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Never has there been more pressure on companies to grow revenues and profits.
But instead of the golden age of marketing one might expect, a recent survey of
chief marketing officers uncovered a series of pressing issues that marketers feel
are critical to overcome. First the good news: CEOs and CMOs agree that the
formula for success involves leading innovation, improving marketings alignment
with the rest of the organization, improving alignment with the business strategy
and marketing execution. Now the bad news: Both CEOs and CMOs agree that
marketing is not as effective as it can be. The turnover rate for CMOs remains at
an all-time high and organic growth seems elusive.
To further explore this important topic, the fourth annual Spencer Stuart CMO
Summit examined how high-performance companies have successfully shifted the
CMOs role from purely driving marketing initiatives to driving marketing
throughout the enterprise. Hosted by Spencer Stuart, Advertising Age magazine
and the American Marketing Association, this years summit invited the following
executives to discuss how they made their shared vision of marketing a reality for
their organizations:
michele buck, senior vice president and CMO of the U.S. Commercial Group for
The Hershey Company
david reibstein, the William Stuart Woodside Professor of Marketing at the Wharton
School and co-founder and managing director of CMO Partners, moderated the
afternoons discussion.
Who is responsible?
How much of the responsibility for marketing falls on the shoulders of the CMO and how much on
those of the CEO? The panelists unanimously agreed that CMOs ultimately are responsible for successfully driving marketing throughout the organization. However, this does not excuse the CEO
from being a visible supporter.
Rick Lenny, chairman, president and chief executive officer of The Hershey Company and a former
marketing executive, said: Until the CEO is a strong advocate for marketing and sees it as a source of
competitive advantage, marketing will never have a seat at the table. Moreover, the CEO cant invite
the CMO to the table then pull the chair out from under him or her.
One of the biggest challenges to getting CEO support is the top executives perceived positioning of
marketing. CEOs often tend to view marketing as a series of activities; rather, he or she needs to look
at marketing as an end-to-end way of helping the company win. With this mindset, CEOs are equipped
to make the necessary strategic decisions.
First, CEOs need to think carefully about who they choose for the role of CMO, said Lenny. Does
this person give marketing instant credibility or does he or she create a doubt in the minds of the
organization? Second, to whom does the position report? What are the resources and accountabilities
that are provided to this individual? Then, what are the critical success factors that will truly determine
how successful marketing will be?
And while the CEOs support is critical, it is only the beginning.
I can tell our entire organization that marketing is the strategic
thought leader of the company, but marketing has to back it up by
delivering, said Lenny. It is the CMOs credibility with the CEO,
the organization and the marketing team that will enable him or
her to effectively drive marketing throughout the enterprise.
Earning credibility
While the CEOs support is a critical component, marketings success rests with the CMO. Our panelists spent a great deal of time discussing how marketing must go about earning credibility throughout the organization and with the CEO.
tomers. It is this background that gives me the credibility to go into Wal-Mart and put the customer
first in all decisions.
Demonstrate results
Marketers need to play a role in establishing the business strategy and the growth imperatives for the
company. Our moderator and the William Stuart Woodside Professor of Marketing at the Wharton
School, David Reibstein, asked if marketings lack of respect in the organization is related to its difficulty in being seen as a growth driver and proving its value. For many outside of this room, marketing is viewed as an expense and our inability to demonstrate in financial terms the long-term value of
marketing is only making this worse, Reibstein said.
4
Michele Buck
When spoken of as a spend, it is with the implication that marketing would drive results from that
spend, according to Fleming. But its not enough just to produce sales, its how customers think about
the experience, he added. Its about shifting and shining a light on the more important metrics, the
ones that ultimately gauge customer satisfaction and customer loyalty.
Michele Buck, senior vice president and CMO of the U.S. Commercial Group for The Hershey Company,
agreed: If you view marketing in strictly the functional sense, there tends to be this kind of squishy
halo that marketing is all about creativity. When you view it from a general management perspective,
marketing is what drives the marketplace and leads to revenue gains. You have to tie it to the metrics
that people can track so they can see and feel that youre driving the numbers and making an impact.
Bucks CEO, however, did not want to lose sight of an important point. Marketing is also about testing
ideas and thats where the mindset of expense is bad and cant be measured. It can, unfortunately,
become a point of friction in the company that CMOs and CEOs must manage, said Lenny.
direction was important to the company this was how I built credibility for myself and for the
group. People needed to see where we were going and why, she said.
Buck further explained that communicating marketings agenda throughout the organization is not
dissimilar from change management. When looking at where to take the companys marketing
youre frequently looking at changing some existing procedures, strategies and capabilities which
is why marketers tend to be change agents. You have to find an equal balance between gaining internal alignment and then bringing your strategies and programs together to life externally with customers and consumers, she said.
Debra Kelly-Ennis
chants do. To build alignment and credibility within the company, you have to
spend the time to really understand the
issues facing your functional colleagues particularly your sales and supply organizations. If you
dont do that, not only will you not understand what marketing needs to accomplish, but you also will
not be able to build strong relationships with and support from other functions, said KellyEnnis.
Going forward
In addition to discussing how CMOs and CEOs need to work together to integrate the marketing
agenda, the panelists discussed how marketing is changing and how these changes are impacting
the skills required of todays marketers.
The changing needs of the customer also are impacting Wal-Marts marketing strategy. The consumer is gaining more and more control and the Internet just took it to a whole other level. There
was a school of thought 20 years ago that you built the store in a way to get them through the whole
box to buy more stuff. That just doesnt happen any more. We can no longer push product; rather, we
have 130 million people in our stores every week and we have to figure out a way to give them what
they want. That fundamentally changes a lot of things, said Fleming.
Conclusion
While the support of the CEO is imperative to marketings success, the responsibility for integrating marketing throughout the enterprise ultimately resides with the CMO. However, as both our panelists and
survey revealed, there are some best practices that CMOs should adopt and skills and competencies they
should develop in order to make their vision for marketing a reality.
CMOs have to look for those opportunities where they can make a difference and improve marketings
impact on the organization, said Lenny. They cant wait for the perfect opportunity. Marketers will have
to step up if they believe they deserve a seat at the table.
10
Marketing does not have a clear strategy platform to convey to the rest of the organization
Marketings responsibility
The CMOs themselves, however, also bear some of the blame. Respondents listed strategic vision
(62 percent); the influence to build relationships throughout the organization (44 percent); the ability
to act as a strategic adviser to the CEO (34 percent); and exceptional communication skills (31 percent) as the most important skills for a CMO. Yet, strategic adviser to the CEO was rated the skill
most lacking, with the ability to build relationships coming in fourth.
A strategic vision
An innovator
Change agent
A strategic vision
Change agent
An innovator
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