The Many Roles of Chief Marketing Officer
Don't think investing in a Chief Marketing Officer for your company is necessary? Just ask your consumers.
Recent studies show that 52% of all consumers now say they're inclined to switch brands that speak to their needs. They'll switch fast if they're not getting custom messages and offerings.
As a CEO, you hopefully understand that a strong marketing strategy is key to your company's success (if you didn't then you do now). But what role should you fill to best execute that strategy?
Many CEOs are now hiring Chief Marketing Officers to lead their marketing teams. But what exactly does the CMO do? And is it the right role for your company?
In this comprehensive guide, we'll explore the many roles of the CMO and help you decide if hiring one is right for you (plus present you with a cost-effective alternative to a full-time CMO).
What Is a Chief Marketing Officer (CMO)?
A Chief Marketing Officer (otherwise known as a CMO) is a corporate executive who is responsible for the marketing activities of a company.
What does a CMO do?
On a day-to-day basis, the Chief Marketing Officer's responsibilities include the development and execution of the marketing strategy, as well as the management of the marketing department. In addition, they’ll likely handle the implementation of marketing initiatives, such as:
- Advertising campaigns
- Public relations
- Market research
While this role was initially created in the 1960s after businesses started to realize the importance of marketing (yes, think Mad Men), the role of the CMO has evolved over time.
Whereas previously it was all about print and television, CMOs today are responsible for more digital-focused marketing initiatives, such as social media and content marketing.
When they’re not leading the marketing team, a CMO reports to the Chief Executive Officer (CEO) and typically works closely with other executives such as the Chief Financial Officer (CFO), the Chief Operating Officer (COO), and the Chief Technology Officer (CTO).
Ultimately, this role is a pretty important executive role in today’s business world. Successful marketing requires a deep understanding of customer needs and changing market trends.
What's more, effective marketing requires significant coordination among various departments such as sales, product development, and customer service. As a result, the CMO role has become increasingly important.
CMO Demographics
Who exactly is a CMO in today’s business world? According to recent studies, the typical CMO is a white male around the age of 40. In fact, CMOs are, for whatever reason, overwhelmingly male. Only 32% of CMOs today are women.
Most CMOs hold a Bachelor's degree, with just 18% of these executives having a Master’s degree. While the majority of CMOs do not have a master's degree, those who do tend to be older and have more experience.
However, it’s important to note that those with a Master's degree earn a median annual income of $215,562 compared to $175,064 for CMOs with just a Bachelor’s degree.
In terms of personality, CMOs are typically extroverted and have a high need for achievement. They are also risk-takers who are not afraid to try new things. With these traits, CMOs are well-suited for the fast-paced and ever-changing world of marketing.
How a CMO Compares to Other Executives
Welcome to the C-Suite! This is where all of the C-level executives hang out, otherwise known as the “chiefs” (nobody really calls them that, but we are referring to the Chief Executive Officer, Chief Financial Officer, etc.).
The C-Suite is a term used to describe the senior executives of a company. The name comes from the fact that these executives typically hold positions with titles that begin with the letter "C," such as CEO, CFO, and COO.
The C-Suite is responsible for making strategic decisions for the company, and they are typically the highest-paid employees in the organization. While the composition of the C-Suite will vary from company to company, it typically includes the CEO, CFO, COO, and president.
However, CMOs are quickly becoming equally important as other executives. Here’s how they compare to other executives in their job functions and daily responsibilities.
CMO vs. CEO
CMOs and CEOs are both important positions in a company, but they have very different responsibilities. CMOs are responsible for marketing and advertising, while CEOs are responsible for overall strategy and execution.
Likewise, this means that CMOs need to be good at coming up with creative campaigns that will capture the attention of consumers, while CEOs need to be good at making decisions that will move the company forward.
While it’s not the CEO’s job to understand consumer behavior, they do need to have a good understanding of the business landscape. Ultimately, they both play essential roles in business operations but have slightly different skill sets.
CMO vs. CFO
If there’s tension between executives, it’s usually between the CMO and CFO, which is the Chief Financial Officer. Why?
CMOs want to grow the business as quickly as possible, while CFOs want to control costs. This can lead to conflict, but it is also necessary to have both roles in order to achieve success. To be successful, CMOs need to be able to understand the financial side of the business to make informed decisions, and CFOs need to be able to understand the marketing and sales side in order to make sure that money is being spent wisely.
Ultimately, both roles are essential to the success of a company, and when they learn to work together in harmony, it can lead to a great power team.
CMO vs. VP of Marketing
Okay, so a VP or Marketing isn’t a C-level executive necessarily. But while we’re comparing different roles, it’s important to quickly touch on the differences between a CMO and a VP of Marketing. Many people get confused.
Typically, the CMO is responsible for formulating and executing the marketing strategy, while the VP of Marketing oversees the day-to-day operations of the marketing department.
Both positions require a deep understanding of the consumer market and the ability to develop creative and effective campaigns.
However, the CMO is ultimately accountable for the success or failure of the marketing efforts, while the VP of Marketing is more focused on executing the strategy. As a result, CMOs tend to have more authority than VPs of Marketing.
Qualities of a Great Chief Marketing Officer
Looking to add a Chief Marketing Officer to your team? Outside of ensuring that they’re able to complete basic daily tasks, there are certain qualities and traits that you’ll want to look for. Make sure they tick off most of the traits below to ensure they’ll be successful in the role.
Big-Picture Thinking
In today's fast-paced, ever-changing business landscape, it's more important than ever for CMOs to be able to think big-picture.
With the ability to see the forest through the trees, so to speak, CMOs can make more strategic decisions that help their companies not just keep up with the competition, but stay ahead of the curve.
This is pretty essential simply due to the fact that the role of a CMO has changed drastically over the years. No longer are CMOs simply responsible for creating and executing marketing campaigns; they now must also be data-savvy, tech-savvy, and well-versed in all things digital.
But with all of these new responsibilities, it's easy for CMOs to get bogged down in the details and lose sight of the bigger picture. That's why big-picture thinking is a critical skill for CMOs today.
By taking a step back and looking at the big picture, CMOs can better understand how all of the pieces fit together and make more informed decisions that will help their companies succeed in the long run.
Deep Understanding of Marketing
This almost goes without saying. However, you’d be surprised at the number of CMOs we’ve met that just don’t quite “get” what marketing is about these days.
The ever-changing landscape of marketing requires constant adaptability and innovation, and those who fall behind quickly find themselves at a disadvantage.
To keep up with the latest trends, CMOs need to be well-versed in all aspects of marketing, from traditional advertising to cutting-edge digital tactics.
Additionally, they need to be able to understand and utilize data-driven insights to make informed decisions about where to allocate resources. Without a deep understanding of marketing, it is very difficult for CMOs to be successful.
Leadership Skills
In order to be successful, CMOs need to have a variety of skills, including the ability to think strategically, creatively solve problems, and most importantly, lead a team effectively. Great leaders inspire those around them to do their best work and achieve collective success.
They are able to develop a shared vision and then rally others to buy into that vision. They also create an environment where people feel valued and respected, resulting in higher levels of engagement and motivation.
Lastly, effective leaders can make tough decisions and see them through, even when faced with challenges or setbacks. CMOs who can exhibit these leadership qualities are more likely to be successful in achieving their marketing goals.
Data-Driven & Analytical
Marketing does rely heavily on storytelling, sure. However, it’s also an area that’s super data-driven. After all, if you implement a marketing campaign and the numbers don’t support the continuation of that campaign, it’s up to your CMO to rely on that data to make decisions.
Digital marketing generates a huge amount of data, and CMOs must be able to sift through this data to identify patterns and trends.
This information can then be used to make informed decisions about where to allocate resources, what messaging will be most effective, and which channels will reach the target audience.
Additionally, data can be used to track campaign performance and ROI, allowing CMOs to justify their budget and prove their worth to the rest of the organization. When it comes down to it, your CMO should be able to effectively leverage data for campaign success.
Strong Communication
Great communication skills are crucial in any business role these days. However, they’re particularly important for Chief Marketing Officers. Why?
They must be able to clearly articulate their vision for the company's marketing strategy and then rally their team behind that vision.
Furthermore, CMOs need to be able to interface with other departments within the company in order to guarantee that everyone is working towards the same goal. This means they need to be able to present their ideas in a clear and concise manner, both in writing and in person.
Creative & Innovative
In today's business environment, it is more important than ever for CMOs to be both creative and innovative. The role of the CMO is to drive growth and create shareholder value, and this requires a consistently fresh approach.
Customers are bombarded with marketing messages on a daily basis, and they are becoming increasingly sophisticated in their ability to filter out the noise. As a result, CMOs need to find new and creative ways to reach their target audience.
Additionally, the landscape is constantly changing, and successful companies are those that can adapt quickly to new trends. CMOs need to be at the forefront of these changes, always looking for new opportunities to engage with customers.
How Much Do CMOs Get Paid in 2022?
The salary for a Chief Marketing Officer varies depending on the industry they’re in and what kind of company they work for. For example, CMOs of small startups get paid significantly less than CMOs at large tech companies like Facebook and Netflix.
However, the current nationwide average salary for a CMO is just over $200,000 per year.
On the low end, for a small company or startup, CMOs get paid about $75,000. Mid-sized companies pay CMOs anywhere between $140,000-180,000, though. And, keep in mind that $200,000 isn’t the cap!
Plenty of companies offer CMOs roles that pay upwards of $300,000 a year. Really, it just depends on the company, the industry, and the experience of the marketer.
If you’re looking to hire a CMO, consider this cost and keep this in mind when we present you with an alternate, more cost-effective option later on.
Chief Marketing Officer Employment Outlook in 2022
Marketing budgets have increased to 9.5% of total company revenue in 2022. This spells good news for CMOs. Why?
There’s more money to invest in their strategies, content, and campaigns. Not only that, but it means there is more money to invest in CMOs in general.
While it's hard to predict any definitive trends in today's job market and economy, the CMO employment outlook in 2022 is pretty positive. Despite the intense competition between brands, there are a lot of opportunities to get innovative amid today's global issues.
And, because there is a lot going on in the world right now, brands need great CMOs now more than ever in order to distinguish themselves from the rest. Crafting a super unique message is the only way to break through the noise.
Whereas old tactics and strategies worked time and time again, consumers are hip to the game now. They want to buy into businesses that are real with them. A great CMO and marketing team is the only way to really accomplish that.
The 8 Main Chief Marketing Office Archetypes
The Chief Marketing Officer role is actually a relatively new position in the corporate hierarchy, but it is one that is becoming increasingly important.
As the world of marketing becomes more complex and competitive, companies are looking for leaders who can guide their marketing efforts.
While the specific duties of the CMO may vary from company to company, there are eight main archetypes that are typically seen in this role.
Browse through each archetype to see which might be the best fit for your business.
1. The Strategist
Ahhh, The Strategist. This type of Chief Marketing Officer is likely best buds with the CEO. And, that's not a bad thing!
This CMO archetype loves, well, strategy. They can often even be closely involved with the work that goes into defining the company's vision and building a strategic roadmap to help get there.
Ultimately, they work closely with the CEO and other executives to guarantee that the marketing goals are aligned with the overall business strategy.
The Strategist is focused on creating long-term value for the company and is always looking for ways to improve the bottom line, including ensuring there is always a product-market fit.
2. The Thought Leader
The Thought Leader is the voice of authority in their industry. They are respected for their opinions and considered a trusted source of information.
When it comes to marketing, The Thought Leader is focused on creating content that educates and informs its audience. Their goal is to establish themselves as an expert in their field and build trust with potential customers. This makes them great public speakers and networkers.
Ultimately, though, a CEO that is a Thought Leader is always keeping up with the latest trends and developments in their industry. They are quick to adopt new technologies and experiment with new marketing strategies.
Their goal is to stay ahead of the competition and maintain their position as an authority (and help the business be perceived as an authority, too!).
3. The Innovator
Innovators are the risk-takers that are always looking for the next big thing. They are constantly experimenting with new ideas and technologies by using different marketing approaches and platforms.
You'll notice this type of CMO easily because they're often creative and forward-thinking, and they are always on the lookout for ways to improve their marketing strategy.
When it comes down to it, The Innovator is often the first to adopt new platforms and strategies, and this willingness to take risks can pay off in a big way.
4. The Culture Builder
This type of CMO is focused on creating and maintaining strong company culture. They work to develop brand values and ensure that all employees are aligned with these values.
Additionally, The Culture Builder is responsible for creating an employee experience that is positive and engaging. The goal is to create a workplace that attracts and retains top talent.
5. The Customer Champion
The Customer Champion is the archetype that is focused on, well, the customer. They are responsible for being the voice of the customer within the company and advocating for their needs.
This CMO puts the customer at the center of everything they do and strives to create an exceptional customer experience.
They are usually heavily involved in customer research and work closely with the product team to ensure that customer feedback is taken into account when making decisions about new features or products.
Because of this focus on the customer, Customer Champion CMOs are often very good at building relationships and creating loyalty. They are also usually very data-driven, always looking for ways to improve the customer experience.
6. The Product Marketer
The Product Marketer is the voice of the product. They are responsible for creating messaging and positioning the product in the market.
They also work closely with the product team to understand the features and benefits of the product and then craft compelling stories that will resonate with customers to guarantee that the product meets customer needs and solves customer problems.
The product marketer is also responsible for developing go-to-market strategies, managing product launches, and driving demand generation initiatives.
Ultimately, these types of CMOs shine because they have a deep understanding of the customer, the market, and the competition.
7. The Growth Driver
The Growth Driver is the archetype that's always looking for new opportunities. The goal for The Growth Driver is to maintain a high growth rate for the company.
They're always on the lookout for new markets to enter and new products to introduce. This can sometimes come at the expense of profitability, but a Growth Driver CMO is more concerned with top-line growth.
Why would you want a Growth Driver CMO archetype on your team? Outside of pure growth, they often possess the ability to make quick decisions easily. Likewise, they're pretty adaptable.
8. The Brand Steward
The Brand Steward loves to safeguard the brand and make sure that it adheres to the core values that have been set forth by the company. They are super consistent individuals and love storytelling.
They are focused on managing and evolving the brand, and work to guarantee that all marketing efforts are consistent with the brand identity.
Ultimately, if you want a CMO that is out to ensure your brand is represented accurately and consistently across all touchpoints, a Brand Steward type of CMO is a great option.
Famous CMOs & Their Approaches
As the world of marketing continues to evolve, so do the strategies and approaches of CMOs. While some CMOs rely on tried-and-true methods, others are constantly innovating to stay ahead of the curve.
Here is a closer look at some famous CMOs and their unique approaches to marketing.
Antonio Lucio: Facebook
Antonio Lucio is actually the former Global Marketing Officer at Facebook and is well-known in the industry for creating campaigns and initiatives that foster a sense of diversity and inclusion.
Before working at Facebook, he was the CMO at Visa, HP, and Pepsico, where he first began to spread awareness of his marketing methods. Namely, he believed that marketing agencies should approach their work with a diverse mindset.
Antonio Lucio CMO Approach: Emotional Messaging
By taking an approach centered around inclusion, Lucio was able to really focus on emotional messaging. In doing so, he helped Facebook answer tough questions that many businesses have.
For example, how do you straddle that thin line between free speech and inclusivity without alienating your brand's core message and identity, even though they might not align?
To get a good idea of his work as a CMO, just take a look at the “Never Lost” and “Born In Quarantine” COVID-19 marketing campaigns from Facebook.
Raja Rajamannar: Mastercard
It's tough to make Mastercard sound and look cool. Finance isn't that sexy, and that's tough as a marketer. However, Raja Rajamannar has done a great job of it.
He joined Mastercard back in the early 2010s when the brand was making its full shift over to the digital age. And in 2020, when the pandemic started, he was at the forefront of the industry's efforts to help small businesses.
He was quoted as saying, “there’s a time to sell and time to serve." By this, he meant that businesses needed to understand how to support their customers when times were tough.
This is an important lesson to learn in a time when the world feels even more unpredictable and oftentimes unstable than ever before. Keep your customers' problems in mind and don't sell when it's not appropriate.
Raja Rajamannar CMO Approach: Data & Technology-Driven
Where do Rajamannar's great ideas come from? He's a champion of AI and all that it has the potential to do in the marketing world.
He calls on marketers to rely on AI and similar technology to really understand customer behavior. By doing so, he notes that brands can adopt a purpose and cause in a more effective manner.
Ann Lewnes: Adobe
Ann Lewnes is very much a Customer Champion CMO. She's such a champion of Adobe users, in fact, that she helped launch an initiative that offered free online classes to over 30 million people globally.
Behind her work as a CMO, however, is the idea that creativity has the power to unite humankind. During challenging times, Adobe's marketing efforts have reflected this sentiment.
Ann Lewnes CMO Approach: Strategic Positioning
As a champion of customers, Ann Lewne's approach to CMO of Adobe has been all about strategic positioning. What do we mean by this?
Instead of trying to develop unique selling points that customers don't really care about, she has focused her efforts on figuring out what problems they have. Then, she created initiatives that helped position Adobe as the solution to that problem.
This is a fantastic lesson to learn as a CMO or business owner. Instead of trying to think about what you want your product or brand to be, think about the struggles, concerns, and problems of your target audience.
Then, create a product and marketing campaigns that position your business as the solution to those woes.
Does Your Business Need a CMO?
We’ve walked you through what a CMO does and what kinds of qualities they should have. Now, are you thinking that your business might benefit from a CMO role? It’s not for every business, honestly.
There are many factors to consider when deciding if your business needs a CMO. Here are a few to take into account that can help make your decision easier (and cost-effective!).
Business Size
In general, small businesses don't often benefit from the full-time services of a CMO. While a Head of Marketing might suffice, the budget and research aren't often there to justify the work that a CMO might do.
When deciding whether or not your business needs a CMO, consider the size of your company and what the costs might mean. It's important to think about your immediate needs and goals.
For example, if you don't even have a full product to market yet, putting money into product development is going to be more important than hiring a CMO.
When the time comes, take a look at your marketing team and see if there are any gaps in skills or experience. If so, then bringing on a CMO can help to fill those gaps and take your marketing efforts to the next level.
Industry
Today, CMOs can be found in a variety of industries, ranging from technology to healthcare. While all organizations can benefit from the skills of a CMO, some industries are more likely to see a return on investment from this position.
For example, companies that operate in highly competitive markets or those with complex product portfolios often benefit greatly from having a CMO on staff.
In these cases, the CMO is responsible for developing and executing marketing strategies that help the company gain an edge over its rivals.
Business Goals
One great way to determine whether or not you need a CMO is to think about your immediate business goals. As mentioned above, consider where you're at in the development of your brand or product. Then, consider your budget.
Think about what's going to move the needle most for your business. If that's brand strategy, customer acquisition, and any sort of content or advertising campaign, then, yes, a CMO makes sense.
However, if your goals are more focused on product development, organizational issues within your company, or similar factors, then a CMO might not be right for you right now.
Startups
Finally, we see this question a lot. Do startups really need a Chief Marketing Officer?
The CMO role is primarily responsible for two things: brand strategy and customer acquisition. But in the early days of a startup, the founding team should be focused on product-market fit, not building a brand or acquiring customers.
That’s not to say that startups don’t need marketing at all – they do. But what they need is a “growth hacker,” not a traditional CMO. A growth hacker is someone who is obsessed with growth and knows how to use data and experimentation to drive it.
They are often generalists who are comfortable wearing many hats, which is ideal in the early stages of a startup when roles are fluid and everyone needs to be able to do a bit of everything.
So do startups need a CMO? In most cases, the answer is no, they don't need a full-time Chief Marketing Officer. However, they might benefit from a fractional CMO...
What Is a Fractional CMO and What Are the Benefits?
Don’t have the budget or projects to justify hiring a full-time CMO? There’s an alternative: a fractional CMO. A fractional CMO is a Chief Marketing Officer who works part-time or on individual projects.
Think of them like a freelance CMO!
Basically, you get all of the benefits of having a CMO on hand for your business needs, but don’t have to worry about the complications and financial issues that come with hiring a full-time CMO.
The benefits of working with a fractional CMO are many and varied, but some of the most significant include access to senior-level marketing expertise, increased efficiency, productivity, and the ability to scale up or down as needed.
In addition, fractional CMOs often bring with them varied experiences from previous roles, which can be invaluable in helping to meet marketing goals. This is actually super beneficial. They tend to be a lot more diverse than CMOs who just work at one company.
Finally, fractional CMOs typically have extensive networks and can bring new perspectives to the organization. As a result, working with a fractional CMO can be an excellent way to improve marketing results without the need for a full-time commitment.
How Much Does a Fractional CMO Cost?
Our best (and most honest) answer to this is less than a full-time CMO.
Really, though, in all honesty, the answer depends on the scope of the project and the experience of the CMO. Typically, businesses can expect to pay between $5,000 and $20,000 per month for a fractional CMO.
While this may seem like a significant investment, it is important to remember that a fractional CMO can provide a great return on investment by helping to improve your bottom line.
When thinking about the cost of hiring a fractional CMO, think about the overall ROI. If you have to invest $20,000 in a CMO for a couple of months but get $500,000 in revenue from their strategies and ideas, then it’s well worth the investment.
Additionally, it’s helpful to consider how much you’re saving versus hiring a full-time CMO. When you hire a full-time employee, you’re paying them a set salary regardless of what they produce. With a fractional CMO, you’re really only paying for the services and strategies you need.
Do You Need a Fractional CMO?
While this arrangement can be beneficial for small businesses or startups that can't afford a full-time CMO, it's important to consider whether a fractional CMO is the right fit for your company.
One of the key benefits of having a fractional CMO is that they can bring a wealth of experience and knowledge to your team.
A good CMO will have a deep understanding of marketing strategy, consumer behavior, and the latest marketing trends. They'll also be able to offer insights on how to effectively reach your target market.
In addition, a fractional CMO can help develop and implement marketing plans that are aligned with your business goals. However, it's important to note that a fractional CMO may not be available to work on your company's marketing full-time.
As such, you'll need to be sure that you have the internal resources in place to carry out the marketing plan.
If you're not sure whether a fractional CMO is right for your business, it's always worth speaking with one about your needs. They’ll be able to guide you through how they work and what their experience is so that you can both see if you’re a good fit.
Get Fractional Remote CMO Services
Now that you know what a Chief Marketing Officer does and how hiring a CMO can benefit your business, are you ready to take the next step?
My fractional CMO services can help you take care of all the tasks that are traditionally handled by a CMO, freeing up valuable time for you to focus on what really matters.
Get in touch to talk about my fractional CMO services and how I can tailor them to help you grow your business.