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| Tuesday, 3 February 2004 |
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Hard-edged marketing - driving business strategy and management Lasantha Wickremesooriya, Chartered Marketer, Chairman - CIM Sri Lanka Though fundamental to business and broader economic success - and recognised as such - in most organisations big and small, the influence, status and reputation of marketing and marketers is limited. This paradox lies at the heart of modern marketing thinking and practice. Nowhere is this more evident than in the boardroom where marketing remains woefully under-represented. It is said that of the top 20 companies in the Fortune 500, only one, General Electric, has a Chief Marketing Officer. This is true for Sri Lanka too! "Marketing has too often been treated as a department, one that essentially carries out marketing communications and promotions. Marketing, properly conceived, is a strategic function and should be the driver of company strategy" - Philip Kotler. Under represented and denied a voice, marketing remains on the periphery of strategic decision-making. Marketers are limited in their ability to contribute to the future direction and strategy of their organisations and to influence priorities. This becomes more evident during hard times; the first budget item that is pruned downed is marketing! The importance of marketing to individual businesses and the economy as a whole is widely acknowledged. But, acceptance of the importance of marketing has not been accompanied by enhancements to the influence, status and reputation of marketing and marketers. Poorly represented among key corporate decision-makers, marketing remains handicapped by its reputation and history. It has an image problem; is often associated with cost; is regarded as customer rather than business-driven; and is poorly positioned within organisations to affect change and shape strategy. So how can marketing drive business success in the future. We at CIM believe that the answer lies in a new kind of marketing, what we call hard Edged Marketing. "Hard-edged marketing is the disciplined process of marketing decision-making based on what really drives success. It is supported by the application of robust business metrics to marketing activities to create demonstrably superior value for all stakeholders. The result: optimal marketing-driven strategy, decisions and performance'. The concept of value is central to hard edged marketing. But value is not easily defined. Different stakeholders will hold different notions of value. Marketers need to understand that creating economic value is an end in itself. Unless marketing activities create - or at least contribute to - an economic surplus they will not be sustainable in the long term. At the same time, marketers must also recognise that companies are ultimately measured on shareholder value, and the only sustainable way to increase shareholder value is by creating value for all stakeholders. Hard-edged marketing addresses three key marketing challenges: to interpret value broadly and make the right decision which focuses scarce marketing resources on the area of best return; to utilise meaningful metrics to quantify marketing's contribution to business success; and to operate at broad/strategic level in the organisation. Making hard-edged marketing a reality requires marketers to: re-think objectives and priorities; focus on the best source of value; engage with new metrics; develop new skills; and become pivotal in the organisational structure and more influential in driving business strategy and management. |
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