Finance directors often fail to fully recognise the true value of
their company’s brands and their cautious attitude is holding back the
UK economy, warns a new survey by the Institute of Practitioners in
Advertising and CIA Media- network.
The research follows a similar study in 1996 and has found little
improvement in the relationship between marketing directors and their
finance directors. There is still a lack of mutual understanding.
There has, however, been some progress in the approach to
accountability, which is now seen by finance directors as the most
important attribute for senior marketing personnel. By contrast, in 1996
it was seen as the least important, while financial literacy was the
most valued attribute.
But although the expectations of marketing accountability have been
raised in the financial community, the perceived delivery has not
Marketing measurement now appears to be moving away from the harder
’till ringing’ measures of sales volume and market share towards softer
measure such as awareness.
But the link to return on investment is either still not being made or
is not being effectively communicated.
David Fletcher, the head of CIA MediaLab, which co-ordinated the study,
said: ’Agencies are best placed to implement systems of accountability.
Obviously we have a vested interest in proving the value of what we and
our marketing clients do.’
However, the problems are exacerbated by the lack of marketing
representation at board level. In the majority of respondents’
companies, responsibility for reporting on marketing issues falls to a
Leading industry trade bodies have launched a joint manifesto to
encourage major companies to install a main board director with
responsibility for marketing by the end of 2001.