Agencies vs. Procurement

Face it: this fight is over before it begins. Here’s how to be a gracious loser.

This fight has grown into one of the industry’s most bitter. The comparative free hand most creative departments once had to waltz into client meetings with “big ideas” for marketing VPs who, whether they admitted it or not, liked the advertising game, has
been slapped time and again by procurement’s drive for effi ciency and value. The rise of procurement in competitive pitches has moved the fi ght from the golf course and fi ve-star restaurant and planted it squarely in the boardroom. Talk about a game-changer.It’s left versus right brain, qualitative versus quantitative, suits versus jeans. Unfortunately, this fi ght has a foregone conclusion.

Procurement will always “win” this particular bout, but that’s not to say creativity is dead. It’s just a matter of seeing things from procurement’s point of view, understanding their needs and getting help from those who’ve learned how to compete in a procurement-driven environment. We asked Canada’s enior reatives and agency executives for their insights on dealing with the procurement department. Here’s how you should train for the next time you step in the ring for an RFP.

• Dress like a grownup.

• Although they won’t be your client and you’ ll likely never see them again, they’re the ones you have to win over on pitch day.

• As a rule, creative directors and procurement don’t mix. Keep the animals in separate cages.

• Most of these pitches state that one of the client’s goals is to obtain the best value for their marketing dollar. But “value” has wide-ranging meanings. The fi rst step for any agency should be to ask the client for their defi nition of value. This will allow you to understand their priorities and better determine if and how you can meet them.

• Learn to speak Analytical. It’s their preferred language.

• You can’t let procurement separate a discussion about price from a discussion about value. They are inter-related. The delivery of a certain level of value will come with a commensurate price. Higher-value requirements equal higher prices. Agency leaders just need to convince the procurement teams of this reality.

• Have answers prepared for the lamest of questions. Guaranteed they’re on their list.

• Once the pitch is over, it’s not over. Call them up and make them feel like they’re the most important people in the universe.

• Be ready to walk away from the table. Know what your limits are before going into a negotiation and stick to them. Nothing hurts you more than the sense of desperation. If negotiations go beyond your limits, be prepared to walk away.

• Try to understand who the procurement department is, how the group works, what their role is, what their objectives are and then do all you can reasonably do to help them do their job—just as we all try to do with our marketing department clients.

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