A chief marketing officer (CMO) is an executive who manages the company’s marketing functions. The CMO may have a few different responsibilities, but generally, they are in charge of managing all aspects of the company’s marketing strategy and execution to achieve business goals. As companies evolve, so does their need for someone with experience in creating innovative solutions. Let’s take a look at how the role of CMO has evolved and the impact they have on a company. A chief marketing officer (CMO) is an executive who manages the company’s marketing functions.
The CMO may have a few different responsibilities, but generally, they are in charge of managing all aspects of the company’s marketing strategy and execution to achieve business goals. As companies evolve, so does their need for someone with experience in creating innovative solutions. Let’s take a look at how the role of CMO has evolved and the impact they have on a company.
The CMO has undergone significant changes since the 1980s. The expansion of technology and increased marketing complexity means that marketing leaders must be able to understand all aspects of the business, including strategy, finance, operations, sales, and more. The industry landscape is also changing faster than ever before with emerging technologies like mobile apps and social media requiring robust capabilities in analytics, content marketing, and more.
In the 1980s, CMOs were mainly charged with running advertising campaigns and promoting their company’s brand in public relations. They also could have been responsible for managing a small marketing team — everything from product launches to events was the CMO’s responsibility. As marketers began acquiring larger responsibilities, they moved away from the traditional marketing department structure to a more integrated team. To support this shift, companies began adding new positions such as digital and search engine marketers.
The CMO in the 1990s & 2000s
As companies became more customer-centric during the 1990s and 2000s, it raised the need for CMOs to understand their customers’ needs and make decisions based on customer insights. In response, companies began to build a stronger focus around the customer and added specific roles such as chief customer officers and vice presidents of customer experience. Additionally, CMO’s were charged with taking a more strategic role within their organizations — managing the company’s marketing strategy instead of just its execution. This meant that they had to keep up with the latest technologies and become more involved with product development.
The CMO Today
Today, companies are putting a substantial focus on data-driven marketing with many even employing chief data officers. The emergence of big data has meant that marketers now have access to more information about their customers than ever before, which can help them create better strategies and improve results. 70% of companies have increased their budgets for marketing analytics in the past year alone. This increase is largely due to the need for CMOs to help provide analytical insights that can be used across all departments.
In addition, digital has moved from a departmental responsibility to a company-wide focus. The CMO today needs to understand how to create and integrate social, mobile, local, and more digital marketing initiatives into the overall marketing strategy. They also must be able to manage this process across all channels — offline promotions like TV ads and in-store signage still play a vital role in effective campaigns.
What is a CMO’s main responsibility?
The CMO is responsible for managing the company’s marketing strategy and execution. They must be able to handle anything related to marketing, whether it is advertising campaigns or product launches. As technology continues to advance, so does the need for marketers who understand data analytics and digital strategies.
CMO’s are in charge of a company’s marketing strategy and execution. They must be able to handle anything related to marketing, whether it is advertising campaigns or product launches. As technology continues to advance, so does the need for marketers who understand data analytics and digital strategies.
Here are a few key responsibilities:
- Manage the company’s marketing strategy & execution
- Managing an integrated marketing team
- Understand customer needs and make decisions based on analytics
Why do companies hire a CMO?
A CMO’s main responsibility is to drive growth for the company. They are responsible for managing the company’s marketing function, which includes all areas related to marketing — advertising, social media, or PR. As technology continues to advance, so does the need for marketers who understand data analytics and digital strategies. The CMO has very big shoes to fill. The entire company is looking to the CMO to drive growth and keep up with changes in technology.
CMO’s are responsible for driving a company’s revenue through marketing. They focus on all areas related to marketing, including advertising campaigns or product launches. As technology continues to advance, so does the need for marketers who understand data analytics and digital strategies. The CMO has big shoes to fill, as the entire company is looking to them for revenue growth and keeping up with changes in technology.
The benefits of hiring and working with an experienced CMO
- They understand data analytics and digital marketing initiatives
- Experience with managing the company’s marketing function (advertising campaigns, PR, etc.)
- Keep up with changes in technology to drive revenue growth for the company.
CMO’s help provide analytical insights that can be used across all departments. Additionally, they must now manage social, mobile, local, and more digital marketing initiatives into the overall marketing strategy. This requires experience in data analytics and digital marketing that can also help manage all channels of a campaign. The CMO must remain up-to-date with changes in technology to help drive growth.
As the advances in technology have shifted how companies market themselves, hiring someone with experience has become incredibly important for success. CMO’s are responsible for data analytics and digital marketing initiatives, which means they must understand how to create and integrate social, mobile, local, and more digital marketing initiatives into the overall marketing strategy. They are also responsible for managing all channels of a campaign, which requires experience in data analytics that can help them manage offline promotions like TV ads and in-store signage. CMO’s must remain up-to-date with technology changes to help their company grow.
What does it take to be an effective CMO?
As technology advances, so does the need for marketers who understand data analytics and digital strategies. Historically, being a successful marketer usually required years of experience in marketing — but now it depends more on your understanding of data strategy. An understanding of technology is becoming increasingly important, as companies are looking at CMOs to help make sure they are properly leveraging data. And, of course, having a knack for creative problem-solving will always be beneficial to any manager.
To be an effective CMO, it is important to understand the technology and how companies can leverage data. Additionally, having a knack for creative problem-solving will always be beneficial.
How Does A CMO Increase ROIC?
ROIC stands for Return On Invested Capital, which is an indication of business performance. ROIC is often used by companies to measure how successful they are at achieving their goals and generating revenue. ROIC is calculated by dividing net operating profit after taxes (NOPAT) by the book value of shareholders’ equity plus the market value of equity. ROIC = NOPAT / (Book Value of Shareholders’ Equity + Market Value of Equity) ROIC is often used as a way to measure operational efficiency, effectiveness, and profitability.
Marketing is an ever-changing industry, as technology advances and companies shift their marketing efforts. To keep up with the changes in technology, it becomes important for marketers to stay on top of data analytics and digital strategies. Experience with managing the company’s marketing function is also beneficial, as well as a knack for creative problem-solving.
CMO’s who understand and stay up-to-date with the changes in technology will ace their job and be able to help drive revenue growth. CMO’s can increase a company’s ROIC by focusing on how they can leverage data to improve operational efficiency, effectiveness, and profitability. They should focus on improving these three areas concerning how they can leverage data. CMO’s need to be aware of how their company is determining the value of its customers to determine ROI and understand technology changes to drive revenue growth.
Final thoughts
As a leader, it is their role to improve the bottom line and calculate the return on invested capital. Managing a high return is more attractive to potential buyers. The role of a chief marketing officer has evolved over the years, but its impact on company success is undeniable. Whether you’re just starting up and need someone to help develop your strategy from scratch or looking for an experienced leader who can take your team to the next level, you can contact us to partner with you in achieving your objectives.
