Even among market leaders, some doubt always exists about the efficacy of marketing investments and the return they are actually delivering. With average performers, that slight doubt increases to substantial uncertainty. In fact, in many companies, the executive team is so sceptical about the value their marketing delivers that it is invariably the first line item cut when times are tough. However, the source of their doubt and the way they manage their marketing function are closely connected.
In fact, the executive teams within average performers are often correct to be sceptical about the returns they are receiving on marketing investments. They probably aren’t getting the returns they could get, and they certainly aren’t getting the returns market leaders are getting. And it’s their own fault.
They could be getting better returns on their investments in the marketing function if they were evaluating plans accurately, managing them effectively and measuring the results.
The financial returns on the marketing function investments are greatest when the function of marketing is aligned with the discipline of marketing. It’s what was described in chapter 2, ‘The Discipline of Marketing,’ as the Point C Principle.
Companies who adhere to the Point C Principle align everything in the company with the market’s needs and the company’s value proposition, from operations to brand management. The function ...