1.
Mission
- To collect and disseminate the opinions of top marketers in order to predict the future of markets, track
marketing excellence, and improve the value of marketing in firms and society.
- The survey is an objective source of information about marketing. It is a non-commercial service
dedicated to the field of marketing, not the sale of products and services.
Survey Operation
- Founded in August 2008, The CMO Survey is administered twice a year via an Internet survey. Many
questions repeat to observe trends over time.
- The February 2015 survey was the 13th administration of The CMO Survey.
Sponsoring Organizations
About The CMO Survey
2

2.
Survey Sample
- 2630 top U.S. marketers at Fortune 1000, Forbes Top 200, and top marketers who are AMA Members
or Duke University Alumni and Friends
- 288 responded for a 10.9% response rate
Survey Administration
- Email contact with four follow-up reminders
- Survey in field from January 13, 2015 - February 3, 2015
- 84.3% of respondents VP-level or above
Results Interpretation
- M = sample mean; SD = sample standard deviation
- B2B = Business-to-Business firms; B2C = Business-to-Consumer firms
Survey methodology
3

3.
Topic 1: Marketplace Dynamics……………………………………………………… 5-9
Topic 2: Firm Growth Strategies…………………………………………………….. 11-15
Topic 3: Marketing Spending………………………………………………………… 16-28
Topic 4: Financial and Marketing Performance……………………………………. 29-34
Topic 5: Marketing and Social Media ………………………………..…………….. 35-44
Topic 6: Marketing Jobs…………………………………………………………….... 45-47
Topic 7: Marketing Organization…………………………………………………….. 48-52
Topic 8: Marketing Leadership……………………………………………………..... 53-58
Topic 9: Marketing Analytics………………………………………………………..... 59-68
Topic 10: The CMO Survey Award for Marketing Excellence.…………………… 69-71
Survey topics
4

4.
Topic 1:
Marketplace Dynamics

5.
AnalyticsLeadershipOrganizationJobsSocial MediaPerformanceSpendingGrowthMarketplace
Marketer optimism for U.S. economy
reaches six year high
Figure 1.1. How optimistic are you about the overall U.S. economy on a 0-100 scale with 0 being the
least optimistic and 100 the most optimistic?
6
47.7
56.5
57.8
55.6
63.3
52.2
63.4
58.4
62.7
65.7 66.1 66.4
69.9
40
50
60
70
80
Feb-09 Aug-09 Feb-10 Aug-10 Feb-11 Aug-11 Feb-12 Aug-12 Feb-13 Aug-13 Feb-14 Aug-14 Feb-15
Marketer Optimism About Overall Economy

6.
AnalyticsLeadershipOrganizationJobsSocial MediaPerformanceSpendingGrowthMarketplace
Optimism for US economy remains high
across all sectors
Figure 1.2. How optimistic are you about the overall U.S. economy on a 0-100 scale with 0 being the
least optimistic and 100 the most optimistic?
7
48 48 45 46
51
66 66 66 66 64
70 70 71
67
72
0
10
20
30
40
50
60
70
80
90
100
Overall B2B Product B2B Services B2C Product B2C Services
February 2009 February 2014 February 2015

7.
AnalyticsLeadershipOrganizationJobsSocial MediaPerformanceSpendingGrowthMarketplace
Optimists dominate pessimists: 5-to-1
8
Figure 1.3. Are you more or less optimistic about the overall U.S. economy compared to last quarter?
59.3%
12.3%
25.7% 27.6%
14.9%
60.1%
0%
10%
20%
30%
40%
50%
60%
70%
80%
February 2009 February 2015
Percentage of
Respondents
Less Optimistic No Change More Optimistic

8.
AnalyticsLeadershipOrganizationJobsSocial MediaPerformanceSpendingGrowthMarketplace
Positive customer acquisition, retention,
and growth metrics forecasted; price lags
Figure 1.4. Forecasted customer outcomes in next 12 months (% of respondents)
9
30% 32%
37%
27%
14%
75%
69%
59%
49% 50%
34%
78%
72%
66%
52% 51%
34%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
Increased
acquisition of
new customers*
Increased
customer
purchase volume
Increased purchase
of related
products & services
Increased
customer
retention
Increased entry of
new customers
into the market
Increased
customer price
per unit
February 2009 February 2014 February 2015
* Question not asked in Feb-09.

9.
AnalyticsLeadershipOrganizationJobsSocial MediaPerformanceSpendingGrowthMarketplace
Figure 1.5. Customers’ top priority in next 12 months (% of respondents)
Service trumps product as customers’
top priority
10
19%
16%
30%
20%
11%
6%
31%
18%
17%
19%
9%
7%
22%
23%
15%
21%
14%
5%
0%
5%
10%
15%
20%
25%
30%
35%
Superior
Product Quality
Excellent
Service
Low
Price
Trusting
Relationship
Superior
Innovation
Brand
February 2009 February 2014 February 2015

10.
Topic 2:
Firm Growth Strategies

11.
AnalyticsLeadershipOrganizationJobsSocial MediaPerformanceSpendingGrowthMarketplace
Firms to decrease market penetration and
emphasize riskier growth strategies next year
Types of growth strategies
Existing
Products/
Services
New
Products/
Services
Existing
Markets
Market
Penetration
Strategy
Product/Service
Development
Strategy
New
Markets
Market
Development
Strategy
Diversification
Strategy
* % of spending for each growth strategy
Growth
Strategy
Actual
Spending in
Past 12
Months
Expected
Spending in
Next 12
Months
Percent
Change
Expected
Market
Penetration
Strategy
56.4% 50.0% -11.3%
Market
Development
Strategy
15.8% 17.7% +12.0%
Product/Service
Development
Strategy
20.4% 22.7% +11.3%
Diversification
Strategy
7.4% 9.6% +29.7%
Table 2.1. How growth spending is expected to change*
12

12.
AnalyticsLeadershipOrganizationJobsSocial MediaPerformanceSpendingGrowthMarketplace
How will firms grow in the next year?
Figure 2.1. How firms will grow in the next 12 months*
* Percentage of growth spending in each category
13
B2B
Product
B2B
Services
B2C
Product
B2C
Services
Growth from
within your firm
(organic growth)
76% 77% 75% 74%
Growth from
partnerships
9% 10% 12% 11%
Growth from
acquisitions
8% 10% 7% 10%
Growth from
licensing
7% 3% 7% 5%
Growth from
your firm
internally
76%
Growth from
partnerships
10%
Growth from
acquisitions
9%
Growth from
licensing
5%

13.
AnalyticsLeadershipOrganizationJobsSocial MediaPerformanceSpendingGrowthMarketplace
Percent of sales through Internet
shows steady climb
Figure 2.2. Percent of company sales expected via the Internet in next 12 months
14
B2B Product 10.2%
B2B Services 10.9%
B2C Product 13.2%
B2C Services 21.7%
9.2%
8.9%
9.9%
11.3%
12.4%
0%
5%
10%
15%
20%
Feb-12 Aug-13 Feb-14 Aug-14 Feb-15

14.
AnalyticsLeadershipOrganizationJobsSocial MediaPerformanceSpendingGrowthMarketplace
85% of sales revenues from domestic
markets
15
Figure 2.3. Percent of company sales that is domestic
B2B Product 78.0%
B2B Services 88.9%
B2C Product 87.0%
B2C Services 87.0%
77.6%
79.4% 77.5% 79.4%
85.4%
70%
75%
80%
85%
90%
Feb-12 Aug-13 Feb-14 Aug-14 Feb-15

15.
Topic 3:
Marketing Spending

16.
AnalyticsLeadershipOrganizationJobsSocial MediaPerformanceSpendingGrowthMarketplace
Marketing budgets expected to rebound
to highest point in 3 years
Figure 3.1. Percent change in marketing budgets in next 12 months
17
0.5% 1.1%
5.9%
9.2%
6.7%
9.1%
8.1%
6.4% 6.1%
4.3%
6.7%
5.1%
8.7%
0%
2%
4%
6%
8%
10%
12%
Feb-09 Aug-09 Feb-10 Aug-10 Feb-11 Aug-11 Feb-12 Aug-12 Feb-13 Aug-13 Feb-14 Aug-14 Feb-15
Change in Marketing Spending

17.
AnalyticsLeadershipOrganizationJobsSocial MediaPerformanceSpendingGrowthMarketplace
Sector differences in marketing spend
Figure 3.2. Percent change in marketing budgets in next 12 months
18
6.7%
5.4%
6.4%
7.1%
5.8%
8.7%
9.1% 9.2%
5.0%
13.4%
0%
3%
6%
9%
12%
15%
Overall B2B Product B2B Services B2C Product B2C Services
February 2014 February 2015

18.
AnalyticsLeadershipOrganizationJobsSocial MediaPerformanceSpendingGrowthMarketplace
Digital marketing spend to increase 14.7%
in next year
*Refers to media advertising not using the web.
Figure 3.3. Percent change in traditional advertising* vs. digital marketing spend in next 12 months
19
-0.8%
-1.9%
-2.7% -2.1%
-0.1%
-3.6%
-1.1%
12.8%
11.5%
10.2% 10.1%
8.2%
10.8%
14.7%
-5%
0%
5%
10%
15%
20%
Feb-12 Aug-12 Feb-13 Aug-13 Feb-14 Aug-14 Feb-15
Traditional Advertising Spend Digital Marketing Spend

19.
AnalyticsLeadershipOrganizationJobsSocial MediaPerformanceSpendingGrowthMarketplace
Digital marketing spend increases
across sectors
Figure 3.4. Change in digital marketing spending in next 12 months by sector
20
8%
9%
7% 8% 8%
15% 15%
16%
10%
18%
0%
5%
10%
15%
20%
Overall B2B Product B2B Services B2C Product B2C Services
February 2014 February 2015

20.
AnalyticsLeadershipOrganizationJobsSocial MediaPerformanceSpendingGrowthMarketplace
Marketing spend on mobile expected to
triple in three years
21
B2B
Product
B2B
Services
B2C
Product
B2C
Services
Marketing budget spent
on mobile now
2.2% 3.0% 5.5% 3.2%
Marketing budget spent
on mobile in next 3 years
8.2% 8.3% 11.4% 9.9%
3.2%
9.0%
0%
3%
6%
9%
12%
15%
Current Levels In Next 3 Years
Figure 3.5. Marketing budget spend on mobile

21.
AnalyticsLeadershipOrganizationJobsSocial MediaPerformanceSpendingGrowthMarketplace
Brand and customer investments
remain strong
Figure 3.6. Percent change in marketing spending in next 12 months
22
5.1% 4.9%
7.5%
5.6%
0%
2%
4%
6%
8%
10%
Customer Relationship Management Brand Building
February 2014 February 2015

22.
AnalyticsLeadershipOrganizationJobsSocial MediaPerformanceSpendingGrowthMarketplace
Spending for service introductions
inches up
Figure 3.7. Percent change in marketing spending in next 12 months
23
8.0%
4.0%
6.9%
5.0%
0%
1%
2%
3%
4%
5%
6%
7%
8%
9%
New Product Introductions New Service Introductions
February 2014 February 2015

23.
AnalyticsLeadershipOrganizationJobsSocial MediaPerformanceSpendingGrowthMarketplace
*Question asked in Feb-11 for the first time.
Marketing budgets represent 10% of
overall firm budgets
Figure 3.8. Marketing budget as a percent of firm budget*
24
8.1%
10.0% 10.4%
11.4%
10.6%
9.4% 10.9% 10.9%
10.1%
0%
3%
6%
9%
12%
15%
Feb-11 Aug-11 Feb-12 Aug-12 Feb-13 Aug-13 Feb-14 Aug-14 Feb-15
% Marketing Budget

24.
AnalyticsLeadershipOrganizationJobsSocial MediaPerformanceSpendingGrowthMarketplace
Marketing spend 8.3% of company
revenues
Figure 3.9. Marketing spending as a percentage of company revenues*
*Question asked in Feb-12 for the first time.
25
8.5%
11.0%
7.9% 7.8%
9.3%
8.3% 8.3%
0%
3%
6%
9%
12%
15%
Feb-12 Aug-12 Feb-13 Aug-13 Feb-14 Aug-14 Feb-15
% Marketing Spend

25.
AnalyticsLeadershipOrganizationJobsSocial MediaPerformanceSpendingGrowthMarketplace
Table 3.1a. Marketing spending as a percentage of firm revenues by economic sector
B2B
Product
B2B
Services
B2C
Product
B2C
Services
February 2015 7.4% 8.6% 9.1% 9.3%
<$25
Million
$26-99
Million
$100-499
Million
$500-999
Million
$1-9.9
Billion
>$10
Billion
February 2015 11.1% 6.9% 4.5% 8.0% 6.9% 8.1%
Table 3.1b. Marketing spending as a percentage of firm revenues by company sales revenue
26
Who has the biggest marketing budgets?

26.
AnalyticsLeadershipOrganizationJobsSocial MediaPerformanceSpendingGrowthMarketplace
Marketing budgets correspond with
Internet sales
27
Figure 3.10. Marketing spend as a percentage of firm revenues by company internet sales
6.1%
7.0%
13.3%
0%
3%
6%
9%
12%
15%
0% of sales through internet 1-10% of sales through internet >10% of sales through internet

27.
AnalyticsLeadershipOrganizationJobsSocial MediaPerformanceSpendingGrowthMarketplace
Marketing spend on domestic markets
dominates
28
Overall B2B Product B2B Services B2C Product B2C Services
Percent of marketing budget
spent on domestic markets
87.8% 82.2% 90.8% 88.1% 94.0%
Percent of marketing budget
spent on international markets
12.2% 17.8% 8.2% 11.9% 6.0%
Table 3.3. Marketing spending on domestic and international markets

28.
Topic 4:
Financial and Marketing
Performance

29.
AnalyticsLeadershipOrganizationJobsSocial MediaPerformanceSpendingGrowthMarketplace
Company financial performance holds
Figure 4.1. Percent change in firm performance in prior 12 months
30
3.9%
3.0%
3.4%
4.1%
3.1%
2.9%
0%
1%
2%
3%
4%
5%
Firm sales Firm profits Marketing ROI
February 2014 February 2015

30.
AnalyticsLeadershipOrganizationJobsSocial MediaPerformanceSpendingGrowthMarketplace
Performance on key customer and
brand assets slips
Figure 4.2. Percent change in performance on customer and brand metrics in prior 12 months
31
3.6%
1.9%
3.5%
3.1%
2.1%
2.9%
0%
1%
2%
3%
4%
5%
Customer acquisition Customer retention Brand value
February 2014 February 2015

31.
AnalyticsLeadershipOrganizationJobsSocial MediaPerformanceSpendingGrowthMarketplace
Sector performance differences
Overall
B2B
Product
B2B
Services
B2C
Product
B2C
Services
Firm sales 4.1% 4.9% 4.1% 2.2% 5.5%
Firm profits 3.1% 2.9% 3.9% 1.8% 4.2%
Marketing ROI 2.9% 3.2% 2.8% 2.7% 3.1%
Customer acquisition 3.1% 2.6% 3.75 2.2% 4.5%
Customer retention 2.1% 2.9% 2.6% 0.7% 1.5%
Brand value 2.9% 3.9% 3.4% 0.8% 2.7%
Table 4.1. Percent change in performance in prior 12 months by sector
32

32.
AnalyticsLeadershipOrganizationJobsSocial MediaPerformanceSpendingGrowthMarketplace
Performance goals remain strong
Actual firm performance
in prior 12 months
Goal in the
next 12 months
Firm sales 4.1% 4.5%
Marketing ROI 3.1% 5.1%
Firm profits 2.9% 5.9%
Customer acquisition 3.1% 5.8%
Customer retention 2.1% 4.6%
Brand value 2.9% 5.0%
Table 4.2. How actual performance compares to goals
33

33.
AnalyticsLeadershipOrganizationJobsSocial MediaPerformanceSpendingGrowthMarketplace
Marketing excellence fails to improve
34
Figure 4.3. How would you rate your company’s marketing excellence?*
(7-point scale where 1=Very Weak and 7=Leader)
4.5 4.5 4.7 4.5 4.6
1
2
3
4
5
6
7
Aug-13 Feb-13 Feb-14 Aug-14 Feb-15
Excellence rating
* Question asked in Aug-13 for the first time

34.
Topic 5:
Marketing and Social
Media

35.
AnalyticsLeadershipOrganizationJobsSocial MediaPerformanceSpendingGrowthMarketplace
Social media spend expected to be 22.4%
of marketing budgets in five years
Figure 5.1. Social media spending as a percent of marketing budgets
36
9.9%
13.5%
22.4%
0%
5%
10%
15%
20%
25%
Current Levels Over Next 12 Months In Next 5 Years
% of Marketing Budget

36.
AnalyticsLeadershipOrganizationJobsSocial MediaPerformanceSpendingGrowthMarketplace
Social media spend across sectors: Service
companies outpace product companies
Overall
B2B
Product
B2B
Services
B2C
Product
B2C
Services
Current Social Media
Spending
9.9% 9.3% 9.6% 9.5% 12.9%
Social Media Spending
in the next 12 months
13.5% 12.6% 14.3% 11.7% 16.3%
Social Media Spending
in the next 5 years
22.4% 20.9% 23.1% 20.5% 27.7%
Table 5.1. Changes in social media spending across sectors
37

37.
AnalyticsLeadershipOrganizationJobsSocial MediaPerformanceSpendingGrowthMarketplace
Social media remains poorly integrated
with marketing strategy
38
Figure 5.2. How effectively is social media linked to your firm’s marketing strategy?
(1=Not integrated, 7=Very integrated)
3.8 3.8 3.8 3.8 3.9 3.8 3.9 3.9
1
2
3
4
5
6
7
Feb-11 Feb-12 Aug-12 Feb-13 Aug-13 Feb-14 Aug-14 Feb-15
Mean Integration Level

38.
AnalyticsLeadershipOrganizationJobsSocial MediaPerformanceSpendingGrowthMarketplace
B2C Product companies have the
highest social media integration
Figure 5.3. How well is social media integrated with marketing strategy?
(1=Not At All Effectively, 7=Very Effectively)
39
23.1%
31.6%
20.3%
15.0% 20.0%
57.8%
54.0%
58.2%
57.5%
68.0%
19.1% 14.5%
21.6%
27.5%
12.0%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Overall B2B Product B2B Services B2C Product B2C Services
Top 2 Box=6-7
Middle 3 Box=3-5
Bottom 2 Box=1-2

39.
AnalyticsLeadershipOrganizationJobsSocial MediaPerformanceSpendingGrowthMarketplace
Persistent poor integration of customer
information across channels
Figure 5.4. How effectively does your company integrate customer information across purchasing,
communication, and social media channels (1=Not At All Effectively, 7=Very Effectively)?
40
*Question asked in Aug-12 for the first time.
3.8 3.8 3.8 3.8 3.9 3.8 3.9
3.7
1
2
3
4
5
6
7
Feb-11 Feb-12 Aug-12 Feb-13 Aug-13 Feb-14 Aug-14 Feb-15
Mean Integration Level

40.
AnalyticsLeadershipOrganizationJobsSocial MediaPerformanceSpendingGrowthMarketplace
Social media activities increasingly
performed by outside agencies
41
Figure 5.5. Percent of company’s social media activities performed by outside agencies
B2B
Product
B2B
Services
B2C
Product
B2C
Services
1 year ago 17.6% 11.1% 29.8% 17.2%
Currently 17.5% 11.8% 36.0% 18.1%
17.4%
18.9%
15%
16%
17%
18%
19%
20%
One year ago Currently

41.
AnalyticsLeadershipOrganizationJobsSocial MediaPerformanceSpendingGrowthMarketplace
Only 13% of firms able to prove the
impact of social media quantitatively
Figure 5.6.. Which best describes how you show the impact of social media on your business?
42
B2B
Product
B2B
Services
B2C
Product
B2C
Services
We haven't been
able to show the
impact yet
44.7% 46.8% 42.5% 44.0%
We have a good
qualitative sense of
the impact, but not
a quantitative
impact
40.8% 41.8% 42.5% 44.0%
We have proven
the impact
quantitatively
14.5% 11.4% 15.0% 12.0%
Haven't been able
to show the
impact yet
45%Have a good
qualitative sense
of the impact, but
not a quantitative
impact
40%
Have proven
the impact
quantitatively
13.2%
Have a good
qualitative sense of
the impact, but not a
quantitative impact
41.8%
Haven't been
able to show
the impact yet
45.0%

42.
Use of online customer behavior data
expected to increase over time
AnalyticsLeadershipOrganizationJobsSocial MediaPerformanceSpendingGrowthMarketplace
Figure 5.7a. Does your company use customer
behavior data collected online for
targeting purposes?
Figure 5.7b. Is your company's use of such
data increasing, decreasing, or
staying the same over time?
43
Yes
42%
No
58%
92.3%
7.7%
0.0%
0%
20%
40%
60%
80%
100%
Increasing About the same Decreasing

43.
Most marketers have low levels of concern
about the use of online customer data
AnalyticsLeadershipOrganizationJobsSocial MediaPerformanceSpendingGrowthMarketplace
Figure 5.9. How worried are you that the use of online customer data could raise questions
about privacy? Mean = 3.2 (SD = 1.5)
44
10.9%
30.4%
18.5%
15.2%
19.6%
4.3%
1.1%
0%
5%
10%
15%
20%
25%
30%
35%
1
Not At All
Worried
2 3 4 5 6 7
Very
Worried

44.
Topic 6:
Marketing Jobs

45.
AnalyticsLeadershipOrganizationJobsSocial MediaPerformanceSpendingGrowthMarketplace
Marketing hiring positive but continues
downward trend
Figure 6.1. Percentage change in marketing hires planned in next 12 months
46
5.2%
6.5%
5.4% 5.5%
4.7%
3.8% 3.5%
0%
3%
6%
9%
12%
15%
Feb-12 Aug-12 Feb-13 Aug-13 Feb-14 Aug-14 Feb-15
Percentage Change in Marketing Hires in Next 12 Months B2B Product 4.6%
B2B Services 4.5%
B2C Product 0.7%
B2C Services 1.3%

46.
AnalyticsLeadershipOrganizationJobsSocial MediaPerformanceSpendingGrowthMarketplace
Outsourcing of marketing jobs
continues to increase
Figure 6.2. Expected change in outsourcing of marketing activities in next 12 months
47
3.2% 3.1%
3.5%
2.6%
3.1%
4.3% 4.4%
0%
2%
4%
6%
8%
10%
Feb-12 Aug-12 Feb-13 Aug-13 Feb-14 Aug-14 Feb-15
Percentage Change in Outsourcing
B2B Product 5.3%
B2B Services 4.1%
B2C Product 4.0%
B2C Services 3.5%

47.
Topic 7:
Marketing Organization

48.
Marketing and sales are equal partners
in most companies
AnalyticsLeadershipOrganizationJobsSocial MediaPerformanceSpendingGrowthMarketplace
49
Figure 7.1. The marketing-sales relationship (% of respondents)
69%
9% 9%
13%
0%
10%
20%
30%
40%
50%
60%
70%
80%
Sales and marketing
work together
on an equal level
We don't
have a
sales function
Sales is
in charge of
marketing
Sales is within
the marketing
function

49.
AnalyticsLeadershipOrganizationJobsSocial MediaPerformanceSpendingGrowthMarketplace
Product/service structure dominates
but customer groups show growth
50
Figure 7.2. Organizational structure in companies
26.5% 26.7%
30.2%
73.5% 73.3%
69.8%
0%
20%
40%
60%
80%
100%
February 2013 February 2014 February 2015
Organized by Customer Groups Organized by Product/Service Groups

50.
AnalyticsLeadershipOrganizationJobsSocial MediaPerformanceSpendingGrowthMarketplace
Service companies more likely to adopt
customer structure
51
Overall
B2B
Product
B2B
Services
B2C
Product
B2C
Services
Customer structure 30.2% 26.7% 39.3% 15.2% 38.9%
Product/service structure 69.8% 73.3% 60.7% 84.8% 61.1%
Table 7.1. Percent of companies using customer group vs. product/service structure

51.
External focus drops off as recovery
strengthens
AnalyticsLeadershipOrganizationJobsSocial MediaPerformanceSpendingGrowthMarketplace
Figure 7.3. Company outside-in approach to strategy
(7-point scale where 1 =“not at all” and 7 = “very frequently”)
Information about customers and competitors is …
51
5.2
4.9 4.8
5.0 5.1 5.04.9
4.3 4.4
4.6 4.7 4.7
0
1
2
3
4
5
6
Collected on
a regular basis
Shared vertically across
different levels
of the firm and
business units
Shared horizontally
across different
functions and
business units
Shapes the design of
firm strategies
Influences the
implementation of
firm strategies
Impacts the
evaluation of
firm strategies
February 2009 February 2015

52.
Topic 8:
Marketing Leadership

53.
AnalyticsLeadershipOrganizationJobsSocial MediaPerformanceSpendingGrowthMarketplace
Marketing leadership gains and losses
54
Table 8.1. Percentage of companies in which marketing leads activity
Weaker marketing leadership:
• Advertising
• Promotion
• Brand
• Marketing research
• Social media
• Public relations
• Market entry
• Target/Market selection
Stronger marketing leadership:
• Competitive intelligence
• Lead generation
• New products
• Innovation
• Customer service
• Stock market performance
Maintaining marketing leadership:
• Customer relationship management
• Sales
• Pricing
Activity Feb-11 Feb-15
Advertising 85% 77.1%
Positioning 79% 77.1%
Promotion 81% 77.1%
Brand 81% 74.9%
Marketing analytics* - 75.4%
Marketing research 73% 68.6%
Social media 71% 61.7%
Competitive intelligence 58% 59.4%
Public relations 65% 50.9%
Lead generation 53% 58.3%
Market entry strategies 50% 46.9%
New products 44% 45.7%
CRM 38% 38.3%
Targeting/Market selection 31% 27.4%
Sales 32% 33.1%
Pricing 30% 29.7%
Innovation 33% 36.0%
Customer service 22% 25.7%
Stock market performance 0.4% 2.3%
*Marketing analytics added in Feb-13.

54.
AnalyticsLeadershipOrganizationJobsSocial MediaPerformanceSpendingGrowthMarketplace
Marketing leaders retained for an average
of 5.3 years
Figure 8.1. Marketing leader retention
55
4.3 4.6 4.3
5.4
4.1
4.8
5.1
4.6
5.3 5.3
8.0
9.0 8.8
10.5
9.2
9.5
10.0 9.4 10.0
9.4
0
2
4
6
8
10
12
Aug-09 Aug-10 Aug-11 Feb-12 Aug-12 Feb-13 Aug-13 Feb-14 Aug-14 Feb-15
Years top marketer in current role
in the firm
Years top marketer in any role in
the firm

55.
AnalyticsLeadershipOrganizationJobsSocial MediaPerformanceSpendingGrowthMarketplace
But marketers lose reports
Figure 8.2. Number of people reporting to top marketer
56
6.0
8.6
5.6
6.9
5.5 5.1
25.4 24.6
17.5 16.1 16.3
10.9
0
5
10
15
20
25
30
Feb-12 Aug-12 Feb-13 Aug-13 Feb-14 Feb-15
Number of direct reports Number of indirect reports

56.
Pressure to prove the value of
marketing
AnalyticsLeadershipOrganizationJobsSocial MediaPerformanceSpendingGrowthMarketplace
Figure 8.3. Do you feel pressure from your
CEO or Board to prove the value
of marketing?
Figure 8.4. Is this pressure increasing,
decreasing, or about the same?
57
Yes
61%
No
39%
58%
42%
0%
0%
20%
40%
60%
80%
100%
Increasing
pressure
Same Decreasing
pressure

57.
Best Practices from Marketing Leaders:
See full interviews at www.cmosurvey.org/cmo-insights/
Senior Vice President and Chief Marketing Officer Beth Comstock discusses how GE approaches
marketing: “You have to create a platform that invites innovative ideas.” This platform involves four
capabilities 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 to
accountability, she describes the organization, processes, metrics, and talent management strategies
important to this effort.
Executive Vice President and Chief Marketing Officer Geert van Kuyck shares ideas on building the
essential skill set for CMOs and the importance of defining the CMO’s mission. He discusses the use
of the 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
its customer focus. Key steps involved harnessing internal support, generating market insight, using
customer-focused metrics, living the brand internally, and building marketing talent.
Global Marketing Officer Marc Pritchard shares views on how marketing contributes to P&G’s
performance. He talks about how P&G learns about customers and how it is relentless in its attention
to building loyal customers and strong brands in the store, on the web, and around the world.
58

58.
Topic 9:
Marketing Analytics

59.
AnalyticsLeadershipOrganizationJobsSocial MediaPerformanceSpendingGrowthMarketplace
Spending on marketing analytics expected
to increase 83% in three years
Figure 9.1. Percent of marketing budget spent on marketing analytics
60
6.4%
11.7%
0%
3%
6%
9%
12%
15%
Current Levels In Next 3 Years

60.
AnalyticsLeadershipOrganizationJobsSocial MediaPerformanceSpendingGrowthMarketplace
Spending on marketing analytics by
firm and industry characteristics
Current
In Next
3 years
<$25M 5.9% 12.4%
$26-99M 5.5% 9.0%
$100-499M 6.3% 11.2%
$500-999M 6.4% 11.2%
$1-9.9B 7.6% 12.2%
$10+B 9.0% 13.9%
Table 9.1c. Firm size differences
Table 9.1b. Firm internet sales differences
Current
In Next
3 years
0% 5.6% 10.9%
1-10% 6.3% 11.0%
>10% 7.9% 13.6%
Table 9.1a. Firm sector differences
Current
In Next
3 years
B2B Product 7.0% 11.8%
B2B Services 5.6% 12.1%
B2C Product 6.8% 11.0%
B2C Services 6.6% 11.0%
61

61.
AnalyticsLeadershipOrganizationJobsSocial MediaPerformanceSpendingGrowthMarketplace
Less than a third of projects use marketing analytics; no
improvement despite spending increases
Figure 9.2. Percentage of projects using available or requested marketing analytics*
62
*This question was asked in Feb-12 for the first time.
37.0%
35.0%
30.4%
29.0%
32.5%
32.3%
29.0%
10%
20%
30%
40%
50%
Feb-12 Aug-12 Feb-13 Aug-13 Feb-14 Aug-14 Feb-15
Percentage using marketing analytics
B2B Product 24.9%
B2B Services 23.3%
B2C Product 46.9%
B2C Services 30.6%

62.
AnalyticsLeadershipOrganizationJobsSocial MediaPerformanceSpendingGrowthMarketplace
Contribution of marketing analytics
remains low and is not improving
Figure 9.3. To what degree does the use of marketing analytics contribute to your company's
performance? 1 = Not at all and 7 = Very highly
63
3.9
3.7
3.5
3.7 3.7
3.2
2
3
4
5
6
Aug-12 Feb-13 Aug-13 Feb-14 Aug-14 Feb-15
Mean Contribution Level
*This question was asked in Aug-12 for the first time.

63.
Marketing analytics contributions by
sector and firm differences
64
AnalyticsLeadershipOrganizationJobsSocial MediaPerformanceSpendingGrowthMarketplace
To what degree does the use of marketing analytics contribute to your company's performance?
(1=Not At All, 7=Very Highly)
Table 9.2a. Industry sector differences
Sector Mean (SD)
Banking/Finance/Insurance 2.7 (1.5)
Communications/Media 3.6 (2.3)
Consumer Packaged Goods 4.5 (2.0)
Energy 2.7 (2.1)
Healthcare/Pharma. 2.9 (1.7)
Manufacturing 2.7 (1.4)
Mining/Construction 3.3 (2.5)
Retail/Wholesale 3.5 (2.0)
Service/Consulting 2.6 (1.6)
Tech Software Biotech 3.7 (2.1)
Transportation 3.7 (1.4)
Sector Mean (SD)
B2B Product 2.9 (1.7)
B2B Services 2.8 (1.7)
B2C Product 4.2 (1.8)
B2C Services 3.5 (2.1)
Table 9.2b. Economic sector differences
Table 9.2c. Firm internet sales differences
Mean (SD)
0% of sales 2.7 (1.7)
1-10% of sales 3.2 (1.6)
>10% of sales 4.0 (2.0)

64.
Majority of companies do not evaluate
marketing analytics
65
Figure 9.4. Does your company formally evaluate the quality of marketing analytics?
AnalyticsLeadershipOrganizationJobsSocial MediaPerformanceSpendingGrowthMarketplace
65
Yes
30.4%
No
69.6%
B2B Product 27.7%
B2B Services 32.4%
B2C Product 40.5%
B2C Services 16.7%

65.
AnalyticsLeadershipOrganizationJobsSocial MediaPerformanceSpendingGrowthMarketplace
Companies lack quantitative metrics to
demonstrate impact of marketing spending
Figure 9.5. Metrics for demonstrating impact of marketing spending on business
66
42%
39%
19%
34%
48%
18%
0%
10%
20%
30%
40%
50%
60%
Proved the impact
quantitatively
Good qualitative sense
of the impact, not quantitative
Haven't been able to
show the impact yet
Short-Term Impact Long-Term Impact

66.
AnalyticsLeadershipOrganizationJobsSocial MediaPerformanceSpendingGrowthMarketplace
Improvement in quantitative metrics
over time
67
36%
42%
29%
34%
0%
20%
40%
60%
80%
100%
February 2014 February 2015
Prove the Short-term Impact Quantitatively Prove the Long-term Impact Quantitatively

67.
AnalyticsLeadershipOrganizationJobsSocial MediaPerformanceSpendingGrowthMarketplace
How companies use marketing
analytics to drive decision making
68
Table 9.3. Percentage of companies using marketing analytics*
Greater use of marketing analytics:
• Customer acquisition
• Customer retention
• Social media
• Product line/assortment optimization
• Multichannel marketing
Weaker use of marketing analytics:
• Promotion strategy
• Marketing mix
• Recommendation engine
Activity Aug-13 Feb-15
Customer acquisition 31.7% 37.8%
Customer retention 27.6% 30.2%
Social media 21.0% 27.4%
Product line/assortment optimization 18.8% 26.4%
Branding 22.0% 26.0%
Pricing strategy 23.7% 23.3%
Promotion strategy 23.7% 21.9%
Marketing mix 21.7% 19.8%
Multichannel marketing 13.4% 14.6%
Recommendation engine 7.3% 5.6%
* Question has been asked two times: Aug-13 and Feb-15

68.
Topic 10:
The CMO Survey Award for
Marketing Excellence

69.
The 2015 CMO Survey Award for
Marketing Excellence – Overall Winner
70
Participants 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.

70.
Participants were asked to nominate a company in response to the question:
Which company in your industry sets the standard for excellence in marketing?
The 2015 CMO Survey Award for Marketing
Excellence – Industry Winners
71

71.
Next survey: July 2015
Participate: Sign up here
Media: Press releases and coverage
Feedback: Send comments to moorman@duke.edu
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72