According to recent research, 40 percent of CMOs do not feel prepared to meet their marketing objectives, and 70 percent believe they have only five years to fundamentally overhaul their company's corporate marketing model in order to achieve competitive success.

CMOs report that inefficient business practices and the lack of funding and resources are among the barriers they face that ultimately hinder them from improving their performance and meeting their business goals. The five major marketing capability areas that are impacted by these hindrances are digital orientation, customer analytics, offering innovation, customer engagement and marketing operations.

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by Jennifer Barron
Many senior marketers have not mastered the art of turning marketing-speak into the financial language that resonates with directors. If brand value and the benefits of brand-building investments are not translated into the language of numbers, marketing will always be at a disadvantage in winning over the board. Here are five reasons to bring brand into the boardroom. ...More
The "sunk-cost fallacy," in which people throw good money rather than "waste" what
they've already invested, can actually lead to smarter business decision-making,
researchers say. Sunk costs serve as a reminder of the importance once
attributed to a given outcome, helping people and organizations to persevere
even when the reasons for doing so are obscured by more immediate pressures.
That's particularly valuable after leadership transitions, when the precise
logic behind a past decision isn't clear, researchers note. Kellogg  Insight

What makes a valuable brand? Well, according to Brand Finance, who have put together this list, it comes from seeing just how much revenue contribution a brand makes to its parent company. It then estimates the amount it would cost to licence the brand if the business didn’t already own it.

The list of the top 50, courtesy of Marketing Week, does have a few surprises in it though, but only a few brands have managed to climb back up from where they once were.
Recent research from Fournaise Group (see prior post “CMOs: With Your New Great Power Comes New Great ROI Responsibilities”) revealed 90% of CEOs interviewed don’t trust the CMO. The general consensus among CEO ranks is c-suite marketers are disconnected from the short- and long-term goals of the organization because they cannot sufficiently link marketing return to bottom line results.

But what does this mean to today’s CMO? You have to be more focused on Marketing Performance Management. Marketing ROI is the proven correlation between marketing spend and gross profit generation. And while 69% of Marketers feel their strategies and campaigns do make an impact on the company’s business, they readily admit they can’t precisely quantify or prove the real marketing return on investment (ROMI). Seventy-seven percent (77%) of CEOs say that CMOs keep talking about brand, brand values, brand equity and other parameters that struggle to link marketing spend to results that really matter: revenue, sales, EBIT or even market valuation

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There are a few basic ways to waste money on advertising: 

·      Spending too much. [In reality, this almost never happens, despite the CFO's suspicions.]

·      Spending too little. This actually happens a lot. Several polls have shown that at least one-third of marketing managers believe their resources are insufficient to meet their agreed-upon goals. Fifty GRPs is the minimum level to reach the target once a week. 

·      Spending too quickly. This is easy if the budget's too small. The best media planners understand the purchase cycle and accordingly "drip" the dollars over time. And a new brand needs time to become known; a "big splash" with no follow-up will be forgotten. 

... in 2007, one-third of CMOs said they were satisfied with their ability to measure marketing ROI. That's a major disconnect with the CFOs. And remember, the guy with the gold makes the rules.

Wal-Mart and BMW have figured out how to put a long-term value on their customers, and are able to direct their marketing investment more effectively. PepsiCo also assessed the value of customers. Since Diet Pepsi drives its brand equity, Diet is where the marketing dollars are going.

But 55% of senior marketing executives lack a quantitative understanding of brand value, according to a recent survey by the Association of National Advertisers (ANA) and Interbrand. Furthermore, because the brand's impact on corporate value is not clearly quantified, it's not being incorporated in decision-making: 64% of senior marketing executives say that brands do not influence decisions at their organizations.