Traditionally, marketing and finance have operated in isolation, often regarded as separate entities and even labelled as frenemies. However, recent trends have paved the way for a collaborative partnership between the Chief Marketing Officer (CMO) and the Chief Financial Officer (CFO).
This dynamic alliance has the potential to reshape brands and businesses in today's complex world. A CNBC-TV18 special show, Media Dialogues, explores the transformative power of the CFO-CMO partnership and its real-world impact on organisations.
Shubhranshu Singh, Vice President and CMO of Tata Motors Commercial Vehicle Business Unit, and CFO GV Ramanan, Vice President and CFO of Tata Motors Commercial Vehicle Business Unit shared their insights about this alliance.
Ramanan acknowledged that marketing and finance were traditionally operated in silos, unaware of their common ground. Finance often viewed marketing as a budget guzzler, while marketing believed finance did not grasp the essence of branding. However, over time, both functions have recognised the need for collaboration. They understand that they are enablers, essential to driving business growth and profitability.
“They never thought there is anything common that they can work on. Finance always thought that marketing is a budget guzzler and marketing always thought that finance never understood what brand means. But, over the years, what is happening is both these functions are able to find a common ground. They both understand that they are both enablers, they have to enable to business growth, profitable growth,” he said.
Singh emphasised that the CFO-CMO partnership is essential, despite being stereotyped as a clash between logic and magic, creativity and number crunching. By combining logical creativity and creative logic, they find a meeting point where their expertise converges. This hybridisation of ideas leads to innovative solutions that benefit the organisation as a whole.
“The partnership is an essential partnership. it is stereotyped as the battle between logic and magic, between creativity and number crunching but my take is if you hybridise it, if there is logical creativity and creative logic then you come to a meeting point,” said Singh.
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The collaboration between marketing and finance is a game-changing force that fuels success and growth. By aligning their strategies and objectives, CMOs and CFOs can steer organisations towards sustainable growth.
The partnership provides a unique opportunity to leverage financial insights and market knowledge, enabling brands to make informed decisions and develop effective marketing campaigns. Finance brings data-driven analysis to the table, while marketing adds the human touch and the ability to connect emotionally with consumers.
The CMO-CFO alliance goes beyond individual departments and has a profound impact on the overall success of organisations. By working together, marketing and finance can optimise budget allocations, ensuring that resources are allocated to the most impactful marketing initiatives.
This collaboration enables greater transparency and accountability, leading to improved financial performance and return on investment. It also fosters innovation by facilitating the exploration of new business models, technologies, and market trends.
For more details, watch the accompanying video
(Edited by : Keshav Singh Chundawat)
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