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The CMO Survey Highlights and Insights February 2015

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The CMO Survey collects and disseminates 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 in society.

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The CMO Survey Highlights and Insights February 2015

  1. 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. 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. 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. 4. Topic 1: Marketplace Dynamics
  5. 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. 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. 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. 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. 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. 10. Topic 2: Firm Growth Strategies
  11. 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. 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. 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. 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. 15. Topic 3: Marketing Spending
  16. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 28. Topic 4: Financial and Marketing Performance
  29. 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. 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. 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. 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. 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. 34. Topic 5: Marketing and Social Media
  35. 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. 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. 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. 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. 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. 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. 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. 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. 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. 44. Topic 6: Marketing Jobs
  45. 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. 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. 47. Topic 7: Marketing Organization
  48. 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. 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. 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. 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. 52. Topic 8: Marketing Leadership
  53. 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. 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. 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. 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. 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. 58. Topic 9: Marketing Analytics
  59. 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. 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. 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. 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. 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. 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. 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. 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. 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. 68. Topic 10: The CMO Survey Award for Marketing Excellence
  69. 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. 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. 71. Next survey: July 2015 Participate: Sign up here Media: Press releases and coverage Feedback: Send comments to moorman@duke.edu Preview 72
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The CMO Survey collects and disseminates 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 in society.

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