Cmo's Presense in Organizations

Is Marketing demoralized by Top Management?

      Marketing is fading away from firms’ top management eyes to an extent that worried some of the marketing academics (Anderson1982; … cited in Nath & Mahajan 2008), something that has been noticed by Nath and Mahajan during their research and encouraged them to investigate the Chief Marketing Officer phenomenon appointed at the top management level and responsible mainly for all marketing activities. The authors were concerned with the fact that the number of CFOs in the largest normalized 1000 firms in comparison to the CMOs is approximately 69% - 31% respectively (Booz Allen Hamilton and Zorn 2004 cited in Nath & Mahajan 2008). The merit of their qualitative research which was supported by quantitative analysis is to help firms make well defined decisions with regard to the choice of having CMO on board. They examined the Marketing strategic importance to the leadership table by introducing the factors related to the CMO presence/absence; to indicate the marketing influence at the level where corporate strategy is originated. That directly led them to raise the following questions:

      “What are the factors associated with the likelihood of CMO presence in firms’ TMT? And what are the consequences of CMO presence for firm performance in the face of these factors?” (p.65)

CMO’s Presence/Absence

      In theory, the authors based their initial qualitative stage on three core ones namely Contingency, theories of Power and homophily. Followed, they argued that marketing uncertainty are directly related to the strategic, structural and environmental factors that TMT faces. And accordingly, contingency theory claims there is no best way to organize a corporation (, forcing firms to adapt. Hypothetically, firms are more likely to have a CMO when they have reasonably high levels of innovation, differentiation and corporate branding strategy, when CEO is an outsider, and when TMT's...