Marketers stand accused of wasting their budgets through maverick practices, according many of Europe’s top procurement professionals, while more than a third still have no way of measuring return on investment.
That is the damning conclusion of a new report, The Marketing Maturity Matrix, from marketing production specialist Charterhouse.
The study, which quizzed 200 procurement professionals from across 500 of the largest companies in Europe, shows those holding the purse strings are adamant that marketers will find it hard to improve the situation without their expertise.
But, it seems, the battle between procurement and marketing departments shows no sign of abating as resistance to procurement involvement in marketing is as strong as ever.
The research was, who claim that over two thirds (67%) believe that ‘maverick’ marketing spend is widespread.
It also revealed that four fifths (80%) of companies struggle due to ‘immature’ marketing procurement practices, wasting a combined €716m each year as a result.
Other findings included almost half (42%) of those working in procurement departments feel pressure to improve marketing procurement, while almost a third face conflict with their marketing departments as a result. Worringly, over a third (36%) of companies have no mechanism for measuring marketing ROI.
David Fincham, business development director at Charterhouse, commented: “Maverick marketing procurement is a costly problem for Europe’s largest businesses, but can be very difficult to identify. Yet it represents the tip of the iceberg in ‘hidden’ savings. Firms need to take a fresh approach to marketing procurement to tackle uncontrolled and inefficient buying practices.”
While almost half (42%) have experienced pressure to improve their organisation’s procurement of marketing products and services, many are not yet in a position to do so.
The majority (58%) have no remit within the marketing department, while just one fifth (21%) hold ultimate responsibility for marketing spend in their organisation.
As a result, over a third (37%) of procurement professionals state that driving savings in marketing purchasing is a struggle.
Fincham added: “Tension still exists between marketing and procurement and common misconceptions about their respective objectives remain. But this is no longer about seeking savings in spite of consequences; both parties demand best value and there are joint benefits to be had.
“Both functions must find a way to work together to drive efficiency and maintain, if not improve, effectiveness as a result.”
