Commentary
Accountability and Performance Top Priorities For Marketers in 2007
- by Jack Loechner , Staff Writer @mp_research, April 3, 2007
The 2007 Marketing Outlook survey, by the Chief Marketing Officer (CMO) Council, to capture insights and opinions about how marketers are focusing their efforts in 2007, finds that marketers look at measurement, improved efficiencies and customer knowledge as top challenges. In addition, they plan on making further changes to upgrade organizational effectiveness, strengthen customer engagement and achieve even greater measurability.
Past studies by the CMO Council have demonstrated that chief marketers face intense pressure from bottom-line focused CEOs and demanding corporate boards to improve the relevance, accountability and performance of their organizations. This pressure is gauged by the notoriously short tenure (less than two years) of the average CMO. The era of brand-centric marketing is giving way to a new breed of CMO who is more focused on measurable performance and business results, concludes the report.
The report says that the results of the Marketing Outlook survey shows that old habits die hard. Many of the top-line Marketing Outlook findings bear this out:
- Marketers number one accomplishment in 2006 was the restructuring and realignment of marketing better support sales and drive demand generation. And, chief marketers are still consumed with brand image, focusing on those activities, as shown by the next two accomplishments: brand image and visual identity overhaul.
- The majority of marketers feel that their top goal in 2007 is to quantify and measure the value of marketing programs and investments, followed closely by a desire to improve the efficiency and effectiveness of the marketing organization.
- 60 percent of top marketers are taking a long, hard look at their organizational resources, and plan to add new skill sets and capabilities internally, and nearly half plan to review and evaluate all current marketing resources.
- 35 percent of marketers replaced their PR agencies in 2006, and 21 percent of marketers tossed their Web design and development agencies. More than half of respondents plan to make further agency changes this year.
- Nearly 65 percent of respondents forecasted increased 2007 marketing budgets-with close to 20 percent expecting an increase of 16 percent or greater-versus 15.1 percent who expected a budget decrease. About 20 percent expected no change.
- More marketers are investing in public relations services, programs and agencies for brand awareness Tapped as the top area of spend for 2007, marketers are using PRto shape customer pre-disposition and generate critical brand awareness. With the fervor for measures and metrics, the core of branding and brand identity has not been lost. But, it has taken back seat to accountability to both the C-suite and the customer, says the report.
The Top Three Accomplishments Marketing Organization Achieved In 2006 | |
Accomplishment | % Respondents Including in Top 3 |
Restructured and realigned marketing to better support sales and drive demand generation | 45.7% |
Overhauled brand image, visual identity, Web site and collaterals to better capture and convey value proposition | 29.2% |
Produced new branding and messaging platform to underscore differentiation | 27.6% |
Implemented new campaigns that significantly advanced the business 26.7% | |
Added important new internal resources | 23.9% |
Improved the yield and accountability of the marketing organization worldwide | 21.0% |
Orchestrated successful new product launches and go-to-market programs | 21.0% |
Better integrated tactical marketing functions with the field and channel groups | 16.5% |
Extracted customer data and analytics for more informed decision-making | 15.6% |
Built acquisition, qualification, conversion and reactivation programs to optimize close and retention rates | 15.2% |
Introduced a formal marketing performance measurement system | 15.2% |
Improved customer engagement through councils and communities | 11.1% |
Created efficiencies with new marketing automation solutions and hosted services | 11.1% |
Developed new channels of engagement using new and digital media | 9.9% |
Reviewed and realigned agency resources and consultants to increase value | 8.6% |
Other | 5.8% |
Created global campaign teams to implement fully integrated programs | 5.3% |
Source: CMO Council, 2007 | |
Measuring marketing's worth, improving marketing's efficiency and effectiveness, and better customer knowledge are top of mind with marketers for 2007. These ranked highly as the top challenges for this year among respondents from companies of all sizes.
The Top Three Issues Or Challenges Facing Marketing Organization In 2007 | |
Challenge | % of Respondents Including in Top 3 |
Quantify and measure the value of marketing programs and investments | 43.8% |
Improve the efficiency and effectiveness of the marketing organization | 38.7% |
Grow customer knowledge, insight and conversations | 33.7% |
Improve the allocation and ROIof marketing spend | 28.4% |
Extract greater value and profitability from customer relationships | 24.2% |
Increase credibility, influence and perceived value with senior management | 23.0% |
Develop competencies, business knowledge and strategic alignment of marketing functions and external assets | 23.0% |
Better capture, convey and deliver a clear value proposition to all channels and audiences | 23.0% |
Advance alignments and linkages with business groups, sales field marketing and channel organizations | 21.0% |
Establish a global organizational structure that best delivers results, accountability and measurability | 12.4% |
Move more functions, communications and processes to the Web | 10.3% |
Work more effectively with the IT organization and sources of critical data inside the company | 9.1% |
Deploy new solutions and hosted services that optimize outcomes and processes | 5.3% |
Other | 3.7% |
Source: CMO Council, 2007 | |
To obtain the complete PDF report, please visit the CMO Council here.
Jack Loechner is the Editor of The Center for Media Research's daily Research Brief. You can reach him at jack@mediapost.com.