Marketers have virtually no control over the important business elements that matter for growth in 2007, according to research from consultancy Prophet.
In identifying the factors driving business growth in 2007, three quarters of the senior marketers questioned (76%) cited customer experience and service followed distantly by business strategy and marketing strategy. Yet 24% of the same marketers admitted to having little or no influence on customer experience or service.
Marketers also lack influence in other critical areas: 48% play no role in distribution/sales force strength; 45% have no influence on pricing; 39% have no say in product development; and – amazingly – 27% have little or no involvement in online/direct marketing. Interestingly, 24% of respondents viewed advertising as an important growth driver, but only five per cent considered it to be the most important factor.
Other findings included the revelation that market share (25%) followed by bottom-line profits (24%) are the issues that command most attention from marketing management. This is followed by sales revenues and share of wallet (each 18%) and sales volume (14%). However, 47% of senior marketers believe that bottom-line profits rank highest on the CEO and board of directors’ agenda.
Also of note for marketing directors is the incredible fact that 62% of the companies questioned have no formal mechanisms in place for measuring brand and marketing’s contribution to growth. However, 40% of marketers estimate that brand and marketing activities had a high or very high impact on their company’s growth. What’s going on?
Additionally, it appears that companies are not as innovative as they might like to tell themselves either. Thirty-seven per cent of marketers admit that new marketing approaches in their company are only adopted when they have been proven to be successful in the market. Only 11% truly consider themselves to be on the “leading edge” of marketing.
So does this reflect the truth in your company? Let us know your views on this!
