Transforming Marketing Organizations: A Modern Approach
In the bustling city of New York, the conversation around modern marketing organizations is heating up. With businesses striving to innovate and connect with consumers effectively, the question of “how to structure and organize marketing” has become pivotal—especially as companies aim to become more digital, agile, customer-centric, accountable, and revenue-oriented.
The truth is, there’s no one-size-fits-all answer here. Marketing organizations are diverse, unique to each company, much like snowflakes. They are shaped by various factors that define their role in enhancing financial performance. Academic research highlights ten design considerations that can help guide businesses in structuring their marketing teams. For example, marketing should support the overall business model and growth strategy while also enabling the digitization of operations and connecting deeply with customers through various channels.
The Role of the CMO
Entering this complex world, the role of the Chief Marketing Officer (CMO) can also seem daunting. According to Professor Kimberly Whitler, misalignment in dependencies can make a CMO’s job even more challenging. For instance, if the CMO is focused solely on advertising while other C-suite leaders handle innovation and strategy, it creates a disconnect. Whitler emphasizes that having a clear understanding of the interdependencies in the marketing role is critical to success.
Understanding the Industry Landscape
As Frank Findley, the Executive Director of the Marketing Accountability Standards Board, points out, many companies risk downplaying the importance of marketing, leading to reduced funding and an undervalued CMO role. The marketing function faces numerous challenges, from complex performance assessments to fractured resource ownership. It’s clear that understanding how marketing drives value is essential for companies seeking growth.
The bottom line? The best way to build a marketing organization is to do so in a manner that creates maximum value for your business. As abstract as it sounds, this principle is indeed the guiding star for making impactful marketing decisions.
Case Study: Northwestern Mutual’s CMO Transformation
One standout example is Lynn Teo, the CMO of Northwestern Mutual. During her first 18 months, she didn’t shy away from this challenge; she actively revamped her marketing organization’s structure and capabilities, aligning them with both the company’s brand and consumer needs. Her approach focuses on building a modern marketing organization that creates more avenues for growth.
Teo advocates for a transformation rooted in value creation. She explains, “Our business is a vertically integrated financial services company, where marketing drives significant growth through building brand awareness, supporting financial advisors, and stimulating consumer demand.” This dual approach connects businesses that serve consumers directly while empowering their advisors, proving to be key in Northwestern Mutual’s success.
A Collaborative Framework
To achieve this, Teo created a tailored organization that promotes teamwork and collaboration across various marketing functions. This approach doesn’t only emphasize brand and product marketing but also encourages closer connections to enhance client relationships and improve consumer experiences.
A recent meta-analysis highlighted that bringing together diverse capabilities can lead to dramatic revenue growth, with 50% of future growth tied to collaboration across teams. Teo’s marketing strategy is precisely crafted to facilitate these essential connections.
The Power of Flexible Collaboration
Her organization illustrates the importance of agile collaboration. By aligning brand marketing with client engagement, her team ensures that every marketing campaign fosters deeper customer relationships. Think of it like a well-tuned orchestra—every musician plays differently, but together they create a harmonious goal. Teo’s framework enables a seamless connection between the different functions, linking insights and creative concepts that address client needs effectively.
Digital Integration and Performance Metrics
Moreover, Teo’s team doesn’t shy away from embracing digital metrics to optimize performance, even when current data isn’t perfect. She emphasizes that one should never let the quest for perfect data stall progress. Instead, the focus should be on leveraging existing insights and making incremental improvements.
By employing practical measures that gauge performance gradually, Teo’s marketing team has made significant strides. In 2024 alone, they reported a 40% increase in lead volumes and boosted client sales. Demonstrating the clear impact that a well-structured marketing organization can have on a company’s growth journey!
Conclusion: The Path Forward
So next time you find yourself pondering how to structure a marketing organization in this digital age, remember the lessons from Northwestern Mutual and Lynn Teo. Aligning marketing strategies centered on value creation while fostering collaboration across functions isn’t just a theory—it’s a proven path to success. Every journey may look different, but keeping that north star of value creation shining bright can help illuminate the way forward for any team.
