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The Duke University’s CMO Survey 2013 results highlighted again the need for marketing and CMO’s to carry more responsponsibility and integrate better with the corporate management and operations. ...

The Duke University’s CMO Survey 2013 results highlighted again the need for marketing and CMO’s to carry more responsponsibility and integrate better with the corporate management and operations. It seems to me that marketing is facing the same evolution that car engines have gone thru since 1960′s. In the 60′s car engines were large, heavy, powerfull and impressive but their gas consumption was just terrible and their efficiency unacceptable in current evaluation. Currently engines are much smaller but deliver a lot of power with very low gas consumption. The big and impressive modern engines have amazing power with acceptable gas consumption. The engine game is all about efficiency, as it should be.

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The cmo survey highlights_and_insights_feb-2013-final2 Presentation Transcript

  • 1. Highlights and InsightsFebruary 2013© Christine Moormanwww.cmosurvey.org
  • 2. About The CMO SurveyMission- The CMO Survey collects and disseminates the opinions of top marketers in order to predictthe future of markets, track marketing excellence, and improve the value of marketing infirms and society.Survey Operation- Founded in August 2008, The CMO Survey is administered twice a year via an Internetsurvey. Questions repeat to observe trends. Special topics are introduced for some surveys.- The February 2013 survey was the ninth administration of The CMO Survey.Sponsoring OrganizationsFounder and Director- Professor Christine Moorman, T. Austin Finch, Sr. Professor of Business Administration,Fuqua School of Business, Duke University2© Christine Moorman
  • 3. Survey MethodologySurvey Sample- 4963 top U.S. marketers at Fortune 1000, Forbes Top 200, and Top Marketers who areAMA Members or Duke University Alumni and Friends- 468 responded for a 9.4% response rateSurvey Administration- Email contact with three follow-up reminders- Survey in field from January 22 - February 8, 2013- 95% of respondents VP-level or aboveResults Interpretation- M = sample mean; SD = sample standard deviation- B2B = Business-to-Business firms; B2C = Business-to-Consumer firms3© Christine Moorman
  • 4. Topic 1: Marketplace Dynamics 5-10Topic 2: Firm Growth Strategies 11-17Topic 3: Marketing Spending 18-28Topic 4: Financial and Marketing Performance 29-34Topic 5: Marketing and Social Media 35-39Topic 6: Marketing Jobs 40-42Topic 7: Marketing Organization 43-46Topic 8: Marketing Leadership 47-51Topic 9: Marketing Analytics 52-57The CMO Survey Award for Marketing Excellence 58-59Preview of Next Survey 60Overview of Results4© Christine Moorman
  • 5. 5Topic 1:Marketplace Dynamics5
  • 6. Marketer optimism for U.S. economy showscautious rise; business sectors varyFigure 1.1. How optimistic are you about the overall U.S.economy on a 0-100 scale with 0 being the least optimisticand 100 the most optimistic?6© Christine MoormanFigure 1.2. Optimism for U.S. economy by sectorAnalyticsLeadershipOrganizationJobsSocial MediaPerformanceSpendingGrowthMarketplaceFebruary2013August2012ChangeB2B Product 55.4% 61.8% +6.4%B2B Service 62.3% 62.5% +0.2%B2C Product 60.8% 62.2% +1.4%B2C Service 51.9% 60.3% +8.4%52.263.458.462.7405060708090100August2011February2012August2012February2013Marketer Optimism about Overall Economy
  • 7. Economic uncertainty is resolved:Optimists almost double from 29% to 56.4% of sample7© Christine MoormanFigure 1.3. Are you more or less optimistic about the overall U.S. economy compared to last quarter?AnalyticsLeadershipOrganizationJobsSocial MediaPerformanceSpendingGrowthMarketplace35.8%17.5%35.2%26.1%29.0%56.4%0%10%20%30%40%50%60%August 2012 February 2013Percentage ofRespondentsLess Optimistic No Change More Optimistic
  • 8. Marketer optimism for own companiesexceeds expectations for overall economy© Christine Moorman 8Figure 1.4. How optimistic are you on a 0-100 scale with 0 being the least optimistic and 100 the most optimistic?AnalyticsLeadershipOrganizationJobsSocial MediaPerformanceSpendingGrowthMarketplace52.263.458.462.767.872.869.672.4405060708090100August 2011 February 2012 August 2012 February 2013Optimism for Overall Economy Optimism for Own Company
  • 9. Customer metrics forecast positive:Marketers expect increases in purchase volume, purchase of relatedofferings, customer acquisition, and price paid9© Christine MoormanFigure 1.5. Forecasted customer outcomes in next 12 monthsAnalyticsLeadershipOrganizationJobsSocial MediaPerformanceSpendingGrowthMarketplace*Increased ability to acquire new customers was added Feb-2013.56.264.056.159.738.737.430.432.832.562.152.959.151.652.845.4 43.841.449.843.0 42.367.720304050607080August 2011 February 2012 August 2012 February 2013% ofRespondentsIncreased customer purchase volumeIncreased customer price per unitCustomer will buy more related products andservices from my firmIncreased ability to retain current customersIncreased entry of new customers into themarketIncreased ability to acquire new customers
  • 10. Customer priorities expected to shift awayfrom low-price focus© Christine MoormanFigure 1.6. Customers’ top priority in next 12 months10AnalyticsLeadershipOrganizationJobsSocial MediaPerformanceSpendingGrowthMarketplace% ofRespondents23.2%18.2%24.7%25.8%9.4%10.5%18.8%18.7%17.3%18.9%6.8%8.4%0%5%10%15%20%25%30%August 2012 February 2013Low PriceQualityInnovationServiceTrustBrand
  • 11. 11Topic 2:Firm Growth Strategies11
  • 12. Growth strategies to take on more risknext year: Diversification up 28%Table 2.1. How growth spending is expected to change*ExistingProducts/ServicesNewProducts/ServicesExistingMarketsMarketPenetrationStrategyProduct/ServiceDevelopmentStrategyNewMarketsMarketDevelopmentStrategyDiversificationStrategy* % of spending across growth strategies12© Christine MoormanTypes of Growth StrategiesStrategyActualSpending inPast 12MonthsExpectedSpending inNext 12MonthsPercentChangeExpectedMarketPenetrationStrategy54.9% 47.8% -12.9%MarketDevelopmentStrategy15.1% 17.2% +13.9%Product/ServiceDevelopmentStrategy20.8% 23.2% +11.5%DiversificationStrategy9.2% 11.8% +28.3%AnalyticsLeadershipOrganizationJobsSocial MediaPerformanceSpendingGrowthMarketplace
  • 13. © Christine MoormanTable 2.2. Expected changes in sector growth spendingin next 12 months relative to prior yearGrowth strategies vary by sector:Service sector expects biggest shifts13B2BProductB2BServiceB2CProductB2CServiceMarket PenetrationStrategy-10.4% -15.4% -13.8% -13.1%MarketDevelopment Strategy+4.2% +10.6% +11.0% +88.3%Product/ServiceDevelopment Strategy+7.2% +9.2% +16.7% -9.5%DiversificationStrategy+24.3% +54.8% +29.1% +8.0%Notable shiftsAnalyticsLeadershipOrganizationJobsSocial MediaPerformanceSpendingGrowthMarketplace• B2B-Service companies expected todiversify the most (54.8%)• B2C-Service companies expected toincrease market development (+88%)and decrease product/servicedevelopment (-9.5%)
  • 14. Companies to increase organic growthstrategies in next yearTable 2.3. How firms will grow in the next 12 months*14© Christine MoormanStrategy Aug-12 Feb-13%ChangeOrganicGrowth 68.9% 73.5% +6.7%Growth viaAcquisitions 12.2% 8.5% -30.3%Growth fromPartnerships 12.9% 12.3% -4.6%Growth fromLicensing 6.1% 5.6% -8.1%* Percentage of spending across growth strategiesTable 2.4. Sector use of growth strategies*StrategyB2BProductB2B-ServiceB2C-ProductB2C-ServiceOrganicGrowth70.4% 72.3% 73.5% 72.6%Growth viaAcquisition10.0% 7.3% 6.8% 12.4%Growth fromPartnerships12.5% 14.9% 13.8% 10.1%Growth fromLicensing7.0% 5.6% 5.9% 4.9%AnalyticsLeadershipOrganizationJobsSocial MediaPerformanceSpendingGrowthMarketplace
  • 15. Canada, Western Europe, and China are thefocus of U.S. marketersFigure 2.1. Highest international revenuegrowth markets (% respondents)© Christine Moorman 15AnalyticsLeadershipOrganizationJobsSocial MediaPerformanceSpendingGrowthMarketplaceCanada25%Western Europe22%China15%Mexico6%Brazil6%Middle East5%Japan4%India3%Russia3%Eastern Europe2%Korea2%Southeast Asia3%Other SouthAmerica2%Australia2%
  • 16. Growth of international markets slows:Highest sales increases in Mexico and Eastern EuropeAnalyticsLeadershipOrganizationJobsSocial MediaPerformanceSpendingGrowthMarketplaceFeb-13Mexico 41.2%Eastern Europe 40.0%Middle East 28.2%Brazil 27.1%Russia 22.4%Southeast Asia 22.0%Australia 21.0%Japan 21.7%India 19.2%China 18.4%Western Europe 16.4%Canada 14.2%South America (not Brazil) 14.0%Korea 4.5%Table 2.5. Sales increase in the last 12 months by marketFigure 2.2. Average change in growth of international markets19.7%15.6%0%5%10%15%20%25%February 2012 February 2013
  • 17. Overall company sales from internationalmarkets stagnatesFigure 2.3. Percentage of company sales expected to be international in next 12 months© Christine Moorman 17AnalyticsLeadershipOrganizationJobsSocial MediaPerformanceSpendingGrowthMarketplace18.7% 19.3%24.7%32.4%19.6% 19.5%0%5%10%15%20%25%30%35%August2010February2011August2011February2012August2012February2013
  • 18. 18Topic 3:Marketing Spending18
  • 19. Growth in marketing budgets flattensFigure 3.1. Percent change in marketing budgets in next 12 months19© Christine MoormanAnalyticsLeadershipOrganizationJobsSocial MediaPerformanceSpendingGrowthMarketplace0.5%1.1%5.9%9.2%6.7%9.1%8.1%6.4%6.1%-1%1%3%5%7%9%11%13%February2009August2009February2010August2010February2011August2011February2012August2012February2013
  • 20. Marketing spending up in all sectors exceptB2B-Product sector20© Christine MoormanFigure 3.2. Sector differences in marketing budgetsAnalyticsLeadershipOrganizationJobsSocial MediaPerformanceSpendingGrowthMarketplace13.2%5.7%4.2%6.2%6.2%7.1%3.3%8.6%9.2%4.6%6.8%6.7%0%2%4%6%8%10%12%14%February 2012 August 2012 February 2013B2B ProductB2B ServiceB2C ProductB2C Service
  • 21. Marketing spending on traditional advertisingcontinues to plummetFigure 3.3. Percent change in traditional advertising* spend in next 12 months21© Christine MoormanAnalyticsLeadershipOrganizationJobsSocial MediaPerformanceSpendingGrowthMarketplace1.3%-0.8%-1.9%-2.7%-3%-2%-1%0%1%2%3%August2011February2012August2012February2013*Refers to media advertising not using the web.
  • 22. All other marketing spend categories positive,but slower growth expectedTable 3.1. Percent change in marketing spending in next 12 months22© Christine MoormanAug-12 Feb-13Overall marketing spend 6.4% 6.1%Traditional advertising* spending -1.9% -2.7%Digital marketing spending 11.5% 10.2%New product introductions 9.4% 8.0%New service introductions 6.4% 5.8%Customer relationship management 9.0% 8.1%Brand building 7.5% 6.8%AnalyticsLeadershipOrganizationJobsSocial MediaPerformanceSpendingGrowthMarketplace*Refers to media advertising not using the web.
  • 23. Company differences in digital vs.traditional advertising spend23© Christine MoormanAnalyticsLeadershipOrganizationJobsSocial MediaPerformanceSpendingGrowthMarketplaceTable 3.2. Change in digital and traditional advertising spending in next 12 months by sectorB2BProductB2BServicesB2CProductB2CServicesDigital marketing spend 8.2% 10.5% 14.6% 10.4%Traditional advertising* spend -4.1% -2.2% -0.6% -5.4%*Refers to media advertising not using the web.
  • 24. Investments in marketing consulting up;all other knowledge investments dropTable 3.3. Changes in firm spending on marketing knowledge in next 12 months24© Christine MoormanAug-12 Feb-13 % ChangeMarketing researchand intelligence8.2% 4.5% -45.1%Marketing consultingservices3.3% 4.5% +36.4%Developing knowledge abouthow to do marketing*5.8% 4.3% -25.9%Integrating what weknow about marketing8.2% 5.4% -34.1%MarketingTraining*7.2% 3.8% -47.2%AnalyticsLeadershipOrganizationJobsSocial MediaPerformanceSpendingGrowthMarketplace*Developing knowledge about how to do marketing refers to the development of new marketing capabilities, while marketing traininginvolves transferring existing marketing knowledge to employees
  • 25. Marketing budgets as percent of firmbudgets remain above 10%25Figure 3.4. Marketing budget as a percent of firm budget*© Christine MoormanAnalyticsLeadershipOrganizationJobsSocial MediaPerformanceSpendingGrowthMarketplace*Question asked in Feb-11 for the first time.8.1%10.0% 10.4%11.4%10.6%0%2%4%6%8%10%12%14%16%February2011August2011February2012August2012February2013
  • 26. Size of marketing budgets varies:B2B companies, large companies, and companies with weak internetsales show biggest growth26Table 3.4a. Marketing percentage of firm budget by economic sectorB2BProductB2BServicesB2CProductB2CServicesFebruary 2012 8.7% 8.2% 16.1% 16.8%February 2013 10.6% 10.1% 16.3% 10.9%<$25Million$26-99Million$100-499Million$500-999Million$1-9.9Billion>$10BillionFebruary 2012 10.7% 12.3% 13.5% 4.7% 6.7% 8.8%February 2013 12.6% 8.8% 10% 7.8% 9.4% 11.5%0%Internet Sales1-10%Internet Sales>10%Internet SalesFebruary 2012 8.4% 9.5% 18.0%February 2013 10.3% 8.1% 14.4%Table 3.4b. Marketing percentage of firm budget by company sales revenueTable 3.4c. Marketing percentage of firm budget by company internet sales© Christine MoormanAnalyticsLeadershipOrganizationJobsSocial MediaPerformanceSpendingGrowthMarketplace
  • 27. Marketing spending as a percentageof firm revenues drops27© Christine MoormanFigure 3.5. Marketing spending as a percentage of firm revenues*AnalyticsLeadershipOrganizationJobsSocial MediaPerformanceSpendingGrowthMarketplace*Question asked in Feb-12 for the first time.8.5%11.0%7.9%0%2%4%6%8%10%12%February 2012 August 2012 February 2013
  • 28. Marketing spending as a percentageof firm revenues by firm and industry28© Christine MoormanTable 3.5a. Marketing spending as a percentage of firm revenues by economic sectorB2BProductB2BServicesB2CProductB2CServicesFebruary 2012 7.3% 4.8% 13.8% 16.6%August 2012 11.4% 11.9% 9.8% 16.1%February 2013 8.8% 7.7% 9.4% 9.2%<$25Million$26-99Million$100-499Million$500-999Million$1-9.9Billion>$10BillionFebruary 2012 11.8% 9.0% 14.7% 1.7% 2.8% 5.2%August 2012 17.8% 10.7% 10.6% 9.4% 6.1% 13.1%February 2013 11.1% 6.0% 8.6% 3.5% 5.5% 6.0%0%Internet Sales1-10%Internet Sales>10%Internet SalesFebruary 2012 6.3% 9.0% 14.4%August 2012 11.0% 9.3% 18.3%February 2013 6.8% 5.7% 13.0%Table 3.5b. Marketing spending as a percentage of firm revenues by company sales revenueTable 3.5c. Marketing spending as a percentage of firm revenues by company internet salesAnalyticsLeadershipOrganizationJobsSocial MediaPerformanceSpendingGrowthMarketplace
  • 29. 29Topic 4:Financial and MarketingPerformance29
  • 30. Company performance on financialmetrics holds30© Christine MoormanFigure 4.1. Percent change in firm performance in prior 12 monthsAnalyticsLeadershipOrganizationJobsSocial MediaPerformanceSpendingGrowthMarketplace2.2%4.0%3.8%4.8%4.0%4.20%1.8%3.4%3.4%3.9%3.3%3.3%2.2%2.7%3.0%3.5%3.2%3.3%1.0%1.5%2.0%2.5%3.0%3.5%4.0%4.5%5.0%August2010February2010August2011February2012August2012February2013Firm salesFirm profitsMarketing ROI
  • 31. Key customer and brand assets follow suit31© Christine MoormanFigure 4.2. Percent change in company performance on customer and brand metrics in prior 12 monthsAnalyticsLeadershipOrganizationJobsSocial MediaPerformanceSpendingGrowthMarketplace2.6%2.6%3.2%3.8%3.3% 3.3%1.4%1.6%1.7%2.2%2.0%1.9%3.2%2.9%3.5%4.1%3.4%3.2%1.0%1.5%2.0%2.5%3.0%3.5%4.0%4.5%5.0%August2009August2010August2011February2012August2012February2013Customer acquisition Customer retention Brand value
  • 32. Company performance by sector32© Christine MoormanB2B-ProductB2B-ServicesB2C-ProductB2C-ServicesFirm sales 4.8% 3.8% 3.0% 5.4%Marketing return on investment 2.9% 3.9% 2.0% 4.2%Firm profits 2.5% 4.5% 3.4% 4.3%Customer acquisition 2.9% 3.5% 2.7% 3.5%Customer retention 1.6% 1.4% 2.1% 3.4%Brand value 2.8% 2.9% 3.0% 3.6%Table 4.1. Sector performance metrics for prior 12 monthsAnalyticsLeadershipOrganizationJobsSocial MediaPerformanceSpendingGrowthMarketplace
  • 33. Firm performance goals remain strongTable 4.2. Company performance and goalsActual firm performancein prior 12 monthsGoal in thenext 12 monthsExpected change innext 12 monthsFirm sales 4.2% 7.0% +66.7%Marketing return on investment 3.3% 5.5% +66.7%Firm profits 3.3% 6.6% +100.0%Customer acquisition 3.3% 5.8% +75.8%Customer retention 1.9% 4.7% +147.4%Brand value 3.2% 5.6% +75.0%33© Christine MoormanAnalyticsLeadershipOrganizationJobsSocial MediaPerformanceSpendingGrowthMarketplace
  • 34. Ratings of marketing excellence flat34© Christine Moorman• February 2013 : Mean = 4.5 (SD = 1.4)• August 2012: Mean = 4.4 (SD = 1.4)Figure 4.3. Ratings of marketing excellence in companiesAnalyticsLeadershipOrganizationJobsSocial MediaPerformanceSpendingGrowthMarketplace2.3%8.0%13.5%18.3%34.7%14.1%9.0%0%5%10%15%20%25%30%35%40%1=Very Weak 2=Weak 3=Fair 4=Good 5=Strong 6=A leader but not oneof the best7=Excellent, one of thebest in the worldQuestion: How would you rate your company’s marketingexcellence?
  • 35. 3535Topic 5:Marketing and Social Media35
  • 36. Social media spending growth continues:Expected to be 22% of marketing budgets in five years36© Christine MoormanFigure 5.1. Social media spending as a percentage of marketing budgetsAnalyticsLeadershipOrganizationJobsSocial MediaPerformanceSpendingGrowthMarketplace8.4%11.5%21.6%0%5%10%15%20%25%Current Levels Over Next 12 Months In Next 5 YearsPercentage ofTotal MarketingBudget (%)
  • 37. Social media spending across sectors37© Christine MoormanFebruary 2012Current Social Media SpendingB2B - Product 7.5%B2B - Services 9.6%B2C - Product 9.6%B2C - Services 9.9%Overall 8.4%Social Media Spending in thenext 12 monthsB2B - Product 11.1%B2B - Services 11.8%B2C - Product 13.2%B2C - Services 11.4%Overall 11.5%Social Media Spending in thenext 5 yearsB2B - Product 22.6%B2B - Services 21.2%B2C - Product 24.6%B2C - Services 22.6%Overall 21.6%Table 5.1. Changes in social media spending across sectorsAnalyticsLeadershipOrganizationJobsSocial MediaPerformanceSpendingGrowthMarketplace
  • 38. Social media integration gap not closing38© Christine MoormanQuestion: How effectively is social mediaintegrated with your firm’s marketing strategy?7-point scale (1=not integrated, 7=very integrated)Results: Social media remains poorly integratedwith marketing strategy:• Feb, 2013: Mean = 3.8, SD = 1.9• Aug, 2012: Mean = 3.8, SD = 1.9• Feb, 2012: Mean = 3.8, SD = 1.9• Feb, 2011: Mean = 3.8, SD = 2.0Mean (SD)Feb-2013B2B-Product 3.6 (1.8)B2B-Services 4.0 (1.9)B2C-Product 4.4 (2.0)B2C-Services 3.5 (1.7)Table 5.2. Integration scores by sectorFigure 5.2. How well social media is integrated withstrategyAnalyticsLeadershipOrganizationJobsSocial MediaPerformanceSpendingGrowthMarketplace15.2%14.5%12.8%16.7%19.1%11.7%9.9%0%5%10%15%20%25%1Not at allIntegrated2 3 4 5 6 7VeryIntegratedPercent ofRespondents (%)
  • 39. Social media metrics: Firms shift towardreferral and text measuresLeadershipOrganizationJobsSocial MediaPerformanceSpendingGrowthMarketplaceMetrics August 2010 February 2013Hits/visits/page views 47.6% 40.9%Repeat visits 34.7% 24.9%Number of followers or friends 24% 30.5%Conversion rates (from visitor to buyer) 25.4% 21.1%Buzz indicators (web mentions) 15.7% 16.2%Customer acquisition costs 11.8% 10.2%Sales levels 17.9% 8.7%Other text analysis ratings 6.6% 8.5%Online product/service ratings 8.2% 6.0%Revenue per customer 17.2% 9.2%Net promoter score 7.5% 9.8%Customer retention costs 7.7% 3.0%Abandoned shopping carts 3.8% 2.8%Profits per customer 9.4% 4.5%Table 5.2. Social Media Metrics Used by Firms*39© Christine MoormanNotable shiftsMetrics shift toward:• Referral measures (friends andfollowers, buzz, net promoter score)• Text analysis measureFinancial metrics decline:• Sales levels, revenue per customer,profits per customer*Red indicates metric use has decreased; green indicates that metric use has increased.
  • 40. 40Topic 6: Marketing Jobs40
  • 41. Marketing hiring remains positive, but slows:B2C-Product companies predict biggest percentage increaseFigure 6.1. Percentage change in marketing hires planned in next 12 months41© Christine MoormanAnalyticsLeadershipOrganizationJobsSocial MediaPerformanceSpendingGrowthMarketplace4.0%6.2%7.2%5.2%6.5%5.4%0%1%2%3%4%5%6%7%8%August2010February2011August2011February2012August2012February2013Percentage Increase inMarketing Hires in Next12 Months
  • 42. 42© Christine MoormanFigure 6.2. Percentage of company marketing expected to be outsourced in next 12 monthsAnalyticsLeadershipOrganizationJobsSocial MediaPerformanceSpendingGrowthMarketplaceOutsourcing of marketing remains flat (3%)4.3% 4.5%9.3%3.2% 3.1%3.5%0%2%4%6%8%10%12%14%August2010February2011August2011February2012August2012February2013
  • 43. 43Topic 7:Marketing Organization43
  • 44. Where marketing is located in companies:Increase in corporate and field office locations44© Christine MoormanFigure 7.1. Location of marketing in companies*AnalyticsLeadershipOrganizationJobsSocial MediaPerformanceSpendingGrowthMarketplace*Totals across locations may exceed 100% if marketing is in multiple locations79.7%38.3%17.3%9.3%86.2%30.5%10.8%12.3%5%15%25%35%45%55%65%75%85%Corporate Business Brand/Product Field OfficesPercentageof Firms (%)August 2012 February 2013
  • 45. Marketing and sales are equal partnersin most companies45© Christine MoormanFigure 7.2. The marketing-sales relationshipAnalyticsLeadershipOrganizationJobsSocial MediaPerformanceSpendingGrowthMarketplace69.2%13.0%10.3%72.0%10.3%7.0%0%10%20%30%40%50%60%70%80%Sales & marketing work on anequal basisMarketing is within the salesfunctionSales is within the marketingfunctionAugust 2012 February 2013Percentageof Firms (%)
  • 46. Product/service organizational structure dominates:Only 26% of firms using customer groups46© Christine MoormanFigure 7.3. Organizational structure in companiesAnalyticsLeadershipOrganizationJobsSocial MediaPerformanceSpendingGrowthMarketplaceNew questionin The CMO Survey26.5%73.5%0%10%20%30%40%50%60%70%80%Customer Groups Product/Service GroupsPercentageof Firms (%)
  • 47. 47Topic 8:Marketing Leadership47
  • 48. What marketing leadsTable 8.1. Percentage of companies in which marketing leads activity*48Stronger marketing leadership:• Customer service• Stock market performanceMaintaining marketing leadership:• Advertising• Positioning• Promotion• Brand• Marketing research• Social media• Competitive intelligence• Public relations• Lead generation• Market entryWeaker marketing leadership:• New products• CRM• Targeting/Market selection• Sales• PricingActivity Feb-11 Feb-12 Aug-12 Feb-13Advertising 85% 85% 84% 84%Positioning 79% 78% 82% 82%Promotion 81% 79% 84% 82%Brand 81% 84% 84% 84%Marketing research 73% 71% 75% 76%Social media 71% 73% 77% 76%Competitive intelligence 58% 62% 67% 68%Public relations 65% 53% 61% 61%Lead generation 53% 53% 57% 56%Market entry strategies 50% 46% 55% 56%New products 44% 52% 51% 47%CRM 38% 41% 45% 41%Targeting/Market selection 31% 35% 40% 36%Sales 32% 30% 27% 24%Pricing 30% 34% 38% 31%Innovation 33% 39% 37% 35%Customer service 22% 21% 18% 24%Stock market performance 0.4% 1.2% 1.0% 2.3%AnalyticsLeadershipOrganizationJobsSocial MediaPerformanceSpendingGrowthMarketplace*Red indicates marketing’s influence has decreased, green indicates that marketing’s influence has increased, andchanges of 1% or less are viewed as no change.
  • 49. Marketing leaders retained for 4.8 years49© Christine MoormanFigure 8.1. Marketing leader retention Table 8.2. Sector differences in retention (Feb-2013)Years in current roleB2B Product 4.1B2B-Service 4.7B2C-Product 4.8B2C-Service 4.8AnalyticsLeadershipOrganizationJobsSocial MediaPerformanceSpendingGrowthMarketplace4.38.85.410.54.19.24.89.5024681012Top marketer time in current role in the firm Top marketer time in any role in the firmYearsAugust 2011 February 2012 August 2012 February 201
  • 50. Marketer influence drops50© Christine MoormanFigure 8.2. Number of people reporting to top marketerAnalyticsLeadershipOrganizationJobsSocial MediaPerformanceSpendingGrowthMarketplace7.2 7.36.08.65.617.015.425.4 24.617.5051015202530August2010August2011February2012August2012February2013Number of ReportsDirect reports Indirect reports
  • 51. 51© Christine MoormanBest Practice from Marketing Leaders:See full interviews at www.cmosurvey.org/cmo-insights/AnalyticsLeadershipOrganizationJobsSocial MediaPerformanceSpendingGrowthMarketplaceSenior Vice President and Chief Marketing Officer Beth Comstock discusses how GE approachesmarketing: “You have to create a platform that invites innovative ideas.” This platform involves fourcapabilities that have produced an array of new products, services, customers, and business models.Chief Marketing Officer Kim Feil discusses how she built a marketing function. From insights toaccountability, she describes the organization, processes, metrics, and talent management strategiesimportant to this effort.Executive Vice President and Chief Marketing Officer Geert van Kuyck shares ideas on building theessential skill set for CMOs and the importance of defining the CMO’s mission. He discusses the use ofthe Net Promoter Score and other metrics to evaluate business results at Philips, touching on Philips’engagement with LinkedIn and social media metrics.Executive Vice President and Chief Marketing Officer Stephen Quinn describes how Walmart rebuilt itscustomer focus. Key steps involved harnessing internal support, generating market insight, usingcustomer-focused metrics, living the brand internally, and building marketing talent.Global Marketing Officer Marc Pritchard shares his viewpoints on how marketing contributes to P&G’sperformance. He talks about how P&G learns about customers and how it is relentless in its attention tobuilding loyal customers and strong brands in the store, on the web, and around the world.
  • 52. 52Topic 9:Marketing Analytics52
  • 53. Spending on marketing analytics expectedto increase 66% in three years53© Christine MoormanFigure 9.1. Percent of marketing budget spent on marketing analyticsAnalyticsLeadershipOrganizationJobsSocial MediaPerformanceSpendingGrowthMarketplace6%10%0%2%4%6%8%10%12%Current Levels In Next 3 Years
  • 54. Spending on marketing analytics by firmand industry characteristics54© Christine MoormanAnalyticsLeadershipOrganizationJobsSocial MediaPerformanceSpendingGrowthMarketplaceCurrentIn Next3 years<$25M 5.2 9.2$26-99M 4.7 9.0$100-499M 5.8 9.1$500-999M 7.7 12.3$1-9.9B 6.8 10.5$10+B 9.1 13.7Table 9.1c. Firm size differencesTable 9.1b. Firm internet sales differencesCurrentIn Next3 years0% 5.3 9.41-10% 6.2 10.6>10% 6.8 11.0Table 9.1a. Firm sector differencesCurrentIn Next3 yearsB2B-Product 5.4 9.1B2B-Service 6.5 11.6B2C-Product 5.4 9.9B2C-Service 6.7 9.6
  • 55. Most projects fail to use marketing analytics;worsening trend as big data grows55© Christine MoormanFigure 9.2. Percentage of projects using marketing analytics in companiesAnalyticsLeadershipOrganizationJobsSocial MediaPerformanceSpendingGrowthMarketplace37%35%30%0%5%10%15%20%25%30%35%40%45%50%February 2012 August 2012 February 2013
  • 56. Majority of companies do not evaluatemarketing analytics56© Christine MoormanFigure 9.3. Does your company formally evaluate the quality of marketing analytics?AnalyticsLeadershipOrganizationJobsSocial MediaPerformanceSpendingGrowthMarketplace46.8%53.2%39.8%60.2%0%10%20%30%40%50%60%70%Evaluate quality Do not evaluate qualityAugust 2012 February 2013
  • 57. Contribution of marketing analytics tocompany performance drops57© Christine MoormanFigure 9.4. To what degree does the use of marketing analytics contribute to your companys performance?AnalyticsLeadershipOrganizationJobsSocial MediaPerformanceSpendingGrowthMarketplaceMean contribution of marketing analytics to company performance on 7-point scale: February 2013: 3.7 (SD = 1.9%) August 2012: 3.9 (SD = 1.9%)16.3% 16.7%9.6%21.1%17.8%11.5%7.0%0%5%10%15%20%25%1Not at all2 3 4 5 6 7Very Highly
  • 58. The 2013 CMO Survey Award forMarketing Excellence – Overall Winner58© Christine MoormanParticipants were asked to nominate a company in response to the question:Which company across all industries sets the standard for excellence in marketing?Apple, Inc.
  • 59. 59© Christine MoormanGeneral Electric(Manufacturing)Google(Services)IBM(Technology Solutions/Consulting)Procter & Gamble(Consumer Packaged Goods: Non-food)The 2013 CMO Survey Award forMarketing Excellence – Industry WinnersParticipants were asked to nominate a company in response to the question:Which company in your industry sets the standard for excellence in marketing?The Coca-Cola Company(Consumer Packaged Goods: Food)
  • 60. Preview60Next survey: The CMO Survey will be administered in July 2013To participate: Sign up at http://www.cmosurvey.org/participate/Media: Press releases and coverage will be posted to http://www.cmosurvey.org/category/news/Feedback: Send comments to moorman@duke.edu© Christine Moorman