Future of Sourcing - print marketing https://futureofsourcing.com/tags/print-marketing en Celebrating Rock Stars in Marketing Procurement https://futureofsourcing.com/celebrating-rock-stars-in-marketing-procurement <div class="field field-name-field-image field-type-image field-label-hidden"><div class="field-items"><div class="field-item even" rel="og:image rdfs:seeAlso" resource="https://futureofsourcing.com/sites/default/files/articles/Procurement%20rock%20stars.png"><a href="https://futureofsourcing.com/sites/default/files/articles/Procurement%20rock%20stars.png" title="top marketing procurement leaders" class="colorbox" rel="gallery-node-1798-1IsuSBqiCG8"><img typeof="foaf:Image" src="https://futureofsourcing.com/sites/default/files/styles/juicebox_medium/public/articles/Procurement%20rock%20stars.png?itok=97xZbPvO" width="624" height="325" alt="top marketing procurement leaders" title="" /></a></div></div></div><div class="field field-name-body field-type-text-with-summary field-label-hidden"><div class="field-items"><div class="field-item even" property="content:encoded"> <p>The coronavirus pandemic and the &ldquo;social distancing&rdquo; actions taken to control it have resulted in the cancellation of hundreds of trade shows and business-related conferences. One of the COVID-19 casualties was the MarTech West conference that was scheduled for April 15-17 in San Jose, California.</p> <h1>Discover MarTech</h1> <p>Over the past six years, the MarTech conferences (two are held each year) have become premier events for professionals involved in the evaluation, acquisition, implementation, and use of marketing technologies. Fortunately, Third Door Media, the producer of the MarTech conferences, recently hosted a free virtual event to &ldquo;stand in&rdquo; for the MarTech West conference.</p> <p><strong>Discover MarTech</strong> featured keynotes by Scott Brinker, the MarTech conference program chair, and Real Story Group&rsquo;s Tony Byrne. The event also included more than 30 educational sessions. Recordings of the keynotes and educational sessions can be accessed <a href="https://gateway.on24.com/wcc/gateway/eliteThirdDoorMedia2/2255985" target="_blank">here</a>.</p> <h1>Marketing Technology Landscape</h1> <p>I mention this because technology has dramatically altered the practice of marketing over the past several years, and the evolution of marketing has fundamentally changed the kinds of products and services that marketers need to achieve their objectives. The explosive proliferation of marketing technologies has been widely discussed and well documented. For example, <a href="https://chiefmartec.com/2019/04/marketing-technology-landscape-supergraphic-2019/" target="_blank">the 2019 version</a> of Scott Brinker&rsquo;s marketing technology landscape graphic included 7,040 marketing technology solutions.</p> <p>Because of the expanding role of technology, marketing leaders are making substantial investments in technology tools and related services. Last fall, <a href="https://www.gartner.com/en/marketing/research/cmo-spend-survey-2019-2020" target="_blank">a survey of marketing leaders by Gartner</a> found that marketers were spending 26% of their total marketing budget on technology. Obviously, this Gartner survey doesn&rsquo;t capture the impact of the coronavirus outbreak. Still, it&rsquo;s plausible to think that spending on marketing technologies will represent a more significant percentage of marketing budgets in 2020 than it did in 2019.</p> <p>The growing dependence of marketing on technology, and the dynamic, ever-changing marketing technology landscape mean that marketing procurement professionals need to be proficient at sourcing marketing technology products and services.</p> <h1>Marketing Procurement Rock Stars</h1> <p>Over the past several years, I&rsquo;ve had the opportunity to meet, get to know and work with an outstanding group of marketing procurement professionals. Most of these leaders have become deeply involved in helping their marketing colleagues source critical marketing technology tools. So I think it&rsquo;s appropriate to recognize a few of the professionals who are leading a real transformation in marketing procurement.</p> <p>Here are nine rock stars in marketing/marketing technology procurement that I genuinely admire and respect:</p> <ul> <li><a href="https://www.linkedin.com/in/luis-alvarez1508/" target="_blank"><strong><em>Luis Alvarez</em></strong></a><strong><em> &ndash; </em></strong>Luis is currently the Global Strategic Sourcing Manager at 3M Company. He&rsquo;s been with 3M for more than 20 years, serving in several supply chain and operations capacities. Luis is a Six Sigma black belt, and he brings that perspective to his sourcing/supply chain management work.</li> </ul> <ul> <li><a href="https://www.linkedin.com/in/michelledbanks/" target="_blank"><strong><em>Michelle Banks</em></strong></a><strong><em> &ndash;</em></strong> Michelle is currently a Senior Manager in Charles Schwab&rsquo;s Corporate Vendor Management group, supporting the marketing, corporate communication, Schwab Charitable and digital analytics teams with their strategic sourcing needs.&nbsp; She has an MBA, CPSM and is a certified Green Belt. Getting her start in advertising, Michelle&rsquo;s fostered a decade-plus marketing procurement career across multiple industries.&nbsp; She also founded The Darin C. Banks Foundation, a youth education and mentoring non-profit that&rsquo;s awarded over $20,000 in college scholarships.&nbsp;</li> </ul> <ul> <li><a href="https://www.linkedin.com/in/barry-byrne-4550917/" target="_blank"><strong><em>Barry Byrne</em></strong></a><strong><em> &ndash; </em></strong>Barry is the Global Head of Marketing and Retail Procurement at Adidas. Earlier in his career, Barry held various marketing procurement positions at Anheuser-Busch InBev, Carlsberg Group and Diageo. Barry is also the owner of &ldquo;The New Face of Marketing Procurement&rdquo; discussion group at LinkedIn.</li> </ul> <ul> <li><a href="https://www.linkedin.com/in/kathycapozzi/" target="_blank"><strong><em>Kathy Capozzi</em></strong></a><strong><em> &ndash; </em></strong>Kathy&nbsp;is a marketing procurement business partner for Bayer Consumer Health. In this role, she focuses on Amazon, ecommerce, nutrition/digestion and dermatology.</li> </ul> <ul> <li><a href="https://www.linkedin.com/in/tina-fegent-fcips-2103573/" target="_blank"><strong><em>Tina Fegent</em></strong></a><strong><em> &ndash; </em></strong>Tina runs Tina Fegent Consultancy and was one of the pioneers in the marketing procurement space, having worked in it for more than 25 years.&nbsp; Having set up marketing procurement teams at both client and agency side, she now runs a marketing procurement consultancy for marketers, procurement professionalsand also agencies.</li> </ul> <ul> <li><a href="https://www.linkedin.com/in/jillerobbins/" target="_blank"><strong><em>Jill Robbins</em></strong></a><strong><em> &ndash; </em></strong>Jill is the Senior Director of Global Procurement (Indirect Goods and Services) at Elanco. In this role, she leads a global team of sourcing professionals responsible for more than $1.5 billion of spend across indirect goods and services categories, including IT, marketing and sales.</li> </ul> <ul> <li><a href="https://www.linkedin.com/in/dana-small-b3058127/" target="_blank"><strong><em>Dana Small</em></strong></a><strong><em> &ndash; </em></strong>Dana is the Senior Category Manager and Head of Commercial Strategic Sourcing at BioMarin Pharmaceutical. She has been working in the marketing procurement space for more than a decade.</li> </ul> <ul> <li><a href="https://www.linkedin.com/in/asparks5/" target="_blank"><strong><em>Amanda Sparks</em></strong></a><strong><em> &ndash; </em></strong>Amanda is the Senior Category Team Lead for Marketing and Consulting Services at ABB. Amanda&rsquo;s expertise spans both procurement and marketing. She was a Media Manager for Food Lion earlier in her career.</li> </ul> <ul> <li><a href="https://www.linkedin.com/in/sabrina-traskos/" target="_blank"><strong><em>Sabrina Traskos</em></strong></a><strong><em> &ndash; </em></strong>Sabrina oversees global commercial procurement for AstraZeneca. She manages $1B+ in marketing spend.</li> </ul> </div></div></div><div class="field field-name-field-tags field-type-taxonomy-term-reference field-label-inline clearfix"><div class="field-label">Tags:&nbsp;</div><div class="field-items"><div class="field-item even" rel="dc:subject"><a href="/tags/marketing" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Marketing</a></div><div class="field-item odd" rel="dc:subject"><a href="/tags/marketing-procurement" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">marketing procurement</a></div><div class="field-item even" rel="dc:subject"><a href="/tags/marketing-technology" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Marketing Technology</a></div><div class="field-item odd" rel="dc:subject"><a href="/tags/print-marketing" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">print marketing</a></div></div></div><div class="field field-name-field-addthis field-type-addthis field-label-hidden"><div class="field-items"><div class="field-item even"><div class="addthis_toolbox addthis_default_style " addthis:title="Celebrating Rock Stars in Marketing Procurement - Future of Sourcing" addthis:url="https://futureofsourcing.com/celebrating-rock-stars-in-marketing-procurement"><a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_linkedin"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_facebook"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_twitter"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_googleplus"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_pinterest_share"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_reddit"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_email"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_print"></a> </div> </div></div></div><div class="field field-name-field-region field-type-taxonomy-term-reference field-label-inline clearfix"><div class="field-label">Region:&nbsp;</div><div class="field-items"><div class="field-item even"><a href="/regions/global" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Global</a></div></div></div> Fri, 19 Jun 2020 23:30:32 +0000 Sarah Scudder 1798 at https://futureofsourcing.com https://futureofsourcing.com/celebrating-rock-stars-in-marketing-procurement#comments A Vital Step to Managing Marketing Spending During a Pandemic https://futureofsourcing.com/a-vital-step-to-managing-marketing-spending-during-a-pandemic <div class="field field-name-field-image field-type-image field-label-hidden"><div class="field-items"><div class="field-item even" rel="og:image rdfs:seeAlso" resource="https://futureofsourcing.com/sites/default/files/articles/Copy%20of%20FoS%20Header%20Images%20%2816%29.png"><a href="https://futureofsourcing.com/sites/default/files/articles/Copy%20of%20FoS%20Header%20Images%20%2816%29.png" title=" Managing Marketing Spending During a Pandemic" class="colorbox" rel="gallery-node-1733-1IsuSBqiCG8"><img typeof="foaf:Image" src="https://futureofsourcing.com/sites/default/files/styles/juicebox_medium/public/articles/Copy%20of%20FoS%20Header%20Images%20%2816%29.png?itok=MigI4gLj" width="624" height="325" alt=" Managing Marketing Spending During a Pandemic" title="" /></a></div></div></div><div class="field field-name-field-intro field-type-text-long field-label-hidden"><div class="field-items"><div class="field-item even"> <p><em><strong>The global pandemic of COVID-19, the disease caused by the novel coronavirus, is disrupting economic activity around the world. Governments have closed their borders, shuttered many types of businesses and taken other dramatic actions to create social distancing in order to mitigate the spread of the disease.</strong></em></p> </div></div></div><div class="field field-name-field-related-news field-type-entityreference field-label-above"><div class="field-label">Related news:&nbsp;</div><div class="field-items"><div class="field-item even"><a href="/are-online-marketplaces-right-for-printing-and-marketing-services">Are Online Marketplaces Right for Printing and Marketing Services?</a></div></div></div><div class="field field-name-body field-type-text-with-summary field-label-hidden"><div class="field-items"><div class="field-item even" property="content:encoded"> <p>As I am writing this article in late March, the full economic fallout from COVID-19 is not yet known and, in fact, will remain unknown for a while. However, two things are clear. The economic repercussions of COVID-19 will be huge and marketing spending is about to be put under the microscope in ways that we haven&rsquo;t seen since the &ldquo;great recession&rdquo; of 2008-2009.</p> <p>Some companies have already made substantial cuts in marketing spending in response to the pandemic, and many others will be facing such decisions soon. According to recent media reports, companies in the travel industry (airlines, hotels, cruise lines, etc.) reduced advertising spending by nearly 50% during the first two weeks of March, compared to the same period of last year. Companies in other industries are likely to follow suit. During the recession of 2008-2009,the growth rate of worldwide advertising spending fell from 5.7% in 2007 to 0.0% in 2008 to -9.5% in 2009, <a href="https://www.statista.com/statistics/272443/growth-of-advertising-spending-worldwide/" target="_blank">according to Statista</a>.</p> <h1>Move Smart, Not Rash</h1> <p>The need to reduce costs during an economic downturn is obvious, but there is substantial evidence showing that deep and indiscriminate cuts in marketing spending are usually a mistake. Numerous research studies have demonstrated that maintaining marketing spending during an economic slowdown has a strong relationship with long-term profit, shareholder value and customer loyalty.</p> <p>Therefore, during the COVID-19 epidemic, it&rsquo;s vital for business, marketing and procurement leaders to make smart &ndash; rather than rash &ndash; decisions about marketing spending levels. And when it is necessary to reduce the marketing spending, it&rsquo;s better to use a scalpel than a cleaver.</p> <p>There are no silver bullet solutions for this challenge, and no solution will be right for every company. But there are some steps that all company leaders should be taking to guide their decision-making process.</p> <p>In <a href="https://hbr.org/2009/04/how-to-market-in-a-downturn-2" target="_blank">a 2009 article in the <em>Harvard Business Review</em></a>, John Quelch and Katherine Jocz described a model for how to manage marketing in an economic downturn. While this article is now more than a decade old, it is highly relevant today because it was written and published near the end of the recession of 2008-2009 and reflects the experiences of companies during that and earlier downturns.</p> <h1>The Four Customer Groups</h1> <p>Quelch and Jocz wrote that company leaders should take a basic step before making significant changes in marketing strategy or marketing spending. They argued that economic downturns change the psychology of customers and that companies need to segment their customers based on this &ldquo;recession psychology.&rdquo; They recommend that business leaders think of their customers as falling into one of four groups:</p> <ol> <li><strong><em>&ldquo;Slam-on-the-brakes&rdquo; &ndash; </em></strong>These customers feel the most vulnerable during an economic downturn, and therefore they reduce all types of spending. This segment will usually include lower-income customers, but it can also include more anxious higher-income customers.</li> </ol> <ol> <li value="2"><strong><em>&ldquo;Pained-but-patient&rdquo; &ndash; </em></strong>These customers are relatively optimistic about the long term, but not so optimistic about the prospects for recovery in the short term. They tend to economize in all areas, but do so to a lesser extent than the <em>slam-on-the-brakes</em> customers. For many companies, this will be the largest customer segment.</li> </ol> <ol> <li value="3"><strong><em>&ldquo;Comfortably well-off&rdquo;</em></strong> &ndash; These customers typically have higher incomes and feel secure about their ability to ride out the economic downturn. For the most part, these customers do not make major changes in their buying habits, although they may become somewhat more selective.</li> </ol> <ol> <li value="4"><strong><em>&ldquo;Live</em></strong>-<strong><em>for-today&rdquo;</em></strong> &ndash; These customers tend to carry on as usual unless they become unemployed. They respond to a downturn mainly by extending their timetables for making major purchases.</li> </ol> <h1>Customer Purchase Prioritization</h1> <p>Quelch and Jocz also argued that during an economic downturn, all customers will prioritize their purchases by mentally placing products and services into one of four categories:</p> <ol> <li><strong><em>&ldquo;Essentials&rdquo; &ndash; </em></strong>Products and services that are necessary for survival or basic well-being</li> </ol> <ol> <li value="2"><strong><em>&ldquo;Treats&rdquo; &ndash;</em></strong> Products and services that aren&rsquo;t strictly essential, but are considered justifiable in some way</li> </ol> <ol> <li value="3"><strong><em>&ldquo;Postponables&rdquo; &ndash;</em></strong> Products and services that are needed or desired, but whose purchase can be delayed</li> </ol> <ol> <li value="4"><strong><em>&ldquo;Expendables&rdquo; &ndash;</em></strong> Products and services that customers view as unnecessary or unjustifiable</li> </ol> <p>As a first step to managing marketing spending through an economic crisis, business leaders need to map their products and/or services to these customer segments and product/service categories. This analysis will enable company leaders to tailor marketing tactics and spending levels based on customer psychology, their likely buying habits, and how they prioritize specific products and services.</p> <p>This analysis will not make marketing decisions easier, but it will enable business leaders to make more informed and strategic decisions that will minimize pain in the short run and position the company for success when the crisis abates.</p> </div></div></div><div class="field field-name-field-tags field-type-taxonomy-term-reference field-label-inline clearfix"><div class="field-label">Tags:&nbsp;</div><div class="field-items"><div class="field-item even" rel="dc:subject"><a href="/tags/marketing" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Marketing</a></div><div class="field-item odd" rel="dc:subject"><a href="/tags/print-marketing" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">print marketing</a></div><div class="field-item even" rel="dc:subject"><a href="/tags/spend-management" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Spend Management</a></div><div class="field-item odd" rel="dc:subject"><a href="/tags/financial-crisis" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Financial Crisis</a></div></div></div><div class="field field-name-field-addthis field-type-addthis field-label-hidden"><div class="field-items"><div class="field-item even"><div class="addthis_toolbox addthis_default_style " addthis:title="A Vital Step to Managing Marketing Spending During a Pandemic - Future of Sourcing" addthis:url="https://futureofsourcing.com/a-vital-step-to-managing-marketing-spending-during-a-pandemic"><a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_linkedin"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_facebook"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_twitter"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_googleplus"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_pinterest_share"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_reddit"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_email"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_print"></a> </div> </div></div></div><div class="field field-name-field-region field-type-taxonomy-term-reference field-label-inline clearfix"><div class="field-label">Region:&nbsp;</div><div class="field-items"><div class="field-item even"><a href="/regions/global" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Global</a></div></div></div> Thu, 02 Apr 2020 22:29:57 +0000 Sarah Scudder 1733 at https://futureofsourcing.com https://futureofsourcing.com/a-vital-step-to-managing-marketing-spending-during-a-pandemic#comments Why Sustainable Procurement is Becoming a Bigger Deal https://futureofsourcing.com/why-sustainable-procurement-is-becoming-a-bigger-deal <div class="field field-name-field-image field-type-image field-label-hidden"><div class="field-items"><div class="field-item even" rel="og:image rdfs:seeAlso" resource="https://futureofsourcing.com/sites/default/files/articles/Why%20Sustainable%20Procurement%20is%20Becoming%20a%20Bigger%20Deal.png"><a href="https://futureofsourcing.com/sites/default/files/articles/Why%20Sustainable%20Procurement%20is%20Becoming%20a%20Bigger%20Deal.png" title="Sustainable Procurement " class="colorbox" rel="gallery-node-1727-1IsuSBqiCG8"><img typeof="foaf:Image" src="https://futureofsourcing.com/sites/default/files/styles/juicebox_medium/public/articles/Why%20Sustainable%20Procurement%20is%20Becoming%20a%20Bigger%20Deal.png?itok=e7JTuXW8" width="624" height="325" alt="Sustainable Procurement " title="" /></a></div></div></div><div class="field field-name-field-related-news field-type-entityreference field-label-above"><div class="field-label">Related news:&nbsp;</div><div class="field-items"><div class="field-item even"><a href="/how-to-know-if-your-print-suppliers-are-green">How to Know if Your Print Suppliers are “Green”</a></div><div class="field-item odd"><a href="/sustainable-procurement-what-you-need-to-know">Sustainable Procurement: What You Need to Know</a></div></div></div><div class="field field-name-body field-type-text-with-summary field-label-hidden"><div class="field-items"><div class="field-item even" property="content:encoded"> <p>Several recent developments suggest that sustainable procurement is about to become a more significant priority for business and procurement leaders. In August of last year, for example, the <a href="https://www.businessroundtable.org/" target="_blank">Business Roundtable</a> &ndash; a non-profit association whose members are the CEOs of major U.S. companies &ndash; captured widespread public attention when it released a new <a href="https://opportunity.businessroundtable.org/wp-content/uploads/2020/02/BRT-Statement-on-the-Purpose-of-a-Corporation-with-Signatures-Feb2020.pdf" target="_blank"><em>Statement on the Purpose of a Corporation</em></a>.</p> <p>In earlier statements, the Business Roundtable had asserted that the primary purpose of a corporation is to serve its shareholders. The 2019 statement changes direction rather dramatically and states that corporations must serve the interests of a broader set of stakeholders, including &ldquo;communities.&rdquo;</p> <p>The new statement reads in part:</p> <p><em>&ldquo;We commit to:&nbsp;</em><em>. . .&nbsp;</em><em>Supporting the communities in which we work. We respect the people in our communities and protect the environment by embracing sustainable practices across our businesses.&rdquo;</em></p> <p>Earlier this year, <a href="https://www.blackrock.com/" target="_blank">BlackRock</a> &ndash; the world&rsquo;s largest money manager with over $7 trillion of assets under management &ndash; announced that it is overhauling its investment strategy to make sustainability a major criterion for evaluating potential investments. In its <a href="https://www.blackrock.com/uk/individual/blackrock-client-letter" target="_blank">January letter to clients</a>, BlackRock&rsquo;s global executive committee wrote:</p> <p><em>&ldquo;Because sustainable investment options have the potential to offer clients better outcomes, we are making sustainability integral to the way BlackRock manages risk, constructs portfolios, designs products and engages with companies. We believe that sustainability should be our new standard for investing.&rdquo;</em></p> <p>BlackRock isn&rsquo;t the only investor focused on sustainability. Both institutional and individual investors are increasingly interested in &ldquo;ESG&rdquo; (environmental-social-governance) investing. <a href="https://www.morningstar.com/lp/sustainable-funds-landscape-report" target="_blank">A 2019 research report by Morningstar</a> stated that in 2018, there were 351 &ldquo;sustainable&rdquo; funds available to U.S. investors, up from 235 such funds in 2017. This report also found that 2018 was the third consecutive year that sustainable funds received record cash inflows.</p> <h1>Impact of Sustainable Procurement</h1> <p>Company leaders are bound to take notice when investors begin making their investment decisions based on sustainability factors. So we are likely to see many companies intensify their efforts to conduct business operations in a more sustainable way.</p> <p>The growing focus on sustainability will impact companies of all sizes. That&rsquo;s because business leaders recognize that the environmental reputation of their company is strongly affected by the environmental practices of their suppliers. <a href="https://www.mckinsey.com/business-functions/sustainability/our-insights/starting-at-the-source-sustainability-in-supply-chains" target="_blank">Recent research by McKinsey &amp; Company</a> found that the typical CPG company&rsquo;s supply chain accounts for more than 80% of total greenhouse emissions and more than 90% of the total environmental impact on air, land, water, biodiversity and geological resources.</p> <p>The bottom line is, it&rsquo;s nearly impossible for a company to build a winning record for environmental sustainability unless it works with suppliers that also use sound environmental practices. Therefore, it&rsquo;s likely that many companies will be making sustainable procurement a more important strategic priority.</p> <h1>Applying Sustainable Procurement to Print</h1> <p>Print and marketing services procurement is the primary focus of my company&rsquo;s business, and the good news is, it&rsquo;s relatively easy to apply sustainable procurement to the acquisition of printed materials. There are several independent organizations that provide certifications for firms operating in the printing industry. Sourcing professionals can use these certifications when choosing among competing suppliers, or they can require companies to possess one or more of these certifications to qualify as an approved supplier.</p> <p>There are four widely used environmental certifications available to printing firms, below is&nbsp;a brief description of each.</p> <p>Forest Stewardship Council (FSC)<strong> </strong>&ndash;<strong> </strong>The Forest Stewardship Council provides two types of certifications &ndash; Forest Management and Chain-of-Custody. The Forest Management certification confirms that a specific area of forest is being managed in an environmentally sustainable manner. The Chain-of-Custody certification traces the path of products from forests through the supply chain. In the case of printed materials, the Chain-of-Custody certification means that the products were printed on paper that was produced from FSC-certified forests.</p> <p>Sustainable Forestry Initiative (SFI)<strong> </strong>&ndash;<strong> </strong>SFI has a Chain-of-Custody Standard that is similar to FSC&rsquo;s. It is a system for tracking forest fiber content through production and manufacturing to end products.</p> <p>Programme for the Endorsement of Forest Certification (PEFC) &ndash; PEFC is a global alliance of national forest certification systems. It provides a Chain of Custody certification that is similar to those offered by FSC and SFI.</p> <p>Sustainable Green Printing Partnership (SGP)<strong> </strong>&ndash; The certification provided by the Sustainable Green Printing Partnership is significantly broader than the chain-of-custody certifications provided by FSC, SFI and PEFC. The standards used in the SGP certification process cover practices relating to energy and other resource consumption, waste reduction and greenhouse emissions, among others. Therefore, SGP certification indicates that a printing company is using a range of business practices that support environmental sustainability.</p> <p>It&rsquo;s clear that public opinion about climate change and environmental sustainability has changed significantly over the past several years. There is a growing perception that climate change is real and it appears that many business leaders now believe it is in their best interest to step up their efforts on sustainability. That&rsquo;s why sustainable procurement is about to become an even bigger deal.</p> </div></div></div><div class="field field-name-field-tags field-type-taxonomy-term-reference field-label-inline clearfix"><div class="field-label">Tags:&nbsp;</div><div class="field-items"><div class="field-item even" rel="dc:subject"><a href="/tags/sustainability" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Sustainability</a></div><div class="field-item odd" rel="dc:subject"><a href="/tags/sustainable-sourcing" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Sustainable Sourcing</a></div><div class="field-item even" rel="dc:subject"><a href="/tags/print-marketing" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">print marketing</a></div><div class="field-item odd" rel="dc:subject"><a href="/tags/sustainable-procurement" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Sustainable Procurement</a></div></div></div><div class="field field-name-field-addthis field-type-addthis field-label-hidden"><div class="field-items"><div class="field-item even"><div class="addthis_toolbox addthis_default_style " addthis:title="Why Sustainable Procurement is Becoming a Bigger Deal - Future of Sourcing" addthis:url="https://futureofsourcing.com/why-sustainable-procurement-is-becoming-a-bigger-deal"><a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_linkedin"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_facebook"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_twitter"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_googleplus"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_pinterest_share"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_reddit"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_email"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_print"></a> </div> </div></div></div><div class="field field-name-field-region field-type-taxonomy-term-reference field-label-inline clearfix"><div class="field-label">Region:&nbsp;</div><div class="field-items"><div class="field-item even"><a href="/regions/global" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Global</a></div></div></div> Thu, 26 Mar 2020 17:08:01 +0000 Sarah Scudder 1727 at https://futureofsourcing.com https://futureofsourcing.com/why-sustainable-procurement-is-becoming-a-bigger-deal#comments Are Online Marketplaces Right for Printing and Marketing Services? https://futureofsourcing.com/are-online-marketplaces-right-for-printing-and-marketing-services <div class="field field-name-field-image field-type-image field-label-hidden"><div class="field-items"><div class="field-item even" rel="og:image rdfs:seeAlso" resource="https://futureofsourcing.com/sites/default/files/articles/Copy%20of%20FoS%20Header%20Images%20%281%29.png"><a href="https://futureofsourcing.com/sites/default/files/articles/Copy%20of%20FoS%20Header%20Images%20%281%29.png" title="Online Marketplaces for Printing and Marketing Services" class="colorbox" rel="gallery-node-1712-1IsuSBqiCG8"><img typeof="foaf:Image" src="https://futureofsourcing.com/sites/default/files/styles/juicebox_medium/public/articles/Copy%20of%20FoS%20Header%20Images%20%281%29.png?itok=HKbb5HgV" width="624" height="325" alt="Online Marketplaces for Printing and Marketing Services" title="" /></a></div></div></div><div class="field field-name-field-related-news field-type-entityreference field-label-above"><div class="field-label">Related news:&nbsp;</div><div class="field-items"><div class="field-item even"><a href="/the-predictably-irrational-appeal-of-print-marketing">The Predictably Irrational Appeal of Print Marketing</a></div></div></div><div class="field field-name-body field-type-text-with-summary field-label-hidden"><div class="field-items"><div class="field-item even" property="content:encoded"> <p>Recently, two publications addressed the growing importance of online marketplaces in the B2B corporate procurement landscape. Both publications examined the potential benefits of B2B online marketplaces while also acknowledging that these platforms still have significant limitations, particularly when it comes to supporting the procurement of complex needs like marketing, legal and other professional services.</p> <h1>The Hackett Group Research Report</h1> <p>The first publication was a research report titled &ldquo;<a href="https://www.amazonbusiness.com/l/54552/2019-07-15/rxd71y?utm_content=Hackett&amp;utm_source=blog" target="_blank">Examining the Value and Use Cases of Business-to-Business Online Open Marketplaces</a>&rdquo; by The Hackett Group. In this report, The Hackett Group observed that corporate procurement leaders increasingly see online marketplaces as an effective tool for reducing costs, managing tail spend complexity and increasing stakeholder satisfaction.</p> <p>The report identified several &ldquo;hard&rdquo; and &ldquo;soft&rdquo; benefits that B2B marketplaces can potentially provide, including:</p> <ul> <li>Elimination of supplier onboarding</li> <li>Elimination of supplier maintenance</li> <li>Savings from competition</li> <li>Reduced shopping time</li> <li>Increased stakeholder satisfaction</li> <li>Reduced maverick spending</li> <li>Increased visibility into purchases</li> </ul> <p>The Hackett Group also identified several types of purchases not suitable for the current generation of B2B online marketplaces:</p> <ul> <li>Most services &ndash; B2B marketplaces are generally product-only, although this is beginning to change</li> <li>Items that require extensive product discovery and/or supplier interactions</li> <li>Items that must be purchased under a detailed contract</li> <li>Items that require inventory control</li> </ul> <p>The report noted that these considerations will usually eliminate most types of direct materials procurement.</p> <h1>The McKinsey Article</h1> <p>Last fall, McKinsey &amp; Company published the article &ldquo;<a href="https://www.mckinsey.com/business-functions/operations/our-insights/how-b2b-online-marketplaces-could-transform-indirect-procurement" target="_blank">How B2B online marketplaces could transform indirect procurement</a>.&rdquo; McKinsey noted that B2B marketplaces have not yet penetrated large corporate purchasing departments, but that this appears poised to change. The firm argued this shift is being driven by the need to gain better control of indirect spending, particularly tail spend, and by the growing presence of younger procurement leaders who are more comfortable with online buying.</p> <p>The McKinsey article described several potential perks of B2B online marketplaces, including greater vendor choice, one-stop shopping and cost savings. Perhaps more importantly, the article argued, online marketplaces can effectively free procurement teams from time-consuming and often repetitive transactional work so they can focus more of their time on higher value activities.</p> <p>McKinsey observed four basic types of B2B online marketplaces, although the boundaries between these categories aren&rsquo;t always sharp:</p> <ul> <li><strong>Product-focused marketplaces &ndash; </strong>Expect these to focus almost exclusively on products like office supplies, MRO supplies, furniture and similar offerings. Think Amazon Business and Alibaba.</li> </ul> <ul> <li><strong>Time-and-materials marketplaces &ndash; </strong>These usually offer things like freight services, temporary labor and facilities management services.</li> </ul> <ul> <li><strong>Scope-of-work marketplaces &ndash; </strong>A marketplace of this stripe will typically focus on more complex services such as marketing, legal and consulting services.</li> </ul> <ul> <li><strong>Corporate spinoff marketplaces &ndash;</strong> As the name indicates, these marketplaces began as &ldquo;captive&rdquo; platforms used by a single company and were later opened to other corporate buyers.</li> </ul> <p>McKinsey acknowledged that the growth of B2B online marketplaces is not assured, but the firm also argued that scope-of-work marketplaces seem positioned for success. McKinsey believes it&rsquo;s likely that niche marketplaces will evolve to serve specialized markets such as legal or marketing services.</p> <h1>Can Marketplaces Work for Print and Marketing Services?</h1> <p>So, can online marketplaces be effectively used to procure printing and marketing services? In my view, most B2B online marketplaces, as currently configured anyway, are not an optimal solution for sourcing most printing and marketing services. However, an e-sourcing solution that has been purpose built for printing and marketing services can provide most of the important benefits of an online marketplace.</p> <p>One of the key advantages of an online marketplace is a simple shopping/buying process, and a well-designed e-sourcing solution can provide a similar benefit. When procuring printing or marketing services, one of the core tasks buyers must perform is to provide an adequate description of the desired product or service. Buyers do this by creating detailed project specifications.</p> <p>A well-designed e-sourcing solution will simplify the process of creating complete and accurate specifications by providing an extensive library of pre-defined product &ldquo;types&rdquo; that guides buyers through the task of entering all relevant specifications.</p> <p>Online marketplaces can be a drawcard by providing buyers access to an expanded set of potential suppliers. An e-sourcing solution for printing and marketing services can deliver a similar benefit if the solution provider creates a robust network of vetted suppliers and gives its clients access to that supplier network.</p> <p>The bottom line is that online marketplaces are beginning to play a more prominent role in the procurement function of larger enterprises, and that role is likely to grow as the scope of products and services offered via marketplaces expands and their functionality improves.</p> <p>But today, most organizations will still be better served to use a specialized e-sourcing tool to manage the procurement of printing and marketing services.</p> </div></div></div><div class="field field-name-field-tags field-type-taxonomy-term-reference field-label-inline clearfix"><div class="field-label">Tags:&nbsp;</div><div class="field-items"><div class="field-item even" rel="dc:subject"><a href="/tags/print-marketing" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">print marketing</a></div><div class="field-item odd" rel="dc:subject"><a href="/tags/b2b" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">B2B</a></div><div class="field-item even" rel="dc:subject"><a href="/tags/online-marketplace" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">online marketplace</a></div></div></div><div class="field field-name-field-addthis field-type-addthis field-label-hidden"><div class="field-items"><div class="field-item even"><div class="addthis_toolbox addthis_default_style " addthis:title="Are Online Marketplaces Right for Printing and Marketing Services? - Future of Sourcing" addthis:url="https://futureofsourcing.com/are-online-marketplaces-right-for-printing-and-marketing-services"><a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_linkedin"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_facebook"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_twitter"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_googleplus"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_pinterest_share"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_reddit"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_email"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_print"></a> </div> </div></div></div><div class="field field-name-field-region field-type-taxonomy-term-reference field-label-inline clearfix"><div class="field-label">Region:&nbsp;</div><div class="field-items"><div class="field-item even"><a href="/regions/global" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Global</a></div></div></div> Fri, 28 Feb 2020 14:56:40 +0000 Sarah Scudder 1712 at https://futureofsourcing.com https://futureofsourcing.com/are-online-marketplaces-right-for-printing-and-marketing-services#comments The Predictably Irrational Appeal of Print Marketing https://futureofsourcing.com/the-predictably-irrational-appeal-of-print-marketing <div class="field field-name-field-image field-type-image field-label-hidden"><div class="field-items"><div class="field-item even" rel="og:image rdfs:seeAlso" resource="https://futureofsourcing.com/sites/default/files/articles/The%20Predictably%20Irrational%20Appeal%20of%20Print%20Marketing.png"><a href="https://futureofsourcing.com/sites/default/files/articles/The%20Predictably%20Irrational%20Appeal%20of%20Print%20Marketing.png" title="The Predictably Irrational Appeal of Print Marketing" class="colorbox" rel="gallery-node-1675-1IsuSBqiCG8"><img typeof="foaf:Image" src="https://futureofsourcing.com/sites/default/files/styles/juicebox_medium/public/articles/The%20Predictably%20Irrational%20Appeal%20of%20Print%20Marketing.png?itok=uYjkx7wX" width="624" height="325" alt="The Predictably Irrational Appeal of Print Marketing" title="" /></a></div></div></div><div class="field field-name-field-related-news field-type-entityreference field-label-above"><div class="field-label">Related news:&nbsp;</div><div class="field-items"><div class="field-item even"><a href="/what-procurement-pros-need-to-know-about-trends-in-marketing-spending-for-2020">What Procurement Pros Need to Know About Trends in Marketing Spending for 2020</a></div></div></div><div class="field field-name-body field-type-text-with-summary field-label-hidden"><div class="field-items"><div class="field-item even" property="content:encoded"> <p>For years, many advocates of print-based marketing channels and tactics have argued that the physical and tactile nature of tangible marketing materials make them more appealing and persuasive than purely digital forms of communications. Until recently, however, these arguments have been based mostly on instinct or intuition rather than on hard scientific evidence.</p> <p>Over the past decade, several research studies have used neuroscience techniques to evaluate the effectiveness of physical vs. digital communications. These studies have consistently shown that the human brain is wired to like, trust and respond to marketing communications that use physical media.</p> <p>One of the important studies was conducted in 2015 by Temple University&rsquo;s Center for Neural Decision Making on behalf of the United States Postal Service Office of Inspector General. &ldquo;<a href="https://www.uspsoig.gov/document/enhancing-value-mail-human-response" target="_blank">Enhancing the Value of Mail: The Human Response</a>&rdquo; used survey questionnaires, eye tracking, core biometrics, and neuroimaging to evaluate differing responses to physical and digital media in the consumer buying process. The research found:</p> <ul> <li>Study participants processed digital content faster but spent more time with physical media.</li> <li>Study participants had a stronger emotional response and remembered the content better when viewing physical media.</li> <li>The brain activity of study participants indicated greater subconscious value and desire for products and services that were promoted in physical media.</li> </ul> <p>A second important study evaluated the relative effectiveness of direct mail vs. email and digital display by way of their impacts on the human brain. This research was conducted by the neuromarketing research firm True Impact Marketing for Canada Post. &ldquo;<a href="https://www.canadapost.ca/assets/pdf/blogs/CPC_Neuroscience_EN_150717.pdf" target="_blank">A Bias for Action</a>&rdquo; showed direct mail is:</p> <ul> <li>Easier to understand and more memorable than digital media</li> <li>More persuasive than digital media</li> <li>Visually processed quicker than digital media</li> <li>More likely to drive behavior than digital media</li> </ul> <p>The continuing effectiveness of print-based marketing is evident from the recent resurgence of direct mail. <a href="https://www.ana.net/miccontent/show/id/ii-dma-2018-statistical-fact-book" target="_blank">According to the Data &amp; Marketing Association</a> (now a division of the Association of National Advertisers), the response rates produced by direct mail in 2018 were the highest in nearly a decade, as the following chart shows:</p> <p><img alt="United States Direct Mail Response Rates" src="https://futureofsourcing.com/sites/default/files/U.S.%20Direct%20Mail%20Response%20Rates-SIG%20Article.png" style="width: 594px; height: 416px;" /></p> <p><span style="font-size: 13.008px;">It&rsquo;s also clear that after a period of what might be called excessive infatuation with all things digital, many marketers are again recognizing the value of physical marketing communications. In </span><a href="https://library.lob.com/the-state-of-direct-mail/" style="font-size: 13.008px;" target="_blank">a 2019 survey</a><span style="font-size: 13.008px;"> of marketing executives and managers at North American companies by Lob.com, more than 60% of the respondents agreed or strongly agreed direct mail &ldquo;delivers the best response rates&rdquo; and &ldquo;shows the best ROI&rdquo; of all the marketing channels they are currently using.</span></p> <p>Frontline marketing practitioners are also finding that adding physical communication elements to multichannel marketing programs improves performance. In a 2019 survey of marketers conducted by Demand Metric, over half of the respondents said they include direct mail in their multichannel marketing programs, and 80% of those respondents reported that direct mail improved the performance of their campaigns.</p> <p>The persistent appeal of physical marketing materials cannot be explained on a purely rational basis. But as both psychologists and marketers have long recognized, human beings are not purely rational creatures.</p> <p>And now, many economists also acknowledge human beings often make economic decisions for non-rational reasons. The rapidly evolving discipline of behavioral economics, led by people like Daniel Kahneman and Dan Ariely (his best-selling book &ldquo;Predictably Irrational&rdquo; inspired the title of this article), is based on this fundamental principle.</p> <p>The intrinsic psychological appeal of printed marketing materials goes far to explain their continued effectiveness in a world increasingly dominated by digital communication methods. Printed marketing materials have also remained effective because personalization technologies have enabled marketers to make them more relevant for customers and prospects.</p> <p>Print personalization technologies have been on the scene for more than two decades, but personalized print was not rapidly adopted because high production costs made its ROI uncertain.</p> <p>Over the past few years, however, the economics of personalized print have improved, and the value of personalized marketing has become clear. As a result, the use of personalized printed materials has been growing. In the survey by Lob.com mentioned earlier, 58% of the respondents reported using some form of personalized direct mail.</p> <p>Recent technological advances have also made it possible to automatically trigger the use of personalized physical marketing communications based on specific online prospect or customer behaviors. This means it is now much easier to incorporate printed marketing materials into multichannel marketing programs.</p> <p>The bottom line for marketers and marketing procurement professionals is that printed marketing materials aren&rsquo;t going away any time soon and are likely to remain an important component of the marketing communications mix for the foreseeable future.</p> </div></div></div><div class="field field-name-field-tags field-type-taxonomy-term-reference field-label-inline clearfix"><div class="field-label">Tags:&nbsp;</div><div class="field-items"><div class="field-item even" rel="dc:subject"><a href="/tags/print-marketing" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">print marketing</a></div><div class="field-item odd" rel="dc:subject"><a href="/tags/procurement" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Procurement</a></div><div class="field-item even" rel="dc:subject"><a href="/tags/marketing" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Marketing</a></div></div></div><div class="field field-name-field-addthis field-type-addthis field-label-hidden"><div class="field-items"><div class="field-item even"><div class="addthis_toolbox addthis_default_style " addthis:title="The Predictably Irrational Appeal of Print Marketing - Future of Sourcing" addthis:url="https://futureofsourcing.com/the-predictably-irrational-appeal-of-print-marketing"><a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_linkedin"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_facebook"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_twitter"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_googleplus"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_pinterest_share"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_reddit"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_email"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_print"></a> </div> </div></div></div><div class="field field-name-field-region field-type-taxonomy-term-reference field-label-inline clearfix"><div class="field-label">Region:&nbsp;</div><div class="field-items"><div class="field-item even"><a href="/regions/global" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Global</a></div></div></div> Thu, 16 Jan 2020 18:05:12 +0000 Sarah Scudder 1675 at https://futureofsourcing.com https://futureofsourcing.com/the-predictably-irrational-appeal-of-print-marketing#comments