Marketing and Finance Are Out of Step: Survey

Oh, dear. Here’s more proof that marketing and finance are not in sync.

A new survey by TargetBase shows that only 8% of all marketing execs feel that their firm’s marketing and financial goals are in lockstop.

Almost 75% said they are aligned, but need some degree of improvement. (The need is “significant” for 28%). And 23% flat-out said that the goals are not aligned at all.

Here’s one possible reason why: Half of the marketers said they are frequently pressured to produce short-term results at the expense of long-term growth. And 28% claimed they are sometimes asked to do this.

In addition, a fifth claimed lack of support from the parent company, and an equal number cited lack of internal approval and support.

And the beancounters are watching. Fifteen percent of the marketers said their programs are evaluated on a monthly basis for impact on company growth. Another 10% noted that they are examined at random intervals.

But some marketers have breathing room. A fourth of those surveyed said they are evaluated on a yearly basis, and another fourth indicated quarterly.

And which metrics are used to monitor growth? The chief one is sales at 83%. This is followed by revenue at 80% and profits at 78%.

What are the biggest challenges facing marketers in their pursuit of growth For 43%, it was discounting versus building value. Tied for first place was inadequate marketing funds. And 40% cited elusive ROI measurements.

That lack of funding is serious. A whopping 40% said that their marketing budgets are not sufficient to meet their growth objectives this year. Another 35% said they were, and 25% aren’t sure yet.

As for media, 23% of the marketers said direct mail had most impact on their growth goals. This was followed by print (15%); e-mail (10%); and point-of-purchase (10%).

However, print was cited by 78% of those surveyed as helping them reach their sales goals, and direct mail by 60%.

And how did they choose their channels this year? Past results were cited by 80%, and the best projected ROI by 65%. Another 63% sought insight from primary or custom consumer research. And 33% based it on “gut feeling.”

The survey was conducted among 40 CMOs from a variety of companies, including Disney, General Mills, Honda, Sunkist and Whole Foods.

Here are some additional statistics:

What of the following measures are tracked by your company to monitor growth?

Sales: 83%

Revenue: 80%,

Profits: 78%

Market share: 73%

Brand awareness: 70%

New customers: 68%

Customer satisfaction: 65%

Customer retention: 55%

Share Price: 30%

Number of locations: 15%

Other: 3%

Which is the most important measure?

Revenue: 28%

Profits: 18%

Sales: 15%

Market share: 13%

Customer retention: 10%

Customer satisfaction: 8%

New customers: 5%

Brand awareness: 3%

Intent to recommend: 3%

Which are your biggest challenges to achieving your growth objectives this year?

Discounting versus building value: 43%

Inadequate marketing funds: 43%

Elusive ROI measurements: 40%

Competitive pressure: 38%

Lack of program integration: 35%

Difficulty collecting consumer data: 35%

Trouble achieving speed to market: 30%

Lack of staff: 30%

Unclear or unrealistic goals: 25%

Inability to leverage latest marketing methods: 25%

Lack of support from parent company: 20%

Lack of internal approval and support: 20%

Can’t produce relevant reports: 18%

Ineffective targeting: 18%

Changing product technology: 13%

Other: 13%

Ineffective creative: 10%

Unable to keep pace with changing consumer needs: 5%

How did you select the marketing channels used this year?

Past results: 80%

Best projected ROI: 65% Insight from primary or custom consumer research

New strategy/testing innovations in marketing

Insight from secondary consumer research

Instinct or “gut feeling”

Resposne to competitive marketing

Other

Please describe your approach to growing your business in today’s marketing environment

Consumer targeted communication: 12%

Customer identification/segmentation: 12%

Identify/satisfy consumer needs: 12%

Strengthen communications to consumers: 12%

Don’t know/refused: 8%

Partnering with retailers/distirbutors: 8%

Communication via numerous channels: 6%

Improved operational performance: 6%

Educate consumers to value of product/service/solution: 4%

Increase market share: 4%

Online marketing: 4%

ROI measurement: 4%

Creative communication: 2%

Identify growth opportunities: 2%

Long-term planning: 2%

Reallocation of resources to most productive tasks: 2%

Strengthen relationship with current customers: 2%