by Bella Ikeme
In the fast-paced business world, where strategies evolve and markets transform, the significance of brand marketing cannot be overstated. A recent study by the Marketing Science Institute underlines the profound impact of effective marketing governance on overall business performance, emphasising the strategic importance of the board's oversight on marketing matters. The study revealed that boards with at least one marketing-experienced director witnessed a three-percentage point increase in total shareholder return. Their "outside-in" perspective complements the internal operational focus of typical board members. The invaluable "been there, done that" perspective these directors offer on rebranding initiatives, strategic partnerships, and customer insights adds a layer of depth to board discussions.
However, a critical concern emerges as marketing often finds itself in the shadows during board discussions. This negligence poses a substantial risk to shareholder value and the overall health of an organisation. This impact is also particularly pronounced for companies in decline. It's about time that boards recognise the significant importance of marketing governance and strategically address the critical need for marketing acumen in the boardroom.
The Power of Marketing in the Digital Era
In the age of digital disruption, the connected customer holds increasing sway. Boards are called upon to respond swiftly to challenges posed by new, internet-based business models. Several studies highlight that the businesses most profoundly disrupted are often those that know the least about their customers. In contrast, successful organisations are building their knowledge of customers, deriving insights from their markets, and continuously improving their marketing effectiveness through a data feedback loop.
The Dilemma in the Boardroom
Boards, traditionally focused on financial governance, have, more often than not, relegated marketing to a secondary role. With few directors boasting hands-on marketing experience, the oversight on brand marketing matters becomes apparent. Misguided discussions, inadequate questions, and anecdotal debates plague the boardroom, misaligned with the mandate of effective governance. The repercussions? An organisation that is ill-equipped to navigate the dynamic landscape of brand marketing. By acknowledging marketing’s strategic contribution, boards can foster a more effective and informed dialogue, ensuring that marketing becomes a pivotal aspect of their oversight responsibilities. Recognising marketing as a central thread in corporate strategy and a significant factor in talent attraction and retention is critical.
The Role of Marketing Governance
As marketing evolves into a powerful channel for brand building, fostering collaboration, and gathering customer insights, boards need to reassess their oversight responsibilities.
The challenge lies in integrating marketing effectively into the board's governance and oversight discussions. Non-financial measures, such as customer loyalty and brand recognition, are lead indicators of an organisation's financial health, making it crucial for boards to focus on marketing as a driver of growth.
The absence of clear, embedded formulae for measuring marketing effects on business strategy success has often led to marketing being regarded as a mix of art and science, seemingly less manageable than other board-discussed functions. In essence, marketing is not just an aspect of business strategy; it's the fuel that powers growth, connects with customers, and ultimately shapes a company's success.
Weak or absent marketing governance might not deliver an immediate blow, but its long-term effects can be equally damaging. Even benign or ineffective marketing can depress shareholder value. The gaps in marketing performance, when scrutinised through the lens of marketing governance, serve as leading indicators of potential financial problems.
Empowering Boards for a Strategic Shift
Elevate your board’s impact by unlocking the untapped potential of brand marketing in your boardroom! Join our upcoming masterclass, “Marketing, Shareholder Value & Risk: The Importance of Board Oversight on Brand Marketing,” where we delve into the critical role of board governance in steering the ship of marketing strategy. This masterclass is not just a theoretical exploration but a practical guide to infusing marketing expertise into boardrooms.
Key takeaways would include:
Alignment with Strategy: Understand how to align marketing efforts with the broader business strategy.
Metrics that Matter: Identify crucial brand marketing metrics and comprehend their impact on shareholder value.
Customer-Centric Innovation: Leverage customer trends to fuel a robust pipeline of innovations for sustainable growth.
Strategic Inquiries: Learn to ask the right questions about the marketing technology stack, structure, and talent to execute business strategy effectively.
As we continue to live in an era where brand reputation is synonymous with business success, it is imperative to place marketing as a major element of boardroom discussions. Don’t miss this opportunity to empower your board with the knowledge needed to enhance shareholder value and proactively navigate the evolving landscape of marketing-related risks. Click here to sign up for the free masterclass - http://futuresoft-ng.com/fsmasterclass
Bella Ikeme is an experienced founder, mentor and certified sustainability and marketing consultant, recognised for her leadership in entrepreneurship, brand strategy, and social impact across Africa. Her extensive expertise lies in driving measurable impact, growth, and sustainability for a diverse clientele. She is the CEO of Caizen – a sustainability marketing agency, leading cross-regional teams to execute multi-million-dollar marketing projects for corporate entities, not-for-profit organisations, development finance institutions (DFIs), and the public sector. Bella is also the Founder and Editor-in-Chief of ASPIRE Luxury Magazine, successfully launching and accelerating the growth of several African premium and luxury brands on both the continental and global stages.
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