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5 Secrets to Working Effectively with Procurement Exploring Procurement’s role in exhibit agency selection A webinar by Matrex Exhibits - June 10, 2009 Strategic Marketing Series MODERATOR: Dan Hanover Editor/Publisher Event Marketer Magazine SPEAKERS: Kathleen Wilson Director, Marketing and Strategy, Matrex Exhibits Mike Thyen Director of Marketing and Sales Global Procurement, Eli Lilly and Company Michelle Hammond Manager, Global Sourcing and Procurement, Bausch & Lomb

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5 Secrets to Working Effectively

with Procurement

Exploring Procurement’s role in exhibit agency selectionA webinar by Matrex Exhibits - June 10, 2009

Strategic Marketing Series

MODERATOR:

Dan Hanover

Editor/Publisher

Event Marketer Magazine

SPEAKERS:

Kathleen Wilson

Director, Marketing and Strategy,

Matrex Exhibits

Mike Thyen

Director of Marketing and Sales Global Procurement, Eli Lilly and Company

Michelle Hammond

Manager, Global Sourcing and Procurement, Bausch & Lomb

Welcome

Michelle HammondManager, Global Sourcing and ProcurementBausch & Lomb

Mike ThyenDirector, Marketing and Sales Global ProcurementEli Lilly and Co.

Kathleen Wilson

Director, Marketing and Strategy

Matrex Exhibits

Setting the tone

The power of Procurement

There is a right way to leverage it

The “balance” is the key

Lowest price? Highest Value?

The right partnership is… a partnership

Procurement has specific goals

Event marketers have specific goals

You CAN create a win-win

Today’s conversation

Learn a little

Get a perspective

Acknowledge Procurement’s influence

Understand Procurement’s role and process

Serve Procurement’s needs

Use the intell to your advantage

Ask questions

Finally, get some answers

Executive briefing

Insights

Ideas

Perspective

Engaging dialogue

Asked Procurement executives to share

opinions, experiences specific to exhibit/event

spend

Spoke with leading U.S. companies, wide

breadth of industries: hardware, software,

food, auto, consumer products, pharma,

apparel

Discussed process (objective) and

prescription (subjective)

The Players

Exhibits and events management

Spend one-third of marketing budget

Provide best source for quality leads

Reports into Marketing, focused on revenue,

market share

Procurement

Range of names, roles

Proactive and strategic. . . or not

Reports into Finance, other; focused on cost

reduction, risk mitigation

Procurement’s duality

Necessary waste-cutting; frees up funds for other productive activities

Tactical, narrowly focused on cost containment

Both? Neither? Is there a middle ground?

Digging deeper

We asked:

What new processes would you like to see

from exhibit agencies?

What are your biggest pain points in dealing

with exhibit agencies?

What are some best practices in working with

Procurement?

Themes emerged …

Make Costs Transparent

Unbundle, itemize, provide detail, explain the

expense. Avoid energy-sapping discussions

of unclear cost estimates. Focus on results.

Secret #1

“Don’t tell me something costs $100,000. I want all $10,000 pieces itemized.”

Purchasing Executive

Move conversation to brand

strategy, event objectives,

measurable results.

Secret #1: example

Don’t Fall in Love

Procurement understands what has value to the

company. They add process for quantifying even

subjective elements.

Secret #2

“Procurement leads the group to a logical, not an emotional, decision.”

Senior Manager, Marketing Procurement

Create an agency selection

scorecard to add objectivity

to the selection process.

Example

Secret #2

Get Close to ROI

Know your “R” in ROI. What do consider as

success in a trade show? Leads? Sample

distribution? Favorable PR?

Secret #3

“Sadly, we don’t do a very good job of quantifying

ROI. If there’s no infrastructure in place to measure

sell-through, then collecting leads is a moot point.”

Group Manager, Strategic Sourcing

Match creative decisions with

financial impact. Set metrics

for what you want to get out

of your exhibit.

Example

Secret #3

Offer Value-Driven Insights

Discuss the total budget, not just the single show

budget. Look at the total life-cycle costs.

Secret #4

“If you are recommending a titanium booth that costs 50%

more than the less fabulous one, tell me why. Maybe it

requires less I&D, maybe fewer screws, maybe less storage.”

Senior Procurement Manager

Ask your agency for creative

ways to save money and build

efficiencies into exhibit design.

Example

Secret #4

Get Procurement Involved Up-Front

Procurement can help manage cost, reduce risk,

and manage the supply chain.

Secret #5

“If the exhibit company shares its process with

[Procurement], the latter tend to believe in its integrity,

which goes a long way to considering the exhibit

company’s prices fair.” -- Procurement Executive

Collaborating with Procurement

helps Marketing get the most out

of the exhibit agency.

“We want our (internal) client to be happy.”

[Once an agency] has been validated, it’s

easier for them to get more business from us.

[That means] pricing is transparent, and legal

terms and conditions are validated.”

“We help take risk out of the equation.”

“It’s all about a collaborative effort.”

Secret #5

5 Secrets

Make costs transparent.1

2

3

4

5

Don’t fall in love.

Get close to ROI.

Offer value-driven insights.

Get Procurement involved up-front.

Questions for Our Speakers

Let’s talk to the pros!

Enter your questions on your screen

We’ll pick as many as we have time for

Thanks for attending!

White paper going out

to all webinar

attendees.

Matrex Exhibits creates 3D environments and solutions that

deliver quantifiable results backed by the industry’s ONLY

performance guarantee. Matrex walks the talk on transparency

by showing clients all competitive bids from subcontractors.

We serve leading companies in a wide variety of industries and

we are the largest woman-owned, WBENC-certified, trade

show services company in the U.S.

www.matrexhibits.com

630-628-2233

Thanks for attending!