Board or bored

Marketing belongs in the boardroom but most marketers are ill-prepared.

This is an extract from last week's IMTW .

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Issue № 104 | London, Sunday 30 June 2024

Read on to learn why:

① Marketing isn’t well understood or respected by most boards.

② Most CMOs aren’t equipped to interact effectively with board members.

③ Rebrands are only ever needed if your audience misunderstands you.

④ Even central bankers are having to adapt to AI.

⑤ Marketing should be at the heart of your strategy, as well as your boardroom.

⑥ My favourite city in the world is likely to become a little less appealing.

⑦ Brexit continues to make Brits an international laughing stock.

What's new

This week, a survey revealed that 1 in 3 senior marketers get one hour or less a year to present results to the board.

① In short:

• “30% of senior marketers only get one hour or less a year to present results to their company’s board – that’s five minutes a month, the equivalent to making a tea round – but 25% crave more airtime. Worse yet, 20% of marketers lack marketing representation on the board.??The reception can be disheartening. 27% have been interrupted by C-Suite members or had their presenting time cut short (24%).”
• “What’s driving these reactions? The age-old negative stereotype of marketing being ‘fluffy’ is felt by 29%, while almost three in five (59%) worry the discipline isn’t taken seriously by board members. In turn, over a third (36%) believe their results aren’t considered important.”
• “The crux might be a lack of understanding, which more than two-fifths (42%) think is ‘limited’ at board level. Nearly half (43%) of senior marketers end up repeating what the results mean each time they present. Their greatest wish is that it was easier to demonstrate the impact of marketing (40%) with those aged 35-44 the most exasperated (43%), though this declines with age.”

Why it matters

Marketing is a strategic function; it’s integral to driving your company’s growth. If you’re in any doubt of that, you’re reading the wrong newsletter. So, it’s saddening to see how undervalued it is at board level. But while you might expect me to reproach directors for this state of affairs, I think this latest survey matters because it highlights how ill-prepared most marketers are. It’s their responsibility to align with company objectives, speak the language of the board, and communicate the intrinsic value of marketing - and they’re failing.

Another survey this week by global B2B marketing agency Transmission exposes what’s going terribly wrong here:

• Less than 3% of public or private board members have a marketing background - so they’ll likely need some context.
• A paltry 39% of CMOs say they attended and/or presented at ‘every’ company board meeting, with just 44% presenting any revenue-oriented metrics. My question: why would you present any other kind of metrics?
• Almost half of CMOs say their CEO doesn’t recognise the strategic contribution they bring to the business outside of the marketing remit. Whose fault is that? Hint: it’s not the CEO’s.
• Only 8% of CMOs feel ‘very comfortable’ participating in financial discussions in leadership or board meetings. So, you know, hard to be taken seriously.
• 59% of CMOs would consider themselves not just ‘marketing’ experts but also ‘market’ experts in their organisations. Why isn’t this 100%? What is marketing if not the act of understanding the market?

② The survey continues by exposing the many soft skills that marketers lack to operate effectively at board level - including T-shaped skills, servant leadership, and personal networks. The situation is dire: marketing is critical to boards but most CMOs aren’t equipped to interact effectively with board members. That must change.

What to do about it

Take action

So, your business would benefit considerably from having your head of marketing at the highest table (see Media & Marketing below if you’re still in any doubt) but he or she has to earn it. Consider:

1. Boardroom exposure: It may sound obvious but the place to start is ensuring you create the opportunity for your CMO to attend board meetings regularly to present recommendations on customer, market, and competitor strategies.
2. CEO alliance: CMOs should report directly to their CEO and have a strong, collaborative relationship built on mutual respect and trust. That means clear responsibilities and KPIs as a growth leader in the business, and full accountability for pipeline and revenue-based metrics.
3. Financial acumen: If your CMO isn’t a natural with numbers, have him or her spend time with your CFO; they should become the very best of friends.
4. Go-to-market connectivity: Your CMO should be the glue that links sales, product, pricing, distribution, and customer success functions to growth. He or she should have accountability for the 4Ps across product-market fit, pricing strategy, and pricing models.
5. Relationships: More than just the voice of the customer, your CMO should be your eyes and ears across the market. That demands a broad range of critical assessment skills, knowledge of legal compliance, risk management, and international relations, making them able to offer 'big picture' thinking with foresight and guidance on how market factors affect material risk and opportunities to drive sustainable growth. They should display a high level of emotional intelligence and stewardship, listen well, show empathy, and have a strong personal brand and network.

Get help

InMarketing is a dynamic repository of help for senior leadership teams in finance or technology who want to drive growth. Browse others’ ideas , find tactical support , or leverage marketing advisory .

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To learn why:

③ Rebrands are only ever needed if your audience misunderstands you.

④ Even central bankers are having to adapt to AI.

⑤ Marketing should be at the heart of your strategy, as well as your boardroom.

⑥ My favourite city in the world is likely to become a little less appealing.

⑦ Brexit continues to make Brits an international laughing stock.

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About

Written for senior leadership teams in finance and technology, InMarketing This Week is a showcase for news likely to impact you - delivered with insight on why it matters and ideas on what to do about it. It’s published every Sunday at six to give you a head start on the week. Read extracts?here, or subscribe to?have each full issue delivered straight to your inbox, before it's available anywhere else.