forbes.com
Disconnect Between CEOs and CMOs Hinders Marketing's Contribution to Business Growth
Fortune 500 companies saw a drop in CMOs from 71% to 66% in 2023-24, reflecting a disconnect in the C-suite about marketing's role; CEOs who prioritize marketing achieve double the growth rate, emphasizing the need for alignment between marketing and financial goals.
- What are the potential long-term implications of failing to integrate marketing effectively into the overall business strategy?
- To maximize marketing's impact, CMOs must redefine their roles, focusing on long-term goals and data-driven decisions. This includes aligning marketing metrics with financial outcomes, ensuring collaboration between CMOs and CFOs, and demonstrating marketing's value as an investment rather than a cost. This will require bold moves beyond simply adopting AI or speeding up creative cycles, but redesigning their tech stacks so AI agents can actually deliver.
- How can companies ensure that marketing strategies are aligned with broader financial goals and contribute to profitable growth?
- CEOs prioritizing marketing in their growth strategy achieve double the growth rate (5%+ annually) compared to those who don't. The shift from focusing on marketing reach to relevance—understanding audience engagement—is crucial for driving profitable growth. This is further evidenced by the fact that while a hotel company CMO brought in record numbers of guests, the cost of acquisition exceeded customer value, highlighting the need for outcome-focused marketing.
- What is the impact of the disconnect between CEOs and CMOs on the effectiveness of marketing strategies and overall business growth?
- In 2023-24, Fortune 500 companies saw a decrease in CMOs from 71% to 66%, reflecting a disconnect between CEOs' comfort with modern marketing (67%) and CMOs' agreement (30%). This disconnect hinders strategic alignment, limiting marketing's contribution to broader business goals.
Cognitive Concepts
Framing Bias
The article frames the issue as a problem of insufficient CMO involvement in strategic decision-making. The headline and introduction emphasize the importance of putting the customer at the center of strategy and the negative consequences of excluding marketing executives. While this framing highlights a critical point, it might downplay other possible causes for marketing's perceived underperformance, such as technological advancements, evolving customer preferences or internal organizational challenges. The repeated emphasis on the CEO-CMO disconnect and the need for greater CMO involvement reinforces this perspective throughout the article.
Language Bias
The language used is generally neutral and objective, relying on data and research findings. However, phrases like "bold moves," "disconnect in the C-suite," and "constrained ability" carry somewhat charged connotations that may subtly influence reader interpretation. While not overtly biased, these choices add emphasis to the presented problems. More neutral alternatives could include "significant changes," "difference of opinion," and "limited effectiveness." Additionally, the use of quotes like, "A great CMO spends time educating the rest of the C-suite," may be interpreted as subtly favoring strong CMO leadership, rather than simply reporting it.
Bias by Omission
The analysis focuses heavily on the disconnect between CEOs and CMOs regarding marketing strategy and measurement, potentially omitting other factors contributing to marketing's decreased influence. While the article mentions the fragmentation of customer buying behaviors, it doesn't delve deeply into the specifics of this fragmentation or explore alternative strategies for adapting to these changes. Additionally, the article does not discuss potential external factors (e.g., economic downturns, changes in consumer spending habits) that might have impacted the number of CMOs at Fortune 500 companies. This omission could limit the reader's ability to form a comprehensive understanding of the situation.
False Dichotomy
The article presents a somewhat simplistic eitheor framing of the relationship between CEOs and CMOs, suggesting a direct correlation between the CMO's inclusion in strategic planning and achieving high growth. While the correlation is supported by the McKinsey research cited, it may oversimplify other contributing factors to company growth. The article doesn't explore situations where high growth may be achieved even with a less involved CMO or scenarios where a highly involved CMO fails to deliver high growth.
Sustainable Development Goals
The article highlights the crucial role of effective marketing in driving business growth and achieving high revenue. When marketing is strategically integrated into business planning, it significantly contributes to economic growth and improved financial outcomes for companies. The McKinsey research cited directly supports this, showing that CEOs prioritizing marketing in their growth strategy are twice as likely to achieve high growth (5% or more annually). The article further emphasizes that a customer-centric approach, championed by a strong CMO, is essential for sustainable, profitable growth.