From “Nice to Have” to “Boardroom Essential”: Marketing’s Seat at the Table

Marketing has long been treated as a peripheral function. It was often viewed as a cost centre rather than a growth driver, valued primarily for brand awareness rather than its capacity to shape strategy, accelerate revenue, and increase enterprise value. Today, the perception of marketing is changing. High-performing organisations are investing in marketing and placing marketing leaders at the centre of decision-making.

This change in behaviour reflects a recognition that marketing, when executed strategically, directly influences profitability, valuation, and long-term competitiveness. Companies that fail to elevate marketing risk stagnation and weaker performance.

Historical Perception of Marketing

Marketing’s historical image problem is rooted in traditional business structures. For much of the twentieth century, marketing was treated primarily as an operational function aligned with advertising and communications rather than strategy. Peter Drucker argued that the business enterprise has two fundamental functions: marketing and innovation (Drucker, 1954).

In practice, innovation often received priority while marketing was limited to delivering campaigns and promotional materials. This focus on tactical outputs reinforced the perception of marketing as expendable. During economic downturns, marketing budgets were often among the first to be cut (Quelch and Jocz, 2009). Short-termist approaches limited investment in marketing leadership and reduced the credibility of the function.

Marketing as a Core Strategic Function

Companies that integrate marketing into strategic decision-making achieve above-market growth rates. Research by McKinsey shows that firms where marketing is central to corporate strategy are twice as likely to exceed market growth expectations (McKinsey & Company, 2022). Marketing contributes insight into customer behaviour, competitive positioning, and market opportunity, which are critical for informed strategy development.

Brand also directly influences enterprise value. Strong brands outperform competitors in financial performance, as evidenced by stock returns and reduced risk (Madden et al., 2006). In private equity, brand maturity and reputation are increasingly important during due diligence and affect acquisition multiples (Kotler et al., 2021). Marketing is the function that manages and enhances this asset, translating intangible value into measurable outcomes.

Customer expectations have evolved. Digital platforms, personalisation, and data-driven experiences have made customer experience a key factor in long-term performance. Delivering consistent, data-driven customer journeys requires marketing insight (Lemon and Verhoef, 2016). Without marketing representation, strategies risk being designed around internal assumptions rather than objective market insights.

The Evolving Role of the CMO

The Chief Marketing Officer role has expanded from campaign management to include growth strategy, data leadership, and brand stewardship. A 2021 Deloitte survey reported that 73% of CMOs are now responsible for driving revenue growth, and 63% oversee customer experience across the organisation (Deloitte, 2021).

Modern boards increasingly recognise that excluding marketing leadership from strategic decision-making limits organisational effectiveness. Marketing contributes directly to growth, brand equity, and customer insight, which are key drivers of enterprise value.

Barriers to Boardroom Representation

Despite progress, many boards lack marketing expertise. Spencer Stuart (2023) found that only 26% of FTSE 100 boards include directors with significant marketing experience. Several factors explain this gap.

Perceived lack of financial acumen often leads boards to undervalue marketing. Outdated stereotypes of marketing as non-commercial persist in some sectors. Shorter average tenures for marketing executives compared to other board-level roles create instability.

Marketing leaders can overcome these barriers by demonstrating impact through measurable outcomes, financial metrics, and alignment with business objectives. Boards benefit from recognising marketing as a strategic capability that drives value creation.

Examples of Marketing-Led Transformation

Unilever has aligned marketing with corporate strategy, using brand purpose to strengthen reputation and drive long-term growth (Searcy, 2016).

Airbnb leveraged marketing to reposition the company during the COVID-19 crisis, emphasising local stays and community connection, which facilitated recovery and supported a successful IPO (Lemon and Verhoef, 2016).

In private equity-backed firms, early investment in marketing infrastructure accelerates growth, improves retention, and strengthens exit multiples. Marketing is a lever for operational as well as customer-driven value creation.

Marketing Determines Organisational Performance

Marketing drives growth, builds enterprise value, and provides insight into customer and market behaviour. Companies that elevate marketing to a board-level function make more informed strategic decisions that align with market realities. Organisations that treat marketing as a peripheral function limit their capacity to scale, respond to market changes, and optimise enterprise value.

Marketing professionals must communicate value in terms boards understand: revenue contribution, return on investment, risk mitigation, and long-term growth. Boards must recognise marketing as a strategic capability influencing organisational performance across multiple dimensions.

Marketing Shapes the Future of Business

Marketing is a central function that drives growth, strengthens enterprise value, and shapes competitive advantage. Elevating marketing from a peripheral role to a boardroom function is essential for organisations seeking to remain competitive, maximise value, and prepare for growth or investment.

Boards and executives that integrate marketing leadership into strategic decision-making position themselves for sustainable performance and higher valuations. Marketing’s presence at the table reflects its impact on long-term business outcomes.

References

• Deloitte. (2021). 2021 Global Marketing Trends: Find your focus. Deloitte Insights.

• Drucker, P. (1954). The Practice of Management. New York: Harper & Row.

• Kotler, P., Keller, K., & Chernev, A. (2021). Marketing Management (16th ed.). Pearson.

• Lemon, K.N., & Verhoef, P.C. (2016). Understanding customer experience throughout the customer journey. Journal of Marketing, 80(6), 69–96.

• Madden, T.J., Fehle, F., & Fournier, S. (2006). Brands matter: An empirical demonstration of the creation of shareholder value through branding. Journal of the Academy of Marketing Science, 34(2), 224–235.

• McKinsey & Company. (2022). The Growth Triple Play: Creativity, Analytics, and Purpose. McKinsey Insights.

• Quelch, J.A., & Jocz, K.E. (2009). How to market in a downturn. Harvard Business Review, April.

• Searcy, C. (2016). Measuring enterprise sustainability. Business Strategy and the Environment, 25(2), 120–133.

• Spencer Stuart. (2023). CMO Tenure and Turnover Study. Spencer Stuart.