You guys sell moon & stars to the customer & we have to suffer” shouted Rachael who was heading Customer Service Department in XYZ corporation. I am sure we all have heard these words in our professional life as we all have arguments with other departments. Arguments take place because there is conflict of interest within organization. Marketing department’s interest is to get revenue, Customer Service Delivery interest is to minimize customer issues, Sales is in different world of number fancy, and technology team doesn’t want to touch its core systems. So issue here is everyone want to do best in their roles and no one thinks about end consumer/profitability. Only people in marketing and finance will discuss profitability because profitability is key component of their role. So discussions in the organization are role driven rather than holistic view of organization profits.
Let’s discuss marketing in detail. Do you think Marketing in organization is done only by marketing department? Answer is no its not. Marketing affects every aspect of the customer experience, meaning marketers must properly manage all possible touch points – customer relationship centre, package designs, product functions, employee training, shipping and logistics methods. Marketing must also be involved in key general management activities, such as product innovation and new business development. To create a strong marketing organization, marketers must think like executives in other department and executives in other department must think more like marketers. CMO and later CEO of Walmart.com, carter cast noted that what surprised him most when he became CMO was that “ I would interact so much with function outside of marketing. I didn’t realize it is holistic assignment. Then I realized I really had to understand things like product supply, cost break even and accounting”.
Marketing department is established in any organization to create and deliver customer value but according to late David Packard of Hewlett-Packard observed “ Marketing is far too important to leave to the marketing department”. Every employee of an organization has an impact on customer and must see customer as source of the company’s prosperity. Every company should emphasize on interdepartmental teamwork to manage key processes. Companies are placing more emphasis on the smooth management of core business processes such as new product realization, customer acquisition and retention and order fulfillment.
In practice marketing follows a logical process. The marketing planning process consists of analyzing marketing opportunities, selecting target markets, designing marketing strategies, developing marketing programs and managing marketing efforts. In highly competitive marketplaces, however marketing planning is more fluid and is continually refreshed. Companies must always be moving forward with marketing programs, innovative products and services, staying in touch with customer needs and seeking new advantages rather than relying on past strengths.
The changing new marketing environment is putting considerable pressure on marketing executives. Marketers must have diverse qualitative and quantitative skills, an entrepreneurial attitude, and keen understanding of how marketing can create value within their organization. They must work in harmony with the sales function.
There are five key functions of CMO in leading marketing within organization.
1. Strengthening the brands
2. Measuring marketing effectiveness
3. Driving new product development based on customer needs
4. Gathering meaningful customer insights
5. Utilizing new marketing technology
Harvard’s John Quelch and Gail McGovern note that there is tremendous variability in the responsibilities and job descriptions of CMO’s. They offer eight ways to improve CMO success.
• Make the mission and responsibility clear : Be certain that the case for having CMO is strong and mission is well understood by leaders in the organization, particularly the CEO, the board, the line management. Without a clear need(real or perceived) the role will be rejected by the organization.
• Fit the role to the marketing culture and structure : Avoid having CMO in marketing – led company that has many individual brands rather than single corporate umbrella – unless the person appointed to the position is well connected insider.
• Choose a CMO who is compatible with the CEO : Beware of the CEO who wants to hire CMO but doesn’t want to relinquish any marketing control. Find a CEO who recognizes his/her responsibility to be the cheerleader for marketing and the brand but realizes need to be guided and coached by a marketing specialist.
• Remember that show people don’t succeed : The CMO should work hard to ensure that CEO is successful at being the principal cheerleader for the brand.
• Match the personality with CMO type : Be certain that chief marketer has right skills and personality for whichever of the three CMO model he or she might fill( VP of marketing servies, classical CMO, Super CMO). There is little tolerance for on the job training.
• Make Line Managers marketing heroes : By stretching their marketing budgets, CMO’s can improve a divisions marketing productivity and help business unit leaders increase their top line revenues.
• Infiltrate the line organization : Have the CMO support the placement of marketing professionals from corporate marketing department into divisional marketing roles. Provide input from CMO into annual reviews of line marketers.
• Require right brain and left brain skills : The most successful CMO will have strong creative and technical marketing expertise, be politically savvy, and have the interpersonal skills to be a great leader and manager.
I was reading Kotler and I found above points very informative so thought of sharing with you all.
"A gossip is one who talks to you about others; a bore is one who talks to you about himself; and a brilliant conversationalist is one who talks to you about yourself”….
Reference: CMO qualities - Kotler marketing Management Pg 14
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