The Role of Marketing by a Company’s Board of Directors
A company’s board of directors is a group of individuals elected by shareholders who serve as the top governing body of the business. While there are other committees and advisory boards, it is ultimately the members of this board who have oversight responsibilities for all aspects of managing the company.
The role of marketing by a company’s board of directors is to ensure that the management team is implementing a strategy that will enable the company to compete in its marketplace and then hold the management team accountable for its implementation.
In order to fulfill these duties, board members must have an understanding of what marketing is and how it helps companies achieve their strategic objectives. Marketing is an essential part of any board’s oversight function.
Marketing includes establishing a company’s vision and mission, identifying customers and competitors, and determining how to position products and services in relation to those competitors. It goes hand-in-hand with strategic planning, which should be another core focus of boards’ activities.
One of the most important functions of marketing is communicating with current and potential customers about products and services. Board members can help guide messaging by ensuring that it accurately reflects the company’s values and goals.
How Boards of Directors can help a Company’s Marketing Drive
Marketing plays a critical role in the success of any business. But it’s not just the marketing department that drives that success. The board of directors also plays an important role in ensuring that a company’s marketing efforts are on track, and that they’re aligned with the company’s overall strategy.
The board should be engaged to provide strategic guidance and oversight to the marketing function within the organization. This includes:
- Approving or rejecting major strategic direction changes proposed by management (e.g., a new target market, business model change, etc.)
- Reviewing executive summaries of major marketing initiatives (e.g., a new advertising campaign or product launch)
- Overseeing how well the company is executing on its marketing strategy compared with its competitors
- Ensuring that marketing investments are commensurate with their expected return
Marketing controls the majority of the customer experience, and is a key factor in determining a company’s success. It is for this reason that it is imperative for leaders of an organization to have a firm grasp on marketing initiatives.
The role of a board of directors is to oversee a company’s performance and make sure it’s headed in the right direction. Board members must understand how to measure and manage the various aspects of their business, including marketing.
This doesn’t mean they need to master every marketing skill, but that they should know enough about marketing strategies, metrics, and best practices to provide oversight for the department.