Marketing chief the new go-to person for corporate survival

Jaclyn Trop / The Detroit News

The economic crisis fashioned the role of chief marketing officer into the next hot C-level job.

Companies desperate to stay afloat during the recession are turning to customer service as the key to their survival. This renewed focus has driven many companies to empower their CMOs to serve as a liaison between a brand and its customers to deliver what they want; never before has the need to connect with consumers been so critical.

The responsibility weighs heavy on the shoulders of CMOs -- they often manage sales, product development, distribution, public relations, advertising, pricing, market research and customer service.

"The marketing mix is changing dramatically," said Donovan Neale-May, executive director of the CMO Council, a think tank in San Francisco. "You have to be very agile in how you allocate dollars."

CMOs are not only responsible for delivering results and improving analytics and metrics in a down economy but also must oversee a company's digital presence and social media initiatives, said Janice Rosenhaus, CEO of Harris Marketing Group in Birmingham.

Ten years ago, the position was simply known as vice president of marketing. Adding "chief" to the title denotes more accountability, Rosenhaus said.

"That title comes with major responsibility," she said. "The responsibility for return on investment, the responsibility for making a difference in the business. It's a really tough position now. The pressure is unbelievable."

Executives walk a fine line between appealing to both sides of the market, said Russell Weiner, CMO at Domino's Pizza in Ann Arbor.

"You have to differentiate yourself from your competitors. You have to appeal to the value shopper, as well as the consumer who is willing to pay more for a premium product."

Intense scrutiny means high turnover. If an executive doesn't deliver results on a strict timetable, that person is dismissed. A 2006 study by recruiting firm Spencer Stuart pegged the average CMO employment at two years.

Executives who fulfill their responsibilities are compensated with salaries ranging from $350,000 to seven figures at Fortune 500 companies, Neale-May said.

A broadly empowered CMO shows that a company is making a priority of putting the customer at the center or facing the consequence of consumer irrelevance, said Mark Lantz, a Birmingham-based brand strategy consultant.

"It's a job weighted with expectations for quick achievements," Lantz said.

"If they happen, that makes the CMO a marketable commodity for the next job; if they don't happen, there's always another one waiting in the wings."