5 Questions CEOs Ask About Marketing | Marketing Management
The fine art of Marketing Management is quite misunderstood, most especially by the C-suite we therefore set out to find answers to the Questions CEOs Ask About Marketing. In most organisations Marketing is like the Middle-Child. Present yet ignored. Forgotten then remembered. So, we set out on a quest to find solutions. After some digging we found hidden treasure. Important marketing questions that linger in a CEO’s mind giving them sleepless nights.
-1- MARKETING IMPORTANCE
Questions CEOs Ask: How Important Is Marketing?
A LinkedIn study of 12,000 CEO profiles, published in 2018 showed that Computer Science was the most popular field of study for CEOs, followed closely by Economics, Business, Banking & Finance in that order. Marketing ranked 7th place. This information, is insightful and explains why most CEO’s ask questions about marketing based on their field of study. Let’s begin with the fact that Marketing is mostly an art while computer science is definitely a science. What that tells you is that the average marketer must speak science by ‘quantifying’ marketing in order to effectively communicate to the CEO!
-2- MARKETING PRIORITY
What Is My Most Important Marketing Priority?
On the flip-side according to Spencer Stuart, in India, 25% of CEOs come from a marketing background. The reason why marketers make such successful CEOs according to Rohit is their ability to bring a ‘clear understanding of their customer’, as well as the ability to use the left and right hemispheres of the brain. He continued, marketers can think analytically and creatively at the same time. As a CEO that’s a very valuable skill. Which then begs the question, why do so few CEOs consider marketing central to their winning formula? And, how do we elevate marketing so that it’s a major consideration in every CEO’s plan? Many CEOs want marketers to think big and take risks that pay-off something CMOs Chief Marketing Officers don’t always realize. But, then again “under pressure, marketing budget gets first cut because it is the hardest to justify”. The reason marketing proposals are declined or not fully funded is because they don’t demonstrate a clear line of value. In a nut-shell if you’re a CMO your best bet is to learn how to quantify and tie budgetary outcomes to overall business priorities.
-3- MARKETING RESOURCES
Where Are The Marketing Resources Best Utilised?
According to a report by Marketing Week, many CEOs have marketing departments “purely out of tradition” and have “made the conscious decision not to expect more from marketing than branding, look/feel-good ads and promotions”. CEOs feel marketers “live too much in the brand, creative and social media bubble”. They would like marketers to be more ROI-focused and able to account for every pound spent and measure its positive impact on P&L. So, as a CMO you need to walk the tight rope and balance between purely marketing metrics and focusing on data analysis, measurement and reporting. To prove and demonstrate the value of the marketing function’s resources to the business. And, to gain the respect and support of C-suite leadership. Budget alignment to overall commercial objectives as much as possible is a must. And, every single marketing role in the team must be clearly defined. So that each marketer understands the contribution of their role to the bottom-line. The CMO can then attribute the overall marketing function budget to commercial outcomes!
-4- MARKETING IMPACT
CEOs Ask, What Really, Is The Impact Of Marketing Management?
According to Mckinsey the marketing’s moment is now “marketing with a capital M.” In a new McKinsey study, 83% of global CEOs say that marketing can be a major driver of growth. For a function that has all too often been thought of as the “brand” or “advertising” arm of the business, this is a notable development. But the news isn’t all rosy. Some 23 percent of CEOs do not feel that marketing is delivering on that agenda. So how does the CMO rid themselves of the shackles of the dubbed the “brand” or “advertising” arm of the business to a strategic function. They can start by making sure the CEO understands how exactly marketing is driving growth, owning the customer, and serving the company’s broader goals and objectives. By balancing traditional marketing metrics with more tangible business measures of success! That way the CMO knows that the CEO is firmly in their corner, and they can use that support to further marketing’s growth agenda.
-5- MARKETING & BOTTOM-LINE
How Does Marketing Effort Tie In Directly With The Bottom Line?
According to Marketing Week, 70% of CEOs have lost trust in marketers. The majority (70 percent) of CEOs have lost trust in marketers’ ability to deliver growth after becoming frustrated by what they see as an inability to prove ROI on campaigns. More than a third (69%) of CEOs say they have stopped enforcing key business objectives and indicators on marketers because they have “continuously failed” to prove marketing strategies and campaigns delivered business growth. Again, the solution is simple. Ditch marketing action plans which focus outward and diminish the role of marketing. And, pull a chair at the main table and begin by understanding the organisations commercial plans. Only then should marketing develop a marketing strategy that draws inspiration directly from the commercial plans. So that marketing can deliver towards the bottom-line while driving customer value.
The Answer
To Questions
CEOs Ask |
Marketing
Management
Questions CEOs Ask: In Summary | Marketing Agenda
After spending time digging into the subject, we concluded that:
- Most CEOs are computer science majors.
- Approximately 25% of CEOs are marketers
- CEOs want marketers to think big and take risks that pay off
- Marketing budgets are the hardest to justify and get the first cut
- Many CEOs have a marketing function purely out of tradition
- CEOs would like marketers to focus on ROI and P&L impact
- 70% of CEOs have lost their trust in marketers
However, on the ‘flip side’ we also found that:
- Some 83% of CEOs feel that the marketing moment is now
- A majority of CEOs also believe marketing can be a major driver of growth
- CEOs are willing to support the CMOs marketing growth agenda
Questions CEOs Ask: The Solution | Marketing Value
With the above in mind, a good place to start is by making sure, that CEOs understand how marketing management drives their growth agenda! To answer the CEOs questions, the CMO must be able to clearly demonstrate the value of marketing by quantifying marketing efforts and tying them directly to the bottom line. CMOs need to balance traditional marketing metrics with tangible business measures of success. While ensuring that every single marketing role in their team is clearly defined so that each marketer understands how their role contributes to the bottom-line.
Additionally, CMOs must understand the overall business strategy of the organization to develop the marketing strategy. To deliver the desired results, marketing must draw inspiration directly from the commercial plans. By owning the customer and serving the company’s broader goals and objectives, CMOs can demonstrate marketing value. And, elevate marketing to a major consideration in every CEO’s plan. While ultimately answering the CEOs questions about marketing management positively and conclusively!
The result is what every CEO’s dreams are made of, they can support and justify marketing effort as well as budgets to the board and shareholders and directly attribute the same to the bottom-line! Not-taking the above measures will lead to a slow decline and an early demise of marketing and eventually most organizations will find themselves on life-support.
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Julia Kibore, is an Independent Marketing Management Consultant with over 20 years of brand, marketing and communication experience. She has held leadership positions in the FMCG, Telco, Fintech Online Payments and Mobile Money sectors as well as consulted on Marketing Strategy.
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