XT … Marketing’s Role in the Boardroom
A new study from the Australian Marketing Institute (AMI) and consulting giant Deloitte, claims marketers need to work harder to speak the language of the board if they’re to get their organisations to truly appreciate marketing’s strategic role.
According to the paper (download it below), Australian company boards have been asking the wrong questions of marketers and would benefit from a better understanding of the critical role marketing plays in business strategy development and execution.
To help achieve this perception shift, the AMI and Deloitte set out a 10-step marketing evaluation framework covering previous period and future performance:
- Identify marketing assets
- Identify the metrics being used to measure the health and performance of each marketing asset
- Identify changes to these existing metrics (such as evolving marketing dynamics, competitor actions) and the factors influencing these changes
- Assess the value added by marketing in the previous period
- Identify significant market issues, opportunities and risks and how they will be managed
- Assess whether the current marketing plan adequately takes advantage of opportunities available, relative to other feasible alternatives
- Evaluate period performance, based on planning marketing investment
- Understand potential competitive reactions and environmental uncertainties and develop contingency plans to mitigate their effects
- Assess whether the proposed level of investment in marketing assets is appropriate to realising strategic plans
- Develop metrics for monitoring performance in terms of application of resources (inputs), performance (outputs) and marketing efficiency (conversion).