I have been reflecting on the role of marketing in B2B organizations over the last few years, and it is with an acute consciousness that most C-level executives don’t quite know what marketing can bring to the table that I am now working as a business consultant in… marketing!
Most companies going through their initial growth phase are typically equipped with very tactical marketing resources that help with a little bit of everything. Although this might be perfectly fine for the first stages of development, to accelerate growth and sustain market leadership in the longer-term, marketing teams need to become more strategic.
Marketing is not magic
A critical challenge that comes from the lack of comprehension of the marketing role is that marketing is not involved, or sometimes not even aware of the business strategy. Without aligning with the business plan, it is extremely difficult to elaborate the best marketing strategy and not become short-sighted, just repeating what was done in previous years, based on the budget that was allocated. Marketing is therefore seen as a cost center (or sometimes a service center to other functions) which doesn’t contribute much to creating value for the business.
In addition, when you onboard as a new marketing executive, it is not rare to face expectations that you will start fixing everything immediately. Opening new markets, adding to that top sales funnel, defining packaging and pricing, launching new products and brands… Because the organization has finally decided to invest in marketing to answer the growth pressure, marketing is expected to instantaneously make the company, its products or services, shine, and attract new clients like magnets. While all these seem legitimate goals, without the proper strategy in place, chances are that you will not hit the mark and that you will throw money out the window.
Marketing is not magic, it cannot turn flip-flops into Manolo Blahnik’s overnight.
Understand the business strategy
Before answering marketing mix questions (we need a campaign, let’s attend this event, we need a new website, we need more online advertising, what about SEO…), which is the execution part of the marketing plan, you need to define what the actual marketing strategy is going to be.
And to do so, you need to understand the business strategy. What is the organization trying to achieve? It is not possible to create a successful marketing strategy if you don’t know the higher-level business strategy. It is like planning a trip without knowing the destination.
A quick reminder on the 3 levels of strategy in organizations (1)
- Corporate strategy (vision, corporate goals, philosophy & culture, values)
- Business unit strategy (mission, BU goals, competencies)
- Functional strategy (marketing, sales, R&D, customer services ….)
For high-growth companies, the Ansoff matrix(2) or product/market expansion grid provides a proven framework with four key growth strategy options. Each possible growth strategy dictates a different approach for going to market.
Identifying which strategy you are aiming for will be key to defining your marketing approach. For example, a market penetration strategy will require a very different plan than a new market development strategy.
Update your perspective
Let’s assume now that the corporate strategy and goals are clearly defined, and that you have identified the possible options in terms of markets you want to play in for your portfolio of products and services.
Markets change, new entrants come in, and technology evolves… What you have been doing for years might no longer be the right thing to do to achieve your goals.
It is crucial to invest in market analysis regularly. Making a SWOT(3) and a PESTEL(4) analysis is needed work that will keep your understanding of where you stand in the market against your competition current. It will also help identify or confirm strategic opportunities.
In addition, providing a 360 view of the situation to the executive team will also be a great opportunity for some open – and sometimes heated – conversations; oftentimes a good reality check.
Articulate your Marketing Strategy
With the understanding of the corporate and business unit strategies, a good knowledge of your organization’s core competencies and the dynamics of the environment that you will be playing in, you are now in a position to define:
- The marketing strategy that aligns with the growth strategy you have chosen to pursue, and the related marketing goals,
- The operational strategies (including the marketing mix or the 4 Ps(5) of marketing) for each of your target markets/products,
- The budget that you need to achieve your objectives,
- The execution plan, including your organizational structure and the measurement of your results.
Set your KPIs
An integral part of your marketing strategy is to define your scorecard so that you can measure the progress of your plan. How is marketing going to contribute to the success of your corporate strategy? What KPIs do you want to track that will allow you to monitor progress against your goals? Do you have historical data on these indicators? Are you in a position to collect the data? All these questions need to be answered if you are serious about measuring the impact of your marketing investment.
Maximize your marketing investment
If all of the above recommendations are second nature to your organization, and your marketing team is seamlessly executing a strategy aligned with your business plan, then congratulations; this is not very frequent and I would love to hear from you and learn more about how you are nailing it.
Otherwise, before spending any more money on fancy marketing activities, it might be worth taking a step back and thinking about which informed marketing strategy, tightly aligned with your corporate strategy and goals, will help you set up a market capturing machine that will create value for your business.
Over the years, I have earned hands-on experience in strategic marketing, demand generation and brand management in high-growth B2B organizations. You can find me at www.hgeystudios.com or reach out on linkedin.
1 – Marketing (Berkowitz, Crane, Kerin, Hartley, Rudelius) 3rd Canadian edition
2 – https://corporatefinanceinstitute.com/resources/knowledge/strategy/ansoff-matrix/
3 – https://www.investopedia.com/terms/s/swot.asp
4 – https://en.wikipedia.org/wiki/PEST_analysis
5 – the 4 Ps of marketing – product, price, place and promotion
(image from pexels.com)