Chief marketing officers might feel they are under pressure to prove the positive effects of their marketing spending, according to a Nov. 12 Harvard Business Review report.
An August survey of 282 marketing leaders found that 59 percent of marketing leaders feel pressured by CEOs to prove the impact of their marketing efforts and 45 percent of marketers said they feel this pressure from CFOs. The survey also found that 50 percent of CMOs said non-marketing leaders focus on short-term wins instead of long-term strategy.
Researchers used the survey findings, interviews with chief experience officers in Deloitte's Global Marketing Trends Study and a Google/Kanter study of 40 CXO interviews to compile 10 key actions to help marketing executives prove the value of their efforts. Below are three of those actions.
- Find the intersection between marketing strategy and business goals
Marketers should be able to provide logic to how marketing strategy can help a company push toward its priorities. For example, if a company wants market leadership, then brand building is an important aspect of that strategy, so brand awareness should be tracked. In another example, if a company observes new competitors in its market, a strong marketing budget to strengthen customer relationships is critical in customer retention. - Measure brand equity
Marketers must track brand equity to see how their initiatives are faring, which can be the numerical evidence financially-driven executives are seeking, according to the report. The CMO Survey found that just 3 percent of marketers consistently measure brand equity and 35 percent of marketers almost never track it. - Value at every level of the funnel
CMOs reported facing the most pushback when requesting investments in brand building, which are considered higher funnel activities, or those that have less direct effects on sales, and efforts closer to revenue, or lower funnel activities. Marketers should bet on a balanced portfolio that shows how each part of the funnel is delivering value. Marketers should also try to understand the CFO's preference for financial data and how they can measure the success of their marketing investments, the report said.
For example, Berkshire Hathaway’s Geico has analyzed the role of marketing at each stage of the funnel for those seeking car insurance. The Geico Gecko on billboards, television commercials and its slogan puts the company on the customer's radar early for future potential purchases.
To read the full report, click here.