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Hiring a Head of Marketing?
Is it really the best move?
Table of contents
Hiring a head of marketing? It’s a logical first step. Depending on your company’s stage: to launch, scale, or accelerate growth, you need a leader to run it.
Whether you’re calling it a Head of Marketing, VP of Growth, or CMO; this article challenges whether or not hiring one is the best move.
We believe the future of marketing is fractionalized and although this piece attempts to be as unbiased as possible, our position is clear. SystemTwo’s entire business model is based on it and our current times demand it.
High-growth companies are constantly pressed to be leaner and more efficient. Marketing budgets, often perceived as a luxury, are among the first to face cuts, and in the meantime, competition is ever-increasing. However, the importance of quality and effective marketing efforts cannot be overstated.
Marketing is essentially sales at scale! It remains a critical factor in sustained growth, helping companies distinguish themselves in crowded markets and reach their target audiences.
We’re not being dramatic when we say marketing can lead to the success or failure of your company. Missing your market’s window of opportunity by just one quarter can lead to competitors establishing a first-mover advantage or a market shift that enters your company into the never-ending game of playing catch-up.
In this sense, a good marketing strategy is not an optional expense but a vital investment in your company's future.
So let’s get into it…
The position and role
The role of a head of marketing is often viewed as a cornerstone of your company. Their responsibility involves overseeing all marketing activities, including strategy and execution. This role is instrumental in driving the company's market presence and shaping its brand image in consumers' minds.
The Head of Marketing not only guides the marketing team but also ensures alignment with the overall business objectives. This position plays an instrumental role in your company's success, as it involves making critical decisions that impact the company's market positioning, brand perception, and, ultimately, its bottom line.
Role in the organization
The Head of Marketing also collaborates closely with other departments. We call it internal marketing: from sales to customer experience, product, the leadership team and even the board and investors to align marketing strategies with the company's overall goals.
Marketing leaders are tasked with understanding trends, consumer behavior, and competitor activities. Additionally, their role involves analyzing the effectiveness of marketing and making data-informed adjustments based on these insights. As a result, the Head of Marketing becomes the orchestrator of the company's market presence and its primary conduit to the world.
Responsibilities of a head of marketing
The Head of Marketing, or, depending on the size of the company, VP, CMO,... is a leadership role tasked with overseeing your company's marketing activities. The responsibilities extend across marketing strategy, channel execution, brand management, market research, product and content marketing, public relations, and more. Their primary duty is to craft a coherent strategy that aligns with the company's business goals and ensures its successful execution.
Strategic Planning
Strategic planning forms a significant part of the head of marketing's responsibilities. This process involves understanding the competitive market landscape, gaining a deep understanding of the ideal customer profiles, identifying opportunities for growth, and developing marketing strategies to execute on these opportunities. Strategic planning also encompasses setting marketing goals and objectives, defining key performance indicators (KPIs), and monitoring progress toward these goals. A head of marketing must align these strategic initiatives with the broader strategy to drive cohesive, company-wide growth.
Team Leadership
Team leadership is a vital aspect of the Head of Marketing's role. They are responsible for leading a team of professionals, providing direction, and ensuring that the entire company, across departments, is working effectively towards achieving its growth goals.
This responsibility also involves talent development, performance management, and fostering a culture of innovation and collaboration. The Head of Marketing plays a pivotal role in creating a productive work environment that motivates team members and encourages their best performance.
Internally, the head of marketing should have the ability to rally internal stakeholders and get the entire company aligned and bought into the growth mission.
Internal Marketing
Internal marketing is pivotal for any successful company. It promotes a shared understanding of your company’s values, objectives, and brand identity among employees, leading to improved service delivery, productivity, and morale.
It’s much easier to get the team to like and comment on company posts, even posting on their own; when they’re aligned, engaged, and believe in the company's mission.
This not only boosts customer satisfaction but also helps in attracting top talent, fostering innovation, and achieving sustainable growth. Essentially, internal marketing is a strategic investment, converting employees into your best brand ambassadors.
Key skills
Strategic Thinking
A Head of Marketing must possess strong strategic thinking skills. They need the ability to anticipate market trends, understand customer behavior, and develop strategies that align with the company's long-term goals. This role involves the capacity to analyze data and translate it into actionable marketing plans. Strategic thinking also includes foreseeing potential challenges and preparing contingency plans to ensure the company's marketing efforts remain on track.
Communication Skills
Excellent communication skills are indispensable for a Head of Marketing. They must effectively articulate the company's vision, strategies, and plans to their team, other departments, stakeholders, and the public. Being adept at negotiating, presenting, and influencing others is crucial for this role. These skills are particularly vital when advocating for marketing initiatives within the organization to get company-wide buy-in and promote the company's brand to the external world.
Leadership and management
Leadership and management skills are fundamental for a Head of Marketing. They should inspire and motivate their team, manage performance, resolve conflicts, and foster a positive work environment. They must also coordinate with other departments and manage relationships with external partners. Their role involves driving the team toward achieving marketing goals while ensuring alignment with the company's broader strategic objectives.
Creativity and innovation
A Head of Marketing must exhibit a high degree of creativity and innovation. This skill enables them to generate fresh ideas for marketing campaigns and find innovative ways to reach target audiences. Keeping abreast of marketing trends and incorporating them into the company's marketing strategies is essential. Fostering a culture of creativity within the marketing team and company-wide ensures a constant flow of innovation.
Analytical Skills
A Head of Marketing should possess excellent analytical skills. They must understand and interpret marketing data, track and analyze campaign performance, and make data-driven decisions. Even with a team in place, the head of marketing should be able to dive into the details, set up analytics, understand relative data streams and be able to extract those insights.
In addition, they should be capable of tracking market trends and competitor activities and adjusting strategies accordingly. These skills are critical for measuring the effectiveness of marketing initiatives, measuring return on marketing spend, and identifying areas for improvement.
Head of Marketing's Impact
Driving Growth
At the end of the day it’s about growth and your head of marketing should own a number (whether it’s customer acquisitions or top-line revenue) and be the key person held accountable for achieving it.
By developing and executing effective marketing strategies, your marketing leader generates demand for your products or services, leading to increased sales and revenue. Additionally, by identifying and targeting new markets and customer segments, the Head of Marketing helps the company expand its reach and increase its market share. A Head of Marketing also plays a critical role in enhancing the company's reputation and credibility, both of which contribute to sustainable growth.
Shaping brand perception
A Head of Marketing significantly influences how your company's brand is perceived in the market. They work to create a strong, positive brand image and ensure that all marketing activities align with this image. They also manage the company's response to any threats to its reputation. By effectively shaping brand perception, a Head of Marketing can increase customer loyalty, attract new customers, and differentiate the company from its competitors.
Influencing product and company strategy
Beyond their role in driving marketing initiatives, a Head of Marketing also plays a crucial role in influencing the overall company strategy. Their understanding of the market and customer behavior can provide valuable insights for product roadmaps with strategic decision-making. They also ensure that marketing strategies align with the company's broader goals. This strategic alignment is essential for creating a cohesive, company-wide approach that drives customer-centric growth and success
The Pros of Hiring a Head of Marketing
Brand Development
Brand development is a key benefit of hiring a Head of Marketing. They play a pivotal role in shaping the company's brand image, crafting a compelling brand narrative, and ensuring all marketing initiatives align with this image. By effectively communicating the brand's value proposition, the Head of Marketing can increase brand awareness and recognition. They also oversee the creation of branding materials and manage the brand's portrayal across various channels.
This strategic approach to brand management not only attracts new customers but also fosters customer loyalty and differentiates the company from its competitors. Furthermore, they manage any threats to the company's reputation, ensuring that the brand remains strong and positive in the market. Overall, a Head of Marketing’s contribution to brand development significantly influences the company's market position and success.
Customer Acquisitions
A head of marketing's North Star metrics are driving customer acquisitions and increasing top-line revenue. They devise and implement marketing strategies designed to attract and convert potential customers. This involves identifying and targeting new customer segments, understanding their needs and motivations, and crafting compelling marketing messages that resonate with them.
The Head of Marketing also explores and leverages various marketing channels, from traditional advertising to digital marketing platforms, to reach these target audiences. Through effective marketing campaigns, they can increase the company's customer base, directly contributing to increased sales and revenue. Additionally, they oversee the analysis of campaign results, using these insights to refine customer acquisition strategies. Their role in customer acquisition not only drives immediate sales but also lays the foundation for long-term customer relationships.
Increasing top-line revenue
The Head of Marketing, along with a strong alignment with sales, is on the front line to directly impact your company's top-line revenue By driving customer acquisition and retention through effective marketing strategies, they contribute to increased sales. By enhancing brand perception and customer loyalty, they encourage repeat purchases, thereby increasing customer lifetime value. They also play a critical role in product launches and promotional campaigns, creating and capturing demand and ultimately increasing revenue.
Furthermore, the Head of Marketing's responsibility includes tracking and analyzing the performance of marketing initiatives. By understanding which initiatives drive revenue and which ones don’t, they continuously refine the company's marketing strategy to maximize revenue growth.
Strategic Planning
Strategic planning is a key responsibility of the Head of Marketing. They identify opportunities for growth and develop strategies to capitalize on these opportunities. This involves understanding the competitive landscape, consumer behavior, and market trends. They also set marketing goals and objectives, define key performance indicators (KPIs), and monitor progress toward these goals.
This strategic approach ensures that the company's marketing efforts are focused, effective, and aligned with the broader strategy. By incorporating data and insights into the planning process, they ensure that strategies are grounded in reality and have a high potential for success. Moreover, their strategic planning skills can benefit the company as a whole, influencing its overall strategy and direction.
Team Leadership
Team leadership is a crucial aspect of the Head of Marketing's role. They lead a team of marketing professionals, provide direction, and ensure the team is working effectively toward achieving the company's growth and marketing goals. This involves talent development, performance management, conflict resolution, and fostering a culture of innovation and collaboration. The Head of Marketing's leadership influences the team's morale, productivity, and overall performance. Their ability to inspire and motivate the team can lead to more creative, effective marketing initiatives. They also ensure alignment between the marketing team's efforts and the company's broader goals, creating a cohesive approach that drives company-wide growth.
Additionally, the Head of Marketing is responsible for resource and budget management, ensuring that the marketing team has the skills, tools, and resources necessary to execute their duties effectively. Through effective team leadership, a Head of Marketing can significantly enhance the company's marketing capabilities and results.
Insights from industry experts affirm the positive impacts.
Industry experts widely acknowledge the significant impact a Head of Marketing can have on your company's success. They affirm that a Head of Marketing's strategic planning skills, understanding of the market, and ability to drive effective marketing initiatives can lead to increased brand awareness, customer acquisitions, and revenue growth. They also highlight the role of a Head of Marketing in shaping your company's brand image and managing its reputation.
For instance, Philip Kotler, a renowned marketing expert, has emphasized the importance of a CMO in creating value for customers, stating that
"The role of marketing is to create, communicate, deliver, and exchange offerings that have value for customers, clients, partners, and society at large."
This statement underscores the critical role of a Head of Marketing in creating value for various stakeholders through strategic marketing efforts.
In a similar vein, Seth Godin, a respected marketing guru, has highlighted the role of marketing in telling a story that resonates with consumers. He says,
"Marketing is no longer about the stuff that you make, but about the stories you tell."
This perspective underscores the importance of a Head of Marketing crafting a compelling brand narrative that connects with consumers on an emotional level.
Moreover, experts like Simon Sinek have stressed the role of marketing in connecting with consumers at a deeper level. Sinek's concept of the "Golden Circle" emphasizes the importance of starting with your "why"—the purpose, cause, or belief that inspires an organization. He argues that organizations that communicate from the inside out by first expressing their 'why,' followed by 'how' and 'what,' connect more deeply with consumers. This concept highlights the role of a Head of Marketing in communicating the company's purpose internally and values to consumers, thereby fostering a deeper connection.
Overall, these insights from industry experts affirm the positive impacts a head of marketing can have on your company's brand image, customer relationships, and overall success.
The Cons of Hiring a Head of Marketing
High Costs
Hiring a Head of Marketing can be a significant investment for companies. This role typically commands a high salary, reflecting the level of experience, skills, and responsibilities associated with it. Additionally, the administrative burdens and costs of recruiting, onboarding, and training a new Head of Marketing can add to the overall expense.
For smaller businesses or start-ups with limited resources, these costs can be significant and prohibitive. Even for larger companies, the high costs associated with hiring a Head of Marketing may strain the budget and divert resources from other priorities. Therefore, companies need to consider whether they have the financial resources to support this role and whether the potential benefits outweigh the costs.
Over-centralization of decision-making
Hiring a Head of Marketing can lead to over-centralization of decision-making, particularly in smaller companies. This individual typically has significant influence over the company's marketing strategy and decisions, which can limit the input of other team members. This over-centralization can stifle creativity and innovation as ideas and suggestions from other team members may be overlooked or dismissed. It can also lead to a lack of diversity in thinking, which can limit the company's ability to adapt to changing market conditions and customer needs. Therefore, companies need to ensure the decision-making process remains inclusive and collaborative, even with a Head of Marketing in place.
Potential Mismatch of Skills and Company Culture
There's always a risk of a potential mishire when hiring a Head of Marketing. Despite having the right skills and experience, a Head of Marketing may not fit well with the company's culture, values, and ways of working. This cultural misalignment can create conflict, reduce morale, and hinder the effectiveness of the marketing team. It can also undermine the Head of Marketing's ability to lead the team and drive marketing initiatives effectively. Therefore, when hiring a Head of Marketing, companies need to consider cultural fit alongside skills and experience.
Expert perspectives on the risks and potential pitfalls
Industry experts recognize the potential drawbacks associated with hiring a Head of Marketing. They caution that while a Head of Marketing can bring significant benefits, companies need to be aware of the potential risks and pitfalls.
For example, Peter Drucker, a renowned management consultant, has highlighted the importance of decentralization in decision-making. He argued that:
"Decisions should be made at the lowest possible level and as close to the action as possible."
This perspective suggests that over-centralizing decision-making in the head of marketing can limit the company's effectiveness and adaptability.
Similarly, Patrick Lencioni, a leading expert on organizational health, has emphasized the importance of cultural fit in hiring decisions. He warns that:
"Not all smart people are wise. Not all talented people are good. Skills and intelligence do not compensate for a lack of humility, honesty, and unselfishness."
This cautionary advice underscores the potential risks of hiring a Head of Marketing who does not align with the company's culture and values.
In light of these expert perspectives, companies need to consider the potential drawbacks carefully before deciding to hire a Head of Marketing.
Key Considerations Before Making a Decision
An overview of the factors your company should consider before deciding whether to hire a head of marketing.
Financial Resources
Before deciding to hire a Head of Marketing, companies need to consider their financial resources. As discussed earlier, hiring a Head of Marketing can be a significant financial investment. Companies need to assess whether they have the budget to support this role and whether the potential benefits justify the costs.
It’s important to factor in additional expenses since most heads of marketing will expect to either have a team in place or will want to engage agencies and freelancers to support their marketing plans.
Company Size and Complexity
The size and complexity of your company are another important consideration. Larger, more complex companies may benefit more from having a dedicated Head of Marketing who can oversee the full range of marketing activities. Smaller companies, on the other hand, might find that a full-time Head of Marketing is not necessary and that other options, like using a fractional marketing consultancy, are more cost-effective.
Company Culture and Values
As mentioned earlier, cultural fit is a crucial factor to consider when hiring a head of marketing. Companies need to ensure that any potential candidate aligns with their culture and values. This alignment can enhance the effectiveness of the marketing team and contribute to overall company success.
Your Guiding questions
What are our specific marketing needs and goals?
Companies need to clearly define their marketing needs and goals before deciding whether to hire a Head of Marketing. This clarity can help them assess whether a Head of Marketing is the best solution or whether other options might be more suitable.
Do we have the financial resources to support a head of marketing?
As discussed earlier, financial resources are a key consideration. Companies need to assess their budget and consider whether they can afford to not only hire a Head of Marketing but also have the capital needed to support their overall strategy. If resources are limited, the fractional marketing team which might be more feasible.
Does our company culture and structure support the role of a Head of Marketing?
Companies need to consider whether their company culture and structure support the role of a Head of Marketing. For example, a company with a collaborative, decentralized decision-making culture might find it challenging to integrate a role that centralizes decision-making authority. Similarly, if your company values innovation and creativity, you might find that a Head of Marketing stifles these qualities if not managed properly. Therefore, assessing the alignment between the role of a Head of Marketing and the company's culture and structure is critical.
How quickly do we need to see results from our marketing efforts?
The timeline for achieving results is another key consideration. Hiring a head of marketing can take time, especially when considering the recruitment and onboarding processes. Therefore, if the company needs to see quick results from its marketing efforts, a fractional marketing consultant would get you to market faster.
Are we able to manage and work with external partners effectively?
If the company is considering alternatives to hiring a Head of Marketing, such as using an agency or a freelancer, they need to assess their ability to manage and work with external partners effectively. This involves having clear communication, setting expectations, and ensuring alignment with the company's goals and objectives.
Expert advice on making informed, strategic decisions about marketing leadership
Understand your company's specific needs and goals
Experts advise that companies should start by understanding their specific needs and goals. This understanding can guide their decision about whether to hire a Head of Marketing or consider other alternatives. It can also help them define the skills, experience, and qualities they should look for in a Head of Marketing, should they decide to hire one.
Conduct a cost-benefit analysis
Experts also recommend conducting a cost-benefit analysis. This involves assessing the potential costs of hiring a Head of Marketing, including salary, recruitment, onboarding, and training costs, against the potential benefits, such as increased brand awareness, customer acquisitions, and revenue growth. This analysis can help companies make an informed decision about whether hiring a head of marketing is a worthwhile investment.
“The total, hard and soft, costs to hire a head of marketing can be three to four times the expected salary.”
THE SOCIETY FOR HUMAN RESOURCES MANAGEMENT
Make an informed, strategic decision.
Ultimately, the decision about whether to hire a Head of Marketing should be informed, strategic, and aligned with the company's specific needs, goals, and circumstances. It should be a carefully considered decision that takes into account a range of factors.
Alternatives to Hiring a Head of Marketing
Utilizing a marketing agency
Instead of hiring a full-time Head of Marketing, companies might consider utilizing the services of a marketing agency. Marketing agencies have a team of professionals with diverse skills and expertise who can provide a comprehensive range of marketing services. This option can offer flexibility, allowing companies to scale up or down their marketing efforts as needed.
It can also provide access to a wider range of skills and expertise than a single Head of Marketing might possess. However, working with an agency can be expensive, and there may be less control over the marketing strategy and execution. Also, an agency might not have the same depth of understanding of the company's business as an in-house Head of Marketing.
Contracting a Freelance Marketing Consultant
Contracting a freelance marketing consultant is another alternative. Freelancers can offer specialized skills and experience and can be hired on a project-by-project basis, providing flexibility. They can bring fresh perspectives and innovative ideas, having worked with different companies and industries. However, like with an agency, there may be less control over the marketing strategy and execution. Furthermore, a freelancer may not be as invested in the company's success as a full-time Head of Marketing would be.
Implement a fractional marketing team
Fractional marketing teams are gaining ground as the perfect balance between having an in-house head of marketing and an external agency. The right fractional marketing consultants will embed one or more of their experts within your daily operations. This approach gives you control over the marketing strategy while allowing your go-to-market approach to own the voice of your company. In addition, a fractional team of experts means your company benefits from having channel-specific experts at a variable cost without the high fixed costs of an internal hire and the administrative burdens of recruiting, hiring, and onboarding.
Final Thoughts
This article has explored the role of a Head of Marketing, examining the potential benefits and drawbacks of hiring for this position. We delved into the responsibilities of this role, along with the skills and competencies typically required. Furthermore, we highlighted the significant impact a Head of Marketing can have on your company's direction and overall success. We also discussed the possible disadvantages of hiring a Head of Marketing, such as high costs, over-centralization of decision-making, and potential cultural mismatches.
Finally, we explored alternative options for companies to consider, including utilizing a marketing agency, contracting a freelance marketing consultant, working with a fractional marketing team, and developing internal talent.
Final thoughts on the importance of aligning business needs with the decision to hire a head of marketing
The decision to hire a Head of Marketing is not one to be taken lightly. It requires careful consideration and a strategic approach. It's crucial for companies to align their specific business needs and goals with this decision. While a head of marketing can bring numerous benefits, these need to be weighed against the potential drawbacks and costs. It's also vital to consider other alternatives and choose the option that best fits the company's needs, resources, and circumstances. Ultimately, the goal should be to enhance the company's marketing efforts and drive its success.
In conclusion, company leaders should carefully consider their unique situation before deciding to hire a Head of Marketing. It's crucial to assess your company's specific needs, goals, resources, and culture.
At System Two, we've been on both sides, from being the sole head of marketing at high-growth companies to being founders desperately searching for marketing talent. Our fractionalized model was born from that need and your company will benefit from it. A team of channel-specific experts at a variable cost provides you with the marketing expertise you need at a cost that fits your budget.
Schedule a call with our marketing director to see if this could be a potential solution for your company’s growth goals.
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