Mckinsey quarterly: we’re all marketers now
For the past decade, marketers have been adjusting to a new era of deep customer engagement. They’ve tacked on new functions, such as social-media management; altered processes to better integrate advertising campaigns online, on television, and in print; and added staff with Web expertise to manage the explosion of digital customer data. Yet in our experience, that’s not enough. To truly engage customers for whom “push” advertising is increasingly irrelevant, companies must do more outside the confines of the traditional marketing organization. At the end of the day, customers no longer separate marketing from the product — it is the product. They don’t separate marketing from their in-store or online experience — it is the experience. In the era of engagement, marketing is the company.
This shift presents an obvious challenge: if everyone’s responsible for marketing, who’s accountable? And what does this new reality imply for the structure and charter of the marketing organization? It’s a problem that parallels the one that emerged in the early days of the quality movement, before it became embedded in the fabric of general management. In a memorable anecdote, one of former Chrysler CEO Lee Iacocca’s key hires, Hal Sperlich, arrived at the automaker in 1977 as the new vice president of product planning. His first question: “Who is in charge of quality?”
“Everybody,” a confident executive replied.
“But who do you hold responsible when there are problems in quality?” Sperlich pressed.
“Oh, shoot,” Sperlich thought. “We are in for it now.”
To avoid being “in for it,” companies of all stripes must not only recognize that everyone is responsible for marketing but also impose accountability by establishing a new set of relationships between the function and the rest of the organization. In essence, companies need to become marketing vehicles, and the marketing organization itself needs to become the customer-engagement engine, responsible for establishing priorities and stimulating dialogue throughout the enterprise as it seeks to design, build, operate, and renew cutting-edge customer-engagement approaches.
As that transformation happens, the marketing organization will look different: there will be a greater distribution of existing marketing tasks to other functions; more councils and informal alliances that coordinate marketing activities across the company; deeper partnerships with external vendors, customers, and perhaps even competitors; and a bigger role for data-driven customer insights. This article provides some real-life examples of these kinds of changes.
Marketing’s cutting edge is being redefined every day. While there’s no definitive map showing how companies can successfully navigate the era of engagement, we hope to help senior executives — not just marketers — start to draw one.
The evolution of engagement
More than two years ago, our colleagues David Court, Dave Elzinga, Susan Mulder, and Ole Jørgen Vetvik unveiled the results of a research effort involving 20,000 customers across five industries and three continents. Their work showed how collaborative the buying process has become and how difficult it is to influence customers by relying solely on one-way, push advertising. In the words of American Express chief marketing officer John Hayes, “We went from a monologue to a dialogue. Mass media will continue to play a role. But its role has changed.”
Over the past two years, that evolution has only accelerated.