What is the Role of Marketing by a Company’s Board of Directors
The Board of Directors of an organization have usually been the fiduciary decision-makers. However, sometimes boards have sought to extend their influence. It is becoming clearer that the amount of revenue generated by a company depends on a number of factors, with marketing being an important one. This means that the duty of the board could very well extend to decisions regarding marketing and advertising.
The Board of Directors is usually responsible for making financial decisions. However, there are stipulations regarding who may become a part of the board. In recent times, many organizations have been looking towards marketing professionals to include on their boards . The primary reason is that a person with extensive marketing experience will be able to lead the board regarding the brand’s marketing efforts. Boards of directors have been getting increasingly involved in the marketing side of their organizations.
The role of the Board in marketing can be summed up as follows:
- Make sure that the company has a marketing strategy in place, and has the budget to meet its goals.
- Promote the company, and make pitches for marketing to new demographics.
- Allocate internal or outsourced resources to ensure that the marketing strategy is implemented.
The Board of Directors of an organization can help shape its marketing operations. To promote more active participation by the board, the following steps can be implemented:
- Ensure that someone on the board has experience with marketing.
- Form a marketing committee at the board level.If that is not possible, the organization should look into assigning a marketing
- A marketing strategy needs to be in place regardless of the size of the organization, and the boards should play an active role in the strategy.
- The Board should also be aware of their companies’ marketing failures and successes in order to provide proper input. Different organizations have different needs, and the marketing plan will vary according to what an organization is trying to achieve.
- The Boards should also be a part of any long-term marketing plan. The goals of a marketing strategy should be discussed often. The hiring of marketing professionals is one goal that can be discussed.
By increasing the role of the board in marketing, an organization can achieve the following:
- Include marketing as an official and critical role of the Board.
- The board can provide valuable input into marketing efforts. If their suggestions are disregarded, then the organization can think about removing marketing from their responsibilities.
- By having the Board involved in marketing, the organization can improve and implement their marketing strategy.
Ronn Torossian is an NYC-based entrepreneur.