24 April 2012 - 7:58am | posted by | 0 comments

'maverick' marketing spend is rife at some of Europe's top companies, claims procurement professionals report

'maverick' marketing spend is rife at some of Europe's top companies, claims procurement professionals report'maverick' marketing spend is rife at some of Europe's top companies,

Procurement professionals working at some of the top businesses in Europe have claimed that ‘maverick’ marketing spend is rife, according to a report from Charterhouse.

The findings of a report, outlined in The Marketing Maturity Matrix, from marketing production specialist Charterhouse, claims that over two thirds (67%) of procurement professionals 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.

The research was conducted amongst 200 procurement professionals, chosen from across 500 of the largest companies in Europe.

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.

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,” added Fincham.

It was also claimed that over a third (36%) of companies had no mechanism for measuring return on marketing investment.

Fincham continued: “Without a proactive marketing procurement strategy, it’s easy for marketing budget to be committed without procurement involved. In large businesses, this can equate to huge amounts of investment not procured in the right way. The potential lost savings here could be ploughed back into additional effective marketing activities.

“Those inheriting legacy processes should start building relationships with marketing immediately, and work together to develop a strategy that identifies potential improvements.”

The majority (58%) of procurement staff were said to have no remit within the marketing department, while a fifth (21%) said they had ultimate responsibility for marketing spend, and 37% said that they struggled to make savings in marketing purchasing.

Image courtesy of Shutterstock

Be the first to comment on this article: sign in or register.

Latest Projects from the Profile Hub

Glasgow University College of Arts Knowledge Exchange - communications strategy

20/11/2014
The College of Arts Knowledge Exchange is a leading-edge...

In The Snow Magazine Front Cover

20/11/2014
Front cover from a fashion shoot in Zermatt earlier this...

Cuckoo Design - HeadSpace

17/11/2014
If you want to work through your brand challenges and turn...

Welsh Blood - Precious Concept

17/11/2014
Description The Welsh Blood Service organises the...

Pentland / Ted Baker – AW14 footwear photography

14/11/2014
Pentland is behind some of the world’s best-known sports,...