Chief marketing officer

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A chief marketing officer (CMO), also called a chief brand officer (CBO), [1] [2] is a C-suite corporate executive responsible for managing marketing activities in an organization. The CMO leads brand management, marketing communications (including advertising, promotions and public relations), market research, product marketing, distribution channel management, pricing, customer success, and customer service. [3]

Contents

The CMO typically reports to the chief executive officer and may be reported to by senior vice presidents, vice presidents, directors, and other senior marketing managers. Historically, some jurisdictions have conferred legal responsibility upon marketing chiefs, but the use of modern-day titles typically does not correspond to a legally defined role.

A study from consulting firm Spencer Stuart in 2021 showed that women made up 47% of CMO positions in 2020, an increase from the 43% reported in 2019. 13% of CMOs had a racially or ethnically diverse background in 2020, down from 14% in 2019. [4] [5]

Responsibilities

As part of the senior management, the CMO is involved in developing and adjusting company strategy and plans based on market conditions and competitive dynamics. CMOs may be involved in departments such as production, information technology, corporate communications, documentation, public relations, law, human resources, and finance. [6] One Gartner analyst predicted that in the future CMOs will spend more on IT than their counterpart CIOs, [7] with many modern CMOs handling increasing amounts of customer-facing technology implementations. [8] According to McKinsey, few senior-executive positions will be subject to as much change over the next few years as that of the chief marketing officer. [9]

The CMO is responsible for facilitating growth, sales and marketing strategy. They work towards objectives such as revenue generation, cost reduction, or risk mitigation. The CMO completes tasks that fall into three different categories: Analytical tasks, such as pricing and market research; creative tasks, such as graphic design, advertising and product, and service promotion; and interpersonal tasks, such as coordinating with other company executives in creating alignment on strategy and execution plans.

CMOs see customer loyalty as their top priority in the digital era; their second priority is to design experiences for tablets and mobile apps. [10]

Challenges

The unpredictable effect of marketing efforts and the need to drive profits often leads to a short tenure for most CMOs. Consulting firm Spencer Stuart revealed average CMO tenure in 2020 was 40 months, which was the lowest in a decade. [11] In comparison, the average CEO tenure is 7 years. [12]

In a CMO mapping study done by Raines, CMOs are losing influence. A proportion of CMOs don't feel valued, and many CMOs don't have clear alignment with their CEOs on key performance metrics. [13]

See also

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References

  1. ↑ McDonald, Malcolm. "The Post-Covid CMO in the Digital Age: The need for marketing planning is greater now than it has ever been". Marketors.org. Worshipful Company of Marketors . Retrieved 19 December 2022.
  2. ↑ Welch, Andrew (March 2008). "Who is the brand daddy?" (PDF). Landor.com. Landor Associates. Archived from the original (PDF) on 7 October 2013. Retrieved 19 December 2022.
  3. ↑ Germann, Frank; Ebbes, Peter; Grewal, Rajdeep (2015). "The Chief Marketing Officer Matters!". Journal of Marketing. 79 (3). SAGE Journals: 1–22. doi:10.1509/jm.14.0244. S2CID   168076084 . Retrieved 20 May 2022.
  4. ↑ Ives, Nat (2021-04-29). "CMOs' Time in Their Posts Continues to Grow Shorter". The Wall Street Journal . ISSN   0099-9660 . Retrieved 2021-04-30.
  5. ↑ Jefferson, Michaela (2021-04-29). "CMO tenure falls to lowest level in over a decade". Marketing Week. Retrieved 2021-04-30.
  6. ↑ "The evolving role of the CMO | McKinsey". www.mckinsey.com. Retrieved 26 March 2023.
  7. ↑ "By 2017 the CMO will Spend More on IT Than the CIO". Archived from the original on 2015-07-31. Retrieved 2015-08-14.
  8. ↑ "7 Ways the Retail CMO Role Has Evolved". Archived from the original on 2015-08-13. Retrieved 2015-08-14.
  9. ↑ "The evolving role of the CMO". Archived from the original on 29 August 2015. Retrieved 26 March 2023.
  10. ↑ "From Stretched to Strengthened, Insights from the Global Chief Marketing Officer Study". IBM. October 2011. p. 34.
  11. ↑ "CMO Tenure Study: Progress for Women, Less for Racial Diversity". www.spencerstuart.com. Retrieved 26 March 2023.
  12. ↑ "CEO Succession Practices in the Russell 3000 and S&P 500". corpgov.law.harvard.edu. Retrieved 26 March 2023.
  13. ↑ Harbrecht, Amanda (2021-11-10). "The Wall Street Journal - Advice for Chief Marketing Officers - Raines". Raines International. Retrieved 2022-08-07.

Further reading

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