• by Greg Andersen , June 5, 2009

As the dust settles from the collapse of the financial markets, one thing seems increasingly clear. One of the key drivers of corporate growth moving forward is going to have to be marketing. The sources of corporate growth and "profitability" for the last several decades, the practice of leveraging and more straightforward uses of easy credit, are no longer possible in the ways they once were. These were the growth strategies that made corporate finance and the CFO the center of attention in the boardroom and they have evaporated in shocking fashion, right along with earnings.

To attract skittish investors companies are going to have to show real growth and real profits from selling real stuff. And, in many instances, that means selling more stuff out of the same points of distribution as funding for geographic expansion is harder and harder to come by. Same-store sales as a metric now really matters. And that means marketing now really matters. You remember marketing, right?

That thing that helps create unique, well designed products or services that address a real customer need. That thing that finds the price/value balance in a given segment. That thing that builds high value, enduring and mutually beneficial relationships with customers. The outcomes from marketing are suddenly vital demonstrations of corporate health. Marketing matters. And the tools have changed.

While Wall Street and the corporate finance boys were innovating new ways of creating and reporting money that never really existed, there has also been an explosion of marketing innovation that make the modern CMO and the marketing function in general more valuable in more ways than ever.

This innovation has ridden the wave of technology and digital media platforms that now surround us in most every aspect of our lives. These two key forces are not just changing consumer behavior, but also the ways in which companies can generate market insight, drive innovation, set pricing, promote themselves, build direct customer relationships, and measure all of it in the moment.

The modern CMO uses social media tracking technology to understand the sentiment of its audiences in real time. What do people think of a policy change? The CMO can tell you in real time. What is the impact of a product defect on company image? The CMO can tell you in real time. What do people think of competitor's new product announcement? The CMO can tell you in real time. Social media tracking technology, once a spy tool of the National Security Agency and adopted first by marketing departments, can play a role in everything from competitive intelligence to crisis management.

Ah, yes, social media. Facebook and mySpace and Twitter ... the things that the rest of the company rolled their eyes at when the marketing folks brought it to their attention. Del Monte just used it as a product innovation platform to create a new dog snack in just six weeks at a fraction of the cost of traditional methods. Twitter co-founder Biz Stone is promoting his social media platform as a customer service channel. Suddenly, other corporate functions are asking the marketing folks how it all works.

The modern marketer lives in a world of collaboration, tools and data brought about by the overlaps of technology and digital media environments. Modeling, optimization, analytics and proven links between marketing spend and sales are increasingly the norm in marketing departments. These departments are educating other corporate functions on new tools and ways of working. They're creating value that shows up on the balance sheet and in various other forms across the company.

Clear a seat at the big table for the modern CMO. Marketing matters.

Editor's note: If you'd like to contribute to this newsletter, see our editorial guidelines first and then contact Nina Lentini.