Decision-driven marketing

Aditya Joshi, Eduardo L. Giménez

Harvard business review · 2014 · 695 citations · 0 references

Concepts

TL;DR

Marketing struggles to align aspirations with organizational capability, and communication breakdowns at the seams with other functions impede decision‑making across strategy, execution, and operations. The authors present a tool that revamps decision processes at functional boundaries, enabling firms such as Target and Nordstrom to identify critical seam decisions and enhance marketing impact. They surveyed marketing and other units to map decision roles and built the tool to restructure boundary decision processes. When marketing collaborates closely with other units, key decisions are executed more quickly and effectively than before.

Abstract

The gap between marketers� aspirations and what their organizations can accomplish creates intense pressure to reshape how marketing is done. In recent years some leading companies have developed an innovative approach that focuses on the seams between marketing and the other functions it interacts with--the C-suite, IT, sales, finance, and so on. It is at these seams that communication most often breaks down and processes stall. Typically, three categories of marketing-related decisions cross organizational seams: strategy and planning; execution; and operations and infrastructure. When marketing works closely with other units to execute key decisions, it can get things done far more quickly and effectively than in the past. But divergent assumptions or a lack of alignment and shared commitment between functions can get in the way. When the authors asked people in marketing and other relevant units what roles they played in a decision, the answers were all over the map. In a classic example, both marketers and product developers in one automaker�s European division believed that they had the final say on which features to include in a new model. The authors provide a tool for revamping the decision process at the boundaries between functions and describe how Target, Nordstrom, and other large companies have identified important decisions at the seams and increased the impact of their marketing organizations.