Hamish came to KL recently, courtesy of the 4As to talk about Magic and Logic - the title of a new ''white paper'' containing a valuable analysis of how the relationship between Marketing, Procurement and Agencies can work better to produce a win-win for all parties. It proposes some radical and some not-so-radical changes to current practice that will make the industry better equipped to meet the challenges of the future.
Messages to Agencies: how to make a profit from producing profitable ideas for clients?Agencies are encouraged to stand up to their clients more, to stop giving ideas away for free, to stop undercutting the competition to win unprofitable new business. In parallel, they are challenged to articulate better the value of production services, to lead the charge on measurement and evaluation, to increase their professionalism, and to think of ways to restructure their business model to secure greater client-agency trust and be remunerated according to the true value of what they contribute.
Messages to Marketing: how to help Agencies produce profitable ideas Marketing are encouraged to develop long-term relationships with a group of agencies for the most effective ideas, and not to take the decision to pitch lightly. Marketing are also urged to be more open about business objectives with agencies to enable greater creativity, take greater responsibility as relationship managers and project directors, and be more willing to invest in measuring effectiveness. They are challenged to improve their budgeting and scope of work planning process and tie payment by results more closely to objectives.
Messages to Procurement: How to contribute more effectively to producing ‘profitable ideas that make a profit’?Procurement are encouraged to play a pivotal role in ensuring ‘fair play’ between all three parties; to get tougher on marketing to deliver more professionally, provide a remuneration framework which rewards quality and creativity, and to look for ways to work with agencies to help them be more efficient. Procurement are challenged to develop their understanding of the agency marketplace and the linkage between the input, output and outcomes of business value creation, and to be more open about their agenda.
To read the full report, see attached.