The former wants to create as much buzz as possible while the latter is always trying to cut costs. However, these people don’t need to be adversaries. In fact, their company cannot afford for them to be. Instead, they need to work together to ensure the best return on investment.
One of the main duties of procurement managers is to keep costs down, that much is clear. And, this will involve managing the costs of the strategies proposed by the marketing department. However, there is more to this than just ensuring the marketing team doesn’t go over budget. What’s equally important is helping them use those funds effectively.
In other words, procurement managers won’t just ask how much money the marketing team is spending. They’ll also want to know how they’re spending it and if there’s room for improvement.
That is the core of the matter. Procurement managers do not want to be cheap. Their goal is to be cost-effective. And while this may sometimes limit the marketing team, it actually works in their favour on the whole. Simply, by managing the costs, the procurement team stretches the budget. This allows the marketers to turn more of their ideas into reality.
In practice, this means procurement managers need to focus on two areas. The first is managing the relationships with their suppliers. The marketing team will require products and services, and the procurement team will work with vendors to get favourable terms.
Secondly, procurement managers should help the marketing team find the avenues which will provide the best ROI. For instance, the marketing department may want to run TV ads. However, if the procurement team discovers this isn’t producing the desired results, they should recommend a better alternative. For instance, diverting money into promotional merchandise may provide stronger returns. When these departments work together like this, the whole company benefits.
To discover more ways that procurement and marketing teams can benefit their company, reach out to the Promotional Centre team.