OPINION8 October 2009
So should we embrace procurement and what would that mean anyway?
We have been having some interesting times with, and discussion about, procurement recently. My feelings about procurement within clients used to be a mix of fear and confusion. I don’t know any procurement people personally yet they do seem to be playing a greater role in my business life. So should I now try to embrace them? And what would that mean anyway?
Certainly the procurement concept has revolutionised marketing. Within the marketing discipline they seem to have focussed on media first, thus splitting up the media and advertising folks. Then they started on advertising and made them charge on a per day basis and now they are looking at research.
What does this do for our pricing model? What will they want from us and what will they offer? Of course there will be some pressure on margins as they are there to negotiate but surely they will be offering something else in return?
Also it must be hard for them coming to grips with the research industry. We are far more fragmented than either media or advertising, no big clients have just one research agency! So how can we educate them on the reasons for this or do we have to take a long hard look at why research is like this in the first place?
Anyway, at this stage I would just love some ideas or thoughts. I really am not sure what we should be doing but suspect doing nothing is the worst option of all…..