There are numerous processes that businesses go through in order to do the work that they do. Two of the processes that are often discussed are procurement and marketing. However, it is not always clear what the relationship between these two processes really is and why it matters at all. This is why we must do everything in our power to make sure everyone is clear about what these processes are and why they matter.
What is Procurement?
The ability to get the right materials at the right time and for the right price is the process known as procurement. It is something that all business owners need to be capable of, and it is also something that tends to separate the most successful businesses from those that aren’t able to get as much work done as effectively.
In today’s business landscape, many companies are looking at how they can use procurement to find the most effective marketing services at a reasonable price. Click here to know more.
What is Marketing?
Marketing is the promotion of one’s goods or services to a broader audience. Every company in existence needs to make sure they are performing proper marketing tasks in order to grow and expand the audience for their products as much as they possibly can. There are plenty of different types of marketing tactics that one may take when they are trying to reach out to more people than ever before.
Traditional marketing involved putting out television, billboard, and radio ads. These days, the ways that one may market their products also involves things such as social media marketing and even in-game marketing strategies. No matter what, it is important that companies figure out the best approach to marketing for their particular brand.
What is the Difference Between the Two?
There are differences between marketing and procurement that should be noted. For example, it is generally believed that marketing comes from an area of creativity and innovative thinking. The people on a team who happen to possess those skills more than others are the ideal choice for this type of work. However, the process of procurement involves an entirely different skill set.
People who work in procurement are often called upon to be good negotiators. What this means is that they need to know how to drive a hard bargain and figure out the ways to get the best possible deals for the companies that they work for. It is really important that they are able to do all of this so that they don’t find themselves caught off guard by the demands of a procurement partner. Instead, they should always be driving the negotiation in the ways that they want to drive it.
Companies that run their procurement and their marketing divisions just right should make sure that they understand how the two play off of each other. The procurement people need to understand that they can and should try to maximize the amount that the marketing people are able to spend to get their job done. It should NOT be viewed as merely something that takes away from the budget of other departments.
How to Bring the Two Together
It is necessary for the best run businesses to look at procurement and marketing as two things that can be brought together in extremely effective ways. In other words, the procurement side should look for creative ways to spend marketing money as effectively as possible.
One way that procurement can help marketing is by literally procuring the best possible deals and bargains from their marketing vendors. In other words, striking deals with advertising partners is a great idea for those who are in procurement and are looking at how they can aid and assist the people in marketing. They deserve to all pull in the same direction, and it is nice to see how effective collaborative teamwork can be when everyone is truly working together.
The marketing team needs to have trust in the procurement team to do the right thing by them. Teams should try to work together as much as possible, and management should encourage everyone who is on the team to understand that they are all in this together and that the best possible outcome only happens when everyone is genuinely looking to get to a final result that will benefit the entire company. It doesn’t happen without that goal in mind, and this means looking carefully at how different departments can be brought together.
Conclusion: Not Every Company Sees the Value
There are some companies that have not taken the actions necessary to bring procurement and marketing together. PepsiCo decided to nix its procurement marketing team after a short trial run. They only had 10 to 12 employees assigned to this project in the first place, but they simply decided that executives could handle these functions more effectively than the team that they had assembled.
While they might have believed they were just doing the right thing by their team, there has been a lot of understandable blowback to what they have done. It just doesn’t seem like the proper move given where PepsiCo is in its marketing and procurement functions. It appears that there is a lot more that they could do to help make sure they were getting the kind of results that mega corporations like Pepsi have become so accustomed to getting.
At the end of the day, the value of having procurement and marketing working more closely together really is there. Some companies may not see this working out for themselves at this time, but that just means that others can jump in and get ahead of the game on something like this. It is only a matter of time until others start to realize that they need to follow suit and get all of their departments working together for the betterment of the company. That is truly the end goal in all of this, and it is as good of a reason as any to start working on this project right now.