Getting marketing onto the boardroom table
In a new podcast Tim Ambler considers the importance of boards discussing marketing before all else, and suggests that marketing shouldn’t always be the first cut made in a recession
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Marketing creates demand and generates cash flow but is not top of the agenda for many boards. Tim Ambler, Senior Fellow in Marketing at London Business School, explains why marketing should be a higher priority in the boardroom.
Tim says: "Marketing is absolutely fundamental for all organisations, it is the source of cash flow and boards need to worry about getting the cash to come in more than they worry about how it is spent." Too much time is spent on accounts and forecasts, presumably under the illusion that the more often you count the money, the more there will be.
Tim suggests that targeting investors and analysts have most influence on the boardroom; once they start asking where the money comes from, they can help marketers return to the spotlight.
In addition, Tim comments that it's vital the whole company understands marketing strategy, "Marketing is what the whole company does to get money, not just the marketing department. The brand's reputation is created by all parts of the company. For example, a bad call centre is bad marketing."
Finally, Tim suggests that companies should be careful of cutting marketing budgets to save money quickly in a recession. This short term will be followed by another short term and the company needs to prepare for that too.
Listen to the podcast for more of Tim Ambler's insights on marketing