Marketing Evolution: A Focus on Growth and Value
In a time of rapid change and new challenges, the consumer-packaged-goods (CPG) and retail sectors are seeing a significant shift in strategy. Companies are now more focused than ever on growth and identifying value. With shifting consumer behaviors and slower population growth becoming the new normal, businesses are feeling the pressure to rise to the occasion and find innovative ways to thrive.
According to the insights shared by a group from McKinsey, it’s not enough for companies to simply manage their portfolios. They are encouraged to take on an ambitious dual agenda, which includes enhancing capabilities to promote better performance alongside finding new avenues for growth. It’s a big ask for leaders in these industries, especially chief marketing officers (CMOs) who are already stretched thin and grappling with heightened expectations.
Expanding Responsibilities in a Changing Landscape
Today’s marketing leaders are caught in a balancing act – they need to build strong brands and drive growth while also being shrewd about how they spend their marketing dollars. This daunting task involves tapping into fresh and exciting growth opportunities, creating engaging brand experiences, and linking a company’s mission to actual business outcomes through innovative technologies.
Our recent survey reaching out to over a hundred C-level executives from various sizes of consumer and retail companies across Europe and North America revealed insightful perspectives. Many marketing leaders expressed that they recognize the capabilities needed to maximize growth, yet there’s a disconnect – a significant portion of them cannot see the advanced capabilities within their organizations that are critical for future success.
Capability Gaps and the Path Forward
The findings indicate that there are serious gaps in several strategic areas concerning operation models tailored for marketing success. Issues primarily concerning business building, ecosystem development, and real-time data-driven marketing performance surfaced as the central problems. Many CMOs feel their organizations lack the frameworks necessary to meet ambitious growth goals.
To turn this scenario around, it’s essential for marketing leaders to embrace a holistic marketing operating model. Think of it like having a roadmap in a bustling city—the clearer the path, the easier it is to navigate through various responsibilities and to align them with overarching goals.
Four Pillars of Marketing Excellence
Marketing leaders must now aim to excel across four critical pillars: a clearly defined marketing strategy driven by insights, creating efficiency in marketing performance, capitalizing on tech innovations, and developing a robust operating model. Yes, these pillars aren’t new, but today’s leaders need to develop cutting-edge capabilities that previously fell outside the core of traditional marketing functions.
This complexity fosters an environment where collaboration becomes key. CMOs are now expected to work across different functions, focusing on building capabilities while also managing a diverse portfolio of products. It’s no longer just about issuing a press release or preparing a social media post. It’s about contributing to the organization’s entirety, from innovation to e-commerce.
Strategies for Agility and Growth
As organizations look to restructure for agility, it’s vital to assess how well they are organized for growth. This includes breaking down traditional silos and enabling seamless collaboration across departments. A core focus should be on velocity and scaling up essential strategic priorities—allowing (at least) one arm of the organization to take charge while coordinating efforts across divisions.
A great example can be found in the way that leading companies shape their governance structures. They ensure that everyone understands how decisions get made, who’s responsible, and the roles expected from each team member. This clarity helps speed up processes while making a more meaningful contribution to the overall marketing strategy.
Innovative Approaches Making Waves
Innovative thinkers in the marketing realm have also begun leveraging AI technologies to engage consumers in novel ways. Many CMOs see generative AI not just as a risk but as a golden opportunity to pave the way for creative efficiency and enhanced marketing practices. The potential costs saved can reach as high as $463 billion annually, making this an avenue too promising to overlook.
Additionally, partnering with specialists for data and analytics is becoming increasingly important as organizations grow. Marketers should explore dynamic partnerships and position these relationships as vital components of their strategies. By aligning incentives and fostering a culture of mutual growth, CMOs are laying down the tracks for a robust marketing ecosystem.
Looking Ahead
As we move forward in this dynamic climate, the role of marketing leaders is set to evolve continuously. While challenges abound, an environment rich with possibilities lies ahead for organizations ready to adapt and innovate. Establishing a fit-for-future marketing operating model can significantly help CPG and retail companies navigate these turbulent waters, ultimately enabling them to achieve their growth objectives.
In summary, it’s an exciting time filled with opportunity! With clear strategy, teamwork, and embracing new tools and technologies, marketing leaders can turn their dual growth agendas into a thriving reality.
