Highlights and Insights                    August 2011www.cmosurvey.org                  © Christine Moorman
About The CMO Survey         Mission             - The CMO Survey collects and disseminates the opinions of top marketers ...
Survey Methodology         • Survey Sample             - 3662 Top Marketers at Fortune 1000, Forbes Top 200, CMO Club comp...
Overview of Results     Topic 1: Marketplace Dynamics: Customers, Competitors, Channel Partners   5-10     Topic 2: Firm G...
Topic 1:Marketplace Dynamics                       55
Marketer optimism for overall U.S. economyreaches lowest point in two years  Marketplace             Growth              S...
Marketer optimism for own firms weakens  less than for overall economy  Marketplace            Growth          Spending   ...
Customer prices expected to increase; all   other customer metrics expected to drop in   the next 12 months  Marketplace  ...
Customers to continue quality focus; more  focus on price and less on innovation  Marketplace             Growth       Spe...
Channel partner metrics to falter  in next 12 months  Marketplace         Growth         Spending            Performance  ...
Topic 2:Firm Growth Strategies                         11                          11
Growth strategies shift to market development  and product/service development  Marketplace         Growth           Spend...
Growth strategies vary by sector  Marketplace         Growth         Spending          Performance        Social Media   J...
Organic growth remains dominant growth  strategy; partnerships rebound  Marketplace         Growth            Spending    ...
International sales to increase in     next 12 months  Marketplace          Growth      Spending        Performance     So...
How sales revenue in international     markets is changing  Marketplace         Growth    Spending      Performance       ...
More firms go to market directly;     Internet sales as a % of total sales increase  Marketplace         Growth       Spen...
Topic 3:Marketing Spending                     18                      18
Growth in marketing budgets remains high;   B2C-Product companies +20% in next year  Marketplace           Growth         ...
Marketing spending shifts categories  Marketplace          Growth     Spending            Performance       Social Media  ...
Investments in building marketing  knowledge expected to drop off  Marketplace         Growth           Spending     Perfo...
Marketing spending increases to account   for 10% of overall firm budgets  Marketplace         Growth     Spending        ...
Size of marketing budget varies by   company sector, sales, and internet sales  Marketplace         Growth   Spending     ...
Topic 4:Financial and MarketingPerformance                          24                           24
Firm performance metrics hold; ROI  (not revenues) may be reason  Marketplace         Growth        Spending           Per...
Firm performance goals stay optimistic  Marketplace         Growth         Spending    Performance   Social Media   Jobs  ...
B2B-Product companies top most  performance metrics  Marketplace           Growth         Spending     Performance   Socia...
Topic 5:Marketing and Social Media                             28                              28                         ...
Social media spending growth continues to  soar: 17.5% increase expected in five years  Marketplace          Growth     Sp...
Sector differences in social media spending;   B2C-product companies rebound to highest levels  Marketplace         Growth...
Social media not well integrated with     firm strategy  Marketplace         Growth     Spending           Performance    ...
Social media groups are generally small,  internal, and from the marketing function  Marketplace         Growth   Spending...
Social media metrics used by firms  Marketplace         Growth        Spending     Performance   Social Media   Jobs      ...
Topic 6: Marketing Jobs                          34                           34
Marketing employment prospects  continue to rise  Marketplace                                                             ...
Opportunity for marketing jobs varies by   economic sector, sales, and internet sales  Marketplace         Growth    Spend...
Outsourcing of marketing expected to   double in next year  Marketplace         Growth         Spending     Performance   ...
Topic 7:Marketing Organization                         38                          38
Where marketing is located in firms  Marketplace         Growth         Spending           Performance              Social...
Marketing and sales share customers in   most companies  Marketplace         Growth           Spending          Performanc...
External focus improves during downturn  Marketplace             Growth             Spending                Performance   ...
Topic 8:Marketing Leadership                       42                        42
Marketing leaders retained through  economic crisis  Marketplace             Growth               Spending                ...
Marketer influence in firms holds during  economic recovery  Marketplace         Growth         Spending     Performance  ...
What marketing leadsMarketplace      Growth         Spending            Performance     Social Media       Jobs           ...
Candid conversations with top marketing leaders about best                               practice and tools for success  M...
Preview and Review         Next survey             - The CMO Survey will be administered again in February 2012.          ...
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The cmo survey_highlights_and_insights-aug-2011_final

  1. 1. Highlights and Insights August 2011www.cmosurvey.org © Christine Moorman
  2. 2. About The CMO Survey Mission - 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 society. Survey Operation - Founded in August 2008, The CMO Survey is administered twice a year via an Internet survey. Questions repeat over time so trends can be discerned. Special topics are introduced for each survey - The most recent survey was the seventh time the survey was conducted. Sponsoring Organizations Founder and Director - Professor Christine Moorman, T. Austin Finch, Sr. Professor of Business Administration© Christine Moorman 2
  3. 3. Survey Methodology • Survey Sample - 3662 Top Marketers at Fortune 1000, Forbes Top 200, CMO Club companies, and Top Marketers who are AMA Members or Duke University Alumni and Friends - 249 responded for a 6.8% response rate • Survey Administration - Email contact with four follow-up reminders - Survey in field from August 1-23, 2011 - 82.8%% 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© Christine Moorman 3
  4. 4. Overview of Results Topic 1: Marketplace Dynamics: Customers, Competitors, Channel Partners 5-10 Topic 2: Firm Growth Strategies 11-17 Topic 3: Marketing Spending 18-23 Topic 4: Financial and Marketing Performance 24-27 Topic 5: Marketing and Social Media 28-33 Topic 6: Marketing Jobs 34-37 Topic 7: Marketing Organization 38-41 Topic 8: Marketing Leadership & CMO Insights Reports 42-46 Preview and Review 47© Christine Moorman 4
  5. 5. Topic 1:Marketplace Dynamics 55
  6. 6. Marketer optimism for overall U.S. economyreaches lowest point in two years Marketplace Growth Spending Performance Social Media Jobs Organization Leadership Figure 1.1. How optimistic are you about the overall U.S. Figure 1.2. Are you more or less optimistic about the economy on a 0-100 scale with 0 being the least overall U.S. economy compared to last quarter? optimistic and 100 the most optimistic? Marketer Optimism about Overall Economy More Optimistic No Change Less Optimistic 80 100 68.8 70 62.1 90 59.0 Percentage of Respondents 60 80 50 57.4 70 50.7 38.9 63.30 40 56.45 57.78 32.0 28.9 27.7 60 55.60 26.0 25.5 52.20 30 35.2 47.69 17.3 50 20 26.0 14.9 40 10 15.0 5.7 February August February August February August 9.0 0 2009 2009 2010 2010 2011 2011 February August February August February August 2009 2009 2010 2010 2011 2011© Christine Moorman 6
  7. 7. Marketer optimism for own firms weakens less than for overall economy Marketplace Growth Spending Performance Social Media Jobs Organization Leadership Figure 1.3. How optimistic are you on a 0-100 scale with 0 Figure 1.4. Are you more or less optimistic about your own being the least optimistic and 100 the most optimistic? company’s revenue prospects compared to last quarter? Overall Economy Own Company Revenue Growth Less optimistic No change More optimistic 100 80 68.9 67.5 70 63.9 90 Percentage of Respondents 60 51.4 80 59.0 47.2 73.20 50 66.44 66.70 67.80 70 40 25.7 59.64 25.1 22.8 30 60 52.92 29.5 19.1 18.7 63.30 20 56.45 57.78 23.2 22.9 50 55.60 17.5 52.20 10 15.8 11.9 47.69 9.7 40 0 February August February August February August February August February August February August 2009 2009 2010 2010 2011 2011 2009 2009 2010 2010 2011 2011© Christine Moorman 7
  8. 8. Customer prices expected to increase; all other customer metrics expected to drop in the next 12 months Marketplace Growth Spending Performance Social Media Jobs Organization Leadership Figure 1.5. Customer Metrics – Customer Outcomes Expected in the Next 12 Months 80 74 70 66 62 59 60 56 54 53 52 Percentage of Respondents 48 Increased customer purchase volume 50 47 52 50 49 44 41 45 Increased customer price per unit 40 43 39 39 31 30 35 Customer will buy more related products 26 25 33 and services from my firm 20 17 My firms ability to retain current customers has increased 10 Increased entry of new customers into the market 0 August 2009 February 2010 August 2010 February 2011 August 2011© Christine Moorman 8
  9. 9. Customers to continue quality focus; more focus on price and less on innovation Marketplace Growth Spending Performance Social Media Jobs Organization Excellence Table 1.1. Customer Priorities in Next 12 Months Shifting Customer Priorities Feb-11 Aug-11 % Change • More customer focus on price (+9.7%) Low Price • Less customer focus on innovation (-6.8%) 48.3% 53.0% +9.7% Quality 62.4% 65.1% +4.3% Innovation 34.0% 31.7% -6.8% Service 71.2% 69.9% -1.8% Trust 60.7% 59.0% -2.8% Brand 25.5% 25.7% +0.8%© Christine Moorman 9
  10. 10. Channel partner metrics to falter in next 12 months Marketplace Growth Spending Performance Social Media Jobs Organization Excellence Figure 1.6. Channel Revenue Metrics Increased partner purchase volume Increased partner purchase of related products and services from my firm Increased partner price per unit 60 54 52 50 47 42 40 40 36 36 33 30 Percentage of 30 25 Respondents 24 24 19 19 18 20 14 10 10 0 February August February August February August 2009 2009 2010 2010 2011 2011© Christine Moorman 10
  11. 11. Topic 2:Firm Growth Strategies 11 11
  12. 12. Growth strategies shift to market development and product/service development Marketplace Growth Spending Performance Social Media Jobs Organization Leadership Types of Growth Strategies Table 2.1. Growth Spending in Next 12 Months* Existing New Products/ Products/ Strategy Feb-11 Aug-11 Services Services Market Market Product/Service Penetration 49% 46% Existing Strategy Penetration Development Markets Strategy Strategy Market Development 17% 20% Strategy Market Product/Service New Diversification Markets Development Development 22% 25% Strategy Strategy Strategy Diversification Strategy 12% 10% * % of spending across growth strategies© Christine Moorman 12
  13. 13. Growth strategies vary by sector Marketplace Growth Spending Performance Social Media Jobs Organization Excellence Table 2.2. Sector Growth Spending in Next 12 Months* B2B B2B B2C B2C Strategy Products Services Products Services Market Penetration 44.3% 44.0% 45.3% 51.4% Strategy Market Development 20.6% 20.9% 16.9% 18.5% Strategy Product/Service Development 25.9% 24.3% 24.8% 22.7% Strategy Diversification Strategy 9.1% 10.8% 13.0% 7.4% * % of spending across growth strategies© Christine Moorman 13
  14. 14. Organic growth remains dominant growth strategy; partnerships rebound Marketplace Growth Spending Performance Social Media Jobs Organization Leadership Table 2.3. How Firms Will Grow in the Next 12 Months* Table 2.4. Sector Use of Organic Growth and Acquisitions* Strategy Organic Growth via Feb-10 Aug-10 Feb-11 Aug-11 Growth Acquisition Growth from firm B2B Product 68.3% 10.4% internally 69.5% 69.5% 72.0% 70.2% (organic growth) B2B-Service 67.1% 15.3% Growth B2C-Product 78.9% 4.8% from 10.4% 10.8% 10.6% 11.4% acquisitions B2C-Service 70.7% 10.6% Growth from 14.7% 13.9% 11.8% 13.5% partnerships Growth from 5.4% 5.8% 5.6% 5.1% licensing * Percentage of spending across growth strategies© Christine Moorman 14
  15. 15. International sales to increase in next 12 months Marketplace Growth Spending Performance Social Media Jobs Organization Leadership Figure 2.1. Percentage of Company Sales Expected to be International in Next 12 Months 40.0% 35.0% 30.0% 25.0% 24.7% 20.0% 18.7% 15.0% 10.0% 5.0% 0.0% August August 2010 2011© Christine Moorman 15
  16. 16. How sales revenue in international markets is changing Marketplace Growth Spending Performance Social Media Jobs Organization Leadership Table 2.5. International Markets in Sales Revenue in the Next 12 Months % Change Feb-11 Aug-11 Markets in which sales are increasing: Feb-11 to Aug-11 Western Europe 33.2% 36.3% +9.3% • Western Europe • China Canada 28.6% 25.1% -12.2% • Eastern Europe • India China 16.4% 19.6% +19.5% Mexico 8.2% 6.1% -25.6% Markets in which sales are decreasing: • Canada Japan 8.2% 5.6% -31.7% • Mexico Brazil 7.1% 7.3% +2.8% • Middle East Middle East 6.1% 2.2% -63.9% Small changes difficult to interpret Eastern Europe 5.7% 6.7% +17.5% • Korea • Russia India 4.3% 6.1% +41.9% • Brazil Korea 2.1% 1.7% -19.1% Russia 0.7% 0.6% -14.3%© Christine Moorman 16
  17. 17. More firms go to market directly; Internet sales as a % of total sales increase Marketplace Growth Spending Performance Social Media Jobs Organization Leadership Figure 2.2. Percentage of Firms Disintermediating Figure 2.3. Percentage of Firm Sales through Internet 16.0% 55.0% 50.0% 14.0% 45.0% 12.0% 11.2% 40.0% 10.0% 35.0% 8.0% 8.4% 30.0% 32.9% 6.0% 25.0% 4.0% 20.0% 2.0% 21.6% 15.0% 0.0% February August February August 2011 2011 2011 2011© Christine Moorman 17
  18. 18. Topic 3:Marketing Spending 18 18
  19. 19. Growth in marketing budgets remains high; B2C-Product companies +20% in next year Marketplace Growth Spending Performance Social Media Jobs Organization Leadership Figure 3.1. % Change in Marketing Budgets in Next 12 Months Table 3.1. % Change in Marketing Budgets by Firm Sales in Internet Change in Marketing Spending 25.0% Aug-11 20.0% 0% Internet Sales 6.5% 15.0% 1-10% Internet Sales 8.6% 9.2% 9.1% 10.0% 6.7% >10% Internet Sales 21.8% 5.9% 5.0% 0.5% 1.1% 0.0% February August February August February August 2009 2009 2010 2010 2011 2011© Christine Moorman 19
  20. 20. Marketing spending shifts categories Marketplace Growth Spending Performance Social Media Jobs Organization Leadership Table 3.2. % Change in Marketing Spending in Next 12 Months Notable shifts Feb-10 Aug-10 Feb-11 Aug-11 • Rate of spending on traditional advertising continues to decrease Traditional advertising -2.5% -0.6% 2.4% 1.3% spending • Rate of spending on new products and new services increases Internet marketing 12.2% 13.6% 12.1% 11.2% spending • Rate of spending on marketing assets (brand and customer relationships) decreases New product 9.1% 9.1% 8.2% 10.4% introductions New service 3.9% 7.2% 5.1% 6.6% introductions Customer relationship 9.9% 8.3% 9.1% 6.5% management Brand Building 6.9% 8.3% 9.1% 5.7%© Christine Moorman 20
  21. 21. Investments in building marketing knowledge expected to drop off Marketplace Growth Spending Performance Social Media Jobs Organization Leadership Table 3.3. Changes in Firm Spending on Marketing Knowledge in Next 12 Months Feb-09 Aug-09 Feb-10 Aug-10 Feb-11 Aug-11 Marketing research and intelligence 1.8% 3.2% 7.3% 5.6% 8.0% 6.2% Marketing consulting services -4.5% 1.3% 2.9% 4.6% 4.7% 3.5% Developing knowledge about how to do marketing 3.4% 3.0% 6.4% 6.6% 8.8% 6.4% Integrating what we know about marketing 5.1% 4.1% 7.4% 8.9% 8.1% 6.0% Marketing training 1.2% 0.7% 4.3% 3.6% 5.6% 3.1%© Christine Moorman 21
  22. 22. Marketing spending increases to account for 10% of overall firm budgets Marketplace Growth Spending Performance Social Media Jobs Organization Leadership Figure 3.2. How Marketing Budgets Are Changing Over Time 16% 14% 12% Marketing Budget 10.0% as a Percent of 10% Overall Budget 8.1% 8% 6% 4% 2% February 2011 August 2011© Christine Moorman 22
  23. 23. Size of marketing budget varies by company sector, sales, and internet sales Marketplace Growth Spending Performance Social Media Jobs Organization Leadership Table 3.4. Marketing Percentage of Firm Budget by Economic Sector B2B B2B B2C B2C Product Services Product Services August 2011 7.0% 11.1% 11.6% 12.1% Table 3.5. Marketing Percentage of Firm Budget by Company Sales Revenue <$25 $26-99 $100-499 $500-999 $1-9.9 >$10 Million Million Million Million Billion Billion August 2011 11.3% 14.6% 10% 7.8% 3.1% 6.6% Table 3.6. Marketing Percentage of Firm Budget by Company Internet Sales 0% 1-10% >10% Internet Sales Internet Sales Internet Sales August 2011 8.7% 7.9% 16.8%© Christine Moorman 23
  24. 24. Topic 4:Financial and MarketingPerformance 24 24
  25. 25. Firm performance metrics hold; ROI (not revenues) may be reason Marketplace Growth Spending Performance Social Media Jobs Organization Leadership Figure 4.1. Firm Performance in Prior 12 Months Firm sales Firm profits Marketing ROI 4.5% 4.0% 4.0% 3.8% 3.5% 3.4% 3.0% 3.4% 3.0% Firm Performance 2.5% 2.2% 2.7% 2.2% on Metrics 2.0% 1.5% 1.8% 1.0% 0.5% 0.0% August February August 2010 2010 2011© Christine Moorman 25
  26. 26. Firm performance goals stay optimistic Marketplace Growth Spending Performance Social Media Jobs Organization Leadership Table 4.1. Actual Performance Percentage Change and Goals Actual firm Actual firm Actual firm Goal in the performance performance performance next 12 months Aug-2009 Aug-2010 Aug-2011 Firm sales* -0.6% 2.2% 3.8% 4.9% Market share 2.2% 2.0% 4.0% 6.8% Marketing return on investment 1.9% 2.2% 3.0% 5.3% Firm profits 0.5% 1.8% 3.4% 6.0% Customer acquisition 2.6% 2.6% 3.2% 6.1% Customer retention 1.4% 1.6% 1.7% 4.2% Brand value 3.2% 2.9% 3.5% 5.8% * Question not asked in February 2009© Christine Moorman 26
  27. 27. B2B-Product companies top most performance metrics Marketplace Growth Spending Performance Social Media Jobs Organization Leadership Table 4.2. Sector Performance Metrics for Prior 12 Months B2B-Product B2B-Services B2C-Product B2C-Services Firm sales 4.1% 4.0% 4.0% 2.9% Market share 2.6% 2.3% 2.4% 2.3% Marketing return on investment 3.4% 2.3% 2.8% 3.9% Firm profits 4.4% 3.4% 3.5% 1.9% Customer acquisition 3.9% 2.8% 3.3% 2.4% Customer retention 0.9% 2.6% 2.6% 0.4% Brand value 3.4% 3.7% 2.8% 4.4%© Christine Moorman 27
  28. 28. Topic 5:Marketing and Social Media 28 28 28
  29. 29. Social media spending growth continues to soar: 17.5% increase expected in five years Marketplace Growth Spending Performance Social Media Jobs Organization Leadership Figure 5.1. Social Media Spending as a Percentage of Marketing Budgets Over Time 25% 20% 17.5% 15% Percentage of Total Marketing 10.1% Budget (%) 10% 7.1% 5% 0% Current Levels Over Next 12 Months In Next 5 Years© Christine Moorman 29
  30. 30. Sector differences in social media spending; B2C-product companies rebound to highest levels Marketplace Growth Spending Performance Social Media Jobs Organization Leadership Table 5.1. Sector Differences in % Change in Social Media Spending August 2011 B2B - Product 4.2% B2B - Services 8.6% Current Social 10.5% B2C - Product Media Spending B2C - Services 5.9% Overall 7.1% B2B - Product 7.0% B2B - Services 11.5% Social Media Spending in the next B2C - Product 13.6% 12 months B2C - Services 9.4% Overall 10.1% B2B - Product 13.4% B2B - Services 18.3% Social Media Spending in the next B2C - Product 24.0% 5 years B2C - Services 17.3% Overall 17.5%© Christine Moorman 30
  31. 31. Social media not well integrated with firm strategy Marketplace Growth Spending Performance Social Media Jobs Organization Leadership Research question: Figure 5.2. How Effectively Social Media is Integrated with Strategy How effectively is social media integrated with your Overall Strategy Marketing Strategy firm’s strategy and marketing strategy? 7-point 25.0% 22.3% scale (1=not integrated and 7=very integrated) 19.2% Percent of Respondents (%) 20.0% 18.3% Overall results: 16.9% 17.1% 16.6% 12.8% 14.0% 15.0% • Integration with Firm Strategy (Mean = 3.4; 12.0% 12.8% 12.8% Standard Deviation = 1.9) 11.6% 10.0% 9.1% • Integration with Firm Marketing Strategy (Mean = 4.6% 4.0; Standard Deviation = 2.0) 5.0% 0.0% 1 2 3 4 5 6 7 Not at all Very Integrated Integrated© Christine Moorman 31
  32. 32. Social media groups are generally small, internal, and from the marketing function Marketplace Growth Spending Performance Social Media Jobs Organization Leadership • Internal social media groups average - 2 people • Percentage of social media employees within marketing - 59.1% from marketing • Number of people from other companies working on social media average - 1.9 people© Christine Moorman 32
  33. 33. Social media metrics used by firms Marketplace Growth Spending Performance Social Media Jobs Organization Leadership Table 5.2. Social Media Metrics Used by Firms Notable shifts Metrics August 2010 August 2011 Hits/visits/page views Metrics shift toward web-based customer 47.6% 52.2% behaviors: Repeat visits 34.7% 34.9% • Page visits, followers, buzz, text Number of followers or friends 24% 34.1% analysis, online ratings, and abandoned shopping carts Conversion rates (from visitor to buyer) 25.4% 29.3% Buzz indicators (web mentions) 15.7% 20.5% Financial metrics decline: Customer acquisition costs • Sales levels, revenue per 11.8% 14.1% customer, profits per customer Sales levels 17.9% 13.3% Other text analysis ratings 6.6% 12.0% No significant change: • Repeat visits Online product/service ratings 8.2% 10.4% • Net promoter score Revenue per customer 17.2% 9.6% • Customer retention costs Net promoter score 7.5% 6.8% Customer retention costs 7.7% 6.4% Abandoned shopping carts 3.8% 4.8% Profits per customer 9.4% 4.8%© Christine Moorman 33
  34. 34. Topic 6: Marketing Jobs 34 34
  35. 35. Marketing employment prospects continue to rise Marketplace Growth Spending Performance Social Media Jobs Organization Leadership Figure 6.1. Percentage Change in Marketing Hires Planned Over Next 12 months 25.0% Percentage Increase in Marketing Hires in Next 12 Months 20.0% 15.0% 12.9% 10.0% 7.2% 6.2% 5.0% 4.0% 0.0% February 2010 August 2010 February 2011 August 2011© Christine Moorman 35
  36. 36. Opportunity for marketing jobs varies by economic sector, sales, and internet sales Marketplace Growth Spending Performance Social Media Jobs Organization Excellence Table 6.1. Percentage Increase in Marketing Hires by Economic Sector B2B B2B B2C B2C Largest percentage change in Product Services Product Services marketing hires August 2010 4.8% 3.8% 4.2% 1.5% February 2011 8.6% 4.9% 6.7% 3.4% 11.6% 5.6% 0.2% 8.3% • B2B Product companies August 2011 • Smallest companies Table 6.2. Percentage Increase in Marketing Hires by Company Sales Revenue • Companies weak on <$25 $26-99 $100-499 $500-999 $1-9.9 internet marketing >$10 Billion Million Million Million Million Billion August 2010 5.4% 2.4% 2.2% 0.8% 2.9% 4.3% February 2011 4.8% 9.3% 5.9% 4.5% 3.2% 3.1% August 2011 14.8% 3.1% 4.6% 4.4% 1.4% 0.3% Table 6.3. Percentage Increase in Marketing Hires by Company Internet Sales 0% 1-10% >10% Internet Sales Internet Sales Internet Sales August 2010 3.0% 2.9% 8.2% February 2011 5.2% 7.0% 5.9% August 2011 10.4% 3.1% 4.9%© Christine Moorman 36
  37. 37. Outsourcing of marketing expected to double in next year Marketplace Growth Spending Performance Social Media Jobs Organization Excellence Figure 6.2. Percentage of Company Outsourcing of Marketing Expected in Next 12 Months 25% 20% 15% 9.3% 10% 4.3% 4.5% 5% 0.0% 0% February August February August 2010 2010 2011 2011© Christine Moorman 37
  38. 38. Topic 7:Marketing Organization 38 38
  39. 39. Where marketing is located in firms Marketplace Growth Spending Performance Social Media Jobs Organization Leadership Figure 7.1. Location of Marketing in Firm – Check all that apply 90% 84.3% 80% 70% 60% 50% Percentage of Firms (%) 40% 26.5% 30% 16.9% 20% 10.8% 10% 0% Corporate Business Brand/Product Field Offices Organization Level© Christine Moorman 39
  40. 40. Marketing and sales share customers in most companies Marketplace Growth Spending Performance Social Media Jobs Organization Leadership Figure 7.2. The Marketing-Sales Relationship August 2009 August 2010 August 2011 80.0% 74.0% 71.1% 69.7% 70.0% 60.0% 50.0% Percentage of 40.0% Respondents (%) 30.0% 20.0% 13.1% 10.9% 8.2% 8.3% 8.8% 7.3% 10.0% 0.0% Sales and marketing work on an Marketing is within the sales function Sales is within the marketing function equal basis© Christine Moorman 40
  41. 41. External focus improves during downturn Marketplace Growth Spending Performance Social Media Jobs Organization Leadership Figure 7.3. Firm Outside-In Activities: Information about customers and competitors … * February 2011 August 2011 5.4 5.3 5.2 5.1 5 5 5 4.9 4.9 Mean 4.8 4.8 4.8 4.8 Value* 4.7 4.6 4.6 4.6 4.4 4.2 Is collected on a regular Is shared vertically Is shared horizontally Shapes the design of Influences the Impacts the evaluation basis across different levels of across different firm strategies implementation of firm of firm strategies the firm and business functions and business strategies units units *7-point scale where 1 is “not at all” and 7 is “very frequently”© Christine Moorman 41
  42. 42. Topic 8:Marketing Leadership 42 42
  43. 43. Marketing leaders retained through economic crisis Marketplace Growth Spending Performance Social Media Jobs Organization Leadership Figure 8.1. Marketing Leader Retention  Top marketers continue to beat oft-cited 231 and August 2009 August 2010 August 2011 281 month survival averages. 10 9.0 8.8 9  Given length of time in firms (~9 years), 8.0 8 marketing leaders appear to be appointed from within. 7 6 Years 5 4.6 4.3 4.3 4 3 2 1 0 Top marketer time in current role in the firm Top marketer time in any role in the firm 1. http://content.spencerstuart.com/sswebsite/pdf/lib/CMO_brochureU1.pdf 2. http://www.btobonline.com/apps/pbcs.dll/article?AID=/20090130/FREE/901309991/1078© Christine Moorman 43
  44. 44. Marketer influence in firms holds during economic recovery Marketplace Growth Spending Performance Social Media Jobs Organization Leadership Figure 8.2. Number of Direct Reports to Top Marketer 8.0 7.5 7.3 7.2 7.0 6.5 Number of 6.0 Reports 5.5 5.0 4.6 4.5 4.0 August 2009 August 2010 August 2011© Christine Moorman 44
  45. 45. What marketing leadsMarketplace Growth Spending Performance Social Media Jobs Organization Leadership • Stronger leadership on social media, brand, Table 8.1 What Marketing and marketing research Does in Companies Percentage of Companies Using Marketing for Activity • Less leadership on other strategic activities Activity Aug-10 Aug-11 • Competitive intelligence Positioning 78.6% 78.0% • Market entry Promotion 77.1% 79.3% • New products Brand 76.8% 81.1% • CRM Marketing research 72.3% 78.0% • Sales Social media 69.6% 75.6% • Innovation Competitive intelligence 62.7% 56.1% • Targeting Public relations 58.1% 58.5% Lead generation 57.8% 58.5% • Maintaining leadership on other traditional Market entry strategies 57.2% 51.2% marketing areas: New products 51.2% 49.4% • Positioning Customer relationship management 44.3% 39.0% • Promotion Targeting/Market selection 41.0% 34.1% • Public relations Sales 37.0% 33.5% • Lead generation Pricing 35.8% 34.8% • Pricing Innovation 33.4% 29.9% • Customer service Customer service 25.0% 23.8% Stock market performance 1.2% 0.0% • No leadership on managing stock market performance 45
  46. 46. Candid conversations with top marketing leaders about best practice and tools for success Marketplace Growth Spending Performance Social Media Jobs Organization Leadership Completed CMO Insights – see http://www.cmosurvey.org/cmo-insights/ Marc Pritchard Stephen Quinn Geert van Kuyck CMO, Procter & Gamble CMO, Walmart CMO, Royal Philips Electronics Listen – August, 2009 Read – February, 2010 Watch – August, 2010 Planned CMO Insights: • Kim Feil, CMO Walgreens (Fall, 2011) • Beth Comstock, CMO General Electric (Spring, 2012)© Christine Moorman 46
  47. 47. Preview and Review Next survey - The CMO Survey will be administered again in February 2012. - A special topic section examining “Marketing Analytics” will be included. To get involved - If you are not a current participant, sign up at http://www.cmosurvey.org/participate/ Media - Media follow ups related to this data will be posted to http://www.cmosurvey.org/category/news/ Feedback - Send your thoughts to moorman@duke.edu© Christine Moorman 47

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