Marketing Fit-For-Purpose

Over the past decades marketing has evolved at an unprecedented pace. In its early days, marketing steered organizations to new levels of growth by leveraging the traditional 4 P’s: product, place, promotion, price. The scope of marketing was relatively comprehensive. That radically changed due to increasing discretionary spending power, resulting in an increase of consumer demand which in return drove production expansion as well as product innovation and branding to drive differentiation. Distribution channels followed that expansion in width and breadth, facilitating the abundance of choice and options to buyers. When Online, Mobile and Social Media really kicked in, new levels of abundance in channels again disrupted the marketing function. Today, marketing oversees more distribution-, sales-, and experience channels -as well as data and comms- than ever before. This comes with a big challenge on how to align it with an efficient and effective operating model.

The lines between marketing, customer experience (CX), sales, and service within organizations continue to blur, while the ecosystem of supporting marketing agencies is becoming increasingly complex and difficult to manage. Despite the vast ecosystem of marketing agencies, CMO’s often perceive these as too slow, too expensive, or too rigid, causing many of the agencies to be dropped, SLAs to be tightened and KPIs to be set even more aggressively, yet increasingly missed. In response, organizations are taking more work in-house. This shift leads to growing in-house teams and corresponding costs, much to the frustration of CEOs and CFOs. The cycle repeats: restructuring, fresh faces, new methodologies, without the envisioned results. 

To break this cycle, organizations must shift their focus inward, strengthening and optimizing their own marketing operating model based on a strategic Marketing Value Proposition that delivers customer and enterprise value. Instead of constant restructuring, it’s time to build a marketing model that is fit-for-purpose, one that aligns capabilities, spend, processes, and technology with the realities of 2025 and the years beyond. The key? Tying the promise towards the internal organization to clear, measurable CFO-like business KPIs. KPIs that the board will then gladly sign off on.

The marketing department’s value proposition is the foundation of an effective Marketing Operating Model. While this proposition clarifies the role or intent of marketing, it also plays a pivotal role in shaping the department's internal positioning within the organization. Too often, marketing departments position themselves as a glorified marketing communications team. However, marketing entails so much more; it encompasses the strategic and operational execution of the original 4 P’s and the additional P’s of people and process. Its core objective is to drive value creation, by enhancing customer experiences or improving financial performance. By aligning marketing strategies with financial objectives and demonstrating tangible value through key performance indicators (KPIs), the marketing department’s value proposition not only defines the scope of services it offers to the business but also underscores the benefits these services bring to the organization.

The choices made in the design of the Marketing Value Proposition help shape a fit-for-purpose Marketing Operation Model. These choices influence key elements such as organizational structure, internal and external resource allocation, collaboration, decision-making, leadership support, cultural norms, and business alignment. When positioned strategically within the organization, the marketing department steers the development of a high-impact operating model that effectively links marketing strategies to business objectives and strikes a balance between leveraging in-house marketing capabilities and tapping into external resources, balancing both marketing performance and cost-efficiency. 

To transform your marketing organization, KPMG leverages its globally proven Powered Marketing Transformation approach. This methodology provides ready-to-use solutions based on leading practice from hundreds of transformations led by KPMG, enabling organizations to design and implement an optimized marketing operating model, quickly and efficiently with limited resources. The Powered Transformation approach shapes the marketing target operating model using six design layers (see visual). 

1. Functional Processes
   Defines how marketing teams execute tasks and activities, from process and value stream overviews to process flows and work instructions. Leading organizations establish standardized and clearly defined processes to drive efficiency and effectiveness. They define the maturity and effectiveness of the Front Office function, assessing its service delivery model and technological capabilities. Areas where marketing maturity and effectiveness are lacking are identified, gaps are addressed and actionable improvement plans backed by leadership are developed.
   
   
2. People
   Outlines the skills, competencies, culture, and performance expectations of marketing talent. High-performing companies align their teams with customer needs and position marketing as a strategic driver of business and customer value. They attract, train, and retain talent through a structured management strategy, deriving from a distinctive Marketing Value Proposition, fostering a seamlessly connected ecosystem of internal and external partners.
   
   
3. Service Delivery Model
   Defines which marketing services are delivered by the marketing department and which services are not, including in-house vs. outsourced capabilities. A fit-for-purpose model ensures the right balance between internal execution and external expertise, maximizing efficiency and agility.
   
   
4. Technology
   Describes the tools and platforms required to deliver the defined marketing services, products, and insights. As businesses push for personalized omnichannel experiences, they need a scalable, flexible, AI-driven and integrated MarTech stack to support customer-centric strategies. Leading CMOs take an end-to-end approach, continuously optimizing their tech landscape to drive measurable value.
   
   
5. Performance Insights & Data
   Defines the role of data and analytics in driving decisions and measuring success. Market-leading Marketing Operations place customer data at the core of their strategy, ensuring it is centrally managed, real-time, and actionable and drives the use of AI for their Marketing efforts. Traditional KPIs are enhanced with new performance metrics, including customer trust, partnership effectiveness, and marketing innovation agility, ensuring a holistic view of marketing ROI.
   
   
6. Governance
   Provides the structures, policies, and controls needed to balance risk, enable fast decision-making, and ensure compliance. The most effective marketing organizations establish clear governance frameworks to oversee budget allocation, ROI, and operational performance, continuously tracking, measuring, and optimizing results.
   

A fit-for-purpose Marketing Operating Model isn’t just about structure, it’s about aligning marketing’s role with the company’s strategic ambitions based on a clear value proposition that not only defines the external role of marketing but also strengthens its internal positioning within the organization. This, in turn, informs services, capabilities, and processes needed to create an effective and efficient marketing team. Organizations that embrace this transformation will build stronger, more agile, and more impactful marketing functions.

2025 is the year to make bold moves. The time for incremental tweaks is over, true transformation requires a structured, future-ready approach. Want to explore what this could mean for your organization? Get in touch with Edgar Molenaars to schedule an inspiration session on Marketing Operating Model transformation. Let’s shape the future of marketing, together!