Role of Marketing in Scaling Business Growth

CMOs are losing influence in business leadership. They have the lowest CEO promotion rates and the most turnover among C-suite executives. The Fall 2023 CMO Survey affirms their low involvement in high-level decisions, board meetings, and earnings calls. While external circumstances contribute to the decline, some may be self-caused.

The Evolving Mandate for Marketing Leaders

At the 2024 B2B Marcom Summit, Curbio CEO Rick Rudman challenged marketing professionals to look beyond standard KPIs and align with larger corporate goals. He pointed out that strategic marketers who create business results are likelier to rise to CEO roles.

Fran Cassidy’s presentation at the 2024 MASB Summit indicated that investment analysts believe marketing investments are critical to organizational growth. According to the 2023 IPA survey, analysts view marketing attempts as capital investments rather than costs, much like infrastructure or technology.

Despite this external validation, marketing directors are experiencing a crisis of identity, attempting to integrate old tasks with new demands such as multi-channel campaigns and complex analytics. Many people need help to transition from operational responsibilities to strategic organizational priorities.

Marketing’s Issue with Strategic Alignment

A major difficulty in marketing leadership is the misalignment of organizational needs and marketing’s delivered value. While marketers are good at detecting market demands, they often fail to achieve their organization’s objectives. Many people should place more emphasis on operational KPIs (website traffic, social interaction, lead conversion) instead of proving influence on business growth and profitability.

Marketing must move from a support function to a strategic growth driver. CMOs may strengthen their power by integrating marketing objectives with financial goals and showing how their methods directly impact business results such as customer lifetime value, market share, and revenue growth.

What can CMOs Learn From CEOs and Investors?

CEOs and investors are increasingly valuing strategic marketing. CEOs look for marketing leaders who can translate brand awareness and growth strategy into financial returns. According to the IPA survey, investors, including Warren Buffett, see strong brands as competitive “moats” and believe marketing to be an important long-term investment.

This allows marketing to redefine itself as a high-value function. Marketers may increase the value of their organizations by seeing marketing as a capital investment rather than a cost center. However, this demands a transition from a cost-cutting perspective to one that sees marketing as a primary growth engine.

The Way Forward: Realigning Marketing with Business Goals

To overcome the current marketing crisis, CMOs must adapt their strategy through the following important actions:

• Link marketing and finance: Rather than engagement measures, focus on revenue growth, customer lifetime value, and ROMI.
• Showcase value: Demonstrate to CEOs, CFOs, and boards how marketing promotes business goals.
• Complete analytics tracking: Implement “last mile” statistics to tie marketing efforts directly to profitability and growth.
• Treat your brand as an asset: Position brand development as a quantifiable investment, similar to R&D or infrastructure.
• Increase collaboration: Collaborate with the finance, sales, and product teams to ensure that marketing objectives are in line with the company’s overall goals.

A New Marketing Vision: Aligning with Financial Goals to Increase Influence

Marketing is at a turning point in redefining its role. While technical features such as channels and KPIs are important, they should not overpower marketing’s primary goal. CMOs can recover power by emphasizing strategic and financial objectives over operational data.

Source- Martech