From Promotional Function to Institutional Capability
Author: IMB Editorial Team
IMB Journal – International Marketing Board
Volume 1 | Issue 1
Abstract
Strategic marketing is frequently discussed, yet often misunderstood. In many organizations, it remains confined to communication activities, campaign execution, or performance reporting. This limitation becomes increasingly problematic under conditions of economic volatility, accelerated technological change, and declining institutional trust.
This article takes the position that marketing, when practiced strategically, functions as an institutional capability rather than a promotional activity. It examines how judgment, data interpretation, and credibility management have become central to marketing’s role in organizational resilience and long-term value creation—particularly within complex and international market environments.
1. Introduction
Marketing is often described as strategic. In practice, it rarely is.
Despite larger budgets, advanced analytics, and sophisticated digital tools, many organizations still treat marketing as an execution layer rather than a decision-making function. This approach may generate short-term visibility, but it also creates strategic exposure—especially when markets become unstable and trust becomes fragile.
What has changed is not the importance of marketing, but the cost of misunderstanding its role. In conditions of uncertainty, weak positioning, inconsistent narratives, or poorly interpreted data can escalate quickly into reputational and institutional risk.
The purpose of this article is not to redefine marketing terminology, but to clarify marketing’s strategic responsibility within modern organizations.
2. The Limits of Tactical Marketing
Tactical marketing focuses on delivery. It optimizes channels, refines messages, and measures performance. In isolation, none of this is inherently flawed.
The limitation emerges when tactical efficiency substitutes for strategic direction. Many organizations mistake activity for progress. Campaigns succeed, yet overall positioning weakens. Demand grows in markets that no longer align with long-term priorities.
When marketing remains tactical, it reacts to the market.
When marketing becomes strategic, it helps determine where—and whether—the organization should compete.
3. Data Without Judgment
The problem is rarely a lack of data; it is the absence of strategic judgment.
Organizations collect vast amounts of marketing data, yet struggle to translate this information into meaningful decisions. Dashboards multiply, reports circulate, and insights remain fragmented. Too often, marketing analytics explain performance after outcomes are already locked in.
Strategic marketing treats data as an input to decision-making, not as a retrospective justification. This requires integration with executive processes, tolerance for ambiguity, and the ability to interpret signals rather than simply report metrics.
Data becomes valuable only when it informs direction, not when it confirms activity.
4. Trust Is Not a Communication Output
Trust is frequently positioned as a branding objective. In reality, it is an institutional condition.
Marketing influences trust not through messaging alone, but through consistency, restraint, and alignment. Visibility without credibility is not a competitive advantage. In fact, it often accelerates reputational risk.
Trust is shaped by:
- Coherence between strategy and narrative
- Transparency in the use of data and artificial intelligence
- Alignment between stated values and operational behavior
Organizations that promise more than they can sustain may gain attention, but they erode legitimacy.
5. Marketing in International and Institutional Contexts
In international environments, marketing extends beyond competition and enters the domain of institutional signaling.
Here, marketing contributes to how organizations, sectors, and markets are perceived in terms of reliability, competence, and intent. Tactical success may attract interest, but long-term credibility depends on governance awareness, cultural intelligence, and strategic discipline.
At this level, marketing decisions influence partnerships, investment confidence, and regulatory relationships. The margin for inconsistency narrows considerably.
6. The Changing Role of Marketing Leadership
As marketing moves closer to the strategic core, the expectations placed on marketing leadership shift accordingly.
The strategic marketer is no longer defined by tool mastery alone. Their value lies in the ability to interpret incomplete information, exercise judgment under uncertainty, and translate market signals into strategic options for leadership.
Marketing leadership increasingly functions as an advisory role—one that contributes to direction, not merely execution.
7. Conclusion
Marketing’s evolution reflects a broader shift in how organizations operate under uncertainty. Promotional effectiveness alone is no longer sufficient.
Credibility, trust, and strategic coherence have become decisive assets. When positioned as an institutional capability, marketing helps organizations navigate volatility, manage risk, and sustain long-term value.
Organizations that continue to treat marketing as a downstream function may still generate demand. They will struggle to maintain legitimacy.
Those that elevate marketing to the strategic level will be better equipped to endure.
Journal Note
IMB Journal is the official analytical publication of the International Marketing Board, dedicated to advancing research-informed perspectives on strategic marketing, international business, data-driven decision-making, and institutional credibility.