Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

Business Growth Conference 2017 - David Meikle's presentation

22 views

Published on

David Meikle, Founder of The How to Buy a Gorilla Company's presentation on 'How to Buy a Gorilla: Arriving at a set of principles to create greater value for agencies, marketers and procurement'.

Published in: Business
  • Be the first to comment

  • Be the first to like this

Business Growth Conference 2017 - David Meikle's presentation

  1. 1. How to buy a gorilla david meikle @htbagorilla #htbag
  2. 2. What is a gorilla?
  3. 3. WHY ARE GORILLAS SO RARE? nature nurtureVS.
  4. 4. WHY ARE GORILLAS SO RARE? nature nurture The product, the proposition, the insight, the brief, the brand itself. VS.
  5. 5. WHY ARE GORILLAS SO RARE? nature nurture The product, the proposition, the insight, the brief, the brand itself. VS. The agency, the talent, the process, the relationship, the money and the time.
  6. 6. The nurture environment Marketing Procurement Agency
  7. 7. The nurture environment Marketing Procurement Agency Budgeting investing
  8. 8. The nurture environment Marketing Procurement Agency Ways of paying Budgeting investing
  9. 9. The nurture environment Marketing Procurement Agency Ways of working Ways of paying Budgeting investing
  10. 10. The nurture environment Marketing Procurement Agency Ways of working Ways of paying Budgeting investing Climbing pitch numbers, indicate growing dissatisfaction. Increase in project-based deals.
  11. 11. The nurture environment Marketing Procurement Agency Ways of working Ways of paying Budgeting investing ISBA’s paying for advertising report found 46% of clients are unhappy with their agency deal. Incentivised to save. Climbing pitch numbers, indicate growing dissatisfaction. Increase in project-based deals.
  12. 12. The nurture environment Marketing Procurement Agency Ways of working Ways of paying Budgeting investing Kingston Smith has reported that agency profitability has been at an all-time low. ISBA’s paying for advertising report found 46% of clients are unhappy with their agency deal. Incentivised to save. Climbing pitch numbers, indicate growing dissatisfaction. Increase in project-based deals.
  13. 13. The nurture environment Marketing Procurement Agency Ways of working Ways of paying Budgeting investing
  14. 14. Divergent interests The nurture environment Marketing Procurement Agency Ways of working Ways of paying Budgeting investing
  15. 15. The nurture environment Marketing Procurement Agency Divergent interests
  16. 16. The nurture environment Marketing Procurement Agency Divergent interests Low trust
  17. 17. The nurture environment Marketing Procurement Agency Divergent interests Low trust Fragile relationships
  18. 18. How do we move forward? Marketing Procurement Agency
  19. 19. How do we move forward? Marketing Procurement Agency VALUE
  20. 20. How do we move forward? Marketing Procurement Agency VALUE Not just what value is, but how we create it.
  21. 21. DEFINING THE BUSINESS PROBLEM
  22. 22. DEFINING THE BUSINESS PROBLEM High capacity for growth
  23. 23. DEFINING THE BUSINESS PROBLEM Large market share High capacity for growth
  24. 24. DEFINING THE BUSINESS PROBLEM Large market share High capacity for growth Fighting off new market entrants, engaging new customers
  25. 25. DEFINING THE BUSINESS PROBLEM Large market share High capacity for growth Fighting off new market entrants, engaging new customers High stake, moderate risk high return
  26. 26. DEFINING THE BUSINESS PROBLEM Large market share High capacity for growth Fighting off new market entrants, engaging new customers High stake, moderate risk high return
  27. 27. DEFINING THE BUSINESS PROBLEM Large market share High capacity for growth Fighting off new market entrants, engaging new customers Competing with better resourced market leaders, fight hard for attention High stake, moderate risk high return
  28. 28. DEFINING THE BUSINESS PROBLEM Large market share High capacity for growth Fighting off new market entrants, engaging new customers Competing with better resourced market leaders, fight hard for attention Low stake, high risk, high possible return High stake, moderate risk high return
  29. 29. DEFINING THE BUSINESS PROBLEM Large market share High capacity for growth Fighting off new market entrants, engaging new customers Competing with better resourced market leaders, fight hard for attention Low stake, high risk, high possible return High stake, moderate risk high return
  30. 30. DEFINING THE BUSINESS PROBLEM Large market share High capacity for growth Fighting off new market entrants, engaging new customers Maintain share efficiently. Stable or declining market. Lower competitive threat. Competing with better resourced market leaders, fight hard for attention Low stake, high risk, high possible return High stake, moderate risk high return
  31. 31. DEFINING THE BUSINESS PROBLEM Large market share High capacity for growth Fighting off new market entrants, engaging new customers Maintain share efficiently. Stable or declining market. Lower competitive threat. Competing with better resourced market leaders, fight hard for attention Low stake, high risk, high possible return High stake, moderate risk high return Moderate stake, low risk, lower return
  32. 32. DEFINING THE BUSINESS PROBLEM Large market share High capacity for growth Fighting off new market entrants, engaging new customers Maintain share efficiently. Stable or declining market. Lower competitive threat. Competing with better resourced market leaders, fight hard for attention Low stake, high risk, high possible return High stake, moderate risk high return Moderate stake, low risk, lower return
  33. 33. DEFINE A COMMON INTEREST Marketing Procurement Agency
  34. 34. DEFINE A COMMON INTEREST Marketing Procurement Agency Judge investments
  35. 35. DEFINE A COMMON INTEREST Marketing Procurement Agency Design ways of paying Judge investments
  36. 36. DEFINE A COMMON INTEREST Marketing Procurement Agency Design ways of working Design ways of paying Judge investments
  37. 37. DEFINE A COMMON INTEREST Marketing Procurement Agency Design ways of working Design ways of paying Judge investments
  38. 38. HOW DO WE BUY WHAT WE BUY?Variabilityofreturn High Low Buying Power High Automate Critical Strategic Leverage
  39. 39. HOW DO WE BUY WHAT WE BUY?Variabilityofreturn High Low Buying Power High Automate Critical Strategic Leverage Agree standardised pricing Automate process
  40. 40. HOW DO WE BUY WHAT WE BUY?Variabilityofreturn High Low Buying Power High Automate Critical Strategic Leverage Agree standardised pricing Automate process Nurture relationship Secure talent Incentivise
  41. 41. HOW DO WE BUY WHAT WE BUY?Variabilityofreturn High Low Buying Power High Automate Critical Strategic Leverage Agree standardised pricing Automate process Nurture relationship Secure talent Incentivise Develop long-term relationship Manage performance
  42. 42. HOW DO WE BUY WHAT WE BUY?Variabilityofreturn High Low Buying Power High Automate Critical Strategic Leverage Agree standardised pricing Automate process Nurture relationship Secure talent Incentivise Develop long-term relationship Manage performance Use quality measures Exploit buying power
  43. 43. Buying marketing servicesVariabilityofreturn High Low Buying Power High Automate Critical Strategic Leverage
  44. 44. Buying marketing servicesVariabilityofreturn High Low Buying Power High Automate Critical Strategic Leverage PR agency DM agency Digital agency Media agencyProduction Design agency Shopper Marketing Research Agency Ad agency
  45. 45. Buying marketing servicesVariabilityofreturn High Low Buying Power High Automate Critical Strategic Leverage Behavioural Science PR agency DM agency Digital agency Media agencyProduction Design agency Shopper Marketing Research Agency Ad agency
  46. 46. Buying marketing servicesVariabilityofreturn High Low Buying Power High Automate Critical Strategic Leverage Augmented reality Behavioural Science PR agency DM agency Digital agency Media agencyProduction Design agency Shopper Marketing Research Agency Ad agency
  47. 47. Buying marketing servicesVariabilityofreturn High Low Buying Power High Automate Critical Strategic Leverage Augmented reality Behavioural Science PR agency DM agency Digital agency Media agencyProduction Design agency Shopper Marketing Research Agency Ad agency
  48. 48. Buying marketing servicesVariabilityofreturn High Low Buying Power High Automate Critical Strategic Leverage Augmented reality Behavioural Science Ad agencyPR agency DM agency Digital agency Media agency Production Design agency Shopper Marketing Research Agency
  49. 49. Buying marketing servicesVariabilityofreturn High Low Buying Power High Automate Critical Strategic Leverage Augmented reality Behavioural Science Ad agencyPR agency DM agency Digital agency Media agency Production Design agency Shopper Marketing Research Agency Downstream
  50. 50. Buying marketing servicesVariabilityofreturn High Low Buying Power High Automate Critical Strategic Leverage Augmented reality Behavioural Science Ad agencyPR agency DM agency Digital agency Media agency Production Design agency Shopper Marketing Research Agency Media planning Downstream
  51. 51. Buying marketing servicesVariabilityofreturn High Low Buying Power High Automate Critical Strategic Leverage Augmented reality Behavioural Science Ad agencyPR agency DM agency Digital agency Media agency Production Design agency Shopper Marketing Research Agency Media planning Media buying Downstream
  52. 52. buying marketing services Buying Power High Automate Critical Strategic Leverage Variabilityofreturn High Low
  53. 53. buying marketing services Buying Power High Automate Critical Strategic Leverage Talent Variabilityofreturn High Low
  54. 54. buying marketing services Buying Power High Automate Critical Strategic Leverage Talent Skill Variabilityofreturn High Low
  55. 55. buying marketing services Buying Power High Automate Critical Strategic Leverage Talent Skill Originality Variabilityofreturn High Low
  56. 56. buying marketing services Buying Power High Automate Critical Strategic Leverage Talent Skill Originality Commodity Variabilityofreturn High Low
  57. 57. buying marketing services Buying Power High Automate Critical Strategic Leverage Talent Skill Originality Commodity Problems with FINITE solutions Variabilityofreturn High Low
  58. 58. buying marketing services Buying Power High Automate Critical Strategic Leverage Talent Skill Originality Commodity Problems with FINITE solutions Problems with INFINITE solutions Variabilityofreturn High Low
  59. 59. buying marketing services Buying Power High Automate Critical Strategic Leverage Talent Skill Originality Commodity Problems with FINITE solutions Problems with INFINITE solutions LIMITED measurable value Variabilityofreturn High Low
  60. 60. buying marketing services Buying Power High Automate Critical Strategic Leverage Talent Skill Originality Commodity Problems with FINITE solutions Problems with INFINITE solutions UNLIMITED potential value LIMITED measurable value Variabilityofreturn High Low
  61. 61. Variabilityofreturn High Low Buying Power High Automate Critical Strategic Leverage buying marketing services
  62. 62. Variabilityofreturn High Low Buying Power High Automate Critical Strategic Leverage buying marketing services
  63. 63. Variabilityofreturn High Low Buying Power High Automate Critical Strategic Leverage buying marketing services
  64. 64. Variabilityofreturn High Low Buying Power High Automate Critical Strategic Leverage buying marketing services
  65. 65. Variabilityofreturn High Low Buying Power High Automate Critical Strategic Leverage Reconcilable cost- plus retainer - overhead audits buying marketing services
  66. 66. Variabilityofreturn High Low Buying Power High Automate Critical Strategic Leverage Reconcilable cost- plus retainer - overhead audits Negotiated project rate-card buying marketing services
  67. 67. Variabilityofreturn High Low Buying Power High Automate Critical Strategic Leverage Reconcilable cost- plus retainer - overhead audits Negotiated project rate-card buying marketing services Reconcilable project fees
  68. 68. Variabilityofreturn High Low Buying Power High Automate Critical Strategic Leverage Reconcilable cost- plus retainer - overhead audits Irreconcilable project fees Negotiated project rate-card buying marketing services Reconcilable project fees
  69. 69. Variabilityofreturn High Low Buying Power High Automate Critical Strategic Leverage Reconcilable cost- plus retainer - overhead audits Irreconcilable project fees Negotiated project rate-card Media commission buying marketing services Reconcilable project fees
  70. 70. Variabilityofreturn High Low Buying Power High Automate Critical Strategic Leverage Reconcilable cost- plus retainer - overhead audits Irreconcilable project fees Negotiated project rate-card Media commission Performance related incentives buying marketing services Reconcilable project fees
  71. 71. Variabilityofreturn High Low Buying Power High Automate Critical Strategic Leverage Reconcilable cost- plus retainer - overhead audits Irreconcilable project fees Negotiated project rate-card Media commission Performance related incentives Irreconcilable retainer buying marketing services Reconcilable project fees
  72. 72. Variabilityofreturn High Low Buying Power High Automate Critical Strategic Leverage Reconcilable cost- plus retainer - overhead audits Irreconcilable project fees Negotiated project rate-card Media commission Performance related incentives Irreconcilable retainer Share of profits PRB buying marketing services Reconcilable project fees
  73. 73. Variabilityofreturn High Low Buying Power High Automate Critical Strategic Leverage Reconcilable cost- plus retainer - overhead audits Irreconcilable project fees Negotiated project rate-card Media commission Performance related incentives Irreconcilable retainer Share of profits PRB buying marketing services Reconcilable project fees Licensed IP
  74. 74. The nature of investment
  75. 75. The nature of investment
  76. 76. The nature of investment
  77. 77. The nature of investment
  78. 78. The nature of investment
  79. 79. The nature of investmentReturn Investment
  80. 80. The nature of investmentReturn Investment
  81. 81. The nature of investmentReturn Investment Critical mass
  82. 82. The nature of investmentReturn Investment Critical mass Diminished return
  83. 83. The nature of investmentReturn Investment Critical mass Diminished return
  84. 84. The nature of investmentReturn Investment Critical mass Diminished return Battling over the investment level. How much should be invested? How much should the agency be paid?
  85. 85. The nature of investmentReturn Investment Critical mass Diminished return Battling over the investment level. How much should be invested? How much should the agency be paid? Prospecting for insights, strategies, ideas, channel plans - problems with unlimited solutions.
  86. 86. The nature of investmentReturn Investment Critical mass Diminished return
  87. 87. The nature of investmentReturn Investment Critical mass Diminished return
  88. 88. The nature of investmentReturn Investment Critical mass Diminished return
  89. 89. The nature of investmentReturn Investment Critical mass Diminished return
  90. 90. INVESTING IN THE agency
  91. 91. INVESTING IN THE agency • How much budget is there?
  92. 92. INVESTING IN THE agency • How much budget is there? • What needs to be done?
  93. 93. INVESTING IN THE agency • How much budget is there? • How much does the agency want? • What needs to be done?
  94. 94. INVESTING IN THE agency • How much budget is there? • What are the category influences? • How much does the agency want? • What needs to be done?
  95. 95. INVESTING IN THE agency • How much budget is there? • What are the category influences? • How much does the agency want? • What needs to be done?
  96. 96. INVESTING IN THE agency • How much budget is there? • What are the category influences? • How much does the agency want? • What needs to be done?
  97. 97. SUMMARY
  98. 98. THE PROBLEM
  99. 99. THE PROBLEM Clients commonly use orangutan processes and remuneration but want gorilla ideas.
  100. 100. THE PROBLEM So we need to go back to the business problem - the market, the competition, the role of creativity Clients commonly use orangutan processes and remuneration but want gorilla ideas.
  101. 101. THE PROBLEM So we need to go back to the business problem - the market, the competition, the role of creativity If we are to establish greater trust we must share a common interest - a variable definition of value. Clients commonly use orangutan processes and remuneration but want gorilla ideas.
  102. 102. THE PROBLEM So we need to go back to the business problem - the market, the competition, the role of creativity If we are to establish greater trust we must share a common interest - a variable definition of value. We have to change the conversation from cost to investment - according to the business problem. Clients commonly use orangutan processes and remuneration but want gorilla ideas.
  103. 103. a way forward
  104. 104. a way forward Challenge procurement’s interest and incentives.
  105. 105. a way forward Challenge procurement’s interest and incentives. Involve marketing and procurement in the conversation
  106. 106. a way forward Challenge procurement’s interest and incentives. Involve marketing and procurement in the conversation A common language for value - a shared interest
  107. 107. a way forward Challenge procurement’s interest and incentives. Involve marketing and procurement in the conversation A common language for value - a shared interest A common set of principles for all…
  108. 108. a way forward Challenge procurement’s interest and incentives. Involve marketing and procurement in the conversation A common language for value - a shared interest A common set of principles for all… …that is specific to the client’s business need.
  109. 109. thank you
  110. 110. questions
  111. 111. How to buy a gorilla david meikle @htbagorilla #htbag the company

×