In an era where most companies still heavily rely on sales and finance, the question arises: why doesn't every boardroom have a Chief Marketing Officer (CMO)? This question touches on a deeper, fundamental misunderstanding of what marketing truly means and its crucial role in the long-term health and growth of a business.
According to Philip Kotler's famous definition, marketing is "the science and art of exploring, creating, and delivering value to satisfy the needs of a target market at a profit." Marketing is about identifying unmet needs and desires. However, from my perspective, this adds the crucial dimension of creating 'pricing power' - the ability to set prices that reflect the value we deliver, focusing on the sales of tomorrow, not just today. This view emphasizes a strong link with revenue management and category leadership, rather than focusing on short-term sales or EBITDA. #MarketingLeadership #PricingPower
The Short-Term vs. The Long-Term
It's human nature to think in terms of immediate gratification. This explains why companies often adopt a shortsighted approach, focusing on direct sales and financial gain. My experience with large FMCG companies has shown that this can be an effective way to generate shareholder value in the short term. However, for me, the most important line in the P&L remains the Topline Net Revenue. A focus on short-term gains, often characterized by an increase in promotions and discounts, is actually a sign that pressure on the brand is increasing and power is shifting from supplier to retailer. #SustainableGrowth
The Crucial Importance of Strategic Marketing
Without a CMO in the boardroom, emphasizing the long-term strategy of marketing, companies risk their ability to innovate, adapt, and grow in the face of changing market dynamics. An integrated marketing approach, focused on building brand value and achieving pricing authority, is crucial for sustainable growth. #BrandValue
LIVE FROM THE WHITE HOUSE has recognized this gap and developed a toolbox to help companies make this transition. These tools are designed to create a future-proof culture that can not only handle current challenges but also proactively identify and exploit new opportunities. #BusinessInnovation
Conclusion: A Call to Action
It's time for companies to reconsider the traditional divides between sales, revenue management, category management, and marketing. An integrated approach, led by a CMO who understands both the art and science of marketing, including the crucial importance of pricing power and category leadership, is essential for achieving long-term success. #StrategicMarketing
I urge all business leaders to reflect on the role of marketing within their organization. Ask yourself: Do we have the strategic focus necessary not only to survive today but to thrive tomorrow? The answer to this question could be the difference between a company that rides the waves of change and one that is overwhelmed by them.
For more info about the services LIVE FROM THE WHITE HOUSE is offering, you can visit the website: https://www.livefromthewhitehouse.be
Comentários