The Role and Value of the Marketing Function

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Jaap de Jonge
Editor, Netherlands

The Role and Value of the Marketing Function

🔥NEW No doubt, marketing capabilities are strong drivers of firm performance. But HOW can marketing as a function contribute to company growth and success? And what FORMS OF VALUE does it actually generate?
These questions seem simple, but they have many aspects. Rodriquez-Vila et al. recently came up with a nice, practical framework to help address these questions in a structured way and to guide the discussion on the role marketing plays now and should be playing in the future.
They suggest to split up the value proposition / contribution of marketing in the following way:

  1. VALUE FOR THE CUSTOMER
    In the effort to attract, acquire, and retain customers, a marketing organization creates value for them in three areas:
    • ENGAGEMENT VALUE
      This results from broadening the brand meaning and strengthening customer relationships.
      Facilitates expansion by:
      • building purpose and communities
      • optimizing connections
      • designing stories
    • EXPERIENCE VALUE
      This results from increasing convenience and enjoyment across the customer journey.
      Facilitates retention by:
      • augmenting value
      • improving journey orchestration
      • enhancing offering design
    • EXCHANGE VALUE
      This results from matching offerings to individual customer needs and context.
      Facilitates transactions by:
      • boosting conversion
      • increasing personalization
      • improving production
  2. VALUE FOR THE COMPANY
    The marketing function contributes to company growth and success by generating internal value for a company in three areas:
    • STRATEGIC VALUE
      This results from leveraging data and analytics to generate customer and market insights.
      Helps optimize marketing decisions by:
      • enhancing data creation and management
      • leveraging market and customer intelligence
      • advancing marketing analytics
    • OPERATIONAL VALUE
      This results from identifying growth opportunities that can be connected to current offerings.
      Helps develop new offerings and business models by:
      • discovering growth opportunites
      • building platforms
      • leveraging assets
    • KNOWLEDGE VALUE
      This results from improving organizational agility, collaboration, and talent development.
      Helps strengthen operating effectiveness by:
      • improving talent management
      • enhancing organizational links
      • strengthening execution methods and technology
The elegant and thoughtful framework is worked out even further into an astounding 18 x 4 = 72 marketing capabilities. It can be applied to analyze and take action on the gap between the existing (current) capabilities and desired (future) capabilities of any major marketing organization. The authors also provide a digital marketing capabilities benchmark tool to get started.

Source: Omar Rodriguez-Vilá, Sundar Bharadwaj, Neil A. Morgan and Shubu Mitra. "Is your Marketing Organization Ready for What's Next?", HBR Nov-Dec 2020, pp. 104-113

  Gautam Mahajan
CEO, India
 

What is Value

Some thoughts about value of marketing or value in (...)

  Giovanni Simeone
CEO, Italy
 

Value for the Customer

Brilliant contribution. However, according to my (...)

  Jaap de Jonge
Editor, Netherlands
 

Exchange Value is Missing

@Giovanni Simeone: Thank you for your interesting (...)

  Naila Hameed
Financial Consultant, Pakistan
 

Goodwill, Reputation and Steady Cash Flows

Importantly, the marketing function also creates a (...) 27-3-2021

  Helen Strong
Business Consultant, South Africa
 

Essential to Have Alignment and Integration

For me the value of marketing lies in the way in w (...) 27-3-2021

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