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Navigate The Risks & Opportunities of Economic Turbulence with The Chief Marketing Officer 3Q 2022

By Michael Giblin | August 29, 2022 | 0 Comments

Marketing Leadership and Strategy

The Chief Marketing Officer is Gartner’s quarterly journal that highlights the latest insights on the most critical challenges facing CMOs. This issue covers how CMOs should respond to the rapidly shifting landscape by identifying and preparing for risks while pinpointing areas of opportunity. Below is the latest issue’s Letter from the Editor:

 

Companies and CMOs once again are being confronted with an increasingly uncertain future while facing what Gartner has begun to call a triple squeeze: persistent high inflation, scarce expensive talent and global supply challenges. These pressures are forcing a number of actions by many companies, and our own data suggests consumerare beginning to react. For example, 65% of consumers plan to cut their purchasing in at least one category.1 As companies begin planning for the future and customer spending habits continue to shift along with the global economic landscape, you must evaluate not only new risks, but also where to realign resources to capitalize on the opportunities it presents.

This issue of The Chief Marketing Officer starts by studying a stark shift in consumer sentiment toward companies, a rapidly developing risk. Over 40% of consumers now believe that companies are raising prices more than necessary to increase profits,1 up from 30% in late 2021.2 What’s worse, some consumers believe that companies are being insultingly insensitive, openly celebrating record profits while consumers struggle to foot the bill.3 Understanding this sentiment can help you guide critical decisions and customer communication.

Following the thread of economic turbulence, we then investigate businesses’ responses to internal price pressures and future uncertainty. CMOs are often the earliest executives aware of — and affected by market and budget pressures, yet many were reluctant to shift from their plans for 2022 even as evidence indicating a less favorable business environment in the near future mounted. We outline the steps you should take now to prepare for the upcoming economic uncertainty likely to impact go-forward planning.

Preparing for uncertainty likely sounds familiar, but it can be helpful to hear directly how other marketing leaders are reacting in this current climate. In our panel interview, we hear from CMOs representing a variety of sectors on how they’re strategically responding to potential economic headwinds and budget constraints. Our panel also outlines how they’re leveraging lessons learned from 2020 to address the current situation, focusing on lessons learned as well as key strategic distinctions.

Times of rapid change and economic uncertainty are difficult to prepare for, but our research consistently finds that the best companies actually begin to separate from peers in these exact periods. The key is to conceive of, and seize, new opportunities. To that end, we’ve included our guidance for building a robust marketing-led innovation strategy to future-proof strategic planning as well as recent B2B research, which identified the four customer profiles to boost demand generation.

Finally, we turn our focus to the topic of trust, a persistent issue that’s only been exacerbated for both customers and employees in the wake of many product and service disruptions, operational changes as well as policy and pricing shifts. We lay out the research-backed steps you must take to lead the C-suite in fostering both external and internal trust by increasing audience dialogue and encouraging decision-making visibility.

View the full issue of The Chief Marketing Officer 3Q here.

Evidence

Gartner Consumer Community (9-15 June 2022, n = 252)
Gartner Consumer Community (16-23 November 2021, n = 327)
3 Gartner Consumer Community (1-7 April 2022, n = 252)

The Gartner Blog Network provides an opportunity for Gartner analysts to test ideas and move research forward. Because the content posted by Gartner analysts on this site does not undergo our standard editorial review, all comments or opinions expressed hereunder are those of the individual contributors and do not represent the views of Gartner, Inc. or its management.

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