What is Marketing?

This might seem like an absurdly general and overly broad question, but for CMO’s, it’s really the fundamental question.  It’s not worth debating what the right definition is for marketing- that really doesn’t have any influence of whether or not you will be a successful head of marketing.  How the CEO, the C-Suite, board and investors define marketing in terms of expectations is what determines success or failure.  And with short tenures these days for many CMOs, it’s really an existential question that seems to be asked on a monthly (weekly, daily?) basis.

Public or private, PE or venture-backed, all investors and key stakeholders have ramped up their expectation on what marketing can and should deliver, and often with what existing or reduced human and financial resources.  What marketing is expected to contribute and deliver for a company used to be largely driven by the agenda the CMO established (with input from all key stakeholders) and a general agreement on target objectives, goals and outcomes. Now, however, striving for great outcomes, continuous improvement, better ROI, and best-in-class metrics is not adequate in the minds of other executives and investors.  Marketing is now expected to deliver increasingly difficult returns on flat or reduced headcount and budgets (some, like Drew Neisser, believe expectations to increase returns have exceeded the reality of available budgets, which have often been cut).  

How should one approach the increasing pressure to perform and maintain a semblance of sanity?  I would advocate that it requires ongoing, if not extraordinary efforts around achieving alignment of objectives, goals, outcomes and measures of success.  And it now takes repeated communication and clarification on:  what was the goal, how did we perform, and how do we know?  And you must continually establish what your contribution can and should be, based on the resources- human and financial, to meet rising expectations. 

In order to survive, let alone thrive, there are many essential skills and capabilities required for a modern or full-stack marketer,  But even if you’ve mastered all of the wide-ranging skills needed to lead the function, from brand, digital and demand generation, to channels, programs, product marketing, messaging and positioning, to operations, measurement and analytics, to AR, PR, Social, Comms and the Web, to full-funnel buyer journey optimization and conversion, and so on, you still might fail.

As a 5x CMO, I think managing expectations and continually ensuring alignment with all stakeholders is as important as any outcome you achieve and metric you surpass. Delivering the numbers alone is no longer sufficient.  You have to drive how results are perceived and interpreted, and ensure alignment and agreement on what good looks like to succeed. It may be the singular requirement that now defines success in the CMO role.

Business-to-business (B2B) marketing, especially as you go up-market, from SMB to Mid-market to Enterprise segments, is quite complex, and even experienced CEO’s and boards underestimate just how difficult it can be to get all the elements of the marketing engine performing well, let alone optimally.  ChatGPT defines it this way: (B2B) marketing is a multi-faceted discipline focused on promoting products and services from one business to another. Unlike business-to-consumer (B2C) marketing, which targets individual consumers, B2B marketing involves selling goods or services to other businesses for use in their operations, resale, or as components in their own products or services.

To get B2B Marketing to a high level of performance, you need to master all of these aspects (and more):

1. Target Audience: The primary audience in B2B marketing consists of businesses, organizations, or institutions rather than individual consumers. These may include manufacturers, wholesalers, retailers, service providers, and government agencies.
2. Longer Sales Cycles: B2B transactions typically involve more complex decision-making processes and longer sales cycles compared to B2C. This is because purchases often require approval from multiple stakeholders within the buying organization over a long period of time.
3. Relationship Focus: Building and maintaining strong relationships is crucial in B2B marketing. Establishing trust and credibility through ongoing communication and personalized interactions can lead to long-term partnerships and repeat business.
4. Educational Content: B2B buyers often conduct extensive research before making purchasing decisions. Therefore, B2B marketing strategies (and content marketing) often involve providing valuable, educational content such as whitepapers, case studies, webinars, and industry reports to inform and engage potential customers.
5. Customization and Personalization: B2B marketing efforts are frequently tailored to meet the specific needs and preferences of individual businesses, key verticals and segments. This may involve creating customized solutions, offering flexible pricing structures, and providing personalized customer service.
6. Emphasis on ROI: B2B buyers are typically focused on the return on investment (ROI) they can achieve from their purchases. Therefore, B2B marketing messages often highlight the cost-effectiveness, efficiency, and potential business benefits of the products or services being promoted.
7. Multiple Decision-Makers: B2B purchases often involve multiple decision-makers with different roles and responsibilities within the buying organization. Effective B2B marketing strategies address the needs and concerns of each stakeholder (or persona) involved in the decision-making process.
8. Utilization of Multiple Channels: B2B marketers utilize a variety of channels to reach their target audience, including digital channels such as email marketing, social media, search engine optimization (SEO), content marketing, online advertising, communities, crowdsourcing, content syndication, retargeting, Webinars, as well as offline channels such as trade shows, conferences, direct mail, partner ecosystems, affiliate marketing and networking events.
9. Measurement and Analytics: B2B marketers rely on data-driven insights and analytics to measure the effectiveness of their marketing efforts and optimize their strategies over time. Key performance indicators (KPIs) such as lead generation and cost-per-lead, full funnel conversion rates, customer acquisition costs, CAC (customer acquisition cost) and CLV (customer lifetime value) are commonly used to evaluate success.
10. Continuous Innovation: In a rapidly evolving business landscape, B2B marketers must stay abreast of emerging trends, technologies, and market dynamics to remain competitive. This may involve adopting new marketing tactics, experimenting with innovative approaches, and leveraging cutting-edge tool, technologies (e.g. GenAI) and platforms to engage with their target audience effectively.

B2B marketing is a specialized discipline that requires: a deep understanding of all available demand generation and engagement tactics, the target audience, and a focus on building strong relationships, the creation of valuable educational content, content marketing, building market presence (AR, PR, Events, Partner channels, social media, etc.), customization and personalization, an emphasis on ROI, addressing the needs of multiple decision-makers throughout the entire buyer’s journey, utilizing a mix of digital and offline channels, measuring performance, and a commitment to continuous innovation.  

At the end of the day, you need trust and the latitude to design and deliver marketing’s contribution to company growth and success.  Some companies and investors don’t understand the complexity or challenge of B2B marketing.  You can tell those doubters that “Marketing is a nonlinear multiplier of sales performance. It is not a vending machine,” but non-marketers will never understand that perspective.  Given this, how should you approach rising expectations?  What is marketing? How would you define it at your company? What are you now expected to deliver? Please share your thoughts.

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