What is the Role of Marketing by a Company’s Board of Directors

2022-03-15 by Ronn Torossian
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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.

Marketing and The Board of Directors

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 Board’s Role in Marketing

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.

Steps To Promote The Board’s Role in Marketing

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.

What Can be Expected?

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.

Ronn Torossian: Insights from a Native New Yorker and CEO of 5WPR

Ronn Torossian is the founder and CEO of 5W Public Relations, one of the largest independently-owned PR firms in the United States. With over 20 years of experience crafting and executing powerful narratives, Torossian is one of America's most prolific and well-respected Public Relations professionals. Since founding 5WPR in 2003, he has led the company's growth, overseeing more than 250 professionals in the company's headquarters in midtown Manhattan. With clients spanning corporate, technology, consumer and crisis, in addition to digital marketing and public affairs capabilities, 5WPR is regularly recognized as an industry leader and has been named "PR Agency of the Year" by the American Business Awards on multiple occasions. Throughout his career, Torossian has worked with some of the world's most visible companies, brands and organizations. His strategic, resourceful approach has been recognized with numerous awards including being named the Stevie American Business Awards 2020 Entrepreneur of the Year, the American Business Awards PR Executive of the Year, twice over, an Ernst & Young Entrepreneur of the Year semi-finalist, Metropolitan Magazine's Most Influential New Yorker, a 2020 Top Crisis Communications Professional by Business Insider, and a recipient of Crain’s New York 2021 Most Notable in Marketing & PR. Torossian is known as one of the country's foremost experts on crisis communications, and is called on to counsel blue chip companies, top business executives and entrepreneurs both in the United States and worldwide. Torossian has lectured on crisis PR at Harvard Business School, appears regularly on CNN & CNBC, is a contributing columnist for Forbes and the New York Observer, and has authored two editions of his book, "For Immediate Release: Shape Minds, Build Brands, and Deliver Results With Game-Changing Public Relations," which is an industry best-seller. A NYC native, Torossian lives in Manhattan with his children. He is a member of Young Presidents Organization (YPO), and active in numerous charities