Why Every CEO Should Care About Their Marketing Strategy

CEOs focus on sales, however to complement sales, marketing needs to be on point with experienced marketing leadership. Marketing is the key driver for sales. It assists sales teams in locating and qualifying leads and keeping in touch with prospects all across the sales cycle. In addition, it enhances overall revenue and profit performance. Sales are vital because they affect the profit margins. The goal of marketing is to make a product known. It’s about the bottom line and producing results.

Most CEOs understand acquiring new clients is much more expensive than retaining existing customers. In reality, these grim figures are highlighted in a Forbes Op-ed:

• “Selling to current customers is roughly 50% simpler than selling to new prospects.”
• “An improvement of 5% in client retention may boost a profit margin by 75%.”
• “Only 20% of your current consumers will account for 80% of your firm’s future revenue.”

When conflict drives away existing consumers, more funds are required to be invested attracting new customers to make up for the lost revenue. This reallocation diverts attention from activities essential to advancing the brand, such as product creation, company growth, operational efficiencies and customer service.

Building an effective marketing strategy is essential for any business and should be on the radar of the CEO. When company teams work together collaboratively and communicate effectively to their clients through well-planned and executed marketing strategies, remarkable results are achieved driving long term profits and ensuing success. In this article, Coraggio explores the rationale behind CEO’s being actively involved in their company marketing strategy.

By focussing on the following, CEOs and business owners will establish clients aligned to the company’s purpose and intent reflected in their marketing and digital strategic plan.

Revenue driver – Marketing is a primary driver of sales and revenue for most businesses. Effective marketing identifies a steady stream of new customers whilst retaining existing clients.

Brand image and reputation – A company’s marketing strategy directly impacts how its brand is perceived in the marketplace. Positive branding can lead to increased customer loyalty, word-of-mouth recommendations, increased visibility and a sustainable competitive advantage.

Competitive edge – In crowded marketplaces, a strong, established marketing strategy can generate a company’s point of differentiation from competitors. Marketing ensures a company remains top of mind and at the forefront of customers’ to meet their needs, providing advantageous insights into competitors’ strengths and weaknesses.

Feedback loop – Marketing strategies, especially those that are digitally oriented, can provide invaluable data on customer preferences, behaviours, shifts and trends. CEOs can leverage this data to make effective, informed decisions in other areas of the business including operational efficiencies and streamlining systems and processes.

Talent attraction – A strong brand and market presence can also attract top talent. High-performing individuals prefer to work for well-known and respected companies. Marketing not only sells products however facilitates a company’s culture and vision to potential employees.

Resource allocation – CEOs need to allocate resources (both time and money) effectively. Understanding the marketing strategy enables CEOs to ensure marketing budgets and resources are being used effectively and yielding positive ROI.

Adaptability and agility – The digital age demands companies to be agile and quickly adapt to change. CEOs who are in tune with their marketing strategy are better positioned to pivot when necessary, whether in response to market changes, new competition, or global events.

Long-term sustainable growth – While sales teams can generate immediate revenue, marketing strategies focus on longer-term growth by building brand awareness, entering new markets and launching new products or services. CEOs who prioritise marketing are setting their company up for sustainable growth and ongoing success.

Innovation – Marketing departments often spearhead innovation by identifying market gaps, new technologies, or shifts in consumer behaviour.

As marketing guru Seth Godin once said, Marketing is no longer about the stuff that you make, but about the stories you tell.

So go ahead, tell your story and watch your business thrive.

Effective implementation of these business drivers are directly intrinsic to capturing a comprehensive understanding of:

In order to create an effective marketing strategy, a business needs to understand who they are marketing to. Who is the audience? What are their pain points? What motivates your company’s target markets? What channels do they use to consume information?  Once a clear picture is identified, it is essential to tailor your marketing efforts to better reach and resonate with their values.

Gone are the days when billboards and TV ads were the only way to get your message out. Digital marketing is king and growing. From social media to email marketing to search engine optimisation, there are   endless ways to reach your audience online. As a CEO, it’s important to understand the different digital marketing channels and how they can be used to drive business.

Effective marketing is not a one-and-done effort. It takes time and consistency to build brand awareness, establish trust with your audience and ultimately drive sales. As such, it’s important to implement a long-term measurable marketing plan. This plan should incorporate company goals, tactics, metrics for success and a clear, comprehensive and concise understanding of how your marketing efforts directly tie into your overall business objectives, aligned to your constituents.

In summary, a solid digital and conventional marketing strategy is crucial to the success of any business. As the CEO, it’s up to you to understand your audience, embrace digital marketing and facilitate a long-term, sustainable plan. As a result,  businesses are better positioned to build brand awareness, drive sales, heighten employee morale and ultimately achieve tangible and  measurable business goals.