The Role of Your Marketing Department — And What You ...

Marketing Department Functions · 1. An understanding of your target market and competitors · 2. A strategy to drive growth and profitability · 3. February28,2022 TheRoleofYourMarketingDepartment—AndWhatYouShouldExpectFromIt C-SuiteTopicsDigitalMarketingStrategyAnyIndustry LeeFrederiksen,Ph.D. ManagingPartner VisitBio Morebythisauthor Share Professionalservicesfirmshave,attimes,hadrockyrelationshipswiththeirmarketingfunctions.Toooften,thishasledtounrealisticexpectations,disappointmentandthemarginalizationofthemarketingfunction. Thisisatragedy.Aneffectivemarketingteamcanhaveaprofoundimpactonamodernprofessionalservicesfirm.Whenwellstaffedandwellfunctioning,amarketingdepartmentcandrivegrowth,profitabilityandapremiumvaluation.Inshort,theroleofyourmarketingdepartmentinyourfirm’ssuccesscannotbeunderstated. What’sthebestwaytobuildsuchavaluablefunction?Webelieveit’sbuiltuponaclearunderstandingofwhattoexpectfromyourmarketingdepartmentandwhatresourcesandsupportitwillrequire.Butfirst,weneeddistinguishmarketingfromthesalesfunction. DownloadtheMarketingPlanningGuide:ThirdEdition Marketingvs.SalesinProfessionalServices Oneofthefirststepsistobeclearaboutthelanguageweusetodescribeamarketingdepartmentandhowitdiffersfromasalesfunction.Thereasonthatthisdistinctionissotrickyisthatmanyfirmsdonotusetraditionallanguagetotalkabouttheseconcepts.Sometimesthetermbusinessdevelopmentisusedtorefertothesalesfunction.Inotherfirms,businessdevelopmentreferstoboththemarketingandsalesfunction.Inthisarticle,wearegoingtousethetraditionaldefinitions. Marketingistheprocessofunderstandingyourmarketplaceandcompetitors,definingyourfirm’smarketpositioning,pricingandservices,promotingthefirmtoyourtargetaudienceandexplaininghowtheymightbenefitbyworkingwithyou.Putanotherway,marketingisaboutofferingtherightserviceswiththerightbenefitstotherightprospects. Salesistheprocessofqualifyingyourprospectsandconvincingtherightonestobuyyourservices.It’saboutturningbusinessopportunitiesintoclients. Whilethisdifferenceseemsprettysimpleonthesurface,thereareafewareasthatcancauseconfusion.Insomeorganizations,forinstance,thesalesfunctionisalsoresponsibleforgeneratingandnurturingleadsuntiltheybecomeviablebusinessopportunities.Asyouwillseebelow,wehavesomestrongopinionsaboutthispractice. MarketingDepartmentFunctions Sowhatexactlyshouldbetheroleofyourmarketingdepartment?Whatshouldyouexpectfromyourmarketingteam? Whetheryourteamisin-house,entirelyoutsourcedoracombinationofthetwo,yourmarketingteamhasfivecorefunctions. 1.Anunderstandingofyourtargetmarketandcompetitors Marketingshouldalwaysstartwiththemarket.YoushouldexpectMarketingtobeabletogiveyoudetailedandspecificdescriptionsofyourtargetmarketsandyourkeycompetitorsinthosemarkets. Butyoualreadyknowallaboutyourcompetitorsandclients,right?Wrong.Unlessyouarealreadydoingsystematic,structuredresearch,youarekiddingyourself.Anecdotalexperiencescanleadyouastray. Ourresearchshowsthatinternalstaffalmostalwaysinaccuratelyperceivetheirmarketandtheirclients’truefeelingsandpriorities.Infact,firmsthatdo objectiveresearchontheirmarketsandclients growfasterandaremoreprofitable. Aprofessionalmarketingfunctioncancommissionthisresearchandallowyoutomakedecisionsbasedonmarketplacereality,ratherthanhunchesandwishfulthinking. 2.Astrategytodrivegrowthandprofitability Onceyouhavearesearch-basedunderstandingofyourfirmanditsplaceinthemarket,yourmarketingdepartmentshouldbeabletohelpcraftacompellingstrategytodrivegrowthandprofitability.Thatstrategymayrequireadjustmentsinyourtargetmarket,serviceofferings(seethenextpoint,below),andmarketingplans. Yourstrategyshouldclearlyidentifycompellingcompetitiveadvantages(yourdifferentiators)andaclearmarketpositioning(areyouthepremium-pricedleaderoravalue-drivenalternative?).Thinkoftheseastoolstodescribeyourbrand.Howdoyouwanttobeknowninthemarketplace?Asyouwrestlewithyouroptions,expecttobechallengedwithnewthinkingandboldchoices. Youwillalsoneedamarketingplan.Thisplanwillmapoutexactlyhowyouaregoingtobuildthevisibilityofyourbrandandgeneratethenewopportunitiesyourbusinessdevelopment(sales)teamwillconvertintonewclients. 3.Whichservicestoofferandhowtopricethem Historically,manyfirmshaveleftthekeydecisionsaboutwhatservicestoofferandhowtopricethemtoindividualoperatingexecutivesorthefinanceandaccountingfunction. Decisionsaboutservicelinesandpricingareimportantelementsofagrowthplan.Theyshouldbeinformedbyanoverallresearch-basedstrategy,notindividualclientrequests.Why?Itistooeasytogetover-extendedtryingtobeeverythingtoeveryclient.Youwillsoonlosefocusandexperience,increasingcostsasyoustruggletoprovideanever-expandingarrayofservices. Innovationandclientresponsivenesscanalltooeasilybecomeundisciplineddabbling.Astrongmarketingdepartmentplaysaleadingroleinmaintainingthatbalance. DownloadtheMarketingPlanningGuide:ThirdEdition 4.Asteadyflowofnewleadsandopportunities Moreleads!Betteropportunities!Whodoesn’twantasteadyflowofwell-qualifiednewbusinessprospects?Fortunately,thatisexactlywhatyoushouldexpectfrommarketing.Whilesomefirmsassignleadgenerationandnurturingtothesales(businessdevelopment)function,wethinkthatisabadideainmostcases.Thetimehorizonforleadgenerationandnurturingcanbealongone.Nurturingleadscantakemonths,evenyears.Salesarealmostalwaysplacedonamuchshorteroperationalcycle(“whatcanyouclosethismonth?”). Yourmarketingteamshouldturnyouroverallstrategyintoaformalplanto generatenewleads andnurtureyourexistingprospectsuntiltheybecomewell-qualifiedopportunities.Thisplanshouldlookaheadatleastayearandbeguidedbyclear,trackablemetrics(moreonthisbelow). Becarefulthatyoudonotcontinuallyaddnew“marketingideas,”underfundingcampaigns,orotherunplannedinitiativesthatmayderailtheplan.Ifyoufallintoanyofthesetraps,youcannotexpecttheplantowork,norcanyouholdyourmarketingteamaccountable. Also,bepatient.Leadnurturingcantaketime—sometimesaverylongtime.Don’tfocusonlyonimmediateresults.Youwillneednewclientsnextyear,andtheyearafteraswell. 5.Theabilitytomonitorandoptimizeimplementation Thisisthepiecethatmakeseverythingelsepossible.Ifyoucan’tmeasureyourresults,youarelikelytolosesightofyourprogressduringthemarketingprocess.Buildingastrongbrandandfullpipelinetakestime. WiththeappropriatetoolsandcooperationfromtheBusinessDevelopmentteam,Marketingshouldbeabletotrackleadgeneration,nurturing,opportunities,proposals,andcloses.Theentirepipelinecanthenbeoptimizedovertime. Ifyouarenottrackingresults,itistooeasytocontinueunproductiveprogramsorunwittinglydiscontinueeffortsthatareworking.Trackingkeepsyouhonestandallowsyoutomakethemostofyourlimitedresources. Whatyouneedtoprovide Atthispoint,wehaveidentifiedwhatbenefitsMarketingcanprovidetoyourfirm.Butwhatdotheyneedtobeabletodelivertheseresults?Theanswerisstraightforward.Theyneedfourbasicthings: Talentedpeople. Yourmarketingteammustincludepeoplewiththerightskillsetsandexperience.Ifyoudon’thavethesetalentsin-house,youmayneedtooutsourcepartsoftheprocessordosomehiring.We’lldiscusstheseoptionswhenwecoverhowtostructureyourmarketingdepartment,below.Awordofcautionhere:marketingprofessionalservicesisitsownspecialty.Don’texpectsomeonewithgeneralmarketingexpertisetounderstandtheuniquerulesanddynamicsoftheprofessionalservicesmarketplace. Adequateresources. Yourteammusthavesufficientresourcestodothejobright.Underfundtheeffortandyouwillnotgettheresultsyoudeserve.Therequirementsarenotexcessive.Ourresearchshowsthathigh-growthfirmsspendnomorethanaverageonmarketing—andyettheyarestillabletodeliveroutstandingresults.Butdon’texpectsuperiorresultswithstingyresources. Aseatatthedecision-makers’table.Thekissofdeathisinvestinginyourmarketingthenignoringyourteam’sadvice.Ithappensmoreoftenthanyouwouldthink,especiallyinflatorganizations,suchaspartnerships,wheredecision-makingisdiffusedamongmanypeople.Ifyourdecisionsarebroadlyconsensus-based,youmaybebetteroffdelegatingmarketingdecisionstoasinglepartnerorasmallcommittee. Patienceandcooperation. Oncethepreviousthreeconsiderationsareinplace,youwillseeimpressiveprogress.Butthereisacatch.Justlikeanyotherfunctionalareaofyourorganization,Marketingneedscooperationandabitofpatiencefromthefirm.Supportyourmarketingteam’seffortsovertimeandyouwillreaptherewards. Thesefourbasicrequirementslaythefoundationformarketingsuccess.Butwhatdoesaneffectivemarketingdepartmentlooklike? MarketingDepartmentStructure Structuringamodernprofessionalservicesmarketingteamisnoteasy.Atmanyfirms,marketingisarelativelynewfunction—one,regrettably,thatisnotalwayshighlyregarded.Inaddition,manyfirmsareworkinginaverycompetitiveandrapidlyevolvingmarketplace.Whentheylackmarketingagility,firmsputthemselvesatrisk. Tokeepthingssimple,let’sfocusonthethreeaspectsofdepartmentalstructurethataremostrelevanttoprofessionalservicesfirms:theRoleofmarketing,selectingtherightResources,andReportingRelationships.  RoleofMarketing Atdifferentfirms,marketingcomesindifferentguises—fromalow-levelsupportfunctionchargedwithbasicimplementationresponsibilitiestoacomprehensiveteamofspecialistswhodeliverthefullspectrumofstrategicandoperationalskills.Inourexperience,themorecomprehensiveitsmarketingfunction,themoresuccessafirmenjoys.(Keepinmindthatmarketingexpertisedoesnotnecessarilyneedtoresidein-house.SeeResourceRequirementsbelowforthedetails.) Atmanyfirms,akeydecisionrevolvesaroundleadgenerationandnurturing.Dothesefunctionsbelongtomarketingorsales?Webelievethatmarketingistheirproperhome. Why?Many,manyfirmstodayemploytheSeller-DoerStrategy,sotheirbusyprofessionalslackthetimeandfocustocarryoutalong-termprogram.Bettertoleavethesetaskstoindividualswhoseattentionisnotdividedbetweenbusinessdevelopmentandprojectdelivery.Makeleadgenerationandleadnurturingaprimeroleofthemarketingdepartment. ResourceRequirements Wherewillyoufindthepeoplewiththespecializedskillsetsandexperienceneededtopulloffthecomprehensivevisionwebelieveissoimportant?Well,youhavetwochoices:staffupyourin-houseteamoroutsourcetheskillsyouneed. Thein-houseapproachisappealingfromanaccessibilityperspective.Andifapersonisfullyutilizedtherecanbesomecostsavings.Ofcourse,nosinglepersonislikelytopossessthefullrangeofskillsyouneedtoimplementamodernmarketingprogram.Soyouarefacedwiththechallengeoffillinginthegaps.Buthow? Oneavenueistraining.Thisis,orshouldbe,agiven.Technologyisalwaysevolvingandnewresearchfindingscontinuallychallengeourlong-heldbeliefsandassumptions—whatworkedfiveyearsagomaynotbewhatismosteffectivetoday.Thatmeansongoingeducationisamust. Butevenifyouscrupulouslytrainyourmarketingteam,you’llstillneedoutsidehelponoccasion.Infact,ourrecentresearchhasshownthathigh-growthfirmstendtospendmoreonoutsourcedresourcesthantheirslow-growthpeers. Howdoyoudecidewhethertooutsourceamarketingfunction?Askyourselfaseriesoffivequestionsabouteachfunctionthatisacandidateforpotentialoutsourcing(seeFigure1). Figure1.Questionstodeterminewhetheryoushouldoutsourceamarketingfunction. Afewfirmsoutsourcealloftheirmarketingsothattheycanconcentratetheirinternalresourcesoncorefunctionsonly.However,mostfirmsemployamixedmodelinwhichsomefunctionsarehandledinternallyandothersareoutsourced.Specializedservicesthatarenotusedonaregularbasisareoftenthebestcandidatesforoutsourcing.Examplesincluderesearch,strategydevelopment,analytics,orthedevelopmentofanewwebsite. ReportingRelationships Whomshouldthemarketingdepartmentreportto?Manyfirmsstrugglewiththisquestion.Theanswermaydependontheroleandresourceschoicesyoumake. Atfirmswithlimitedmarketingpersonnel,itmakessensetohavethedepartmentreporttotheheadofAdministrationorSales(BusinessDevelopment).ThelattersituationworksparticularlywellwhenMarketing’sprimaryroleistosupportSales.Inneitherofthesecases,however,isMarketinginapositiontomakeamajorcontribution. AsthemarketingRoleincreasesinsophistication,itshouldbeallowedtoinfluencemajorstrategicdecisions.ThiscanbeaccomplishedbyhavingMarketingreporttoaseniorpartnerwhohasresponsibilityforbothMarketingandSales.Havingasinglepointofdecision-makingminimizesconflictandmakesiteasiertoaligngoalsandpriorities.ItalsogivesMarketingaseatatthetablewhenmajordecisionsarebeingmade. AvariationonthisthemeistohavetheMarketingleaderreportdirectlytotheCEOorManagingPartner.Thisgiveshimorhervisibilityintothefirm’sstrategy,whichcanonlymakemarketingmoreeffective.ThisreportingrelationshipisalsowellsuitedtoourvisionofMarketingasakeyfunctionthatcandrivethegrowthandprofitabilityofthefirmasawhole. DownloadtheMarketingPlanningGuide:ThirdEdition AFinalThought Inmanyconsumer-facingindustries,marketingisacorefunctionthattherestoftheorganizationisbuiltaround.Thesecompaniesevolvedinthatdirectionbecauseitgivesthemanadvantageinfinancialperformance.Perhapstherewasatimewhenprofessionalservicesfirmsdidnotneedtheperspectiveanddisciplinethatmarketingoffers.Nolonger. Withtheriseofdigitalcommunications,thecollapseofgeography,andtheproliferationofnewcompetitorsandbusinessmodelsthepressureison.Theadvantagewillgotothefirmwiththegreatestmarketplacevisibilityandthebestvalueproposition.Andthatisexactlythepromisethatmarketingcandeliver. Whatroleisyourmarketingdepartmentplayinginyourfirm’ssuccess? MarketingPlanningGuide-ThirdEditionTheMarketingPlanningGuideforProfessionalServicesFirms DownloadNow Share LeeFrederiksen,Ph.D. Whowearsthebootsinouroffice?ThatwouldbeLee,ourmanagingpartner,whosuitsupinapairofcowboybootseverydayanddrivesstrategyandresearchforourclients.WithaPh.D.inbehavioralpsychology,LeeisaformerresearcherandtenuredprofessoratVirginiaTech,wherehebecameanationalauthorityonorganizationalbehaviormanagementandmarketing.Heleftacademiatostartupandrunthreehigh-growthcompanies,includingan$80millionrunawaysuccessstory. AdditionalResources Findouthowtoturnyourfirmintoahigh-visibility,high-growthbusiness.Downloadourfreeexecutiveguide, TheVisibleFirm®,inwhichwelayoutadetailedroadmapofthisresearch-basedprogram. Keeppacewiththemarketplace,generateleadsandbuildyourreputationallatonce: MarketingPlanningGuide. Needtotrainyourmarketingteamincutting-edgegrowthstrategiesandmarketingtechniques?Checkout HingeUniversity.ThesearethesameresourcesHingeusestoteachourprofessionals! 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