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28.03.2017 - Princess (http://www.wineindulgence.org/tours/?p=3)
Executive Summary

Marketing's Contribution on a Board

There is an unfortunate, not to mention utterly baffling reality occurring in organisations today of all different sizes, scopes and industries: the under-appreciation of the function of Marketing as a significant and valuable force in conducting successful business. Instead of seeing Marketing as it should be, that is, a powerful engine of research, innovation, development and communication, the Boards often misjudge it as a pseudoscientific art that has little impact on their bottom line.

The Boardroom is where the overall business goals are introduced, discussed, reviewed and approved, and yet quite commonly, a Board Director with a background in the function that is the muscle power of developing corresponding strategies and tactics to achieve these very goals- i.e.: Marketing- is completely absent. Board Directors with the typical Financial, Operational or Legal backgrounds are not familiar with and therefore do not appreciate such vital activities as communicating directly with customers, developing brand image campaigns or conducting research on customer behaviour in order to determine how best to position the product- a Marketing professional however is. Whilst Financial, Operational and Legal backgrounds are strong contributors on the Board, it is time to emphasise the missing gap: the strategy driving Marketing function. The root of the issue essentially boils down to an underlying misunderstanding and undervaluation of what a Marketing Board Director can contribute.

Demonstration Of Marketing Value

The Gap Of Undervaluation

The article, A Seat At The Boardroom Table, mentions that Robert Colquhoun, the Managing Director of Alexander Colquhoun & Son, admitted he referred to Marketing as "practitioners of the dark arts."[1] My own father, Neil Melotti, CFO of Grace Worldwide, referred to Marketing as "The ministry of good times and novel contributions."

In order for a Board to see the value of a Director with a Marketing perspective, the value of Marketing's contribution to organisational success must be correctly demonstrated. The time has essentially come to foster a culture that looks beyond the tainted reputation of gimmicks, give-aways, cheesy jingles and pretty pictures that Marketing has unfortunately gained throughout the years, and instead rebuild a solid, respected reputation for the function as an arsenal of powerful, driving solutions for the ultimate benefit of the organisation; only then will the Board Members believe that Marketing is an asset in the Boardroom.

Marketing's negative reputation is compounded by the fact that, unlike other functions that are always on a Board, such as Legal Counsel and Finance, a Marketing Professional can often be seen as a practiser of pseudoscience or an 'ace-in-the-hole' when the sales team need that little extra support to reach a set target. That's because Marketing is a function that isn't always accurately measureable or rational on paper- both at strategy and result levels. It's very difficult to justify an expensive communication campaign to raise brand awareness in a target market that is comprised of unique people. Scott Stratten describes it perfectly in his book, UnMarketing[2]. He says it's not solely ROI (Return On Investment), an accurate and commonly used measure, that drives business success; it's more ROR (Return On Relationships) which Marketing cultivates that produces the greatest outcome; and that is really hard to calculate tangibly. Therefore, the buck stops with Marketing to overcome this 'gap of undervaluation': the Board won't decide to include and appreciate Marketing with no evidence- it must be proven and justified as an asset, both in and outside of the Boardroom.

Marketing's role is to externally communicate to unpredictable Human Beings; you cannot plug in lines of accurate code with people to have them all behave in a way profitable to a business; some of the segment will reject the message, o

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Standard Chartered




The election of Donald Trump, and collapse of the centre ground in politics, is a crisis of globalisation brought about by inequality
, Bill Winters, CEO of Standard Chartered said.

Populist uprisings, including the UK's vote to leave the European Union, spark "tons of open questions," Winters said. "But we shouldn't lose sight of the issues."

"The underlying process of populism is a check on globalisation, a pushback on how the benefits of globalisation is shared," said Winters at a Financial Times banking conference in London.

"There's a fabulous chart that shows the division of profits between labour and capital going back 100 years," he said.

"To grossly simplify it, the share of global profits going to labour was 60% and and the share going to capital was 40% up until the day China joined the WTO [World Trade Organisation]," Winters said.

"At that point the lines converge and since then diverge with capital getting up to about 60% of the profits and labour 40%. That's a moment in history," Winters said. "It's not obviously all China and it's not all the WTO accession. But something's going to change," he added.

China joined the WTO on December 11 2001, integrating the country deeper into the global economy.

While we do not have the chart Winters refers to, here is a useful chart from the OECD showing how the labour share has declined:

OECD



And another from the OECD:

OECD

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