29 Aug MASB and the Essential Role of Marketing
Should marketing be more financially accountable to the business or is it too difficult to quantify the impact of marketing decisions on the financial results of a company? That’s the focus of Bill Harvey’s article and interview with Joanna Seddon, who leads the Marketing Accountability Standards Board (MASB). The primary mission of MASB is to make marketing more financially accountable.
Bill begins by reminding us about Peter Drucker’s essential insight about marketing and business – that “getting new customers and innovation were the only two parts of a business that could be realistically called profit centers, as everything else is purely a cost center.” He goes on to emphasize the role of marketing and the CMO, “Getting new customers he defined as the job of marketing, and he called out the tight relationship between getting new customers and innovation, making the Chief Marketing Officer also the person responsible for envisioning the innovations which could bring new customers.” Most would probably add that keeping current customers satisfied and retaining them, while perhaps technically a cost center, is the third component that drives revenue growth. Every entrepreneur and small business owner fundamentally understands these relationships and priorities, but sometimes the wisdom is lost in the silos of corporate identities.
MASB’s stated mission is to “establish marketing measurement and accountability standards across industry and domain for continuous improvement in financial performance and for the guidance and education of business decision makers and users of performance and financial information.” In the interview, Joanna and Bill both talk about the role of essential measures and tools in marketing to clarify the financial impact of marketing decisions on a company’s financial health. Marketing ROI, CLV, and Marketing Experiments are among those topics that come up in the article. Read the full article below and then check out MBTN’s modules on these, and other related topics.