PepsiCo has it right and has given its marketing people and the agencies involved with the account an early Christmas present.
Ad Age reported in an article recently they’re eliminating procurement’s involvement in making decisions as it relates to marketing and agencies. Amen! Hallelujah!
I’m all for procurement.
I think it serves a noble purpose…when buying things like chairs and other office supplies. But marketing services? Really?
It’s analogous to what I see in some agencies trying to build up a new business development program by hiring what I like to call a “used car sales guy” – someone who really knows sales, but doesn’t understand a lick about the world of marketing or advertising. I see it all the time. We often enter relationships with agencies on the lead generation side of our business following attempts to make a go at selling – the wrong way.
Procurement is no different.
I understand the need to save money, but like Mike Paxton, the former head of Haagen-Dazs once told me, “You can’t save your way to prosperity”.
And he was right.
We can only hope that what PepsiCo is doing is the start of a bigger movement.
Marketers will benefit because they will have more control and be able to define the RIGHT set of variables that they need to be looking at to make the RIGHT decision for their business.
And of course agencies will win because they will no longer be commoditized to the point they can no longer earn enough to keep their clients ahead of that proverbial curve.