</a></div></div></div><div class="field field-name-body field-type-text-with-summary field-label-hidden"><div class="field-items"><div class="field-item even" property="content:encoded"> <p>It&rsquo;s no secret that marketing and technology have become deeply entwined over the past two decades. Largely because of digital technologies, the methods, tactics and channels used by marketers have changed dramatically.</p> <p>Meanwhile, the number of marketing technology tools has increased exponentially. <a href="https://chiefmartec.com/2011/08/marketing-technology-landscape-infographic/" target="_blank">The inaugural (2011) version of Scott Brinker&rsquo;s marketing technology landscape graphic</a> contained about 150 solution providers. <a href="https://chiefmartec.com/2020/04/marketing-technology-landscape-2020-martech-5000/" target="_blank">The 2020 version of the graphic</a> includes 8,000 technology solutions. So the marketing technology landscape has grown by an astounding 5,233% since 2011.</p> <p>The expanding role of technology in marketing means that marketing leaders are now making substantial investments in technology tools and related services. Last fall, <a href="https://www.gartner.com/en/marketing/research/cmo-spend-survey-2019-2020" target="_blank">research by Gartner</a> found that, on average, companies were spending 26% of their total marketing budget on technology. To put this in perspective, marketers were spending as much on technology as they were spending on media and more than they were spending with agencies.</p> <p>The reality is, the discovery, evaluation and acquisition of technology tools and related services touch virtually every aspect of marketing. And because technology now plays such a vital role in marketing, it&rsquo;s critical for marketers and marketing procurement professionals to get technology decisions right.</p> <p>Fortunately, there is an abundance of resources describing the process for evaluating business software applications. For example, many providers of marketing software solutions have published &ldquo;buying guides&rdquo; that can help marketers and marketing procurement professionals navigate the software selection process.</p> <p>Having a sound process for evaluating and selecting marketing software is obviously important, but it&rsquo;s even more important to understand what attributes will make an application a good choice for your company. There are four core attributes that should guide the decisions you make throughout the acquisition process.</p> <h1>Purpose</h1> <p>For a marketing software application to be a good choice, it must enable (or, more accurately, help enable) your company to solve important business problems or achieve important business objectives. Therefore, every software acquisition process should begin with a clear and documented hypothesis describing how a given type of software would help you improve business performance.</p> <h1>Value</h1> <p>To be a sound investment for your business, a marketing software application must create meaningful value for your company. The &ldquo;gold standard&rdquo; for evaluating prospective investments in most organizations is return on investment (ROI).</p> <p>Unfortunately, it can be very difficult to accurately estimate the ROI that a marketing software application will produce. For one thing, an individual marketing software application is usually one component of<em> an ecosystem of interdependent martech applications</em>. It may be possible to accurately estimate the ROI produced by the ecosystem as a whole, but it can be nearly impossible to accurately predict the ROI attributable to an individual component.</p> <p>Under these circumstances, it&rsquo;s essential to describe the expected benefits of a prospective software application <em>qualitatively</em>. A qualitative description of the expected benefits will be a useful decision-making guide when a quantitative ROI estimate isn&rsquo;t available.</p> <h1>Fit</h1> <p>No matter how technologically advanced or capable a marketing software application may be, it will not be a good choice if it doesn&rsquo;t &ldquo;fit&rdquo; your company&rsquo;s circumstances. When you&rsquo;re selecting a new marketing software application, you should look for three types of fit.</p> <ul> <li><strong><em>Fit with your primary use cases &ndash; </em></strong>The software you are evaluating should be particularly well suited for the main tasks your company will use the application to perform.</li> </ul> <ul> <li><strong><em>Fit with your other martech applications &ndash;</em></strong> The prospective software application should be easy to integrate with other relevant components of your existing martech stack.</li> </ul> <ul> <li><strong><em>Fit with your internal capabilities &ndash;</em></strong> Your ability to maximize the potential benefits of a marketing software application depends on having the right internal capabilities such as technical expertise, available staff time and appropriate data. For example, some marketing software applications provide extensive flexibility but require significant customization to take advantage of that flexibility. If you don&rsquo;t have the internal expertise to perform the customization, the potential flexibility won&rsquo;t be of much value. Therefore, the software you select should be aligned with your internal capabilities.</li> </ul> <h1>Functionality</h1> <p>The fourth core attribute of a marketing software application is probably the most obvious one &ndash; functionality. When evaluating marketing software, it&rsquo;s important to consider two aspects of functionality. Technical functionality includes the scope of tasks the software can perform, the underlying architecture of the software, and security and administrative features.</p> <p>The second dimension of functionality is <em>ease of use</em>, which is an vital characteristic of marketing software for two primary reasons. First, when a software application is easy to use, members of your marketing team can become proficient with it quickly and without extensive training. And second, software that is easy to use is more likely to be used on a consistent basis. So ease of use encourages widespread adoption.</p> </div></div></div><div class="field field-name-field-tags field-type-taxonomy-term-reference field-label-inline clearfix"><div class="field-label">Tags:&nbsp;</div><div class="field-items"><div class="field-item even" rel="dc:subject"><a href="/tags/marketing-technology" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Marketing Technology</a></div><div class="field-item odd" rel="dc:subject"><a href="/tags/marketing" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Marketing</a></div><div class="field-item even" rel="dc:subject"><a href="/tags/marketing-procurement" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">marketing procurement</a></div><div class="field-item odd" rel="dc:subject"><a href="/tags/digital-technology" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Digital Technology</a></div></div></div><div class="field field-name-field-addthis field-type-addthis field-label-hidden"><div class="field-items"><div class="field-item even"><div class="addthis_toolbox addthis_default_style " addthis:title="Four Critical Attributes of Marketing Software - Future of Sourcing" addthis:url="https://www.futureofsourcing.com/four-critical-attributes-of-marketing-software"><a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_linkedin"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_facebook"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_twitter"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_googleplus"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_pinterest_share"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_reddit"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_email"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_print"></a> </div> </div></div></div><div class="field field-name-field-region field-type-taxonomy-term-reference field-label-inline clearfix"><div class="field-label">Region:&nbsp;</div><div class="field-items"><div class="field-item even"><a href="/regions/global" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Global</a></div></div></div> Wed, 15 Jul 2020 15:13:03 +0000 Sarah Scudder 1818 at https://www.futureofsourcing.com https://www.futureofsourcing.com/four-critical-attributes-of-marketing-software#comments Celebrating Rock Stars in Marketing Procurement https://www.futureofsourcing.com/celebrating-rock-stars-in-marketing-procurement <div class="field field-name-field-image field-type-image field-label-hidden"><div class="field-items"><div class="field-item even" rel="og:image rdfs:seeAlso" resource="https://www.futureofsourcing.com/sites/default/files/articles/Procurement%20rock%20stars.png"><a href="https://www.futureofsourcing.com/sites/default/files/articles/Procurement%20rock%20stars.png" title="top marketing procurement leaders" class="colorbox" rel="gallery-node-1798--3vER_yWUEQ"><img typeof="foaf:Image" src="https://www.futureofsourcing.com/sites/default/files/styles/juicebox_medium/public/articles/Procurement%20rock%20stars.png?itok=97xZbPvO" width="624" height="325" alt="top marketing procurement leaders" title="" /></a></div></div></div><div class="field field-name-body field-type-text-with-summary field-label-hidden"><div class="field-items"><div class="field-item even" property="content:encoded"> <p>The coronavirus pandemic and the &ldquo;social distancing&rdquo; actions taken to control it have resulted in the cancellation of hundreds of trade shows and business-related conferences. One of the COVID-19 casualties was the MarTech West conference that was scheduled for April 15-17 in San Jose, California.</p> <h1>Discover MarTech</h1> <p>Over the past six years, the MarTech conferences (two are held each year) have become premier events for professionals involved in the evaluation, acquisition, implementation, and use of marketing technologies. Fortunately, Third Door Media, the producer of the MarTech conferences, recently hosted a free virtual event to &ldquo;stand in&rdquo; for the MarTech West conference.</p> <p><strong>Discover MarTech</strong> featured keynotes by Scott Brinker, the MarTech conference program chair, and Real Story Group&rsquo;s Tony Byrne. The event also included more than 30 educational sessions. Recordings of the keynotes and educational sessions can be accessed <a href="https://gateway.on24.com/wcc/gateway/eliteThirdDoorMedia2/2255985" target="_blank">here</a>.</p> <h1>Marketing Technology Landscape</h1> <p>I mention this because technology has dramatically altered the practice of marketing over the past several years, and the evolution of marketing has fundamentally changed the kinds of products and services that marketers need to achieve their objectives. The explosive proliferation of marketing technologies has been widely discussed and well documented. For example, <a href="https://chiefmartec.com/2019/04/marketing-technology-landscape-supergraphic-2019/" target="_blank">the 2019 version</a> of Scott Brinker&rsquo;s marketing technology landscape graphic included 7,040 marketing technology solutions.</p> <p>Because of the expanding role of technology, marketing leaders are making substantial investments in technology tools and related services. Last fall, <a href="https://www.gartner.com/en/marketing/research/cmo-spend-survey-2019-2020" target="_blank">a survey of marketing leaders by Gartner</a> found that marketers were spending 26% of their total marketing budget on technology. Obviously, this Gartner survey doesn&rsquo;t capture the impact of the coronavirus outbreak. Still, it&rsquo;s plausible to think that spending on marketing technologies will represent a more significant percentage of marketing budgets in 2020 than it did in 2019.</p> <p>The growing dependence of marketing on technology, and the dynamic, ever-changing marketing technology landscape mean that marketing procurement professionals need to be proficient at sourcing marketing technology products and services.</p> <h1>Marketing Procurement Rock Stars</h1> <p>Over the past several years, I&rsquo;ve had the opportunity to meet, get to know and work with an outstanding group of marketing procurement professionals. Most of these leaders have become deeply involved in helping their marketing colleagues source critical marketing technology tools. So I think it&rsquo;s appropriate to recognize a few of the professionals who are leading a real transformation in marketing procurement.</p> <p>Here are nine rock stars in marketing/marketing technology procurement that I genuinely admire and respect:</p> <ul> <li><a href="https://www.linkedin.com/in/luis-alvarez1508/" target="_blank"><strong><em>Luis Alvarez</em></strong></a><strong><em> &ndash; </em></strong>Luis is currently the Global Strategic Sourcing Manager at 3M Company. He&rsquo;s been with 3M for more than 20 years, serving in several supply chain and operations capacities. Luis is a Six Sigma black belt, and he brings that perspective to his sourcing/supply chain management work.</li> </ul> <ul> <li><a href="https://www.linkedin.com/in/michelledbanks/" target="_blank"><strong><em>Michelle Banks</em></strong></a><strong><em> &ndash;</em></strong> Michelle is currently a Senior Manager in Charles Schwab&rsquo;s Corporate Vendor Management group, supporting the marketing, corporate communication, Schwab Charitable and digital analytics teams with their strategic sourcing needs.&nbsp; She has an MBA, CPSM and is a certified Green Belt. Getting her start in advertising, Michelle&rsquo;s fostered a decade-plus marketing procurement career across multiple industries.&nbsp; She also founded The Darin C. Banks Foundation, a youth education and mentoring non-profit that&rsquo;s awarded over $20,000 in college scholarships.&nbsp;</li> </ul> <ul> <li><a href="https://www.linkedin.com/in/barry-byrne-4550917/" target="_blank"><strong><em>Barry Byrne</em></strong></a><strong><em> &ndash; </em></strong>Barry is the Global Head of Marketing and Retail Procurement at Adidas. Earlier in his career, Barry held various marketing procurement positions at Anheuser-Busch InBev, Carlsberg Group and Diageo. Barry is also the owner of &ldquo;The New Face of Marketing Procurement&rdquo; discussion group at LinkedIn.</li> </ul> <ul> <li><a href="https://www.linkedin.com/in/kathycapozzi/" target="_blank"><strong><em>Kathy Capozzi</em></strong></a><strong><em> &ndash; </em></strong>Kathy&nbsp;is a marketing procurement business partner for Bayer Consumer Health. In this role, she focuses on Amazon, ecommerce, nutrition/digestion and dermatology.</li> </ul> <ul> <li><a href="https://www.linkedin.com/in/tina-fegent-fcips-2103573/" target="_blank"><strong><em>Tina Fegent</em></strong></a><strong><em> &ndash; </em></strong>Tina runs Tina Fegent Consultancy and was one of the pioneers in the marketing procurement space, having worked in it for more than 25 years.&nbsp; Having set up marketing procurement teams at both client and agency side, she now runs a marketing procurement consultancy for marketers, procurement professionalsand also agencies.</li> </ul> <ul> <li><a href="https://www.linkedin.com/in/jillerobbins/" target="_blank"><strong><em>Jill Robbins</em></strong></a><strong><em> &ndash; </em></strong>Jill is the Senior Director of Global Procurement (Indirect Goods and Services) at Elanco. In this role, she leads a global team of sourcing professionals responsible for more than $1.5 billion of spend across indirect goods and services categories, including IT, marketing and sales.</li> </ul> <ul> <li><a href="https://www.linkedin.com/in/dana-small-b3058127/" target="_blank"><strong><em>Dana Small</em></strong></a><strong><em> &ndash; </em></strong>Dana is the Senior Category Manager and Head of Commercial Strategic Sourcing at BioMarin Pharmaceutical. She has been working in the marketing procurement space for more than a decade.</li> </ul> <ul> <li><a href="https://www.linkedin.com/in/asparks5/" target="_blank"><strong><em>Amanda Sparks</em></strong></a><strong><em> &ndash; </em></strong>Amanda is the Senior Category Team Lead for Marketing and Consulting Services at ABB. Amanda&rsquo;s expertise spans both procurement and marketing. She was a Media Manager for Food Lion earlier in her career.</li> </ul> <ul> <li><a href="https://www.linkedin.com/in/sabrina-traskos/" target="_blank"><strong><em>Sabrina Traskos</em></strong></a><strong><em> &ndash; </em></strong>Sabrina oversees global commercial procurement for AstraZeneca. She manages $1B+ in marketing spend.</li> </ul> </div></div></div><div class="field field-name-field-tags field-type-taxonomy-term-reference field-label-inline clearfix"><div class="field-label">Tags:&nbsp;</div><div class="field-items"><div class="field-item even" rel="dc:subject"><a href="/tags/marketing" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Marketing</a></div><div class="field-item odd" rel="dc:subject"><a href="/tags/marketing-procurement" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">marketing procurement</a></div><div class="field-item even" rel="dc:subject"><a href="/tags/marketing-technology" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Marketing Technology</a></div><div class="field-item odd" rel="dc:subject"><a href="/tags/print-marketing" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">print marketing</a></div></div></div><div class="field field-name-field-addthis field-type-addthis field-label-hidden"><div class="field-items"><div class="field-item even"><div class="addthis_toolbox addthis_default_style " addthis:title="Celebrating Rock Stars in Marketing Procurement - Future of Sourcing" addthis:url="https://www.futureofsourcing.com/celebrating-rock-stars-in-marketing-procurement"><a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_linkedin"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_facebook"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_twitter"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_googleplus"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_pinterest_share"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_reddit"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_email"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_print"></a> </div> </div></div></div><div class="field field-name-field-region field-type-taxonomy-term-reference field-label-inline clearfix"><div class="field-label">Region:&nbsp;</div><div class="field-items"><div class="field-item even"><a href="/regions/global" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Global</a></div></div></div> Fri, 19 Jun 2020 23:30:32 +0000 Sarah Scudder 1798 at https://www.futureofsourcing.com https://www.futureofsourcing.com/celebrating-rock-stars-in-marketing-procurement#comments A Vital Step to Managing Marketing Spending During a Pandemic https://www.futureofsourcing.com/a-vital-step-to-managing-marketing-spending-during-a-pandemic <div class="field field-name-field-image field-type-image field-label-hidden"><div class="field-items"><div class="field-item even" rel="og:image rdfs:seeAlso" resource="https://www.futureofsourcing.com/sites/default/files/articles/Copy%20of%20FoS%20Header%20Images%20%2816%29.png"><a href="https://www.futureofsourcing.com/sites/default/files/articles/Copy%20of%20FoS%20Header%20Images%20%2816%29.png" title=" Managing Marketing Spending During a Pandemic" class="colorbox" rel="gallery-node-1733--3vER_yWUEQ"><img typeof="foaf:Image" src="https://www.futureofsourcing.com/sites/default/files/styles/juicebox_medium/public/articles/Copy%20of%20FoS%20Header%20Images%20%2816%29.png?itok=MigI4gLj" width="624" height="325" alt=" Managing Marketing Spending During a Pandemic" title="" /></a></div></div></div><div class="field field-name-field-intro field-type-text-long field-label-hidden"><div class="field-items"><div class="field-item even"> <p><em><strong>The global pandemic of COVID-19, the disease caused by the novel coronavirus, is disrupting economic activity around the world. Governments have closed their borders, shuttered many types of businesses and taken other dramatic actions to create social distancing in order to mitigate the spread of the disease.</strong></em></p> </div></div></div><div class="field field-name-field-related-news field-type-entityreference field-label-above"><div class="field-label">Related news:&nbsp;</div><div class="field-items"><div class="field-item even"><a href="/are-online-marketplaces-right-for-printing-and-marketing-services">Are Online Marketplaces Right for Printing and Marketing Services?</a></div></div></div><div class="field field-name-body field-type-text-with-summary field-label-hidden"><div class="field-items"><div class="field-item even" property="content:encoded"> <p>As I am writing this article in late March, the full economic fallout from COVID-19 is not yet known and, in fact, will remain unknown for a while. However, two things are clear. The economic repercussions of COVID-19 will be huge and marketing spending is about to be put under the microscope in ways that we haven&rsquo;t seen since the &ldquo;great recession&rdquo; of 2008-2009.</p> <p>Some companies have already made substantial cuts in marketing spending in response to the pandemic, and many others will be facing such decisions soon. According to recent media reports, companies in the travel industry (airlines, hotels, cruise lines, etc.) reduced advertising spending by nearly 50% during the first two weeks of March, compared to the same period of last year. Companies in other industries are likely to follow suit. During the recession of 2008-2009,the growth rate of worldwide advertising spending fell from 5.7% in 2007 to 0.0% in 2008 to -9.5% in 2009, <a href="https://www.statista.com/statistics/272443/growth-of-advertising-spending-worldwide/" target="_blank">according to Statista</a>.</p> <h1>Move Smart, Not Rash</h1> <p>The need to reduce costs during an economic downturn is obvious, but there is substantial evidence showing that deep and indiscriminate cuts in marketing spending are usually a mistake. Numerous research studies have demonstrated that maintaining marketing spending during an economic slowdown has a strong relationship with long-term profit, shareholder value and customer loyalty.</p> <p>Therefore, during the COVID-19 epidemic, it&rsquo;s vital for business, marketing and procurement leaders to make smart &ndash; rather than rash &ndash; decisions about marketing spending levels. And when it is necessary to reduce the marketing spending, it&rsquo;s better to use a scalpel than a cleaver.</p> <p>There are no silver bullet solutions for this challenge, and no solution will be right for every company. But there are some steps that all company leaders should be taking to guide their decision-making process.</p> <p>In <a href="https://hbr.org/2009/04/how-to-market-in-a-downturn-2" target="_blank">a 2009 article in the <em>Harvard Business Review</em></a>, John Quelch and Katherine Jocz described a model for how to manage marketing in an economic downturn. While this article is now more than a decade old, it is highly relevant today because it was written and published near the end of the recession of 2008-2009 and reflects the experiences of companies during that and earlier downturns.</p> <h1>The Four Customer Groups</h1> <p>Quelch and Jocz wrote that company leaders should take a basic step before making significant changes in marketing strategy or marketing spending. They argued that economic downturns change the psychology of customers and that companies need to segment their customers based on this &ldquo;recession psychology.&rdquo; They recommend that business leaders think of their customers as falling into one of four groups:</p> <ol> <li><strong><em>&ldquo;Slam-on-the-brakes&rdquo; &ndash; </em></strong>These customers feel the most vulnerable during an economic downturn, and therefore they reduce all types of spending. This segment will usually include lower-income customers, but it can also include more anxious higher-income customers.</li> </ol> <ol> <li value="2"><strong><em>&ldquo;Pained-but-patient&rdquo; &ndash; </em></strong>These customers are relatively optimistic about the long term, but not so optimistic about the prospects for recovery in the short term. They tend to economize in all areas, but do so to a lesser extent than the <em>slam-on-the-brakes</em> customers. For many companies, this will be the largest customer segment.</li> </ol> <ol> <li value="3"><strong><em>&ldquo;Comfortably well-off&rdquo;</em></strong> &ndash; These customers typically have higher incomes and feel secure about their ability to ride out the economic downturn. For the most part, these customers do not make major changes in their buying habits, although they may become somewhat more selective.</li> </ol> <ol> <li value="4"><strong><em>&ldquo;Live</em></strong>-<strong><em>for-today&rdquo;</em></strong> &ndash; These customers tend to carry on as usual unless they become unemployed. They respond to a downturn mainly by extending their timetables for making major purchases.</li> </ol> <h1>Customer Purchase Prioritization</h1> <p>Quelch and Jocz also argued that during an economic downturn, all customers will prioritize their purchases by mentally placing products and services into one of four categories:</p> <ol> <li><strong><em>&ldquo;Essentials&rdquo; &ndash; </em></strong>Products and services that are necessary for survival or basic well-being</li> </ol> <ol> <li value="2"><strong><em>&ldquo;Treats&rdquo; &ndash;</em></strong> Products and services that aren&rsquo;t strictly essential, but are considered justifiable in some way</li> </ol> <ol> <li value="3"><strong><em>&ldquo;Postponables&rdquo; &ndash;</em></strong> Products and services that are needed or desired, but whose purchase can be delayed</li> </ol> <ol> <li value="4"><strong><em>&ldquo;Expendables&rdquo; &ndash;</em></strong> Products and services that customers view as unnecessary or unjustifiable</li> </ol> <p>As a first step to managing marketing spending through an economic crisis, business leaders need to map their products and/or services to these customer segments and product/service categories. This analysis will enable company leaders to tailor marketing tactics and spending levels based on customer psychology, their likely buying habits, and how they prioritize specific products and services.</p> <p>This analysis will not make marketing decisions easier, but it will enable business leaders to make more informed and strategic decisions that will minimize pain in the short run and position the company for success when the crisis abates.</p> </div></div></div><div class="field field-name-field-tags field-type-taxonomy-term-reference field-label-inline clearfix"><div class="field-label">Tags:&nbsp;</div><div class="field-items"><div class="field-item even" rel="dc:subject"><a href="/tags/marketing" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Marketing</a></div><div class="field-item odd" rel="dc:subject"><a href="/tags/print-marketing" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">print marketing</a></div><div class="field-item even" rel="dc:subject"><a href="/tags/spend-management" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Spend Management</a></div><div class="field-item odd" rel="dc:subject"><a href="/tags/financial-crisis" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Financial Crisis</a></div></div></div><div class="field field-name-field-addthis field-type-addthis field-label-hidden"><div class="field-items"><div class="field-item even"><div class="addthis_toolbox addthis_default_style " addthis:title="A Vital Step to Managing Marketing Spending During a Pandemic - Future of Sourcing" addthis:url="https://www.futureofsourcing.com/a-vital-step-to-managing-marketing-spending-during-a-pandemic"><a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_linkedin"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_facebook"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_twitter"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_googleplus"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_pinterest_share"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_reddit"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_email"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_print"></a> </div> </div></div></div><div class="field field-name-field-region field-type-taxonomy-term-reference field-label-inline clearfix"><div class="field-label">Region:&nbsp;</div><div class="field-items"><div class="field-item even"><a href="/regions/global" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Global</a></div></div></div> Thu, 02 Apr 2020 22:29:57 +0000 Sarah Scudder 1733 at https://www.futureofsourcing.com https://www.futureofsourcing.com/a-vital-step-to-managing-marketing-spending-during-a-pandemic#comments The Predictably Irrational Appeal of Print Marketing https://www.futureofsourcing.com/the-predictably-irrational-appeal-of-print-marketing <div class="field field-name-field-image field-type-image field-label-hidden"><div class="field-items"><div class="field-item even" rel="og:image rdfs:seeAlso" resource="https://www.futureofsourcing.com/sites/default/files/articles/The%20Predictably%20Irrational%20Appeal%20of%20Print%20Marketing.png"><a href="https://www.futureofsourcing.com/sites/default/files/articles/The%20Predictably%20Irrational%20Appeal%20of%20Print%20Marketing.png" title="The Predictably Irrational Appeal of Print Marketing" class="colorbox" rel="gallery-node-1675--3vER_yWUEQ"><img typeof="foaf:Image" src="https://www.futureofsourcing.com/sites/default/files/styles/juicebox_medium/public/articles/The%20Predictably%20Irrational%20Appeal%20of%20Print%20Marketing.png?itok=uYjkx7wX" width="624" height="325" alt="The Predictably Irrational Appeal of Print Marketing" title="" /></a></div></div></div><div class="field field-name-field-related-news field-type-entityreference field-label-above"><div class="field-label">Related news:&nbsp;</div><div class="field-items"><div class="field-item even"><a href="/what-procurement-pros-need-to-know-about-trends-in-marketing-spending-for-2020">What Procurement Pros Need to Know About Trends in Marketing Spending for 2020</a></div></div></div><div class="field field-name-body field-type-text-with-summary field-label-hidden"><div class="field-items"><div class="field-item even" property="content:encoded"> <p>For years, many advocates of print-based marketing channels and tactics have argued that the physical and tactile nature of tangible marketing materials make them more appealing and persuasive than purely digital forms of communications. Until recently, however, these arguments have been based mostly on instinct or intuition rather than on hard scientific evidence.</p> <p>Over the past decade, several research studies have used neuroscience techniques to evaluate the effectiveness of physical vs. digital communications. These studies have consistently shown that the human brain is wired to like, trust and respond to marketing communications that use physical media.</p> <p>One of the important studies was conducted in 2015 by Temple University&rsquo;s Center for Neural Decision Making on behalf of the United States Postal Service Office of Inspector General. &ldquo;<a href="https://www.uspsoig.gov/document/enhancing-value-mail-human-response" target="_blank">Enhancing the Value of Mail: The Human Response</a>&rdquo; used survey questionnaires, eye tracking, core biometrics, and neuroimaging to evaluate differing responses to physical and digital media in the consumer buying process. The research found:</p> <ul> <li>Study participants processed digital content faster but spent more time with physical media.</li> <li>Study participants had a stronger emotional response and remembered the content better when viewing physical media.</li> <li>The brain activity of study participants indicated greater subconscious value and desire for products and services that were promoted in physical media.</li> </ul> <p>A second important study evaluated the relative effectiveness of direct mail vs. email and digital display by way of their impacts on the human brain. This research was conducted by the neuromarketing research firm True Impact Marketing for Canada Post. &ldquo;<a href="https://www.canadapost.ca/assets/pdf/blogs/CPC_Neuroscience_EN_150717.pdf" target="_blank">A Bias for Action</a>&rdquo; showed direct mail is:</p> <ul> <li>Easier to understand and more memorable than digital media</li> <li>More persuasive than digital media</li> <li>Visually processed quicker than digital media</li> <li>More likely to drive behavior than digital media</li> </ul> <p>The continuing effectiveness of print-based marketing is evident from the recent resurgence of direct mail. <a href="https://www.ana.net/miccontent/show/id/ii-dma-2018-statistical-fact-book" target="_blank">According to the Data &amp; Marketing Association</a> (now a division of the Association of National Advertisers), the response rates produced by direct mail in 2018 were the highest in nearly a decade, as the following chart shows:</p> <p><img alt="United States Direct Mail Response Rates" src="https://futureofsourcing.com/sites/default/files/U.S.%20Direct%20Mail%20Response%20Rates-SIG%20Article.png" style="width: 594px; height: 416px;" /></p> <p><span style="font-size: 13.008px;">It&rsquo;s also clear that after a period of what might be called excessive infatuation with all things digital, many marketers are again recognizing the value of physical marketing communications. In </span><a href="https://library.lob.com/the-state-of-direct-mail/" style="font-size: 13.008px;" target="_blank">a 2019 survey</a><span style="font-size: 13.008px;"> of marketing executives and managers at North American companies by Lob.com, more than 60% of the respondents agreed or strongly agreed direct mail &ldquo;delivers the best response rates&rdquo; and &ldquo;shows the best ROI&rdquo; of all the marketing channels they are currently using.</span></p> <p>Frontline marketing practitioners are also finding that adding physical communication elements to multichannel marketing programs improves performance. In a 2019 survey of marketers conducted by Demand Metric, over half of the respondents said they include direct mail in their multichannel marketing programs, and 80% of those respondents reported that direct mail improved the performance of their campaigns.</p> <p>The persistent appeal of physical marketing materials cannot be explained on a purely rational basis. But as both psychologists and marketers have long recognized, human beings are not purely rational creatures.</p> <p>And now, many economists also acknowledge human beings often make economic decisions for non-rational reasons. The rapidly evolving discipline of behavioral economics, led by people like Daniel Kahneman and Dan Ariely (his best-selling book &ldquo;Predictably Irrational&rdquo; inspired the title of this article), is based on this fundamental principle.</p> <p>The intrinsic psychological appeal of printed marketing materials goes far to explain their continued effectiveness in a world increasingly dominated by digital communication methods. Printed marketing materials have also remained effective because personalization technologies have enabled marketers to make them more relevant for customers and prospects.</p> <p>Print personalization technologies have been on the scene for more than two decades, but personalized print was not rapidly adopted because high production costs made its ROI uncertain.</p> <p>Over the past few years, however, the economics of personalized print have improved, and the value of personalized marketing has become clear. As a result, the use of personalized printed materials has been growing. In the survey by Lob.com mentioned earlier, 58% of the respondents reported using some form of personalized direct mail.</p> <p>Recent technological advances have also made it possible to automatically trigger the use of personalized physical marketing communications based on specific online prospect or customer behaviors. This means it is now much easier to incorporate printed marketing materials into multichannel marketing programs.</p> <p>The bottom line for marketers and marketing procurement professionals is that printed marketing materials aren&rsquo;t going away any time soon and are likely to remain an important component of the marketing communications mix for the foreseeable future.</p> </div></div></div><div class="field field-name-field-tags field-type-taxonomy-term-reference field-label-inline clearfix"><div class="field-label">Tags:&nbsp;</div><div class="field-items"><div class="field-item even" rel="dc:subject"><a href="/tags/print-marketing" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">print marketing</a></div><div class="field-item odd" rel="dc:subject"><a href="/tags/procurement" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Procurement</a></div><div class="field-item even" rel="dc:subject"><a href="/tags/marketing" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Marketing</a></div></div></div><div class="field field-name-field-addthis field-type-addthis field-label-hidden"><div class="field-items"><div class="field-item even"><div class="addthis_toolbox addthis_default_style " addthis:title="The Predictably Irrational Appeal of Print Marketing - Future of Sourcing" addthis:url="https://www.futureofsourcing.com/the-predictably-irrational-appeal-of-print-marketing"><a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_linkedin"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_facebook"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_twitter"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_googleplus"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_pinterest_share"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_reddit"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_email"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_print"></a> </div> </div></div></div><div class="field field-name-field-region field-type-taxonomy-term-reference field-label-inline clearfix"><div class="field-label">Region:&nbsp;</div><div class="field-items"><div class="field-item even"><a href="/regions/global" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Global</a></div></div></div> Thu, 16 Jan 2020 18:05:12 +0000 Sarah Scudder 1675 at https://www.futureofsourcing.com https://www.futureofsourcing.com/the-predictably-irrational-appeal-of-print-marketing#comments What Procurement Pros Need to Know About Trends in Marketing Spending for 2020 https://www.futureofsourcing.com/what-procurement-pros-need-to-know-about-trends-in-marketing-spending-for-2020 <div class="field field-name-field-image field-type-image field-label-hidden"><div class="field-items"><div class="field-item even" rel="og:image rdfs:seeAlso" resource="https://www.futureofsourcing.com/sites/default/files/articles/2020%20Marketing_Budgets_Sarah%20Scudder.jpg"><a href="https://www.futureofsourcing.com/sites/default/files/articles/2020%20Marketing_Budgets_Sarah%20Scudder.jpg" title="What Procurement Pros Need to Know About Trends in Marketing Spending for 2020" class="colorbox" rel="gallery-node-1639--3vER_yWUEQ"><img typeof="foaf:Image" src="https://www.futureofsourcing.com/sites/default/files/styles/juicebox_medium/public/articles/2020%20Marketing_Budgets_Sarah%20Scudder.jpg?itok=y0Y3z1LB" width="624" height="325" alt="" title="" /></a></div></div></div><div class="field field-name-body field-type-text-with-summary field-label-hidden"><div class="field-items"><div class="field-item even" property="content:encoded"> <div>With the fourth quarter of 2019 now underway, many companies have already started developing their marketing plans for 2020. A major aspect of the planning process will be setting the overall marketing budget for next year and allocating the budget across marketing channels, tactics and other spending areas.</div> <div>&nbsp;</div> <div>Ideally, marketing procurement professionals will be involved in the planning process and to participate effectively they will need to have a solid understanding of current marketing trends, including those relating to marketing spending.</div> <div>&nbsp;</div> <div>Three recent research studies provide important insights about how marketers have been spending their budget and where spending may be headed in 2020.</div> <div>&nbsp;</div> <div>&bull; <a href="https://cmosurvey.org/results/" target="_blank">The CMO Survey (August 2019)</a> by Duke University&rsquo;s Fuqua School of Business, the American Marketing Association and Deloitte</div> <div>&nbsp;</div> <div>&bull; <a href="https://www.gartner.com/en/marketing/research/cmo-spend-survey-2019-2020" target="_blank">The Annual CMO Spend Survey 2019-2020 (October 2019)</a> by Gartner, Inc.</div> <div>&nbsp;</div> <div>&bull; <a href="https://www.bdo.co.uk/en-gb/insights/industries/technology-media-and-life-sciences/martech-2020-and-beyond" target="_blank">Martech: 2020 and Beyond (October 2019)</a> by WARC and BDO (with interviews by the University of Bristol)</div> <div>Collectively, these studies identify three macro spending trends that marketing procurement professionals need to keep in mind for 2020.</div> <div>&nbsp;</div> <div> <h2>Marketing Budgets</h2> </div> <div>The research indicates that marketing budgets in 2019 have been relatively healthy, and marketers are generally optimistic about the prospects for marketing spending in 2020. The CMO Survey found that current (2019) marketing budgets, on average, represent 9.8% of company revenues, up from 7.3% in the August 2018 edition of the survey. On average, respondents expect their marketing budget to increase by 8.7% in the 12 months following the survey. While this doesn&rsquo;t cover all of 2020, it indicates that marketers expect budgets to grow during the first part of next year.</div> <div>&nbsp;</div> <div>Gartner&rsquo;s CMO spend survey found that 2019 marketing budgets will average 10.9% of company revenues, down from 11.2% in 2018. Gartner&rsquo;s survey also found that most CMOs are confident about budget growth in 2020. Sixty-one percent of the respondents expect their marketing budget to increase next year.</div> <div>&nbsp;</div> <div style="margin-left: 40px;"><strong>Key Procurement Takeaway</strong> &ndash; Most marketers are naturally optimistic, and therefore the expectations for budget increases next year may be a little overdone. In its survey report, Gartner observed that many economists have noted that global economic growth is slowing and is likely to remain slow in 2020. So, marketing procurement professionals should prepare for some level of marketing budget uncertainty in the coming year.</div> <div>&nbsp;</div> <div> <h2>Technology Spending Remains Robust</h2> </div> <div>Marketing has become increasingly dependent on technology over the past several years, and that is not likely to change in 2020. Therefore, spending on marketing technology is likely to remain robust next year.</div> <div>&nbsp;</div> <div>Gartner&rsquo;s CMO spend survey found that on average, marketers are spending 26% of their total budget on technology. To put this in perspective, the survey indicates that on average, marketers are spending as much on technology as they are on media, and they are spending more on technology than they spend with agencies (26% vs. 22%)</div> <div>&nbsp;</div> <div>In the WARC/BDO survey, respondents from North American companies reported spending 30% of their 2019 marketing budget on technology.</div> <div>&nbsp;</div> <div style="margin-left: 40px;"><strong>Key Procurement Takeaway</strong> &ndash; For most of its history, much of the conversation about marketing procurement has focused on its role in sourcing agency services and managing agency relationships. This is understandable because in many larger enterprises, agencies have traditionally represented one of the largest components of external marketing spend. Over the past few years, however, spending on marketing technology solutions has grown to rival agency spending in importance. Therefore, if they haven&rsquo;t already done so, marketing procurement professionals will need to become proficient at sourcing technology solutions, particularly cloud-based SaaS solutions.</div> <div>&nbsp;</div> <div> <h2>Social/Mobile Still on a Roll</h2> </div> <div>Spending on social media and mobile marketing is likely to continue growing in 2020. The CMO Survey found that on average, marketers are currently spending 11.9% of their total budget on social media marketing, and survey respondents expect that percentage to increase to 15.3% of the budget over the 12 months following the survey.</div> <div>&nbsp;</div> <div>According to The CMO Survey, spending on social media has grown steadily since 2009 even though survey respondents have not believed that it makes a significant impact on company performance. Since 2016, the survey has asked participants to rate the contribution of social media marketing to company performance using a seven-point scale, where 1 = &ldquo;not at all,&rdquo; and 7 = &ldquo;very highly.&rdquo; In the eight surveys conducted over that four-year period, the average rating given by respondents has ranged from 3.1 to 3.4.</div> <div>&nbsp;</div> <div>Spending on mobile marketing exhibits a similar growth trajectory. The CMO Survey found that on average, marketers are currently devoting 12.8% of their total budget to mobile marketing, and survey respondents expect that percentage to grow to 21.8% of the budget over the five years following the survey.</div> <div>&nbsp;</div> <div style="margin-left: 40px;"><strong>Key Procurement Takeaway</strong> &ndash; Marketers are firmly committed to both social media and mobile marketing, and that commitment is likely to remain firm in 2020. Over the longer term, mobile marketing could become more important than social media marketing. Recent <a href="https://s3.amazonaws.com/media.mediapost.com/uploads/SlashtechFutureOfMarketingReport.pdf" target="_blank">research by the New York chapter of the American Marketing Association</a> indicates that U.S. marketers may be over-investing in social media because the use of some social networks appears poised to stall or decline.</div> </div></div></div><div class="field field-name-field-tags field-type-taxonomy-term-reference field-label-inline clearfix"><div class="field-label">Tags:&nbsp;</div><div class="field-items"><div class="field-item even" rel="dc:subject"><a href="/tags/marketing" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Marketing</a></div><div class="field-item odd" rel="dc:subject"><a href="/tags/budget" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Budget</a></div><div class="field-item even" rel="dc:subject"><a href="/tags/cost" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Cost</a></div><div class="field-item odd" rel="dc:subject"><a href="/tags/procurement" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Procurement</a></div><div class="field-item even" rel="dc:subject"><a href="/tags/research" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Research</a></div><div class="field-item odd" rel="dc:subject"><a href="/tags/survey" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Survey</a></div><div class="field-item even" rel="dc:subject"><a href="/tags/study" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Study</a></div></div></div><div class="field field-name-field-addthis field-type-addthis field-label-hidden"><div class="field-items"><div class="field-item even"><div class="addthis_toolbox addthis_default_style " addthis:title="What Procurement Pros Need to Know About Trends in Marketing Spending for 2020 - Future of Sourcing" addthis:url="https://www.futureofsourcing.com/what-procurement-pros-need-to-know-about-trends-in-marketing-spending-for-2020"><a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_linkedin"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_facebook"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_twitter"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_googleplus"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_pinterest_share"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_reddit"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_email"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_print"></a> </div> </div></div></div><div class="field field-name-field-region field-type-taxonomy-term-reference field-label-inline clearfix"><div class="field-label">Region:&nbsp;</div><div class="field-items"><div class="field-item even"><a href="/regions/global" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Global</a></div></div></div> Tue, 19 Nov 2019 21:04:32 +0000 Sarah Scudder 1639 at https://www.futureofsourcing.com https://www.futureofsourcing.com/what-procurement-pros-need-to-know-about-trends-in-marketing-spending-for-2020#comments Sourcing Star Interview: Dennis Tupper https://www.futureofsourcing.com/sourcing-star-interview-dennis-tupper <div class="field field-name-field-image field-type-image field-label-hidden"><div class="field-items"><div class="field-item even" rel="og:image rdfs:seeAlso" resource="https://www.futureofsourcing.com/sites/default/files/articles/Dennis_Tupper_FOS%20Individual%20Award_Interview%20Graphic.png"><a href="https://www.futureofsourcing.com/sites/default/files/articles/Dennis_Tupper_FOS%20Individual%20Award_Interview%20Graphic.png" title="Sourcing Star Interview: Dennis Tupper" class="colorbox" rel="gallery-node-1617--3vER_yWUEQ"><img typeof="foaf:Image" src="https://www.futureofsourcing.com/sites/default/files/styles/juicebox_medium/public/articles/Dennis_Tupper_FOS%20Individual%20Award_Interview%20Graphic.png?itok=BynYZi6P" width="624" height="325" alt="" title="" /></a></div></div></div><div class="field field-name-field-intro field-type-text-long field-label-hidden"><div class="field-items"><div class="field-item even"> <p>This October, the&nbsp;<a href="https://futureofsourcingawards.com/?__hstc=215510152.344406f4865c40604cf6029be7e958e0.1543422516683.1570984969656.1571003004265.664&amp;__hssc=215510152.4.1571003004265&amp;__hsfp=847670889" target="_blank">Future of Sourcing Awards</a>&nbsp;will celebrate seasoned veterans whose thought leadership and innovative work in the sourcing field have made a transformative difference over the course of their career. Below, read about Sourcing Star Finalist Dennis Tupper, the Senior Marketing Manager, Business Strategy &amp; Planning, Global Marketing for Kelly.</p> </div></div></div><div class="field field-name-body field-type-text-with-summary field-label-hidden"><div class="field-items"><div class="field-item even" property="content:encoded"> <div><strong>How did you get into this field &ndash; was it purposeful or by accident? &nbsp;</strong></div> <div>As a recruiter, I loved paying attention to sourcing trends and was always curious on what channels and job boards worked best for finding and attracting talent. I found in staffing that marketing channel metrics were not practiced very well, often not at all. It was my curiosity and thirst for data that got me into it and my passion for analysis and optimization that made it a career for me.&nbsp;</div> <div>&nbsp;</div> <div><strong>In what ways do you feel your professional contributions have influenced or transformed the industry? (This could be a new approach or methodology, the application of an existing technology in a completely new way, significant thought leadership or even a career of inspiring others.) &nbsp;</strong></div> <div>Staffing organizations and sourcing professionals had been relying heavily on traditional methods and duration-based ads. By taking an advanced marketing, programmatic-based approach and applying it to the staffing industry has been a game changer. Segmentation, metrics, analysis, optimization, true partner performance metrics and exact cost per hire, per-channel resulted. Now there is the ability to shift advertising budgets on the fly and bring in and ship out new performers and underperformers in real-time, versus using a guessing game and only doing so annually during budgeting season has changed candidate acquisition into a true marketing machine. &nbsp;</div> <div>&nbsp;</div> <div><strong>In your opinion, what are the biggest challenges facing the industry today and what should be done to solve them?&nbsp;</strong></div> <div>Differentiating ourselves is the biggest challenge to any organization hiring in a time when unemployment is at its lowest since 1969. Candidates have options, many of them. Why you? What&rsquo;s in it for them? You must put time, effort and energy into your brand like no other time in sourcing history. Competition is fierce, so why go to work for you and not one of your several competitors? Tell your story, make it compelling and convert the candidate&rsquo;s curiosity into your acquisition.&nbsp;</div> <div>&nbsp;</div> <div><strong>Looking at the whole of your career, what do you consider to be your greatest achievement? &nbsp;</strong></div> <div>Taking a new-to-the-staffing-industry methodology from a $200+ million-dollar company and successfully implementing it into a $5.5 billion-dollar company. Convincing stakeholders to break from years of traditional sourcing methods and philosophies, the change management it takes in an organization the size of Kelly. The results have been great. Close to a 200% increase in applications in the lowest unemployment market in our lifetimes and decreased advertising cost almost 20% in doing so. Doing both is not easy. Doing it at such a scale is even harder. I&rsquo;m proud of that.&nbsp;</div> <div>&nbsp;</div> <div><strong>What three words do you feel your colleagues and peers would use to describe you?&nbsp;</strong></div> <div>Strategic, Analytical, Accountable&nbsp;</div> <div>&nbsp;</div> <div><strong>What advice do you have for those who are new to the profession or considering entering the industry?&nbsp;</strong></div> <div>We are doing work that directly impacts peoples&rsquo; lives. It is not a simple product with a feature and a benefit. A job is THE catalyst in someone&rsquo;s life for what they want to do, how they want to live, where they want to be and how they can support their family and/or themselves. Putting people to work enriches their lives. It is the first domino to fall where the rest of their life is affected by it. What we offer them in a role and asking not only what interests them in the role and prospective company but asking them how it will impact them outside of work. That question as a recruiter was always very telling, and often the most fulfilling answers I got to any question I&rsquo;d ask a candidate. No matter if we are on the front lines recruiting or behind the scenes putting together campaigns and using channels to attract talent, our work is incredibly meaningful. It&rsquo;s important that we recognize that.</div> </div></div></div><div class="field field-name-field-tags field-type-taxonomy-term-reference field-label-inline clearfix"><div class="field-label">Tags:&nbsp;</div><div class="field-items"><div class="field-item even" rel="dc:subject"><a href="/tags/talent-acquisition" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Talent Acquisition</a></div><div class="field-item odd" rel="dc:subject"><a href="/tags/future-of-sourcing" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Future of Sourcing</a></div><div class="field-item even" rel="dc:subject"><a href="/tags/rising-stars" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Rising Stars</a></div><div class="field-item odd" rel="dc:subject"><a href="/tags/marketing" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Marketing</a></div><div class="field-item even" rel="dc:subject"><a href="/tags/strategy" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Strategy</a></div></div></div><div class="field field-name-field-addthis field-type-addthis field-label-hidden"><div class="field-items"><div class="field-item even"><div class="addthis_toolbox addthis_default_style " addthis:title="Sourcing Star Interview: Dennis Tupper - Future of Sourcing" addthis:url="https://www.futureofsourcing.com/sourcing-star-interview-dennis-tupper"><a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_linkedin"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_facebook"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_twitter"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_googleplus"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_pinterest_share"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_reddit"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_email"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_print"></a> </div> </div></div></div><div class="field field-name-field-region field-type-taxonomy-term-reference field-label-inline clearfix"><div class="field-label">Region:&nbsp;</div><div class="field-items"><div class="field-item even"><a href="/regions/global" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Global</a></div></div></div> Sat, 21 Sep 2019 22:22:07 +0000 Dennis Tupper 1617 at https://www.futureofsourcing.com https://www.futureofsourcing.com/sourcing-star-interview-dennis-tupper#comments