What Makes for Successful Marketing?

Some nine percent of US marketing departments are 'Growth Champions' who take advanced roles in their companies and contribute to superior corporate performance, according to a new study by the Association of National Advertisers (ANA) and management consulting firm Booz Allen Hamilton.

The study classifies marketing organizations into six basic categories but the Growth Champions category is the only one that correlates with better performance. Marketing departments in this category, who take a lead in such non-traditional activities as innovation and strategy, are 20% more likely to exhibit superior revenue growth and profitability than those in the other five categories.

While most marketing departments are proficient in traditional marketing skills, such as communications and advertising, Growth Champions take on additional roles holding primary authority over large strategic investments, leading innovation activities, and spearheading growth initiatives with their company's CEO. The research suggests that more Chief Marketing Officers and their teams are moving to develop and deploy their advanced capabilities.

'In today's business environment, growth is the critical marketing metric,' comments Ed Landry, Vice President at Booz Allen. 'Our research has revealed a structure that can reliably produce higher growth in both revenue and profits. This creates a clear-cut mandate for marketing executives everywhere: upgrade your capabilities, assume a greater leadership role and position marketing so it can be a primary driver of your organization's growth agenda.'

Michael Palmer, Executive Vice President of the ANA, adds: 'For marketers to successfully migrate into a Growth Champion role, they must be metric-oriented to be seen as owners of their company's key growth-support functions. It's critical that they play a greater role in strategic growth initiatives and develop significant general management skills while also applying financial and analytical expertise to guide large, growth-oriented investment decisions.'

An online survey asked 2,000 marketing executives about the structure, practice, decision rights, and capabilities of the marketing departments at their companies. The survey builds on earlier ANA/Booz Allen research that identified a disconnect between CEO and marketing objectives, and documented high rates of marketing department reorganization and CMO turnover. The new study sought to identify correlations between specific types of marketing organizations and the financial success of their companies. The results will be published in the Summer 2006 issue of strategy + business, the quarterly magazine published by Booz Allen.

About half the respondents were director or manager level and 40 percent at vice president, senior or executive vice-president or C-suite level. Approximately 60% worked in marketing teams with the balance working in other corporate functions.

More detailed results are available online at www.boozallen.com .

All articles 2006-23 written and edited by Mel Crowther and/or Nick Thomas, 2024- by Nick Thomas, unless otherwise stated.