CMOs need to work with their finance and procurement counterparts to understand the factors to manage marketing spend more efficiently.
A perfect storm of events — declining marketing budgets, increased reliance on external partners, the need for a consistent brand presence — means CMOs need to extract maximum value from every dollar of marketing spend. This will require managing the effectiveness and efficiency of marketing spend.
While CMOs understand and actively manage the impact (effectiveness) of customer-facing or working marketing spend, they often do not focus enough attention on the efficiency of vendor and materials management activities, which can significantly inflate marketing costs.
To manage marketing spend more efficiently, CMOs need to work collaboratively with their finance and procurement counterparts to understand the factors driving marketing costs and where they can become more efficient. By working together, they can ensure the firm gets the most from its marketing budget.
Working together, marketing, finance and procurement can:
By working collaboratively, CFOs and CMOs can ensure they are managing their marketing spend in ways that are more efficient without compromising on the need to be agile, creative and responsive. Click here to learn more.