BrainTrust Query: Is the power of the Merchant taking a front seat to Marketing?
By Laura Davis-Taylor, Founder and Principal, Retail Media Consulting
Last week, DM News reported the surprising development that the interim head of Home Depot Direct, Steve Skinner, will be reporting in to the merchandising division rather than directly to the CEO, which had been the case with Harvey Seegers, who resigned suddenly as President of the division earlier this month. The article positioned the news as signaling a potential shift in power from marketers to merchandisers throughout the retail industry.
According to the piece, multi-channel retailing now requires a combination of product knowledge, merchandising ability, online know-how and a strong passion for the brand to "capture the customer heart." According to Lois Boyle, president of direct marketing agency J. Schmid & Assoc., it's more likely this combination of skill sets would be found in merchants. She also notes that as more retailers understand the importance of having their brand message flow seamlessly across channels, it's increasingly the merchants that management is relying on.
Don Libey, president of consultancy Libey Inc., adds that merchandising's star may also be rising due to the critical need for new product integration, their ability to affect ROI and an opinion that marketing is now a mature field. He shares that twice as many of his clients are currently looking for chief merchandising officers than are seeking chief marketing officers.
Home Depot may be on to something big by integrating merchandising with direct marketing to better execute across all channels. But is it a bit presumptuous to state that marketing could be losing its stronghold in the retail landscape?
Discussion Questions: Does the Home Depot news point to a potential shift in power away from marketing teams? Do you agree that marketing is becoming a mature field in the retail industry?
For many years, merchants have been laser focused on selecting the right product for their shelves and ensuring that the presentation and sales pitch hummed with the shopper.
Marketing, with its focus on brand positioning across channels, was centered on creating powerful promises and perceptions.
Direct marketing, however, is a different ballgame. It's about strategy, execution, measurement and a desire to "optimize" results for maximum impact. And like merchants, DM experts live and breathe results.
In my opinion, every department has value. Although marketing departments possess many results-oriented skills, the days of fluffy branding absent of accountability are dwindling.
The question I have is why we can't find a better way to integrate everyone's skills around the customer -- both inside the retail organization and outside, with their agency support systems. We're taking this talk...but, unfortunately, not many are walking it. Maybe Home Depot's new management team will be first. We'll be watching!