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
Error: Please check your email address.
Show Comments

Blog Posts

Social purpose: Oxygen for your brand health vitals

If trust is the new currency, then we’re in deep trouble. Here's why.

Carolyn Butler-Madden

Founder and CEO, Sunday Lunch

Customer experience disruption: Healthcare faces a bitter pill

Over the past decade, disruptors such as Amazon, Apple and Australia’s Atlassian have delivered technology enhanced customer experiences, which for the most part, have improved customers’ lives and delivered unparalleled growth. Can they do the same for healthcare?

Alex Allwood

Principal, All Work Together

How can a brand remain human in a digital world?

Some commentators estimate that by 2020, 85 per cent of buyer-seller interactions will happen online through social media and video*. That’s only two years away, and pertinent for any marketer.

James Kyd

Global head of brand strategy and marketing, Xero

https://bit.ly/2qLgzmR Transform your life a proven digital blueprint

Okitoi Steven

How this banking group tackled a digital marketing transformation

Read more

Its great to hear that companies including JCDecaux, oOh!media, Omnicom and Posterscope Australia have all partnered with Seedooh inorder...

Blue Mushroom Infozone Pvt Ltd

Out of home advertising companies strive for greater metrics and transparency

Read more

Much ado about nothingAnother fluff piece around what it could possibly do rather than what it is doing

gve

How AMP is using AI to create effortless ‘experiences’

Read more

is it true that Consumer expectations are also changing as a result. If we trust someone with our data there is also an expectation that ...

Sunita Madan

Society will decide where digital marketing takes us next: Oracle

Read more

This Blog is Very interesting to read and thank you for sharing the valuable information about Machine Learning. The information you prov...

johny blaze

What machine learning has done for the Virgin Velocity program

Read more

Latest Podcast

More podcasts

Sign in