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

Google collects as much data as it can about you. It would be foolish to believe Google cares about your privacy. I did cut off Google fr...

Phil Davis

ACCC launches fresh legal challenge against Google's consumer data practices for advertising

Read more

“This new logo has been noticed and it replaces a logo no one really knew existed so I’d say it’s abided by the ‘rule’ of brand equity - ...

Lawrence

Brand Australia misses the mark

Read more

IMHO a logo that needs to be explained really doesn't achieve it's purpose.I admit coming to the debate a little late, but has anyone els...

JV_at_lAttitude_in_Cairns

Brand Australia misses the mark

Read more

Hi everyone! Hope you are doing well. I just came across your website and I have to say that your work is really appreciative. Your conte...

Rochie Grey

Will 3D printing be good for retail?

Read more

Very insightful. Executive leaders can let middle managers decide on the best course of action for the business and once these plans are ...

Abi TCA

CMOs: Let middle managers lead radical innovation

Read more

Blog Posts

The obvious reason Covidsafe failed to get majority takeup

Online identity is a hot topic as more consumers are waking up to how their data is being used. So what does the marketing industry need to do to avoid a complete loss of public trust, in instances such as the COVID-19 tracing app?

Dan Richardson

Head of data, Verizon Media

Brand or product placement?

CMOs are looking to ensure investment decisions in marketing initiatives are good value for money. Yet they are frustrated in understanding the value of product placements within this mix for a very simple reason: Product placements are broadly defined and as a result, mean very different things to different people.

Michael Neale and Dr David Corkindale

University of Adelaide Business School and University of South Australia

Why CMOs need a clear voice strategy to connect with their customers

Now more than ever, voice presents a clear opportunity to add value to an organisation in many ways. Where operational efficiencies are scrutinised, budgets are tighter and discretionary consumer spend at a low, engaging with an audience is difficult.

Guy Munro

Head of innovation and technology, Paper + Spark

Sign in