Last month, the Chief Marketing Officer Council, a non-profit peer knowledge exchange organization that claims 3000 marketing executives as members, released its 2007 outlook report. One of the major findings was that top marketing folks were under pressure to show measurable results for their efforts. The report observed that many set about restructuring their marketing organizations to align closely with sales thereby increasing focus on short term results yet re-affirming the relevance of their organizations. They reorganized their internal departments, ditched under-performing agencies, and put new metrics and measures in place. As their web site, cmocouncil.org, cheerfully stated:
“64 percent of marketers said they dumped at least one agency last year, and over half plan further agency changes in 2007. Public relations agencies got the ax most often, followed by web design & development and advertising agencies.”
It is no secret that agencies are having a hard time orienting themselves to the now not-so-new economy but there are signs that they are starting to listen and even act. More disturbing, because it affects the products and not the ways we pitch them, was the following quote from Donovan Neale-May, executive director of the CMO Council:
“The era of brand-centric marketing is giving way to a new breed of CMO focused on measurable performance and business results. Our past studies show that CMOs face tremendous pressure from CEOs and corporate boards to make this transition, which is why the average tenure of a CMO currently is less than two years. In 2006, marketers responded to this clarion mandate with extensive restructuring of their organizations and function. We think this is a positive development, but also believe most marketers are only in the early stages of redefining their roles.”
In my opinion, the majority of marketers will probably do very well with this short-sighted strategy. Technology and CRM methodologies are bringing a lot of tangibility and measurement to marketing efforts and they will be able to produce the necessary results to keep everyone happy.
However, I think the marketing executives that will be most successful and actually create a legacy will be those that do invest in brand building. When times are tough and there is increased competition, brand character might be the only key form of differentiation. Brand-building may not reap rewards immediately, but for those far-sighted CMOs who do pursue it, it will ensure that they leave behind a worthwhile legacy and a healthy product.
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