20/02/2018 Marketing Procurement Linked to Performance To those who are not aware, marketing procurement appears to be very volatile, fluctuating & subject to constant U-turns & budget revisions. But those who know, will confirm that the objectives of marketing procurement are different from others. Marketing Procurement Vs General Procurement Standard procurement is based on 3 pillars: • Quality • Price • Speed But marketing spends are decided by two different factors: • Sales Revenues - Self & Competition • Competition - Marketing SpendsAt a market level, marketing investments have a direct impact on sales revenues. Thus sales revenues are used as feedback to “course-correct” marketing investments for each market. On a campaign level, each campaign / type of activity could be associated with dynamic performance metrics. These metrics (own & the competition) are used as feedback to continue / discontinue / modify individual marketing investments. In addition to the above, Marketing deals with a number of large, legacy vendors & a lot of deep domain knowledge requirements. Hence, people & relationships tend to get more importance in marketing procurement. That's why marketing procurement appears to be extremely volatile, fluctuating & subject to constant budget revisions. And that's also why applying standard sourcing principles alone does not work efficiently. Agile Marketing Today's agile marketing is not possible without quick course correction. Using real time performance & Marketing ROI. The first 'stumbling-block' for Marketing ROI is the availability of marketing investments data. Brandintelle starts by treating marketing procurement differently from all other procurement. Across multiple activities, multiple markets, budgets, offices: across the enterprise. It achieves this with a distributed approval system for marketing campaigns, proposals & jobs - linked to a dynamic marketing budget. Apart from transparency & best-in-class practices (both desirable objectives in themselves), this ensures that the real time data is updated in your central marketing database. This data is critical for monitoring performance & calculating Marketing ROI in real time. Marketing ROI As Standard Output - The Main Data Challenges 1. Availability of comprehensive data on all marketing investments by markets & categories – including central & regional budgets - branding & sales promotions. 2. Correlation between Product Business Structure & Brand Business Structure – (sales data is available by products while marketing spends data is by brands) 3. Correlation between Sales Markets Investment/Evaluation Markets & Geography. 4. Multiple customised bases of apportioning multi-market investments to single market. Democratisation of Marketing by the data, of the data, for the ... Marketing performance & ROI management should be left to the experts in marketing. But given the sheer magnitude of expenditure, shouldn't real time marketing statistics be visible to the CXOs? Brandintelle aims to democratise marketing using a 3 phased approach: Automation of Marketing Procurement, Marketing Budgets & Approvals for All Marketing Activities by markets, brands, categories - including central, regional, local budgets, media, activation, promotions .... Standardise Computation of Marketing ROI, Marketing Performance Metrics, et al. Auto suggestions based on statistical correlations. And even machine learning.