Now everyone knows about the 4 P's of marketing are product, price, place and promotion but there's a fifth 'P' and that's worrying the Indian advertising industry. After the 'P' for pitching, agencies now have to deal with a new 'P', which stands for procurement. It means agencies are treated like any other suppliers.
So, while they liaised with marketing officers previously they now must negotiate with procurement officers, whose job is to beat down rates. Chairman & Managing Director, Madison Communications, Sam Balsara told CNBC-TV18, "How can you treat a creative product the same way you would treat buying space or stationery?"
While media agencies know how to get a good bargain, creative agencies are known to be bad negotiators. That's why WPP is training its agencies like O&M, JWT & Rediffision to fight back.
Country Manager, WPP, Ranjan Kapur, says, "We at WPP are having negotiation workshops for all our agencies. We have to give back like for like. If the marketing officers are abdicating their work to procurement officers, so be it, we'll learn to deal with it."
Procurement is a norm internationally and came to India 2 years ago. So, agencies realise they will have to offer a truly differentiated offering and learn to stand up to clients, if they are to protect their diminishing margins.
Anuradha Sengupta & Tina Tandon
Source : moneycontrol
So, while they liaised with marketing officers previously they now must negotiate with procurement officers, whose job is to beat down rates. Chairman & Managing Director, Madison Communications, Sam Balsara told CNBC-TV18, "How can you treat a creative product the same way you would treat buying space or stationery?"
While media agencies know how to get a good bargain, creative agencies are known to be bad negotiators. That's why WPP is training its agencies like O&M, JWT & Rediffision to fight back.
Country Manager, WPP, Ranjan Kapur, says, "We at WPP are having negotiation workshops for all our agencies. We have to give back like for like. If the marketing officers are abdicating their work to procurement officers, so be it, we'll learn to deal with it."
Procurement is a norm internationally and came to India 2 years ago. So, agencies realise they will have to offer a truly differentiated offering and learn to stand up to clients, if they are to protect their diminishing margins.
Anuradha Sengupta & Tina Tandon
Source : moneycontrol