John Shannon presents an articulate case that agencies are experiencing a pressure to cut costs, which can impact negatively on resources and consequently on the quality of work produced “Margin erosion is a losing tactic” (MW April 5). The solution, however, is not bigger budgets. The debate must be about value, not costs – the common goal, not the bone of contention.
Instead of automatically assuming a defensive position in an attempt to guard budgets, agencies would have a stronger case if they demonstrated clearly how their work will generate real commercial benefits.
All the techniques for this type of marketing audit are available; it is the will that seems to be lacking.
Having completed marketing audits in a number of organisations, I suggest that providing facts and figures which show how money spent generates returns is usually enough to win people over (including accountants) and is a lot more professional.