In the hotel industry, where every detail matters and personalisation is key, I find myself reflecting on a valuable lesson learned: the dangerous trap of the average. Inspired by the teachings of
Todd Rose in his book "The End of Average", which I recommend reading, I see striking parallels in the management of
marketing budgets.
The Anti-Average Hero: A Personalised Approach to Success
The story of pioneer Gilbert Daniels, who challenged the average by designing customised aircraft cockpits, vividly illustrates the power of individualisation. In my experience, I have embraced this approach in
hotel management, recognising that the key to success lies in understanding and addressing differences, rather than conforming to averages.
The Trap of Average Numbers in Marketing Budgets
When it comes to marketing budgets, falling into the trap of average figures is a common risk. Well-intentioned surveys provide us with average figures, such as 11% of revenue allocated to marketing in 2023, according to The CMO Survey. However, my experience has taught me to question these averages, as they conceal fundamental realities.
The Differentiating Factor: A CMO's Scope of Control
What is the right size for a hotel
marketing budget? The answer, as I discovered, depends on the Chief Marketing Officer's scope of control. The average overlooks fundamental sector differences. For example, B2C marketing budgets tend to be higher than B2B budgets, and product brands have higher budgets than service brands.
Defining Control: A Revealing Analysis
In my exploration, I discovered that budget size is related not only to the type of company, but also to the CMO's scope of control. Companies where marketing is limited to communications have significantly lower budgets, at approximately 5.6%. This figure falls even further in B2B and B2C companies focused solely on communications.
The Power of Strategy: Increasing the Budget with Responsibility
The real difference lies in adding at least one strategic activity to the CMO's portfolio. Here, areas such as new products, innovation, market selection, pricing and growth raise the average budget to a healthy 13.4%. Surprisingly, strategy budgets are higher for service brands than for product brands.
Beyond Money: Meaningful Responsibilities
It is crucial for CMOs to understand that larger budgets come with additional responsibilities. The distribution of strategic and operational responsibilities is a key consideration in organisational design. Monty Python's wisdom resonates: "You're all individuals. You've all got to work it out for yourselves!"
In a world where every guest is unique,
hotel management must embrace uniqueness in its marketing budgets as well. The average is not our standard; excellence is.
