I am not sure if we have the ability to change the picklist or if it is dependent on the data in SFDC. We recently moved State/Province from 2 letter abbreviation to full name. It is still showing as the 2 letter abbreviation in our filter and would would prefer it be changed to the long form. I am building out batches to normalize the data but ultimately we would like to values to show what is now true.
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In addition to what Josh said, to update your forms, you need to first delete the field from each form and then re-add the field back in. The new values will now reflect what's in SFDC (as long as the fields are mapped to one another).
Alternatively, you can leave the field in place and manually update the values. But that introduces the risk of errors. Best to grab the exact field values from CRM.
We updated all forms already, I suppose we can run the batches in Marketo to refresh all the data. We do not have access to SFDC and have no permissions to run anything through SFDC, we would need to put the request through the admin. If we upload a list it will run with errors, I believe that as long as SFDC is using the older values we would not get anywhere until they refresh the data on their end as well.