Despite the fact that it is a very important part of any company’s marketing strategy, procurement still remains the most underrated function of any marketing department.
Here in this article, we have tried to clarify some of the myths related to procurement in marketing. This article talks about some of the secret ingredients that go into designing an effective procurement strategy for a marketing function of the company especially with regards to print media and marketing materials. Some of the myths are mentioned as below:
Procurement is not required for my business, so why should I invest in that function?
Procurement is simply a process of identifying, negotiating and purchasing any goods or services at the best possible price so as to gain a maximum value out of it. The whole intention of the procurement manager in this entire transaction is to minimize risk and maximize the value of the product for the company.
Is marketing material procurement unnecessary?
Nothing can be farther from the truth. Social Media and Digital Media have captured the imaginations of the businesses across the globe and they are very effective means of promotion as well. However, businesses cannot afford to take print media lightly. This is even truer for businesses that are selling their goods and services directly to the end consumer. So whether its about printing any marketing collaterals, promotional merchandise, gift coupons, rate cards, point of sale signage, print advertisements or any other marketing material, you need an experienced procurer to do this job so that you don’t have compromise on quality or cost and also derive maximum value.
Some of the procurement projects that we have done for our clients include:
Identifying point of sale signage manufacturers
Media buying agency for managing the media spread of the client
Identifying paper manufacturing companies for POS materials
Printing service providers for all marketing material printing
Point of sale machine manufacturing
Identifying campaign management companies
Identifying direct marketing companies
Field marketing vendors
Printed films and electronics
Consumer database management companies
Why Procurement Managers don’t understand marketing function?
A good procurement department will take care of every step and follow the entire process completely. It starts right from selecting the most appropriate material in the production stage to deciding the printing method used for production.
This analysis will be based on the demand, turn-around-time, go-to market strategy of the marketing department and consideration of the right fitment strategy as per the business needs of the company. The procurement function also ensures that the implementation of these processes is also completed as per the set time and within the given time frame.
At Proacure, we use historical data benchmarking, demand analysis, supplier market study and total cost of ownership price breakdown structure to create a procurement strategy that perfectly fits your business needs.
For example, while working with a client in the CPG domain, we ensured that savings were achieved at the end of the project. In order to achieve this, after completion of the procurement project, we provided oversight of their marketing campaigns. This was done to ensure that the production of the materials and their implementation was in adherence to the initial plan.