Obsolete marketing materials constitute a major problem for many companies. The CMO Council has said that obsolescence creates an epidemic of waste that undermines the development of an efficient marketing supply chain. In a recent CMO Council survey:
- 60% of respondents said they spend at least 20% of their total budget on consumables (primarily printed materials such as collateral documents, promotional items, and point-of-sale materials)
- 40% of respondents said they waste 20% or more of their marketing materials because of obsolescence.
A waste of Marketing spend
Obsolete materials represent a complete waste of marketing spend. The cost of obsolete materials is essentially an investment in marketing communications that never reach the intended audience. A closet or storeroom or trash container filled with obsolete materials is a visible manifestation of budget funds that could have been used to support productive marketing programs.
Just as important, the use of obsolete materials can adversely affect marketing effectiveness. In the CMO Council survey cited above, 51% of respondents admitted that they had sent materials to customers or prospects that contained outdated information. In today’s business environment, every interaction with a potential buyer is important, and sales can easily be lost if prospects are provided outdated information.
Obsolescence can occur for a variety of reasons, but two stand out in importance.
- Shortened product/service updating cycles and changing market conditions make frequent revision of marketing materials necessary.
- The economics of traditional procurement and manufacturing processes entice companies to acquire most material in relatively large quantities, which increases the likelihood that they will become obsolete before they can be used.
Reduce obsolescence
A marketing execution platform can dramatically reduce obsolescence waste by eliminating the need to acquire materials in large quantities. One core component of a comprehensive MEP is an online store of marketing materials. The storefront technology (often called web-to-print) enables marketers, sales reps, channel partners, and other authorized users to easily and quickly order sales support materials.
The online ordering system is linked to a production/fulfillment supplier who uses on-demand manufacturing technologies to produce most collateral on an as-ordered basis. The combination of simple online ordering and on-demand manufacturing makes it easy and cost effective for companies to acquire most marketing materials in small quantities as they are needed. The result is a much lower rate of materials obsolescence.
If you struggle with obsolescence, a marketing executing platform may be the right cure for your disease.
This post was also published on the Adam Software blog. . .
