Chief Marketing Officer (CMO) is a title that has been mentioned more and more in recent years.
With the emergence of new communication and distribution channels, companies are realizing the great potential of marketing activities in shaping their development strategies.
However, the average service time of a CMO in a company is only 23 months compared to four, five years of CFOs and not all companies have senior marketing directors. .
The question is whether companies really need a CMO, or has the role of CMO been hyped as a trend in recent years?
As the business develops, marketing also becomes a strategic area and affects the entire organization.
To better understand its customers, the CEO and the board need a person who acts as a customer representative to constantly update them with customer-related information. In addition, in the long run, companies also need a CMO to perform the following tasks:
1. Align marketing activities with the overall business strategy of the business
The emergence of new technologies, strong distribution channels and increasing consumer power have made the market more competitive. Marketing is also becoming more and more important.
Today, marketing is no longer limited to 4P (Product: product; Price: price; Place: distribution; Promotion: promotion).
Marketers with a deeper understanding of the market and customers need to play a more important role in building a company strategy.
They must identify the market, the market segment, set out the penetration methods, the forms of cooperation should be applied.
To convey this information, it is best to have a marketing representative who can speak the same language as the board and the CEO.
2. Connect the board with the customer
No matter how creative the business is and how talented a team of employees is, it is difficult to succeed without keeping in touch with customers.
Senior executives must regularly reassess their strategic decisions based on customer feedback.
CMOs play an important role in keeping management updated with the latest consumer trends and analyzing whether business resources have been appropriately allocated to meet the changing needs of guests. stock or not.
3. Create a customer-focused organization
Today, customers have too many choices and maintaining customer loyalty as well as sustainable competitive advantage is becoming a big challenge for businesses.
The difference between successful businesses in achieving their goals lies in the ability to drive the business.
Companies that focus on customers always design the organizational structure and processes, systems that work with the concept of customers as a top priority.
These issues are also related to corporate culture, organization, and policies. CMO is the person who can influence the board of directors in implementing measures to build a truly customer-focused organization.
Although CMO plays such an important role, not all businesses support the maintenance of this position.
The challenges of CMOs are also inherent challenges of marketing activities: how to quantify the results of marketing activities and fully evaluate the effectiveness of this activity.
The emergence of new media channels has helped CMOs somewhat to prove the results of marketing investment.
However, the CMO itself must constantly learn to understand the characteristics of each business area that the business is operating, as well as the requirements and tasks of each functional department to be able to say. same "language" with the CEO and the board of directors.
In the future, CMO is still an important bridge between the board of directors, senior directors and customers. Businesses need to see this as a key position and have certain powers.
In addition, they must also build an organizational structure so that CMOs can participate in shaping the vision and mission of the business by closely connecting the functional departments.
* Source: Businessman Plus