When the CMO returns to the BofD

Marketing - and the people who work in this field - are running the risk of being sidelined, as we can see in the shrinking number of CMOs on corporate boards. In the first article in our Profession CMO series, we’re discussing this trend with Walter Susini, former CMO of Coca Cola Europe. Susini tells us that the underlying responsibility is two-fold. On one hand, companies are focusing on short-term strategies that downplay more elevated activities like the kind Marketing does (building the brand and developing long-standing customer relationships.) On the other, CMOs themselves are increasingly prioritizing data and metrics; by doing so they’re self-demoting to the role of merely executing strategies developed somewhere else. But there are a number of ways to rectify the situation. 

Recent research by the American Marketing Association shows that there are still countless companies that don’t have seats for their CMOs on their boards. What does that mean, that in 2024 Marketing still isn’t considered a function that can contribute to the value of the company?  

This tendency, and we can’t deny that it happens, can be attributed to two main factors, I think: a short-term corporate vision, and the fact that Marketing has forgotten its fundamental role in creating demand. In many companies, pressure to achieve immediate financial results leads to honing in on short-term strategies rather than long-term strategic investments. This translates into deprioritizing marketing initiatives (which take time to generate meaningful outcomes) such as building the brand or developing long-standing relationships with customers. Consequently, Marketing is often seen as a support function rather than a driver of strategic growth. What’s more, Marketing itself sometimes loses sight of its essential role in generating demand. Instead of concentrating on innovation and a deep understanding of customers’ needs, many Marketing Departments are reduced to simply running advertising campaigns or promotions, more and more often taking a reactive approach, not a proactive one. Getting back to the strategic vision of Marketing means changing minds, both in the company and in the department itself. Companies must acknowledge the value of marketing as a vital lever for creating demand and fueling long-term growth. And at the same time, CMOs have to reset, and get back to their mission to understand and anticipate customers’ needs, to innovate and create sustainable value. 

The explosion of digital technologies and the subsequent availability of data make Marketing more accountable as far as communication investments. But couldn’t a side effect of these changes be the perception that Marketing is more of an operational function than a strategic one? Is there still a future for marketing strategy?  

There’s no doubt about it, the upgrade in our ability to measure and analyze data has enhanced the efficiency and effectiveness of our marketing campaigns, which makes it possible to take better aim in business decisions. But this focus on data and metrics can narrow our vision of Marketing, relegating it to simply executing rather than steering strategy. Despite this challenge, there is still a future for marketing strategy, but it calls for a change in approach. To maintain and reinforce its strategic role, Marketing has to go beyond simply analyzing data and operational metrics; it needs to utilize this information to inform strategic decisions that impact the entire organization, from crafting the brand to shaping the customer experience to innovating products and services. The race for big data has made us lose touch with the notion that it’s more important to turn data into insight than it is to have tons of data. Strategic marketing has to combine data analysis with a deep understanding of the market, of consumer behavior, and of future trends. Marketing has to be able to anticipate customer needs and come up with long-term visions that support the sustainable growth of the company. 

Coca Cola and the big multinationals in fast-moving consumer goods (FMCG) have always been seen as “marketing schools” where you’d go to get experience, which you could then leverage to get into other sectors or markets. The exponential increase in digitalization, which we mentioned before, seems to make marketing jobs more attractive in service companies or BtoB businesses, since today they’re the ones with greater control over market data, as they handle interactions with their customers directly.  How do you compete for the marketers of the future when you’re no longer top of mind? 

To beat the competition in attracting future marketers, there are various strategies that big multinationals have to adopt. Here are the three main ones: 

• Internal innovation: Companies must keep on investing in digital and data technologies, developing competences internally that will give them what they need to compete with service companies and B2B businesses. This includes deploying advanced tools for data analytics, artificial intelligence, and automation. According to my data, in the US today Wal-Mart attracts more talent than Amazon, after the technological revolution it rolled out. 

• Diversified experiences: By creating career paths that offer myriad work experiences (including cross-functional projects), multinationals can become more attractive for marketing professionals who are looking for dynamic growth opportunities. A multi-functional CV today is a sure way to grow better marketers tomorrow. 
• Accentuate creativity and branding: FMCG companies need to tap into their rich background in brand building and creativity, aspects that are still the envy of many a B2B business and service company. Creative, innovative marketing can be a powerful source of attraction.