Obligations Can Keep Us from Creating Our Own Lives By...
No. I can even imagine where the proper step is to increase the overall marketing budget and spend more. A down period introduces as much opportunity as it does chaos. For example, customers are ready to switch to lower-price store brands and away from the more expensive national and international brands. Retailers such as Kroger (KR), Tesco (TESO), and others are strengthening their private brands and offering two or three private brands on the model of “good, better, and best.” Today, more people are fishing to solve the problem of having a good dinner with little cost. This is good news for companies that make fishing rods, nets, and bait. Some companies see cracks of sunshine in this otherwise gloomy picture.
Are there any marketing maxims that must be preserved even in bad times?
Yes. I would mention three:
1. Understand your target customers and solve their problems in a better way than your competitors.
2. Build your brand promise that is delivered by everyone in your business network (employees, distributors, suppliers).
3. Innovate continuously in your products, services, and supply chain.
What changes should marketing departments make in these times?
Most marketing departments are tactical, not strategic. They can do marketing research and marketing communications (ads, brochures), and have other skills for developing and launching a product. But they don’t really drive the company’s growth strategy. I know of a pharmaceutical company that only calls in a marketer when it wants to decide on the color for a new pill. Where was the thinking done about what diseases the company should pursue, how big the opportunity is, should the solution be in the form of a pill, liquid, or patch, and so on?
I am not arguing that the marketing department should call the shots on growth strategy. I am asking for marketing to be a proactive collaborator in developing the firm’s growth strategy. Yet marketing for the most part remains busy with details.
The recent appointment of Chief Marketing Officers (CMOs) is a good sign. A CMO presumably joins the senior management group to help plan the company’s future. He or she brings in the voice of the customer into the company’s thinking and tries to get management to move from marketing to “consumering.” develops better ways to get customer insight; develops better metrics for measuring the impact of different marketing efforts; protects and enhances the company’s brands; and brings in new marketing technologies and skills to the marketing department.
What is preventing the marketing department from taking on a stronger leadership role?
Most marketers have been hired into a marketing department because they are right-brain trained—that is, creative. They are less well-trained in their left brain, the part that thinks about numbers, finance, and evidence. But they have to deal with managers who by and large are left-brain trained. (Anyone interested in this subject should read the recently published book War in the Boardroom: Why Left-Brain Management and Right-Brain Marketing Don’t See Eye-to-Eye—and What to Do About It by Al and Laura Ries). The key need then is to put into the marketing department some sharp left-brain people or two-brain people who can work with the other managers. Once department managers begin to deal with some two-brain strategic marketing managers, marketing will play a stronger leadership role.
What else are you busy thinking about?
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Thank you for your time, Philip.