www.trinityp3.com 1. How MANY suppliers do you have? • Do you have enough SUPPLIERS for your marketing effort: • Or do you have too many suppliers for the MARKETING team? • How do you calculate EXACTLY the right balance for your agency network: 2. Who are your BEST suppliers? • How do you RANK marketing supplier performance: • Why are they valued, and how do they create VALUE for you: • What is their EXACT expertise, and what do they do “as well”: 3. How much do you SPEND on marketing? • How much do you spend on MARKETING: • What else is purchased with the marketing budget: • How is your marketing budget BALANCED: 4. How does your INVESTMENT stack up? • Since the GFC the marketing industry has changed – structural changes in off-the-page advertising preceded the social media explosion, but not online sales channels. • And desperate ad agencies have been finding new models for their remuneration structure: is yours new, or pre-2009? 5. Who are your suppliers WORKING for? • Who pays your agencies, really: • Are YOUR suppliers too QUALITY driven: • Are your suppliers part of a global or local network: 6. How do you RANK them? Do their CORE competencies support your core business needs? 7. How do you WORK with Marketing? • How do you persuade the CMO that Procurement has a role: • How do you show that you understand that an agency relationship is different: • What can you bring: Executive Summary • Much has changed in the MARKETING industry in the last FIVE years: • Budgets have been chopped since the GFC. • Desperate agencies have been finding INNOVATIVE ways to charge. • MARKETING money is an investment not spend: • Payment by results is a new science. • Search engine optimisation the new secret formula. • The key to good marketing savings is threefold: • Benchmarking your costs with the best-in-class marketing producers. • Improving your marketing processes, not haggling down fees. • Aligning your agency choices directly with your marketing STRATEGY.

1. marketing management consultants
Slides on Marketing for
the Chief Procurement Officer
7

2. marketing management consultants
1. How MANY suppliers do you have?
• Do you have enough SUPPLIERS for your
marketing effort:
• Enough to offer variety of thought?
• Sufficient to cover every media channel in
your marketing MIX?
• Or do you have too many suppliers for the
MARKETING team?
• With overlapping expertise and competition
for BUDGET?
• With TEAM WORK quickly becoming
CONFLICT?
• How do you calculate EXACTLY the right
balance for your agency network:
• Which MUST you have, and which are
optional?
• And are they all geared to achieve a WIN/
WIN for you?

3. marketing management consultants
2. Who are your BEST suppliers?
• How do you RANK marketing supplier
performance:
• Do they have annual or quarterly reviews?
• And how exactly did you choose them in the
first place;
• …. a pitch, tender, strategic selection, trial or
mate?
• Why are they valued, and how do they create
VALUE for you:
• Are they measured by OUTPUT or INPUT?
• Are they measured by KPIs, EAVs or sales
leads created?
• What is their EXACT expertise, and what do they
do “as well”:
• Who is your LEAD AGENCY and why?
• Is their work split geographically – or
functionally?
I keep six honest serving men,
They taught me all I knew,
Their names are
What and Why and When
And How and Where and Who.
RUDYARD KIPLING

4. marketing management consultants
3. How much do you SPEND on marketing?
• How much do you spend on MARKETING:
• What is it as a percentage of REVENUES, and
is that GOOD or BAD?
• What is the best KPI to measure your marketing
investment
• What else is purchased with the marketing budget:
• How much is spent in creative fees vs
production spend?
• And how much is spent on EXTRA STAFF as
contractors?
• How is your marketing budget BALANCED:
• What is you RATIO of production to media
spend?
• How do your agencies rate on this ratio, who
spends most? Half the money I spend
on advertising is wasted;
the trouble is I don't know
which half.”
JOHN WANAMANKER
How do your marketing spend RATIOS
compare with like advertisers?

5. marketing management consultants
4. How does your INVESTMENT stack up?
• Since the GFC the marketing
industry has changed – structural
changes in off-the-page
advertising preceded the social
media explosion, but not online
sales channels.
• And desperate ad agencies have
been finding new models for their
remuneration structure: is yours
new, or pre-2009?
2008 2013
Benchmarking
Payment by
results
Social media
Online
Offline

6. marketing management consultants
5. Who are your suppliers WORKING for?
• Who pays your agencies, really:
• What % of your budget goes on commission?
• What % is fee driven work?
• Are YOUR suppliers too QUALITY driven:
• Do you pay for unnecessary quality standards?
• How often do you pay for post-production
changes ?
• Are your suppliers part of a global or local network:
• Who is sharing the commission on each
campaign?
• And do you ever get free additional advertising
space?
• Are your suppliers’ innovative:
• Do they bring new ideas to the table?
• Or do they take them elsewhere?
“Do they work for
your company, or
your marketing
department?”

7. marketing management consultants
6. How do you RANK them?
Troopers Stars
Problem
Children
Further
Developers
Value
Potential
Do their CORE
competencies
support your core
business needs?

8. marketing management consultants
7. How do you WORK with Marketing?
• How do you persuade the CMO that
Procurement has a role:
• Attacking price is not enough, show them
you can bring business insight.
• Appreciate the difficulty of measuring
marketing effectiveness.
• How do you show that you understand that an
agency relationship is different:
• There are essential differences compared
to typical suppliers.
• And maybe rating them on VALUE even
more than performance?
• What can you bring:
1. Better business discipline improved
process management.
2. New market methodologies for agency
remuneration.
3. The chance to stretch the marketing
budget further.
Are you
compensating
your agencies
for effort –
or remunerating
them for
success?

9. marketing management consultants
Executive Summary
• Much has changed in the MARKETING industry
in the last FIVE years:
• Budgets have been chopped since the
GFC.
• Desperate agencies have been finding
INNOVATIVE ways to charge.
• MARKETING money is an investment not spend:
• Payment by results is a new science.
• Search engine optimisation the new secret
formula.
• The key to good marketing savings is threefold:
1. Benchmarking your costs with the best-in-
class marketing producers.
2. Improving your marketing processes, not
haggling down fees.
3. Aligning your agency choices directly with
your marketing STRATEGY.
Marketing EFFICIENCY
brings more marketing
EFFECTIVENESS
Marketing Category
Management of a
virtuous circle is the aim

10. marketing management consultants
To improve your marketing EFFICIENCY
and drive greater EFFECTIVENESS,
contact…
TrinityP3 Pty Ltd
Sydney
+612 8399 0922
Melbourne
+613 9682 6800
Hong Kong
+852 3589 3095
Singapore
+65 6884 9149
people@trinityp3.com
www.trinityp3.com
@trinityp3
www.trinityp3.com/blog/
TrinityP3
Darren Woolley