The Changing Role of the CMO

The CMO role has changed and expanded tremendously in the past several years. Qualified CMO candidates are in high demand but difficult to find. This is why the average tenure of a CMO is only 48 months, far shorter than that of his or her c-level peers. (The good news is that this tenure has steadily increased from half that in 2004.) Market forces have caused CMOs to take on responsibilities that vary quite a bit from the past and the job's complexity has skyrocketed. Here are some of the things that are leading to these changes:

• The Internet has changed how people research and buy products.
• The increased bifurcation of markets to high-end experiential and low-end value segments, leaving an increasing number of middle-market suppliers/retailers in a "no man's land."
• Muti-channel marketing management becomes a critical skill, including knowing how to effectively deal with channel conflict issues.
• The rising power and influence of retail brands reduces the leverage of manufactures' brands.
• The proliferation and fragmentation of media, including online media.
• The necessity of tapping into social media.
• The rising influence of bloggers on brand perceptions.
• The overwhelming volume of marketing information now available together with the emergence of big data analytics as a discipline but without enough people who are truly experts in this area.
• The increasing importance of digital and analytics in understanding customers' needs and behaviors to secure a successful future for the company.
• The need to manage the brand experience across an increasing number of customer touch points without the direct responsibility for managing most of those touch points.
• The emergence of third parties in rating customer brand experiences. These include Angie's List, CellarTracker, Trip Advisor, Yelp, Zagat and Zomato among hundreds of others.
• Along with this, the increasing transparency of brand and company actions. Word travels fast if a brand fails to deliver on its promise. Witness BP (Gulf of Mexico Oil Spill), Chipotle (e coli) and United Airlines (United Breaks Guitars).
• The globalization of competition enabled by free trade agreements, the Internet and the rapid growth of emerging economies. 
• The increasing sophistication of marketing research, especially in the areas of emotional response. 
• The increasing importance of company and brand values being aligned with consumer values.
• The increasing importance of the employer brand as it relates to the outward facing brand.
• The continued growth in market segments fueled by the Internet. This leads to a greater need not only to meet the varying needs of an increasing number of segments but also to use sophisticated analytical tools to identify these segments and their different needs.
• The growing complexity of brand portfolios driven by mergers and acquisitions.
• The need to tailor products and brands for local markets while maintaining the appropriate level of product and brand consistency globally.
• The emergence of brand co-creation with customers.
• The importance of discovering new business opportunities. 
• The necessity of seamlessly linking sales, CRM and corporate reputation management with all marketing activities.
• The need to manage a more diverse set of functional skills under the marketing umbrella (marketing research, statistical analysis, big data analytics, social media expertise, SEO, customer relations, graphic arts, copywriting, direct response, advertising, promotion, pricing strategy, distribution strategy, sales support, and sometimes product development, product management, brand licensing, sales strategy and even trade relations).
• The need to consider marketing strategy and brand strategy in the context of business strategy, business model strategy and competitive strategy.
• If the brand promise drives the organization's unique value proposition, then the CMO needs to be actively involved in the organization's value chain decisions.

I hope this sheds some light on how the CMO role has changed and will continue to change.  The good news is that this role has become increasingly important to the long-term success of the organization. The bad news is that there are not enough people qualified to successfully assume this role, which is good news for those who are. 

The Brand Manager and the C-Suite

If you are the manager or marketer of a brand, especially of an organization-level brand, you need to know how to speak the language of organization’s leadership team.  Here are some hints on how to do that.

First, you should think of the brand’s marketing plan as a request for a certain amount of resources for a specific return on that investment. For instance, if you spend $X million building and promoting this brand, its market share will increase by Y% and its sales will increase by $Z.

When thinking through any recommendation, consider how it will play with each organization function. How will it help them? In what ways might it be misunderstood by them or even be a threat to them?

Know that senior managers manage by the achievement against specific objectives. The more you can quantify what you will achieve with the brand the better.

It is very useful to get a key brand metric to be included in a balanced organization scorecard.  Brand awareness, brand preference, market share, share of wallet and attitudinal loyalty are all candidates for this.

Enlist the CEO as the chief brand advocate. Help the CEO to understand that the organization brand’s promise is not that different from the organization’s mission, vision and values, except that it delivers the added benefit of relevant differentiation. Ask permission to insert brand-related messages into the CEO’s speeches, fireside chats and other communications. The CEO can use the brand as the platform to align his or her leadership team and then rally all of the employees around his or her vision.

Help the CFO to understand that the brand is an asset, an asset that adds tremendous value to the organization’s reputation, stock price and total valuation. Assets need to be managed so that they grow, not shrink.

There are several ways to appeal to the HR vice president. The linkage between brand archetype/values/personality and corporate culture is strong. A brand can only deliver on its promise if the organization is designed to deliver on that promise. The HR and marketing functions are similar in two ways: (1) they both deal with very important organization assets that have a touchy/feely non-quantitative human side to them that not everyone else in the organization understands and (2) they are often the first functions that receive budget cuts during financially troubled times despite their importance to the organization. And the external brand promise and the employer brand promise must have some congruence. They are dependent on one another. Finally, one of the primary benefits of a strong brand is that it helps an organization attract, hire and retain talented employees.

The vice president of operations may not understand the importance of the brand or of marketing in general. That is why it is very important to include him or her in all of the brand strategy formulation discussions so that he or she has a better understand of and buy-in to key brand strategy and investment decisions. It is also important to understand how certain brand actions might create conflicts with or difficulties for operations including increasing complexity or costs.

The chief information or technology officer will need to understand how the company's computer systems and other technology either enhance or detract from the brand's promise. It is important that this person understands how the brand's promise is a key part of the organization's success formula. If he or she does not understand this, projects that can impact the brand might be assigned much lower priorities. 

The sales vice president will be better able to sell the brand through his or her organization if the brand’s elevator speech is built into selling scripts. It is useful to include input from salespeople in the crafting of that elevator speech. They know what helps sell a brand.

The general counsel typically understands the importance of protecting the brand legally so that its equity is not diluted. You should work with people in his or her department to insure that the brand is being legally protected, preferably proactively.

The most important thing is to involve the entire leadership team in the crafting of the brand’s strategy and positioning. We offer consensus-building brand positioning and brand architecture workshops for this purpose.

Finally, you should always consider how your actions will be perceived by people responsible for the organization’s different functions. Put yourself in each executive’s shoes. What will his or her concerns be regarding your proposals? Think though how you can address those concerns. And how can you speak their language and show them that your proposals can help them and their organizations? Finally, don’t do this alone. Enlist each of these people as a mentor or informal advisor to your process. People like to be heard and they often like to serve as mentors. And never forget that people’s egos need nourishment every once in awhile.