Column 7 · Organization and Implementation · Era 6, Engagement and Networks (2010s)
CMO and Marketing Power
Implementation, process · Major · Cluster III, Organization and Programs
Description
Feng, Morgan, and Rego showed that marketing department power has risen for many firms and is associated with better performance, and Germann, Ebbes, and Grewal showed that the presence of a chief marketing officer in the top management team improves firm performance.
Managerial Implications
Marketing's influence in the top team has fallen over time, yet firms with stronger marketing departments and a CMO in the right conditions perform better. Marketing power comes from accountability, from controlling key resources, and from contributing to strategic decisions. Managers who want marketing to matter should give it measurable responsibilities, a seat in strategy, and a demonstrated link to financial results.