Why don’t CEO’s consult their CMOs more frequently on innovations?

The researchers say an example of how this can be a mistake is when Apple released its Vision Pro glasses in 2023 to an underwhelming consumer response. 

While the technology was impressive, Apple CEO Tim Cook overlooked crucial customer insights – beyond the high price – including people’s reluctance to wear bulky facial devices for long periods. 

What became a US$1.4-billion misstep for Apple is a lesson for every business. For CEOs, the stakes are high: invest in the wrong project and millions can be lost, but miss the right bet and competitors surge ahead. 

The Macquarie Business School study involved more than 500 CEOs and business owners, and reveals who leaders turn to when the path ahead is unclear. The findings are published in the peer-reviewed academic journal, Research Policy. 

“Ample evidence shows having a CMO in the senior leadership team positively affects a firm’s performance,” says Associate Professor Nidthida Lin. “We need to help CEOs draw on their CMOs’ deep customer knowledge to also drive radical innovation.” 

Why the CTO voice dominates 

When CEOs received conflicting advice – such as a CTO recommending investment in a new technology, while the CMO warned customers might not buy in – most backed the tech expert. 

That bias makes sense in high-tech industries, but it highlights a critical blind spot: market risk is often underestimated. 

Professor Ralf Wilden says market acceptance is vital to any launch, noting that “radical innovations are as much about technological breakthrough as market acceptance”. 

The forgotten voice of the customer 

Perhaps surprisingly, the study found little evidence CEOs listen to their CMOs when customer demand is unclear. Many were confident in judging market conditions themselves. 

That mindset is risky when shifting consumer preferences and global competition can make or break a product. Ignoring marketing insight risks repeating Apple’s Vision Pro mistake – which is creating technically brilliant products that nobody wants. 

Researcher Saad Khan believes larger firms could learn from the agility of start-ups. 

“Maybe it’s time for bigger organisations to learn from start-ups,” Khan says. “CEOs must keep financial metrics top of mind, but they also need to weigh market value, such as potential demand and customer needs.” 

You can find out more about the research here.