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Marketing's Role in the Firm

CMOs have it rough today. Not only are they under fire from competitors, regulators, and, in many instances, their customers, but they seem to be losing their influence in the boardroom too. At least that was the conclusion in a study conducted by Frederick Webster, Alan Malter, and Shankar Ganesan in which they explored the extent to which marketing may have lost its "seat at the table".

To reassert itself, the researchers suggest marketing execs focus on the following:

Developing ways to measure marketing productivity so that long-range contributions to firm growth are more visible to top management.
Short-term ROI measures are fine in proper context, but more emphasis needs to be placed on marketing activities as an investment in future profitability.
Getting beyond a narrow definition of product development to focus on creation of whole new business concepts and opportunities.
Cultivating strong and dominant brands to improve leverage with powerful channel partners and to differentiate brands in an increasingly "commoditized" marketplace.

From "Can Marketing Regain Its Seat at the Table?" MSI Report 03-113.
Available at www.msi.org.