Is Procurement the Ad Agency New Business Enemy?

Interview with Mattel's ex-procurement chief
by Todd Knutson  |   published on March 23, 2010

procurementWhen you mention to a new business person that "procurement" is getting involved, the typical reaction is dread. You've built rapport with your prospect, established their need, demonstrated

Read on...



The Comments of Others

computers  |  08/09/2011

In the normal course, cost is certainly one factor, but, in my experience and especially for services such as agency services, one of the less important factors; a good procurement process weights quality and service as being important criteria in agency selection. However, the economy of the last couple of years has driven a change in emphasis. Companies have focused very heavily on cost savings, looking at any & every opportunity. Procurement priorities are driven by corporate/departmental priorities. Consequently, Procurement is under pressure to help deliver those savings. The pressure from Procurement that agencies are experiencing is felt by many providers, including consultants, I might add. Forward-thinking Procurement departments will recognize this as short term. I am confident that the return of top line growth will allow the pendulum will swing back towards a more balanced assessment of cost, quality & service.

computer parts store  |  09/02/2011

Agency people, by and large, are creatives by nature. They enjoy and thrive on ideas, concepts, visualizations, presentations. For that reason, they take rejection, which is normal in the world of sales, fairly hard. They find it difficult to distance themselves personally from the majority response (No thanks, we’re very happy with our current agency) and they struggle when confronting a new prospect for the first time.

Free phone sex  |  09/28/2011

Earlier this week you might have read about how the search consultant’s share is falling as procurement becomes more involved in agency search. This you already knew. And while the other post breaks out the implications for small and large agencies, it’s become clear that developing a procurement strategy is important for just about everyone.

Burberry bags for sale  |  10/11/2011

Consequently, Procurement is under pressure to help deliver those savings. The pressure from Procurement that agencies are experiencing is felt by many providers, including consultants, I might add.Burberry bags for sale

Many a new business person’s blood pressure increases when you start talking about procurement. Frustration is natural when attempts to “persuade the unpersuadable” are unsuccessful - as in trying to communicate creative or subjective value to a person who’s really only interested in getting the cheapest price.

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Completely understand the process. One of the benefits of procurement being involved is that they buy stuff for a living. So, they’re used to the “hard” questions some marketer clients may not feel comfortable asking.sdhc card

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In the normal course, cost is certainly one factor, but, in my experience and especially for services such as agency services, one of the less important factors; a good procurement process weights quality and service as being important criteria in agency selection. However, the economy of the last couple of years has driven a change in emphasis. Companies have focused very heavily on cost savings, looking at any & every opportunity. Procurement priorities are driven by corporate/departmental priorities. Consequently, Procurement is under pressure to help deliver those savings.

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