Marketers need to work harder on talking the boardroom talk: Report

New AMI and Deloitte paper looks at marketing's role in the boardrooms and details a 10-step marketing evaluation framework

A new study from the Australian Marketing Institute (AMI) and consulting giant Deloitte, claims marketers need to work harder to speak the language of the board if they’re to get their organisations to truly appreciate marketing’s strategic role.

According to the paper, Marketing’s Role in the Boardroom: An Evaluation Framework for Boards and Directors, Australian company boards have been asking the wrong questions of marketers and would benefit from a better understanding of the critical role marketing plays in business strategy development and execution.

To help achieve this perception shift, the AMI and Deloitte set out a 10-step marketing evaluation framework covering previous period and future performance:

  1. Identify marketing assets
  2. Identify the metrics being used to measure the health and performance of each marketing asset
  3. Identify changes to these existing metrics (such as evolving marketing dynamics, competitor actions) and the factors influencing these changes
  4. Assess the value added by marketing in the previous period
  5. Identify significant market issues, opportunities and risks and how they will be managed
  6. Assess whether the current marketing plan adequately takes advantage of opportunities available, relative to other feasible alternatives
  7. Evaluate period performance, based on planning marketing investment
  8. Understand potential competitive reactions and environmental uncertainties and develop contingency plans to mitigate their effects
  9. Assess whether the proposed level of investment in marketing assets is appropriate to realising strategic plans
  10. Develop metrics for monitoring performance in terms of application of resources (inputs), performance (outputs) and marketing efficiency (conversion).

“There has been lots of attention paid to the importance of big data in shaping and executing business strategy, and better knowledge of marketing is emerging as a critical board need,” AMI CEO, Mark Crowe said.

“Deloitte’s research indicates that feedback about execution of strategy is being provided to boards more frequently than before – as often as once per month – which is a promising development. However the benefit of this additional insight is negated by many boards’ widespread lack of exposure to marketing strategy and knowledge of how marketing works. It’s also holding boards back from fully embracing the marketing discipline at the top table.”

Deloitte partner and CMO, David Redhill, pointed out the company’s recent board effectiveness research with chairs and CEOs of the ASX top 200 companies indicated many Australian businesses in all sectors are reacting slowly to digitally disruptive change and that those most profoundly impacted are the ones that know their customers the least. The ones succeeding are building their knowledge of their customers, deriving insights from their markets and improving their marketing effectiveness and audience engagement through ongoing data interpretation.

“Marketing needs to play a critical role in stepping up and showing the board what’s possible,” Redhill added. “To harmonise a coherent long-term business strategy with the need for short-term agility, the visions of both board and marketing need to be aligned.”

The paper’s primary contributor was professional or marketing in the Research School of Management at the ANU professor of marketing of London Business School, John Roberts.

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.
Show Comments

Latest Videos

More Videos

Are you sure they wont start a platform that the cheese is white, pretty sure that is racist

Hite

New brand name for Coon Cheese revealed

Read more

Real digital transformation requires reshaping the way the business create value for customers. Achieving this requires that organization...

ravi H

10 lessons Telstra has learnt through its T22 transformation

Read more

thanks

Lillian Juliet

How Winedirect has lifted customer recency, frequency and value with a digital overhaul

Read more

Having an effective Point of Sale system implemented in your retail store can streamline the transactions and data management activities....

Sheetal Kamble

​Jurlique’s move to mobile POS set to enhance customer experience

Read more

I too am regularly surprised at how little care a large swathe of consumers take over the sharing and use of their personal data. As a m...

Catherine Stenson

Have customers really changed? - Marketing edge - CMO Australia

Read more

Blog Posts

Brand storytelling lessons from Singapore’s iconic Fullerton hotel

In early 2020, I had the pleasure of staying at the newly opened Fullerton Hotel in Sydney. It was on this trip I first became aware of the Fullerton’s commitment to brand storytelling.

Gabrielle Dolan

Business storytelling leader

You’re doing it wrong: Emotion doesn’t mean emotional

If you’ve been around advertising long enough, you’ve probably seen (or written) a slide which says: “They won’t remember what you say, they’ll remember how you made them feel.” But it’s wrong. Our understanding of how emotion is used in advertising has been ill informed and poorly applied.

Zac Martin

Senior planner, Ogilvy Melbourne

Why does brand execution often kill creativity?

The launch of a new brand, or indeed a rebrand, is a transformation to be greeted with fanfare. So why is it that once the brand has launched, the brand execution phase can also be the moment at which you kill its creativity?

Rich Curtis

CEO, FutureBrand A/NZ

Sign in