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The Role of a Chief Executive Officer

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The Role of a Chief Executive Officer The Role of a Chief Executive Officer An extended look into the role & responsibilities of a CRO Provided by: Contents 1 Chief Revenue Officer Role within the Corporate Hierarchy 1 1.1 Chief revenue officer ......................................... 1 1.1.1 Roles and functions ...................................... 1 1.1.2 The CRO profile ....................................... 1 1.1.3 References .......................................... 2 1.2 Corporate title ............................................. 2 1.2.1 Variations ........................................... 2 1.2.2 Corporate titles ........................................ 4 1.2.3 See also ............................................ 8 1.2.4 References .......................................... 9 1.2.5 External links ......................................... 9 1.3 Senior management .......................................... 9 1.3.1 Positions ........................................... 10 1.3.2 See also ............................................ 11 1.3.3 References .......................................... 11 2 Areas of Responsibility 12 2.1 Revenue ................................................ 12 2.1.1 Business revenue ....................................... 12 2.1.2 Government revenue ..................................... 13 2.1.3 Association non-dues revenue ................................. 13 2.1.4 See also ............................................ 13 2.1.5 References .......................................... 13 2.2 Revenue management ......................................... 13 2.2.1 Overview ........................................... 13 2.2.2 History ............................................ 14 2.2.3 The Revenue Management Levers .............................. 15 2.2.4 The Revenue Management Process .............................. 16 2.2.5 Revenue Management in an Organization ........................... 17 2.2.6 Developing Industries ..................................... 18 2.2.7 See also ............................................ 18 2.2.8 References .......................................... 18 2.2.9 External links ......................................... 19 i ii CONTENTS 2.3 Marketing strategy ........................................... 19 2.3.1 Developing a marketing strategy ............................... 19 2.3.2 Diversity of Strategies ..................................... 20 2.3.3 Early marketing strategy concepts .............................. 20 2.3.4 Corporate strategy concepts .................................. 21 2.3.5 Porter’s “generic strategies” .................................. 21 2.3.6 Innovation strategies ..................................... 21 2.3.7 Growth strategies ....................................... 21 2.3.8 Raymond Miles’ Strategy Categories ............................. 22 2.3.9 Strategic models ........................................ 22 2.3.10 Real-life marketing ...................................... 22 2.3.11 See also ............................................ 22 2.3.12 References .......................................... 22 2.3.13 Further reading ........................................ 23 2.4 Sales .................................................. 23 2.4.1 Sales methods ........................................ 23 2.4.2 Sales agents .......................................... 24 2.4.3 The relationships between sales and marketing ........................ 25 2.4.4 Sales and marketing alignment and integration ........................ 26 2.4.5 See also ............................................ 26 2.4.6 References .......................................... 26 2.5 Marketing ............................................... 26 2.5.1 History ............................................ 27 2.5.2 Marketing mix ........................................ 27 2.5.3 Environmental Forces ..................................... 27 2.5.4 Customer orientation ..................................... 28 2.5.5 Marketing research ...................................... 29 2.5.6 Types of marketing ...................................... 31 2.5.7 Marketing planning ...................................... 32 2.5.8 Buying behavior ........................................ 33 2.5.9 Marketing roles ........................................ 33 2.5.10 Use of technologies ...................................... 33 2.5.11 Services marketing ...................................... 34 2.5.12 Right-time marketing ..................................... 34 2.5.13 Guerrilla marketing ...................................... 34 2.5.14 Digital Marketing ....................................... 34 2.5.15 See also ............................................ 34 2.5.16 References .......................................... 35 2.5.17 Bibliography ......................................... 36 2.5.18 External links ......................................... 36 2.6 Marketing mix ............................................. 36 CONTENTS iii 2.6.1 History ............................................ 36 2.6.2 McCarthy’s four Ps ...................................... 36 2.6.3 Lauterborn’s four Cs ..................................... 36 2.6.4 Four Cs: in the 7Cs Compass Model ............................. 36 2.6.5 P’s changing with digital age ................................. 37 2.6.6 See also ............................................ 37 2.6.7 References .......................................... 37 2.6.8 External links ......................................... 38 2.7 Market segmentation ......................................... 38 2.7.1 Types of market segmentation ................................ 38 2.7.2 Using segmentation in customer retention .......................... 39 2.7.3 Price discrimination ...................................... 40 2.7.4 Algorithms and approaches .................................. 40 2.7.5 See also ............................................ 40 2.7.6 References .......................................... 40 2.8 Advertising .............................................. 41 2.8.1 History ............................................ 41 2.8.2 Advertising theory ...................................... 45 2.8.3 Types of advertising ...................................... 46 2.8.4 Purpose of advertising .................................... 49 2.8.5 Sales promotions ....................................... 49 2.8.6 Media and advertising approaches .............................. 49 2.8.7 Criticisms ........................................... 52 2.8.8 Regulation ........................................... 52 2.8.9 Advertising research ..................................... 53 2.8.10 Semiotics ........................................... 53 2.8.11 Gender effects in the processing of advertising ........................ 53 2.8.12 See also ............................................ 54 2.8.13 References .......................................... 54 2.8.14 Further reading ........................................ 57 2.8.15 External links ......................................... 58 2.9 Customer support ........................................... 59 2.9.1 Automation .......................................... 59 2.9.2 Communication Channels ................................... 59 2.9.3 See also ............................................ 60 2.9.4 References .......................................... 60 2.10 Pricing ................................................. 60 2.10.1 Objectives of pricing ..................................... 61 2.10.2 Terminology ......................................... 61 2.10.3 Nine laws of price sensitivity and consumer psychology ................... 62 2.10.4 Approaches .......................................... 63 iv CONTENTS 2.10.5 Pricing tactics ......................................... 63 2.10.6 Pricing mistakes ....................................... 63 2.10.7 Methods ............................................ 63 2.10.8 See also ............................................ 64 2.10.9 References .......................................... 64 2.10.10 External links and further reading ............................... 64 3 Text and image sources, contributors, and licenses 65 3.1 Text .................................................. 65 3.2 Images ................................................. 71 3.3 Content license ............................................ 73 Provided by: Chapter 1 Chief Revenue Officer Role within the Corporate Hierarchy 1.1 Chief revenue officer segment with a focus on generating the most revenue possible A chief revenue officer (CRO) is a corporate officer • Advertising and promotion effectiveness: Expen- (executive) responsible for all revenue generation pro- ditures on marketing and advertising activities must cesses in an organization. In this role, a CRO is account- generate revenue and be analyzed and refined to iso- able for driving better integration and alignment between late the activities generate the greatest ROI all revenue-related functions, including marketing, sales, customer support, pricing, and revenue management.[1] • Distribution effectiveness: All possible channels must be evaluated to identify the channels that pro- vide the most effective and profitable means of dis- 1.1.1 Roles and functions tribution In short, a CRO is responsible for all activities that gener- • Delivery: The quality of revenue generation activ- ate revenue. In most companies, the CRO is tasked with ities should positively affect the ability of the com- primary or shared responsibility for operations, sales, pany to maximize
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