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January 27, 2024Recent announcements on Fortune.com reveal that several industry leaders, including UPS, Etsy, and Walgreens, are restructuring their CMO roles, incorporating them into other operational positions. This has sparked discussions about the potential demise of the CMO role in the business world.
These decisions are driven, in part, by the shared challenge of declining sales performance faced by these companies. However, it’s crucial not to panic, as CMOs are not becoming obsolete; rather, their overall presence is diminishing. According to executive search firm Spencer Stuart, 71% of the Fortune 500 still has a marketing chief, although this is slightly down from 74% in 2009.
The evolution of modern marketing, influenced by the rise of marketing technology or “martech,” has led to richer data. Traditionally, CMOs managed marketing similar to print and TV advertising. Still, technology has digitized the role, making it more algorithmically driven, filled with customer insights, and important enough to fall under the purview of other C-suite executives.
As Stephan Meier, a professor of management at Columbia Business School, notes, “Today, an executive has to be much more of a generalist.”
Richard Sanderson, leading Spencer Stuart’s North America marketing, sales, and communications officer practice, emphasizes that marketing is as necessary as ever. This is evident in the absorption of marketing tasks into operational and growth-focused roles. He clarifies, “When people say, ‘Oh, the CMO role is being eliminated,’ that doesn’t mean marketing isn’t important. It simply means a company has chosen to structure around the role in a different way.”
Is this shift alarming? It might be reassuring to know that some companies that previously eliminated the CMO title have reversed course. McDonald’s, for example, reinstated its global CMO role less than a year after eliminating it in 2019. In early January, McDonald’s expanded the portfolio of its now-CMO, Morgan Flatley, adding new business ventures. It appears that marketing chiefs might be essential after all.
To all marketers, remember the words of Philip Kotler: “Marketing takes a day to learn. Unfortunately, it takes a lifetime to master.” To thrive in the business world, enhancing marketing skills and developing other valuable organizational skills is essential.
Source: Fortune.com
Link to the original article: https://fortune.com/2024/01/16/chief-marketing-officer-cmo-fortune-500-disappearing/
