CEOs Claim Responsibility for Poor Performance of Marketers
Bangalore: The Fournaise Marketing Group, one of the world’s leading Marketing Performance Measurement & Management (MPM) companies, tracked that 80% of CEOs were not very impressed by the work done by Marketers and believed Marketers were poor business performers.
Probing this further, Fournaise recently tracked that 70% of the same CEOs admitted they may be somewhat responsible for Marketers' poor perceived business performance and reputation-but purely as a consequence of:
a). Having steadily lost trust in Marketers' business abilities; and
b). Subsequently having given up on holding Marketers accountable
That's one of the latest insights identified by Fournaise through its 2012 Global Marketing Effectiveness Program, in which it recently interviewed more than 1,200 Large corporation and SMB CEOs and decision-makers in North America, Europe, Asia and Australia-to better understand the pains, needs, wants and expectations of CEOs towards Marketers, and analyse the CEO-CMO divide.
1). CEOs Have Steadily Lost Trust in Marketers' Business Abilities
69% of CEOs admitted that over time, they had stopped imposing specific business-focused Key Performance Objectives (KPOs) and Key Performance Indicators (KPIs) for Marketers to achieve.
They think Marketers have continuously failed to unquestionably and consistently prove in the boardroom that their marketing strategies, activities and campaigns generated actual business growth (customer demand) for the organisations. They therefore concluded it was useless to continue defining and imposing KPOs and KPIs Marketers have difficulties relating to and achieving.
2). CEOs Have Given Up on Holding Marketers Accountable
67% of CEOs admitted they may be guilty of not holding Marketers accountable enough (or at all).
They confessed they would like to be able to work with business-focused, no-nonsense Marketers who are 100% ROI- and performance-driven-where they know every marketing dollar spent across all activities, channels and media is tracked and optimised to have a (proven) measurable, quantifiable and direct positive impact on the company’s P&L and operations, and where marketing wastage is minimised.
3). Unhappy CEOs Have Reduced the Portfolio of their Marketers
Going one step further, 64% of these Marketer-unhappy CEOs have removed over time one or more of these three critical Marketing responsibilities from the traditional 4P umbrella portfolio of their Marketers: product development, pricing and channel management – essentially reducing the scope (and definition) of their organisations’ Marketing department to just Marketing Communications, i.e. the last P of the 4Ps.
4). But the Story is Different for ROI Marketers
On the opposite side of the spectrum, 20% of CEOs consider their Marketers to be ROI Marketers, known to be focused on (A). generating more customer demand, (B). constantly tracking, boosting and reporting the actual business impact of their marketing spending on the company's P&L, and (C). working hard to minimise their marketing wastage.
These CEOs value that these ROI Marketers have accepted for their performance to be judged on business-focused KPIs: Sell-in, Sell-out, Prospects, Market Share, Marketing Effectiveness, Marketing ROI. And value that these Marketers have put in place the all-round performance-tracking and performance-boosting teams, systems and processes to push their strategies, products, customer value propositions (CVPs), ad campaigns and activities to deliver better (quantifiable) results.
"At the end of the day, Marketers have to stop whining about being misunderstood by CEOs, and have to start remembering that their job is to generate customer demand and to deliver performance. This is business. When is the last time you heard CFOs whine about being misunderstood by CEOs?" Fontaine concluded.
Post your Comment
All form fields are required.