1. Introduction.
Marketing has long been a mysterious black hole in many organizations. There is few debates on if making the
sale, building the brand and satisfying the customer are important to the firm and its success. However, how
marketing does these things and what financial return can be attributed to marketing and its varied activities are
poorly understood, even by many marketers. There are two reasons for this. Both deserve greater attention from
scholars and practicing managers. The first of these reasons is that marketing contains many different things.
The expectations of marketing vary from firm to firm and marketing is not defined by the same activities across
firms. The second reason is that most firms are unable to tie marketing activities and outcomes to the financial
performance of the firm. In this note, I explore these two issues and suggest areas where research can make a
contribution to both the discipline and practice of marketing.
Landry, Tipping & Dixon [1] of consulting firm Booz Allen Hamilton identify six different types of marketing organizations: 1) growth champion, 2) senior counselor, 3) brand foreman, 4) growth facilitator, 5) best
practices advisor and 6) service provider. These six types of marketing organizations differ with respect to their
scope of responsibility, decision rights, capabilities, and organizational linkages [1]. These different types of
marketers also differ with respect to what the organization expects of them, ranging from just performing specific
tasks, like scheduling advertising, to providing advice to others, to strategic activities such as facilitating
growth and managing branding activities. Most organizations gravitate toward one type of organization or
another. There is no best organization and certainly not a best organization that has been identified by empirical
research. Marketing organizations are simply different from organization to organization but their relative effectiveness
is certainly a relevant research question.
The reason that this typology is important is because it has implications for how the marketing function
should be evaluated within an organization. If marketing is merely a service provider that implements the decisions
of others, the metrics of its performance should be very different from a marketing organization that is
charged with the strategic task for driving growth. It is simply not possible to evaluate the performance of a
function unless and until the scope of activities have been identified. “Marketing” is not what must be evaluated.
Rather, it is marketing and its role as defined by the organization.
The definition of the marketing function within an organization is directly linked to the second reason firms
are unable to evaluate marketing—the inability to link marketing activities and outcomes to the financial performance
of the firm. Marketing has no shortage of measures but these measures are seldom linked to financial
performance. Measures of awareness, band image, and customer satisfaction, among others are useful but do not
indicate marketing contributes to the bottom line. Even such “hard” measures as sales volume and market share
are not helpful unless they are linked to financial performance. Both sales and market share can increase even as
revenues decline. Further complicating the evaluation process is the well recognized but poorly understood fact
that marketing activities can create both immediate and long-lasting outcomes in the market.
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