IMC operatives shouldn’t entirely jettison ‘120 days’ credit policy, says Audience & Brands boss
Business operators in Nigeria’s Integrated Marketing Communications (IMC) sector have been advised not to entirely jettison the 120 days credit term policy offered by multinational companies, but rather to find a way to adjust and accommodate the payment term into the financial plan of their various businesses.
Giving this admonition was an Out-of-Home advertising industry expert, Ugochukwu Oborgu while speaking in exclusive interview with MARKETING EDGE in Lagos, recently.
Oborgu who is Chief Innovations Consultant at Audience and Brands Consulting Limited believes that the controversial 120 days payment policy proposal of the multinationals was a true reflection of the current depressed state of the Nigerian economy, hence, he says operators in the IMC sector needed to show positive considerations if they were to make head ways in business.
“This is a reflection of the economy and nobody will say truly that the economy is looking good for multinational companies. So, is it not better you have a change in credit timing than not having anything at all?
“If a multinational company feels that it will not be able to pay in 45 days because of other commitments (may be in terms of production technology or improvements in man power) and feels that advertising is still part of its investment plan but will pay its agency in 60 days instead of 45 days; I think it’s better for practitioners of advertising to accept that than to say no and walk away.”
He added: “I think we are helping those brands to create awareness, to remain in the faces of their consumers while at the same time adjusting ourselves in terms of our own financial plans to make sure that the economy itself is lifted out of the log jam.”
According to the company boss, the industry was capable of adjusting itself to survive on the credit term through entering into quality negotiations with the multinationals, stressing that the credit terms could be re-negotiated and so well adjusted to benefit the agency operators as soon as the economy improves and come out of the log jam.
“The word I used is adjustment. And nothing is cast in stones. Today, its 45 days, if the economy improves and there is competition, 45 days could turn to 20 or 30 days. There is no social concept that cannot be debated. The clients are doing what they are supposed to do.
“So, what happens here is that collaboration is at the centre when it comes to financial discussions and it depends on the parties concerned and how they intend to drive their businesses.”
Reacting to the controversy on the trend of consulting firms incursion into businesses in IMC, the outdoor industry specialist described the development as one positive trend which could only be addressed through agreements and healthy collaborations between the practitioners on both sides of the divide.
“I used the word collaboration. Knowledge I believe is transient. What is in vogue today may become obsolete tomorrow. It’s only for practitioners to understand that the practice requires improvement and development. Knowledge in the practice needs to be constantly elevated and that is why you see those people collaborate with them. So, get what you can get out of them and find out how brands majorly can benefit from that collaboration,” he said.
RECOMMENDED ARTICLES
Comment
No comments found.