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A marketing resource for CEOs, CMOs, and VPs of Marketing with information on the impact of branding on revenue and profit.
CEO/CMO Roles

Marketing Actually Defines Opportunity for the Entire Organization

April 9, 2009 4:04 PM

By Mark Sutter, Chief Strategic Officer, The Halo Group

While there are many departments that impact profitability, marketing is the engine room for company growth. Marketing, more so than any other department, is best suited to help shape a company’s or brand’s vision. No one understands changing customer behaviors and market dynamics better than marketing. In fact, it should help lead organizational priorities and shape customer strategies that impact each and every department.

Some companies still view marketing as a support function— tactical rather than strategic. They seek out marketing services rather than marketing strategy. They see it as a cost center rather than a revenue generator.

Today, marketing is responsible for driving profit and revenues. Marketing is tasked with solving consumer problems profitably. And guess what, that’s not a one-man or a one-department job. It needs customer service, sales, IT, finance, operations, and of course, the CEO to make it happen. It takes an organization. In fact, all departments should be a support function for marketing, not the other way around.

Marketing can actually define the roles every department should play in seizing market opportunity and growing the company. For example, customer adoption of technology has been moving faster than business, so quite often IT priorities need to be reexamined to ensure they meet consumer expectation. Companies have also been redefining consumer expectations for customer service. Marketing can help provide focus and guidance to ensure that customer service is seamless across all connection points. For example, Four Seasons Hotels have excelled at actively creating and strengthening relationships with customers by employing “guest historians” at each hotel. These guest historians work to further customize customer experiences based on the customers’ preferences. CEOs have become celebrities— and customers, not just investors, hang on their every word. What they say can have direct impact on customer perceptions and the bottom line.

In most organizations, different functions and departments vie for budget and resources. At the end of the year, they answer first and foremost to department goals. But they’re not always corporate goals. And that’s a problem. Marketing must be at the forefront of the discussion. Helping articulate a company’s vision and goals. Creating a shared commitment and understanding of customer priorities among all departments.

Everyone in an organization should think like a marketer, asking not how will this serve my department, but rather, how will it serve the customer? How will it help achieve the company’s goals?

Bringing the University to Market

July 9, 2008 12:00 AM

By Mark Sutter

The University President: The New CMO

Why would a prospective student, faculty, donor or alumni want to live your brand? Why are you the first choice for some students? What gets your faculty up every morning? What keeps alumni connected emotionally and financially? It is the desire to be part of a unique community that shares a vision. It is participating in a differentiated experience that springs from the very soul of the institution. It is the university brand.

Administrators, faculty, and students all contribute, shape and help build a brand.   Traditionally, the university president's responsibilities have been focused on institutional planning, balancing the budget and exceeding university fundraising and endowment goals. Over time, the president has become responsible for student recruitment and retention and improving the overall student experience.

Who is the custodian of the soul of a university? Now, it has become a university president's responsibility.


Voice of the Customer

In other industries it is the CMO, or Chief Marketing Officer, who is responsible for ensuring that a company remains focused on the customer. The CMO manages a company's communications and actions to deliver a clearly defined customer experience.

"Many colleges and universities are failing to develop their marketing potentials because their presidents are mistaking insular admissions, promotion or development activities for total marketing activities," writes Dr. Eugene Fram .

Higher education institutions historically do not have a centralized customer marketing organization. As a result, college marketing efforts are often disjointed, occasionally overlap, and lack a university-wide focus. Many institutions have let the market define who they are. Today, to be successful, a university brand needs a champion at the top to lead that process and provide focus to the university's message.

Evangelist for the Brand

And no one is better positioned to be that champion than the president. He serves as the public face of the university, and acts as an advocate for his or her faculty, administration and students to the Board of Directors. As such, the president has the unique perspective to create a shared vision for a university, one that can align internal stakeholders and more effectively utilize resources and actions. The president's commitment to marketing and communicating a university brand sends an important signal to the institution. But how do you deliver on student expectations and ensure student retention without first defining those expectations?

Translating and expressing the brand is the first step. By working with an agency or brand consultancy that specializes in education marketing, the university president can develop a plan for approaching university stakeholders in order to help them understand the brand's values. Once you've established the basis for a unique experience, the key is to roll out the new identity from within.

Catalyst for Collaboration

Successful university marketing begins with internal constituents, especially faculty. Stereotypically, faculty is resistant to marketing efforts because they have not been involved in the choices that led to resource allocation. This can be avoided, simply, by including faculty in the formative stages of the brand decision-making process. You can build trust and buy-in by demonstrating how a new brand vision will not only benefit the students, but also the faculty and university as a whole.

Then, when the president reaches out to all constituents to bring them together to find common ground, he or she is acting as a powerful instrument for collaboration and change.

Champion of Resources

The president is also responsible for institutional planning and budget allocation, a political hotbed, yet an important strategic component in brand building. When budgetary resources are prioritized and allocated to deliver on a promise of a quality student experience, all constituents are working toward the same goal. Discussions can begin by simply asking: "How does this decision strengthen our brand, our student experience? Are there other priorities?" Soon all funding discussions of any institutional initiatives, be they faculty recruitment or meeting student enrollment goals, have a singular focus.

Another area that needs to be aligned is the disparate communication resources spread across the university. By tradition, education budgets are fragmented under different departments, reporting structures and promotional goals. The approach and strategies for individual schools and programs are frequently inconsistent with overall university messages. Often there isn't a singular communication plan that focuses all of the university's resources on established goals.

Without a definitive message, you can't expect students, faculty and donors to come to the same conclusion about what you stand for. The president must integrate all communication efforts, from advertising, public relations, website development, search engine marketing, brochures and newsletters to student retention efforts, under a specific reporting and management structure in order to easily direct university-wide communications. Establishing a consistent brand message for the university allows you to use resources more effectively and increase the impact of outreach initiatives.

Magnet for Support

According to the Council for Aid to Education, declines in government funding are requiring colleges to actively solicit private donations ($29.75 billion in 2007 ) and rely more heavily on fundraising. Being a worthy cause just isn't enough anymore. There are many institutions vying for project funding. Donors want to invest in institutions and programs that share their values, have a clear focus and can make an impact. Fundraising can be more effective when you have specific student goals in mind because it helps donors understand where the university is headed and how contributions will help achieve that goal. The more powerfully you can make your brand's purpose come to life, the more effective you will be at generating support for achieving its goals.

The Brand Starts Here

When a president starts thinking like a CMO, all of those seemingly disparate duties become unified under a clear objective: building the university brand.

The university president must be ready to provide the inspired leadership that will define what a school stands for and where it is going.  By actively defining the values and marketing position of the university brand, the president can galvanize resources to gain university endowments and exceed performance goals. The brand vision must start here.

The customer or student can get lost without a champion at the top. The time has come for the president to take responsibility for defining and executing the university brand. He, or she, is the difference engine who will shape the future through a well-articulated higher education marketing initiative that involves all aspects and participants in the university life.



Is Sales Wasting Your Marketing Dollars?

February 27, 2008 12:00 AM

By Linda Passante

Marketers used to believe their job was done as soon as sales leads started coming in the door. And that, ladies and gentlemen, is how marketing dollars are wasted. Successful marketers help turn leads into customer conversions because they understand that ultimately sales is the most valuable metric for measuring marketing efforts.

In attempting to fulfill their responsibility to connect campaigns to the bottom line, CMO's have discovered that their efforts are hampered by poor conversion rates resulting from an underperforming sales team. So, marketing needs to understand how to communicate with the sales department and effectively motivate the team responsible for converting leads. Here are the right questions to ask the sales management team and assess whether the right processes are in place for success.

How can Sales Management get the most out of their sales team?
The sales team leader needs to develop a better understanding of the people in the team he or she is leading. The critical question to ask is if the salesperson had an additional ($X) amount of money, how would he or she spend it? Unfortunately, most sales team leaders do a superficial job of understanding the needs of the people in their team. Here is a typical situation. Sales Management increases a salesperson's sales quota versus last year. There are two things to keep in mind. First, the quota will likely not be achieved if the company lacks a compensation plan that rewards the salesperson for this increased production. When Sales Management sets the yearly quota, they need to answer the critical question: What is in it for the salesperson? Second, the team leader needs to know each salesperson's motivational drivers. How will the incremental income generated by achieving the increased production affect his or her life and the family that depend on him or her? The rudder that steers the ship is aligning the individual personal goals of the team member with the goals of the organization.

What's the most effective way to have a sales team take ownership of the sales process?
Tie the performance goal to a sales behavioral plan. If this year's goal exceeds last year's performance, you should identify what activities they need to be doing now that they weren't doing last year. Exceptional salespeople make their own opportunities, irrespective of market conditions. They typically do this by reaching out to new prospects and expanding the scope of existing relationships. An effective team leader will help each salesperson develop a behavior plan designed to meet the quotas. The plan should include metrics for expected behavior (i.e., number of cold calls, networking events, external referrals received, qualifying meeting with prospects, closing meeting with prospects, current client up-selling, qualifying and closing meetings, strategic alliances secured, etc.).

In establishing a behavioral plan, how can you manage the progress of your sales team?
Develop a mechanism to track each salesperson's behavior, and review actual versus planned behavior on a regular basis. There are a number of contact management systems that now allow a company to customize and track.

Most companies evaluate a salesperson's performance based solely on sales results. The problem is sales results don't often occur until well after the salesperson's behavior or lack of behavior. The amount of time separating the two is predicated on the length of a company's sales cycle (i.e., the typical amount of time to move an inquiry through pre-qualifying, qualifying, requirements, validation, negotiation, and close stages). This can take weeks, months, or even years based on the company's products, services, and the requirements of the potential buyers being targeted.

To illustrate this point, if a company's performance metric is solely sales results and they typically have a six-month sales cycle, the team leader would not know until July whether the salesperson was doing the necessary prospecting activity in January. By the time the team leader could take corrective measures, it might be too late to affect sales results in the company's current fiscal year.

How would you ensure buy-in on the part of the sales staff to protect your investment in a new sales management approach?
Have your salespeople sign a contract. It should outline the behaviors that they pledge to perform in meeting the sales quotas. Each salesperson would also agree to report honestly and factually his or her actual sales activities versus the plan. In addition, the team leader should sit down to adjust, refine, coach, and mentor every few weeks with each team member. During these sessions, the team leader should keep the personal goals in alignment with the business goals, thus achieving the highest level of motivation.

Tim Brenton is President and founder of the Brenton Group, Inc., [www.brentongroup.com] a sales, sales management, and negotiating skills training company located in Boston, MA. He has a national reputation as speaker and trainer to professional services companies looking to create high-performance business development people. Some of Tim's accounts include EMC, Palm, HP, McCann Worldgroup, American Association of Advertising Agencies, The Halo Group, The Boston Globe, and Boston Private Bank & Trust Company. He can be reached at tbrenton@brentongroup.com.

CMO: Do You Speak CFO?

February 14, 2008 12:00 AM

By Mark Sutter

Marketing badly wants a seat at the strategy table, but at many companies it's the CFO who represents major marketing budgetary and strategy decisions in the C-Suite. And that can be a problem because CFOs aren't marketers.
 

For many CFOs marketing is the nebulous part of business. On the surface, it doesn't appear to mesh with their traditional short-term focus on improving productivity and reducing costs. The CFO is charged with prioritizing budgetary resources, balancing the needs of departments across the company, including marketing.

But is marketing effectively making its case?

A recent study by Marketing Management Analytics (MMA), found that just 7 percent of finance executives are satisfied with their company's ability to measure marketing ROI. In the same study, only 23 percent of marketing executives had confidence in their ability to measure returns, still not exactly a ringing endorsement.

No cooperation or agreement on metrics
Many CFOs acknowledge that market share, customer satisfaction, audience cost-per-thousand, and brand awareness are useful; but no single category can show how an entire chain of marketing events eventually leads to a sale or new business. It's time for the CMO and the CFO to start working together. According to the same MMA study, fewer than 20 percent of respondents say finance and marketing work in "Full Cooperation," the majority reporting limited or even antagonistic tension over budget and strategy.

Marketers need to dust off their accounting books and make the first overture by bringing questions to the CFO for his or her input. Developing a framework for marketing metrics and standards should help CFOs favorably view marketing activity.

Speak the language of the CFO
Do you speak CFO? You're going to need to if you want to develop a dashboard for performance that will satisfy a CFO. It's often the same language as the CEO who typically rises up from the world of finance and operations as well.

Start by pretending you report to the CFO. What do they care about? Cash flow, revenue growth, and the long-term value of the company. What do they expect in terms of performance benchmarks? Increasing shareholder value, market capitalization, and return on assets.

Marketing people don't talk that way. They use their own jargon-terms like customer awareness or market share. Step back and look at bringing a results-oriented view to discussions with the C-Suite audience. When you tie your marketing programs to revenue generation and customer retention, you're beginning to address the issues of cause and effect. Take it further by connecting the sales pipeline to the bottom line. Suddenly you're talking about ideas that your CFO can get behind.

CFOs are becoming more strategic
And cheer up. In many companies the CFO has become the de facto second-in-command, responsible for crafting a strategic plan with the CEO to build long-term shareholder value. Since they help to articulate the CEO's vision, they need to understand how marketing can help the company reach their growth goals. The CFO might even be able to help you understand how marketing might better serve to achieve that vision.

CFOs don't want to be seen as bean counters. So don't treat them that way. Have honest, direct conversations about what you expect to happen, and what you need for him or her to do. Take the mystery out of marketing. Make this an equal relationship, which requires cooperation to work.

So before you start bitching about your CFO cutting your budget, maybe it's time you got to know him or her. Feel their pain. Because if you dig deep enough, you'll probably find you both have the same objectives and goals (and you should) -- you just didn't know it.


Is Your CEO Camera-Ready?

February 6, 2008 12:00 AM

By Steve Dunlop, President, Dunlop Media

"Well, I guess it's time for my root canal."

That was the most memorable thing that Ed would say to me all day. Ed (not his real name) was the number-two executive at a major U.S. financial firm, and first in line to succeed the soon-to-retire CEO. He had been through the wringer with a number of media trainers, and it showed.

We had been introduced, and Ed just didn't want to be with me. There was a seemingly permanent scowl on his beefy, reddish face. He had a perfectly pressed shirt and great gold cufflinks, but his collar was a couple of sizes too tight.

When it came time for our mock interview, Ed spoke to me in a laconic monotone, scattered with eminently quotable moments like: "yes," "no," and "I dunno, about six or seven people." It made me wonder how he had gotten as far as he did.

The fact is executive suites of the world are mostly populated with middle-aged men and women not unlike Ed. In an era of 24-hour business news, it's these individuals - many of whom have had little to no media exposure for most of their careers - who are increasingly called on to be the public face of their company.

Contrary to what some corporate watchdogs would argue, I've known the vast majority of these people to be bright, ethical, and highly capable. But media communications is just not their bailiwick. They do not teach these skills in business school.

And, so, admired as they are in the country club - and feared as they might be in the boardroom - these captains of industry tremble at the prospect of spending a few minutes with a wet-behind-the-ears reporter who is often barely old enough to work for them. As a result, forays into the realm of interviews become, for these type-A personalities, remarkably type-B.

They speak in sentence fragments that have to be spliced together, electronically or in print, to be even marginally usable. (No wonder executives often feel misquoted or taken out of context.)

They listen, sometimes against their better judgment, when legal advisers tell them to think of media appearances as if they were depositions. They are instructed to say as little as possible, to fill in the gaps with plain vanilla messaging, and to approach every reporter as an adversary. Of course, with most reporters, this advice has an opposite effect of what the executive wants.

An effective relationship with journalists - be they print reporters, TV broadcasters, or even bloggers - has nothing to do with creating an adversary. It has everything to do with correctly understanding journalists and their needs.

The supposition that reporters are always looking for their subjects to simply "answer the question" is fundamentally wrong. Sure, sometimes they need those answers. But at their core, good reporters aren't just looking for "yes" or "no."

They are looking for a narrative. They long for the unexpected. Their pulse quickens at information that surprises them, intrigues them, moves them. They want to satiate the basic curiosities that led them to become journalists in the first place.

It's why the definition of news is so often summed up with the phrase "man bites dog." It's no accident that Don Hewitt, the creator of 60 Minutes, titled his memoir, Tell Me a Story.

This imbalance between the demand for good narrative and the limited supply of compelling material is a big reason why much of today's news cycle appears so tediously dysfunctional. It's why what you see, read, and hear often seems sensationalistic on the one hand; repetitive, trite, and boring on the other.

But therein lies an opportunity. The people who know the secrets to filling these voids - and filling them well, as opposed to poorly - get called to appear in media, again and again.

One day, if he can overcome his self-defeating mindset and wipe that sour puss off his face, Ed might take his training to heart and become one of those people. But that seems unlikely. Shortly after agreeing to begin an intensive program with us to remediate his media skills, Ed's board decided to do a little remediation itself by bypassing him for the post of CEO and handing it to someone from outside the company. They also decided that improving Ed's media skills wasn't worth the time or cost.

Ed can take comfort in this stark fact: When it comes to his own media unpreparedness - and by extension, his company's - he is far from alone.

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Steve Dunlop, who's reported in New York since the 1970s and is a part-time correspondent for CBS News, is President of Dunlop Media (www.dunlopmedia.com). He has helped thousands of executives develop their media communications skills over the course of the last 17 years.

A Performance Dashboard for the New CMO

January 22, 2008 12:00 AM

By Linda Passante

The marketing department has traditionally existed outside the revenue column. But, it's time to demand the same demonstrable results that you would require of any of your business units. Marketing is more than a maker of multi-media; it is a catalyst that reenergizes how the company thinks, invests, acts and connects to your bottom line.

However, traditional business standards of measurement don't tie marketing directly to that bottom line and companies struggle to establish performance benchmarks for their marketing teams. So how do you measure the efficacy of your marketing efforts?

Revenue is still the key metric.
And your marketing department will help you produce it. But rather than simply measuring quarterly spikes in sales revenue, growth should be linked to activities along the entire customer continuum: reinforcing the brand message with all customer-facing employees, engaging the consumer, and empowering the sales team to close the deal, and training customer service departments to protect your customer relationships.

Evaluate your customer against goals. There is a lot of available data. Lead generation, website visits and click-to-open rates must be measured. But a deeper analysis of the synergistic relationship between marketing and sales should reveal the programs that have delivered the most profitable, long-term customers that every business needs. There are clear indicators of success. How many potential customers are at the top of the pipeline? How did they find out about your service? How many pitches are you converting into business? More important, is the business you're converting in line with your marketing strategies? Global diversification, channel development, and breaking into new customer segments can be more important markers for success than overall sales volume.

Buzzmetrics may be a better indicator of market awareness. Market awareness is always a marker of performance. But, traditionally, it has been a static statistic. In today's engaged marketplace, customer-generated media such as tweets, blogs and online forums can influence your brand's image, impact sales and are important to track. Articles involving your corporation, expert quotes, invitations to speak or requests for intellectual capital are all measures of trust and credibility. Determine if your Google page rank is ascending as you look at mentions of your brand online. By finding the baseline of coverage, you can identify the tipping point for when your company's ideas went mainstream.

Retaining top quality staff is critical in driving revenue.
The ethos of your organization should be defined when a new hire walks in the door. By firmly establishing your corporate culture and the expectations of staff, you're enabling your team to create a better customer experience. The appropriate step at every interaction for the customer should be understood and assessed through internal interviews and training knowledge surveys.

Client satisfaction is a key indicator of continued financial stability. Do you have an online brand manager or is your agency "listening" to the chats, tweets and blogs where your customers are commenting? There are now a number of formulas to measure your customers' level of satisfaction, based on their activity. Surveys are a diagnostic tool designed to capture specific customer feedback, identify service gaps and pinpoint weaknesses in operations to more effectively strengthen customer relationships.

Ultimately, you need to develop a dashboard of richer metrics of success, which account for other aspects of business development, in addition to revenue growth. With the creation of multi-dimensional metrics, you can create the same culture of accountability in your marketing department. By formalizing the capture and reporting these metrics, you can streamline your marketing initiatives and also develop a deeper understanding of what drives revenue growth and bottom line performance.

The CMO is the new CEO?

November 5, 2007 12:00 AM

There is plenty of industry buzz surrounding the rising, falling and evolution of the CMO. He's the new corporate wizard, sitting at the strategy table, creating return on investment metrics and a one-on-one relationship with every customer. And in this consumer-controlled marketplace, it's his insight that will drive every department of the organization. So, really isn't the CMO the new CEO?

In days gone by, a CEO was well-equipped if he had solid operational and financial skills. Truth be told, marketing is what makes or breaks a company in today's marketplace. "America is no longer a country of manufacturers." Instead we brand everything  (see what William Gibson says about this). And a CEO has to adopt a marketing philosophy to determine if his brand resonates with consumers. He needs to understand his customers' behavior and govern every action - from new product development to sales to customer service to in-store merchandising - with a focused understanding of their needs.

We are on a fast track to that reality. CEOs are being hired from the marketing ranks. Jeffrey Bewkes recently became the CEO of the world's largest media company, Time Warner Inc., precisely because of his strong history of managing creative talent. Bewkes had earlier been CEO of HBO after a successful run as the head of marketing and sales at that division.

At the same time, CMOs are beginning to sound like CEOs. Case in point: Randy Tinseth is the Vice President of Marketing for Boeing, and he maintains a blog on the company's website. It is consistently filled with critical business analysis and his latest depiction of the company's third quarter reads like a CEO on an investor conference call. His world of marketing revolves around how many orders he can help the company process for new airplanes. It's a point he makes often on the blog - without sales, there is no marketing and vice versa.

To be clear, I'm advocating that CEOs elevate the status of the CMO. You're not a company: you're a brand. And the keeper of that brand is the CMO. Placing the CMO on your executive board ensures that your organization understands the game has changed. It's a signal that you know customers are savvy and you're showing them respect by placing their advocate in your inner sanctum. In fact, it's downright American because we're in the business of branding.

 







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