Maximizing The Effectiveness Of Marketing Spending
Source: McKinsey & Company
Current marketing spending levels are unsustainable. Increasingly, CEOs are demanding that marketing executives do more for less with their marketing budgets. Careful attention must be given, however, to how spending is restructured. Cuts in spending risk near-term brand performance and long-term brand equity. Doing more with less requires new approaches that manage marketing spending as both a cost and an investment. Implementing approaches drawn from Purchasing Supply Management (PSM) can help identify such opportunities. PSM-inspired tactics include renegotiating with suppliers, redefining purchases to better match customer needs, and reengineering core marketing processes. Overall spending can be reduced by 15 to 25 percent through these efforts.