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Major issues that keep Chief Executive Officers awake are declining revenue, increasing operational cost and consequently, no profit. In this circumstance and spite of any economic and environmental challenges, the troubled CEO turns round to hold the Chief Marketing Officer responsible for not selling enough of the products or services to augment revenue.
The perplexed CMO, in turn, is at cross roads as his/her budget and other resources for marketing activities which are expected to engage consumers and increase sales are often slashed by Chief Financial Officer and approved by CEO.
To CEO and CFO, their intention of slashing the CMO budget is to reduce operational cost, save money and make profit. Good intention, though the misunderstanding here is that the CEO and CFO are not immediately conscious of the translation of investment in marketing to revenue or the CMO has not shown such proof enough. Most companies often visit the CMO budget for cut when things are not going well. Presently, the CMO budget is perhaps going up because he has to contend with various social vagaries which were non-existent before now.
According to Chris Ogbechie, Senior Faculty Officer, Lagos Business School at a recent lecture, the CMO is today contending with turbulent environment occasioned by changing consumer needs, social values, and competition from both global and local markets and dropping consumer disposable income.
Companies especially those in the same sector are also competing on profits. Under this scenario, the CMO is under pressure and therefore he/she is asking for more financial resources to conquer and meet expectations. Above all, he/ she also needs innovative strategies. But the challenge at this time is that the CEO and CFO are not sure that the allocation of more resources for activities will translate to increase in … Read More...