cips surrey branch welcome to ‘who cares about savings?!’ speaker...stakeholders are and what...
TRANSCRIPT
CIPS Surrey Branch
Welcome to
‘Who cares about savings?!’
Join us on LinkedIn – ‘CIPS Surrey Branch’
Who cares about savings?
Adding value in marketing procurement
CIPS Surrey Branch Event
John Butcher / Global Category Director (Marketing ) Thursday 16th October 2014
By taking a marketing approach to marketing
procurement, understanding who the business
stakeholders are and what they need, you will
know who cares about savings.
Agenda
1. Marketing
2. Marketing Procurement
3. 7’s
4. NPD
5. Communicating
6. ROI
7. Conclusions
Marketing
What is Marketing?
© Proxima 2012. All rights reserved
“The activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large. The process by which companies create value for customers and build strong customer relationships, in order to capture value from customers in return” AMA (American Marketing Association)
Marketing is broken in to 7 key components that combine to help an organisation meet its marketing needs and those of the target audience; Product, Price, Place (channel), Promotion (making people aware), People, Process and Physical (tangible reminder) CIM (Chartered institute of Marketing)
“Now we understand that the most important thing we do is market the product. We've come around to saying that Nike is a marketing-oriented company, and the product is our most important marketing tool” Phil Knight, Nike Co-founder and Chairman
“Marketing is what you do when your product is no good” Edwin Land (Creator of Polaroid)
"The sole purpose of marketing is to sell more to more people, more often and at higher prices. There is no other reason to do it.“ Sergio Zyman, Marketing Exec Coke (best known for the failed launch of new coke)
"What really decides consumers to buy or not to buy is the content of your advertising, not its form.“ David Ogilvy “In good times people want to advertise, in bad times, they have to.” – Bruce Barton, co-founder BBDO
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Product, Price, Place, Promotion, People, Process, Physical
– Chartered Institute of Marketing
Marketing Procurement
8
Marketing Procurement
The procurement of marketing services is substantially different from buying products or more commoditised services.
• Marketing services are very diverse; sub-segments, involving many different categories
• Its creative drive, thus quality and innovation are crucial KPI's • Marketing is not cost-driven…. Marketing are ultimately measured by Sales
and customer attitudes (e.g. brand perception), not cost-saving • Measuring success, beyond sales, is far more ambiguous; measuring Consumer
attitudes and behaviours requires complex research models and theories, thus, it is sometimes subjective to whether a project/activity even worked or was successful! “Half the money I spend on advertising is wasted, and the problem is I do not know which half” Lord Leverhulme 1851-1925, British founder of Unilever
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Marketing Procurement
• Stakeholder engagement & strong relationship management – working
with client & agency stakeholders to build relationships and credibility, earn trust and respect
• A clear understanding of the value of creativity - performance monitor key suppliers, link performance with pay; added value services to client are required
• Alignment of marketing & procurement objectives – Support marketing objectives with commercial rigour. Participate in company wide market forums & external procurement groups
• Demonstrate ROI - Demonstrate impact of marketing expenditure. Conduct thorough feasibility and segment Marketing to identify opportunity segments and extract further value from agency supply chain
Critical success factors for effective procurement are therefore:
Agency Landscape
Agency Collective
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7's
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7 Steps Strategic Sourcing
12
Demand Analysis Supply
Analysis Strategy
Definition
Communi-
cation
Supplier Selection
Implement-ation
Supplier Manageme
nt
Category
Brief
Business
Objectives
Category
Baseline
Process /
Constraints
Future
considerati
on
Supply
Market
Analysis
Supplier
Short List
Category
Positioning
Matrix
Sourcing
Approaches
Strategy
Summary
Stakeholder
Management
Change
Management
RFx
Negotiation
Sourcing
Governance
Contract
Management
Action Plan
Operational
Qualification
Action and
Benefits
Tracking
Supplier
Performance
Evaluation
Supplier
Integration
Supplier
Development
© Proxima 2014. All rights reserved.
7 Steps Strategic Sourcing
13
Demand Analysis Supply
Analysis Strategy
Definition Supplier Selection
Implement-ation
Supplier Management
Communications
Communications is fundamental, underpinning everything Communications are two way
Important to understand Important to be understood
1 Understand the need 2 Plan to do the right thing 3 Do the right thing 4 Ensure it continues and evolves, 5 Let everyone know along the way
© Proxima 2014. All rights reserved.
7 P’s Marketing
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Product Price Place Promotion People Process Physical
“Marketing is broken in to 7 key components that combine to help an organisation meet its marketing needs and those of the target audience; Product, Price, Place (channel), Promotion (making people aware), People, Process and Physical (tangible reminder)” CIM (Chartered Institute of Marketing)
© Proxima 2014. All rights reserved.
7 into 7…. a perfect fit?
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Product Price Place Promotion People Process Physical
Demand Analysis Supply
Analysis Strategy
Definition
Communi-
cation
Supplier Selection
Implement-ation
Supplier Manageme
nt
Not necessarily 1 stage equals 1 step…. But what in procurement should we consider our Product? Or price, Our Place etc…..? What should we be doing?
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New Product Design // Procurement Service Development
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Product Design - NPD
Functional benefit Emotional benefits Perceived benefits Branding
Successful businesses ….
understand the consumer Involve the consumer
We read about retailers and tech companies being “consumer-centric” or “customer-led” organisations… Is your procurement department consumer-centric?
Client –focussed? How could it be / be more?
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Designing product to suit the need of the target consumer
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Consumer-centric
18
Listening to the consumer, talking to the consumer
Communications are fundamental Consider your stakeholder your consumer, your client, your customer Applies internally at your company with functional stakeholders Applies externally
© Proxima 2014. All rights reserved.
Communicating with Marketing
© Proxima 2014. All rights reserved.
Communicating with Marketing
Standard Procurement Tool Stakeholder mapping
Interest / Influence grid Positioning and mgt action
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Non-standard Leadership Communication Grid Berne communication Other tips……
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Stakeholder Analysis
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Find out who your stakeholders are Consider the Power/Interests grid Find out what motivates them Investigate how you can win them over and keep aligned
Feeds the communication plan
Interest
Po
wer
Monitor Keep
informed
Keep satisfied
Manage closely
High
High
Low
© Proxima 2014. All rights reserved. 22
A stakeholder and communications plan helps to structure all your information and target your efforts
Stakeholder Analysis
Name Title / role Power / Interest
Key Interests Status Desired Support
Desired Role
Communication / Plan
Manage Closely Advocate High Sign-off
Monitor Supporter Medium Expert input
Keep informed Neutral Low Resources
Satisfy Blocker Advice
Sponsor
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Leadership Communications Grid
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STRUCTURED Emphasis on planning and containment
Emphasis on spontaneity and emergence
UNSTRUCTURED
C1
Conventional Forums and
Processes
C2
Structured, Dialogic
Conversation
C4
Role Modelling
C3
Everyday Conversations
and Interactions
© Proxima 2014. All rights reserved.
Communicating with the marketing stakeholders
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Marketing stakeholders typically do not like filling out template questionnaires and loathe spread-sheets
Meet them face to face or talk by telephone if that is not possible Any key points can be noted in the meeting
It is essential to consider the overall aim and background of each meeting before determining any question sets. i.e. a fifth meeting will have a different tone, pace, level of detail to a first meeting. Don’t forget the Berne communication model for moving through topics in any stakeholder discussions Warm them up with easy open opening questions and cliché topics (e.g. travel) Find and talk about shared interests…. Football?... Common ground
Rapport
Ritual/Cliché
Facts/Information
Beliefs/Attitudes
Emotions/Feelings
Trust
Risk
( Berne, 1964)
© Proxima 2014. All rights reserved.
Inside the Marketing stakeholder's mind
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What this means for us
I am only in this job for 18 – 24 months, then I need to be promoted or move sideways for development
Whatever you do it better deliver positive results within 6 - 12 months
I don’t rate procurement A GREAT opportunity for us to get them to open up about how their past experiences of procurement sucked and thus more easy for us to talk abut how we do it differently….. etc
© Proxima 2014. All rights reserved.
Inside the Marketing stakeholder's mind
26
What this means for us
I have rosters and consolidate my investment
“Rosters” not “Preferred supplier lists”, built by giving more focussed investment with the best performing agencies (not “rationalising”).
I am measured on top line growth
It needs to focus on value, not price
Marketing budget is an investment, not a cost
Talk about benefits and value, not cost savings; Work on demonstrating ROI
I have external partners who help me achieve my goals
Work with and call them “agencies”, not “suppliers” I want to squeeze more output and impact from them, not constrain the input
© Proxima 2014. All rights reserved.
Inside the Marketing stakeholder's mind
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What this means for us
My CEO wants better governance and EBIT
Talk about profit impact and how to deliver the top line growth without compromising bottom line profit
My CFO is pushing my budget down yet demanding top line growth
Help marketing demonstrate the impact of it’s budget… help gain clarity on the unknown ineffective half and enrichment of the working half….. i.e. ROI and marketing effectiveness – new agencies and managing agencies differently
My Competitors are doing XYZ
Should we be doing it? Understand why others are and share with marketing... Should we swim against the tide or go with the flow before being left behind drowning?
My agencies are telling me…..
Find another perspective to validate or challenge the agency natural bias
© Proxima 2014. All rights reserved.
Get with the lingo
28
Industry news and trends Google alerts Read common definitions (see industry bodies for glossaries)
© Proxima 2014. All rights reserved.
ROI
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ROI is a high priority for CEOs CMOs and CFOs
Each individual and organisation is different Even COOs will appreciate the balance between improved efficiency and improved effectiveness Software, suppliers, common sense Healthy tension between
faster // better // cheaper
30
Growing the business profitably
I need more!
Faster
Cheaper Better
Effectiveness (Impact: the “return” of ROI)
Efficiency (lowering cost of the “investment”
Efficiency & Effectiveness (Speed to market and / or process savings)
Understanding your consumer (sic client stakeholder)
31
Savings on cost Return on Investment
Moving the dial from cost to value enables your business to get a better return on its investment, whether measured in bottom line savings or top line impact.
© Proxima 2014. All rights reserved.
Concluding comments
© Proxima 2014. All rights reserved.
Wrap-up / concluding section
Each individual and organisation is different You will know if you apply those tools and frameworks Probably all, in this economic climate
Even CMOs and brand managers, but they will privately or quietly admit it CFOs and procurement stakeholders certainly do As do CEOs, supply chain directors
You can satisfy all with clever messaging E.g. the dilemma within media for cost saving vs reinvestment
The role of clear direction, Importance of governance inc’ timely relevant MI, role segregation
Your clients and stakeholders will be a feel more valued and understood Your reputation will improve Your agencies will appreciate you more, because you will be working more collaboratively, working to solve the same or similar client / stakeholder problems 33
Who cares about savings?
© Proxima 2014. All rights reserved.
Any further comments or questions?
John Butcher Global Category Director Marketing Procurement @ Proxima [email protected] 07432 694 298 www.proximagroup.com