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 CMO newsletter!

Error: Please check your email address.
Show Comments

Supporting Association

Blog Posts

​ Creating a purpose-driven brand

So you want to be a brand with purpose. But what does it actually mean to build a brand with real meaning?

Paul Chappell

Partner and managing director, Brand + Story

Customer experience crisis: Proactively mitigating the risk of broken promises

Last Friday, three weeks after United Airline’s spectacular customer experience disaster, customers received a letter from the company’s CEO, Oscar Munoz.

The politics of branding

There have been some real doozies lately. I’m speaking of campaigns where brands have dipped their toe in - or jump straight into the deep end – of the political spectrum, aligning with social causes that seem to be the flavour of the day.

Paul Chappell

Partner and managing director, Brand + Story

Grate post, thanks for the post.No matter what your business is, if you do no not rank among the top most search results of Google, Yahoo...

Rahul

Image intelligence:10 must-see infographics for marketers

Read more

Thank you Shane Blandford for carrying my Smarketing vision into KM !

Peter Strohkorb

​CMO Interview: Why aligning sales and marketing drives innovation at Konica Minolta

Read more

Thanks for helping me putting those threads of thoughts together. Simplification and connection - neat idea.

Mark Bayly

Tips from IAG on how to craft human-centred design

Read more

The problem with Box is that they made a couple of big mistakes - they first hired a bunch of unprepared kids and gave them big roles and...

Tim Woods

CMO interview: Why Box's marketing chief is rewarding staff for failing

Read more

At this point, being hit hard will also be subject for a detailed study. In honesty, too early to tell but there are precedents to follow...

Sean Lindeman

Australian Government to abolish 457 visa program

Read more

Latest Podcast

More podcasts

Sign in