Highlights and Insights                    August 2012www.cmosurvey.org                 © Christine Moorman
About The CMO Survey         Mission             - The CMO Survey collects and disseminates the opinions of top marketers ...
Survey Methodology         Survey Sample             - 4674 Top U.S. Marketers at Fortune 1000, Forbes Top 200, and Top Ma...
Overview of Results      Topic 1: Marketplace Dynamics                  5-12      Topic 2: Firm Growth Strategies         ...
Topic 1:Marketplace Dynamics                       55
Marketer optimism for U.S. economy slumpsagain; B2B sectors show greatest pessimism  Marketplace          Growth          ...
Uncertainty abounds:Optimists decrease and Pessimists increase  Marketplace         Growth            Spending            ...
Marketer optimism for own companies  exceeds expectations for overall economy  Marketplace         Growth     Spending    ...
Customer metrics forecast bleak:   Marketers expect decreases in purchase volume, likelihood of buying   related offerings...
Customer priorities shift toward low price  Marketplace         Growth             Spending    Performance        Social M...
Channel partner metrics to soften  in next 12 months  Marketplace         Growth               Spending      Performance  ...
Competitor metrics show increased intensity:  More competitors, more rivalry, more innovation  Marketplace         Growth ...
Topic 2:Firm Growth Strategies                         13                          13
Growth strategies expected to take on more risk in next year  Marketplace         Growth         Spending             Perf...
Growth strategies vary by sector  Marketplace         Growth      Spending         Performance     Social Media   Jobs    ...
Growth from acquisitions & licensing expected  to increase; sector differences significant  Marketplace          Growth   ...
Canada and China leading international  growth markets  Marketplace          Growth           Spending     Performance    ...
China revenue growth by sector:  B2C companies sales increase by over 100%  Marketplace         Growth   Spending      Per...
Top international markets continue to grow(up 20%+ in the last year)Marketplace          Growth     Spending             P...
Topic 3:Marketing Spending                     20                      20
Growth in marketing budgets drops:  Consumer industries show positive growth; B2B flat or down  Marketplace          Growt...
Marketing spending on traditional advertising  expected to plummet (-137%)  Marketplace         Growth            Spending...
Investments in building marketing  knowledge expected to remain strong  Marketplace         Growth       Spending   Perfor...
Marketing budgets increase as percentage   of firm budgets  Marketplace         Growth              Spending         Perfo...
Size of marketing budget varies by   company sector, sales, and internet sales  Marketplace          Growth    Spending   ...
Marketing spending as a percentage   of firm revenues  Marketplace         Growth           Spending         Performance  ...
Topic 4:Financial and MarketingPerformance                          27                           27
Company performance on financial  metrics remains positive but weakens  Marketplace         Growth       Spending        P...
Key customer and brand assets follow suit  Marketplace         Growth            Spending      Performance       Social Me...
Company performance by sector  Marketplace          Growth        Spending    Performance    Social Media    Jobs         ...
Firm performance goals remain strong  Marketplace         Growth    Spending     Performance     Social Media     Jobs    ...
How would you rate your companys   marketing excellence?  Marketplace         Growth   Spending      Performance      Soci...
Topic 5:Marketing and Social Media                             33                              33                         ...
Social media spending growth continues:  Expected to be 18.8% of marketing budgets in five years  Marketplace             ...
Social media spending across sectors  Marketplace         Growth     Spending       Performance      Social Media   Jobs  ...
Social media integration gap not closing  Marketplace         Growth     Spending        Performance         Social Media ...
Poor integration of customer  information across channels  Marketplace         Growth   Spending       Performance     Soc...
Social media employment drops off  Marketplace         Growth            Spending            Performance    Social Media  ...
Topic 6: Marketing Jobs                          39                           39
Marketing employment on the rise:  B2B-Service companies biggest percentage increase  Marketplace                         ...
Outsourcing of marketing flat at 3.1%  Marketplace                                                                     Gro...
Topic 7:Marketing Organization                         42                          42
Where marketing is located in companies:  Drop in corporate and increase in business unit locations  Marketplace         G...
Marketing and sales equal partners in   most companies  Marketplace         Growth         Spending             Performanc...
Topic 8:Marketing Leadership                       45                        45
Marketing leadership increases on keystrategic activitiesMarketplace          Growth              Spending    Performance ...
Slight drop in retention but marketing leaders  retained 4+ years, on average  Marketplace         Growth               Sp...
Marketer influence improves  Marketplace         Growth        Spending     Performance         Social Media         Jobs ...
Best Practice from Marketing Leaders:                                   See full interviews at www.cmosurvey.org/cmo-insig...
Topic 9:Marketing Analytics                      50                       50
Spending on marketing analytics to  increase 60% in three years  Marketplace         Growth          Spending     Performa...
Most projects fail to use marketing analytics  Marketplace         Growth    Spending             Performance      Social ...
Majority of companies do not evaluate  marketing analytics  Marketplace         Growth   Spending         Performance     ...
Contribution of marketing analytics to  company performance  Marketplace         Growth        Spending    Performance   S...
Preview     Next survey:             The CMO Survey will be administered in February 2013     To participate:            S...
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The cmo survey_highlights_and_insights_august-2012-final

  1. 1. Highlights and Insights August 2012www.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 to observe trends. Special topics are introduced for each survey. - The August 2012 survey was the ninth administration of The CMO Survey. Sponsoring Organizations Founder and Director - Professor Christine Moorman, T. Austin Finch, Sr. Professor of Business Administration, Fuqua School of Business, Duke University© Christine Moorman 2
  3. 3. Survey Methodology Survey Sample - 4674 Top U.S. Marketers at Fortune 1000, Forbes Top 200, and Top Marketers who are AMA Members or Duke University Alumni and Friends - 531 responded for a 11.3% response rate Survey Administration - Email contact with three follow-up reminders - Survey in field from July 17-August 3, 2012 - 86% 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 5-12 Topic 2: Firm Growth Strategies 13-19 Topic 3: Marketing Spending 20-26 Topic 4: Financial and Marketing Performance 27-32 Topic 5: Marketing and Social Media 33-38 Topic 6: Marketing Jobs 39-41 Topic 7: Marketing Organization 42-44 Topic 8: Marketing Leadership 45-49 Topic 9: Marketing Analytics 50-54 Preview of Next Survey 55© Christine Moorman 4
  5. 5. Topic 1:Marketplace Dynamics 55
  6. 6. Marketer optimism for U.S. economy slumpsagain; B2B sectors show greatest pessimism Marketplace Growth Spending Performance Social Media Jobs Organization Leadership Analytics Figure 1.1. How optimistic are you about the overall U.S. Figure 1.2. Optimism for U.S. economy by sector economy on a 0-100 scale with 0 being the least optimistic B2B-Product B2B-Service B2C-Product B2C-Service and 100 the most optimistic? 64.1 65 Marketer Optimism about Overall Economy 63.5 62.3100.00 62.1 60.8 60 90.00 58.3 80.00 54.5 55.4 55 70.00 63.4 53.3 53.1 63.30 58.40 51.9 60.00 57.78 56.45 55.60 52.20 50 50.00 47.69 48 40.00 February August February August February August February August 45 2009 2009 2010 2010 2011 2011 2012 2012 August 2011 February 2012 August 2012© Christine Moorman 6
  7. 7. Uncertainty abounds:Optimists decrease and Pessimists increase Marketplace Growth Spending Performance Social Media Jobs Organization Leadership Analytics Figure 1.3. Are you more or less optimistic about the overall U.S. economy compared to last quarter? Less Optimistic No Change More Optimistic 80.0 68.8 70.0 62.1 63.3 59.0 60.0 57.4 50.0 50.7 % of 38.9 40.0 Respondents 35.2 32.0 35.8 28.9 35.2 27.7 28.3 30.0 26.0 25.5 26.0 29 20.0 17.3 14.9 15.0 10.0 9.0 8.5 5.7 0.0 February August February August February August February August 2009 2009 2010 2010 2011 2011 2012 2012© Christine Moorman 7
  8. 8. Marketer optimism for own companies exceeds expectations for overall economy Marketplace Growth Spending Performance Social Media Jobs Organization Leadership Analytics Figure 1.4. How optimistic are you on a 0-100 scale with 0 being the least optimistic and 100 the most optimistic? Overall Economy Own Company Revenue Growth 100.00 90.00 80.00 73.20 72.8 69.6 70.00 66.70 67.80 66.44 59.64 60.00 63.30 63.4 52.92 58.4 57.78 56.45 55.60 50.00 52.20 47.69 40.00 February August February August February August February August 2009 2009 2010 2010 2011 2011 2012 2012© Christine Moorman 8
  9. 9. Customer metrics forecast bleak: Marketers expect decreases in purchase volume, likelihood of buying related offerings, retention, acquisition, and price paid Marketplace Growth Spending Performance Social Media Jobs Organization Leadership Analytics Figure 1.5. Forecasted customer outcomes in next 12 months 80 74 Increased customer purchase volume 70 66 Increased customer price per unit 64 62 62.1 Customer will buy more related products and 60 services from my firm 59 56 56.1 54 53 52.8 My firms ability to retain current customers has 52 52 52.9 increased % of 50 47 Increased entry of new customers into the market Respondents 45.4 50 49.8 49 45 41 40 43 37.4 43 39 31 30.4 33 30 26 25 20 February August February August February August 2010 2010 2011 2011 2012 2012© Christine Moorman 9
  10. 10. Customer priorities shift toward low price Marketplace Growth Spending Performance Social Media Jobs Organization Leadership Analytics Figure 1.6. Customers’ top priority in next 12 months 30.0% 26.3% 24.7% 25.0% 24.1% 23.2% 24.1% 21.4% Low Price Quality 20.0% 19.3% 18.9% 18.8% Innovation Service 17.3% 16.4% 15.0% Trust Brand 13.7% 13.7% 10.0% 10.0% 9.4% 6.8% 6.8% 7.5% 5.0% August 2011 February 2012 August 2012© Christine Moorman 10
  11. 11. Channel partner metrics to soften in next 12 months Marketplace Growth Spending Performance Social Media Jobs Organization Leadership Analytics Figure 1.7. Channel metrics in next 12 months Increased partner purchase volume Increased partner price per unit Increased partner purchase of related products and services from my firm 50 47 45 42 40 38.6 36 35 33 30 30 30.4 30 Percentage of 25 Respondents 24 21.4 20 18 14 15 10 5 0 August August August August 2009 2010 2011 2012© Christine Moorman 11
  12. 12. Competitor metrics show increased intensity: More competitors, more rivalry, more innovation Marketplace Growth Spending Performance Social Media Jobs Organization Leadership Analytics Figure 1.8. Competitor metrics in next 12 months 6 Exception is increased willingness to 5.5 cooperate on non-price strategies 5.4 5.3 5 4.9 4.8 More intense rivalry for customers 4.7 4.5 4.5 More competitor price-cutting 4 3.8 More competitor innovation 3.5 3.5 More cooperation on non-price 3.5 strategies 3.4 Emergence of new domestic 3 competitors 2.5 2 August August 2011 2012 *Measured on 7-point scale where 1=not at all likely and 7=very likely© Christine Moorman 12
  13. 13. Topic 2:Firm Growth Strategies 13 13
  14. 14. Growth strategies expected to take on more risk in next year Marketplace Growth Spending Performance Social Media Jobs Organization Leadership Analytics Types of Growth Strategies Table 2.1. How growth spending is expected to change* Existing New Actual Expected Products/ Products/ Percent Spending in Spending in Services Services Strategy Change Past 12 Next 12 Expected Months Months Market Product/Service Existing Market Penetration Development Markets Penetration 51.7% 45.7% -11.6% Strategy Strategy Strategy Market Development 15.7% 18.1% +15.3% Market Strategy New Diversification Markets Development Strategy Strategy Product/Service Development 22.8% 25.0% +9.6% Strategy Diversification 9.7% 11.2% +15.5% Strategy * % of spending across growth strategies© Christine Moorman 14
  15. 15. Growth strategies vary by sector Marketplace Growth Spending Performance Social Media Jobs Organization Leadership Analytics Table 2.2. Expected changes in sector growth spending Notable shifts in next 12 months relative to prior year • B2C-Service companies take on most risk B2B B2B B2C B2C Product Service Product Service • B2C-Service companies largest focus on new markets Market Penetration Strategy -5.6% -5.9% -6.3% -7.8% • B2B-Service companies largest focus on new products/services and diversification Market Development Strategy +3.4% -0.7% +1.7% +5.8% Product/Service Development Strategy +1.2% +4.2% +2.8% +1% Diversification Strategy +1% +2.2% +1.7% +1%© Christine Moorman 15
  16. 16. Growth from acquisitions & licensing expected to increase; sector differences significant Marketplace Growth Spending Performance Social Media Jobs Organization Leadership Analytics Table 2.3. How firms will grow in the next 12 months* Table 2.4. Sector use of growth strategies – August 2012* B2B B2B- B2C- B2C- Strategy Aug-10 Aug-11 Aug-12 Strategy Product Service Product Service Organic Organic Growth 69.5% 70.2% 68.9% 66.2% 67.6% 76.9% 72.2% Growth Growth from Growth via Acquisitions 10.8% 11.4% 12.2% 14.9% 12.3% 7.8% 10.4% Acquisition Growth from Growth from Partnerships 13.9% 13.5% 12.9% 12.0% 14.8% 9.6% 12.5% Partnerships Growth from Growth from Licensing 5.8% 5.1% 6.1% 6.9% 5.3% 5.7% 4.9% Licensing * Percentage of spending across growth strategies© Christine Moorman 16
  17. 17. Canada and China leading international growth markets Marketplace Growth Spending Performance Social Media Jobs Organization Leadership Analytics Figure 2.1. Highest international revenue growth markets Table 2.5. Change in highest revenue growth (% respondents) markets Feb-12 Aug-12 Western Europe 23% 16.3% Other 20.6% Other 20% 20.6% Canada 16% 24.2% Western Europe Canada China 15% 21.5% 16.3% 24.2% Russia Brazil 7% 4.6% 0.6% Middle East 7% 4.0% Korea 0.6% India 3% 1.8% Japan 1.8% Mexico 3% 2.1%Eastern Europe 1.8% China 21.5% Eastern Europe 2% 1.8% Mexico 2.1% India Brazil Japan 2% 1.8% 1.8% 4.6% Middle East Korea 1% 0.6% 4.0% Russia 1% 0.6%© Christine Moorman 17
  18. 18. China revenue growth by sector: B2C companies sales increase by over 100% Marketplace Growth Spending Performance Social Media Jobs Organization Leadership Analytics Table 2.6. Sector differences in Chinese market (% respondents) Feb-12 Aug-12 % Change B2B-Product 24.7% 26.3% 6.5% B2B-Service 10.5% 14.6% 39.0% B2C-Product 10.3% 21.2% 105.8% B2C-Service 6.3% 12.9% 104.8%© Christine Moorman 18
  19. 19. Top international markets continue to grow(up 20%+ in the last year)Marketplace Growth Spending Performance Social Media Jobs Organization Leadership Analytics Average increase across all top international markets: 23.7% Figure 2.2. Average percent increase in sales revenue from top international market in prior 12 months 80% 75.0 70% 60% 51.5 49.7 50% 38.4 40% 29.0 30% 26.2 20.0 20% 16.3 13.4 12.5 10.7 9.4 10% 0% Brazil Canada China Eastern India Japan Korea Mexico Middle Other Russia Western Europe East Market Europe
  20. 20. Topic 3:Marketing Spending 20 20
  21. 21. Growth in marketing budgets drops: Consumer industries show positive growth; B2B flat or down Marketplace Growth Spending Performance Social Media Jobs Organization Leadership Analytics Figure 3.1. Percent change in marketing budgets in next 12 months Table 3.1. Sector differences in marketing budgets Change in Marketing Spending Change in Marketing 25.0% Spending Feb-12 Aug-12 20.0% B2B Product 13.2% 5.7% B2B-Service 6.2% 6.2% 15.0% B2C-Product 3.3% 8.6% 9.2% 9.1% B2C-Service 4.6% 6.8% 10.0% 8.1% 6.7% 6.4% 5.9% 5.0% 1.1% 0.5% 0.0% February August February August February August February August 2009 2009 2010 2010 2011 2011 2012 2012© Christine Moorman 21
  22. 22. Marketing spending on traditional advertising expected to plummet (-137%) Marketplace Growth Spending Performance Social Media Jobs Organization Leadership Analytics Table 3.2. Percent change in marketing spending in next 12 months % Change, Aug-11 Feb-12 Aug-12 Feb-12 to Aug-12 Traditional advertising* spending 1.3% -0.8% -1.9% -137.5% Internet marketing spending 11.2% 12.8% 11.5% -10.2% New product introductions 10.4% 8.5% 9.4% +10.6% New service introductions 6.6% 4.2% 6.4% +52.4% Customer relationship 6.5% 7.1% 9.0% +26.8% management Brand building 5.7% 7.2% 7.5% +4.2% *Refers to media advertising not using the web.© Christine Moorman 22
  23. 23. Investments in building marketing knowledge expected to remain strong Marketplace Growth Spending Performance Social Media Jobs Organization Leadership Analytics Table 3.3. Changes in firm spending on marketing knowledge in next 12 months Feb-12 Aug-12 % Change Marketing research and intelligence 6.2% 8.2% +32.3% Marketing consulting services 1.7% 3.3% +94.1% Developing knowledge about how to do marketing 4.6% 5.8% +26.1% Integrating what we know about marketing 6.6% 8.2% +24.2% Marketing training 3.7% 7.2% +94.6%© Christine Moorman 23
  24. 24. Marketing budgets increase as percentage of firm budgets Marketplace Growth Spending Performance Social Media Jobs Organization Leadership Analytics Figure 3.2. Marketing budgets as a percent of firm budgets* 16.0% 14.0% 12.0% 11.4% 10.4% 10.0% 10.0% 8.1% 8.0% 6.0% 4.0% 2.0% February August February August 2011 2011 2012 2012 *Question asked in Feb-11 for the first time.© Christine Moorman 24
  25. 25. Size of marketing budget varies by company sector, sales, and internet sales Marketplace Growth Spending Performance Social Media Jobs Organization Leadership Analytics 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% February 2012 8.7% 8.2% 16.1% 16.8% August 2012 8.5% 11.6% 17.4% 10.7% 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% February 2012 10.7% 12.3% 13.5% 4.7% 6.7% 8.8% August 2012 11.9% 10.2% 9.5% 7.7% 9.7% 18.1% 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% February 2012 8.4% 9.5% 18.0% August 2012 10.2% 10.2% 16.4%© Christine Moorman 25
  26. 26. Marketing spending as a percentage of firm revenues Marketplace Growth Spending Performance Social Media Jobs Organization Leadership Analytics • Mean percentage: 11.0% (August-2012) vs. 8.5% (February-2012) • 95 percent confidence interval: 9.3%-14.4% Table 3.7. Marketing spending as a percentage of firm revenues by economic sector* B2B B2B B2C B2C Product Services Product Services February 2012 7.3% 4.8% 13.8% 16.6% August 2012 11.4% 11.9% 9.8% 16.1% Table 3.8. Marketing spending as a percentage of firm revenues by company sales revenue* <$25 $26-99 $100-499 $500-999 $1-9.9 >$10 Million Million Million Million Billion Billion February 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% Table 3.9. Marketing spending as a percentage of firm revenues by company internet sales* 0% 1-10% >10% Internet Sales Internet Sales Internet Sales February 2012 6.3% 9.0% 14.4% August 2012 11.0% 9.3% 18.3% *Question asked in Feb-12 for the first time.© Christine Moorman 26
  27. 27. Topic 4:Financial and MarketingPerformance 27 27
  28. 28. Company performance on financial metrics remains positive but weakens Marketplace Growth Spending Performance Social Media Jobs Organization Leadership Analytics % Change Figure 4.1. Firm performance in prior 12 months Feb-2012 to 5.0% Aug-2012 4.8% Firm Sales -16.7% 4.5% Firm Profits -15.4% 4.0% 4.0% 3.9% 4.0% 3.8% Marketing ROI -8.6% 3.4% 3.4% 3.5% 3.3% 3.5% 3.2% 3.0% 2.7% 3.0% 2.5% Firm sales 2.2% Firm profits 2.2% 2.0% Marketing ROI 1.8% 1.5% 1.0% 0.5% 0.0% August February August February August 2010 2010 2011 2012 2012© Christine Moorman 28
  29. 29. Key customer and brand assets follow suit Marketplace Growth Spending Performance Social Media Jobs Organization Leadership Analytics % Change Figure 4.2. Change in company performance on customer and brand metrics Feb-2012 to Customer acquisition Customer retention Brand value Aug-2012 Customer 4.5% -13.2% Acquisition 4.1% Customer -9.1% 4.0% Retention 3.5% Brand 3.8% 3.4% -17.1% 3.5% 3.2% Value 2.9% 3.3% 3.0% 3.2% 2.5% 2.2% 2.6% 2.6% 2.0% 2.0% 1.6% 1.7% 1.4% 1.5% 1.0% 0.5% 0.0% August August August February August 2009 2010 2011 2012 2012© Christine Moorman 29
  30. 30. Company performance by sector Marketplace Growth Spending Performance Social Media Jobs Organization Leadership Analytics Table 4.1. Sector performance metrics for prior 12 months B2B- B2B- B2C- B2C- Product Services Product Services Firm sales 3.8% 4.7% 3.6% 4.0% Marketing return on investment 3.0% 4.0% 1.8% 4.1% Firm profits 3.2% 3.9% 2.5% 3.6% Customer acquisition 3.5% 3.5% 2.6% 3.8% Customer retention 2.1% 1.6% 2.0% 2.7% Brand value 3.4% 3.8% 3.3% 3.1%© Christine Moorman 30
  31. 31. Firm performance goals remain strong Marketplace Growth Spending Performance Social Media Jobs Organization Leadership Analytics Table 4.2. Company performance and goals Actual firm performance Goal in the % Increase in goal in prior 12 months next 12 months over performance Firm sales 4.0% 6.8% 70% Marketing return on investment 4.6% 5.4% 17.4% Firm profits 3.3% 6.0% 81.8% Customer acquisition 3.3% 5.8% 75.8% Customer retention 2.0% 4.8% 140% Brand value 3.4% 5.8% 70.6%© Christine Moorman 31
  32. 32. How would you rate your companys marketing excellence? Marketplace Growth Spending Performance Social Media Jobs Organization Leadership Analytics • Mean on 7-point scale: 4.4 (SD = 1.4%) New question in The CMO Survey Figure 4.3. Ratings of marketing excellence in companies 35.0% 29.7% 30.0% 25.0% 23.2% 20.0% 17.5% 14.4% 15.0% 10.0% 8.5% 4.8% 5.0% 2.0% 0.0% 1=Very Weak 2=Weak 3=Fair 4=Good 5=Strong 6=A leader but not one 7=Excellent, one of the of the best best in the world© Christine Moorman 32
  33. 33. Topic 5:Marketing and Social Media 33 33 33
  34. 34. Social media spending growth continues: Expected to be 18.8% of marketing budgets in five years Marketplace Growth Spending Performance Social Media Jobs Organization Leadership Analytics Figure 5.1. Social media spending as a percentage of marketing budgets over time 20.0% 18.8% Percentage of Total Marketing Budget (%) 15.0% 10.7% 10.0% 7.6% 5.0% 0.0% Current Levels Over Next 12 Months In Next 5 Years© Christine Moorman 34
  35. 35. Social media spending across sectors Marketplace Growth Spending Performance Social Media Jobs Organization Leadership Analytics Table 5.1. Sector differences in change in social media spending August 2011 February 2012 August 2012 B2B - Product 4.2% 6.2% 5.0% B2B - Services 8.6% 7.4% 9.4% Current Social Media B2C - Product 10.5% 9.6% 9.0% Spending B2C - Services 5.9% 8.4% 9.0% Overall 7.1% 7.4% 7.6% B2B - Product 7.0% 9.4% 8.4% Social Media B2B - Services 11.5% 10.1% 12.7% Spending in the B2C - Product 13.6% 15.3% 11.4% next 12 B2C - Services 9.4% 11.7% 12.1% months Overall 10.1% 10.8% 10.7% B2B - Product 13.4% 18.5% 15.3% Social Media B2B - Services 18.3% 19.1% 20.0% Spending in B2C - Product 24.0% 23.0% 24.4% the next 5 years B2C - Services 17.3% 19.0% 19.3% Overall 17.5% 19.5% 18.8%© Christine Moorman 35
  36. 36. Social media integration gap not closing Marketplace Growth Spending Performance Social Media Jobs Organization Leadership Analytics Question: How effectively is social media Figure 5.2. How social media is integrated with strategy integrated with your firm’s marketing strategy? 7-point scale (1=not integrated, 7=very integrated) Results: Social media remains poorly integrated 25% 22.2% with marketing strategy: 20% 16.7% • Aug, 2012: Mean = 3.8, SD = 1.9 13.9% 13.9% 15% 13.3% 13.3% • Feb, 2012: Mean = 3.8, SD = 1.9 Percent of • Feb, 2011: Mean = 3.8, SD = 2.0 Respondents (%) 10% 6.8% 5% Table 5.2. Integration scores by sector 0% 1 2 3 4 5 6 7 Mean (SD) Not at all Very Aug-2012 Integrated Integrated B2B-Product 3.0 (1.9) B2B-Services 4.1 (1.7) B2C-Product 4.3 (1.6) B2C-Services 4.3 (1.8)© Christine Moorman 36
  37. 37. Poor integration of customer information across channels Marketplace Growth Spending Performance Social Media Jobs Organization Leadership Analytics New question Question:. How effectively does your company integrate customer in The CMO Survey information across the following channels (1=not at all, 7=very effectively) Results: • All purchasing channels (M = 3.9, SD = 1.6) • Across all communication and social media channels (M = 3.7, SD = 1.6) Table 5.3. Integration scores by sector Average integration across all Average integration across all communication purchasing channels & social media channels Mean Mean B2B-Product 3.7 3.1 B2B-Service 4.2 4.0 B2C-Product 3.7 3.9 B2C-Service 4.1 4.1© Christine Moorman 37
  38. 38. Social media employment drops off Marketplace Growth Spending Performance Social Media Jobs Organization Leadership Analytics Figure 5.3. Number of employees in-house and outsourced performing social media for company February February August 2011 2012 2012 10 9.0 9 8 7 6 5.3 5 4.0 4 3.6 3 1.8 2.0 2 1 0 Number of people employed in-house Number of individuals from outside vendors providing to do social media for company social media support for the company© Christine Moorman 38
  39. 39. Topic 6: Marketing Jobs 39 39
  40. 40. Marketing employment on the rise: B2B-Service companies biggest percentage increase Marketplace Growth Spending Performance Social Media Jobs Organization Leadership Analytics Figure 6.1. Percentage change in marketing hires planned Table 6.1. Percentage increase in marketing in next 12 months hires by sector 8% 7.2% B2B B2B B2C B2C Percentage Increase in Marketing Hires in Next 12 Months 7% 6.2% 6.5% Product Service Product Service 6% 5.2% February 2.1% 4.5% 1.9% 4.5% 2012 5% 4.0% August 4.0% 11.3% 4.1% 5.9% 4% 2012 3% 2% 1% 0% August February August February August 2010 2011 2011 2012 2012© Christine Moorman 40
  41. 41. Outsourcing of marketing flat at 3.1% Marketplace Growth Spending Performance Social Media Jobs Organization Leadership Analytics Figure 6.2. Percentage of company marketing expected to be outsourced in next 12 months 20.0% Percent of Companies Outsourcing Marketing Activities Expected to 15.0% Change in Next 12 Months (%) 10.0% 9.3% 4.3% 4.5% 5.0% 3.2% 3.1% 0.0% August February August February August 2010 2011 2011 2012 2012© Christine Moorman 41
  42. 42. Topic 7:Marketing Organization 42 42
  43. 43. Where marketing is located in companies: Drop in corporate and increase in business unit locations Marketplace Growth Spending Performance Social Media Jobs Organization Leadership Analytics Figure 7.1. Location of marketing in companies* August 2011 August 2012 90.0% 84.3% 79.7% 80.0% 70.0% 60.0% Percentage 50.0% of Firms (%) 38.3% 40.0% 30.0% 26.5% 16.9% 17.3% 20.0% 10.8% 9.3% 10.0% 0.0% Corporate Business Brand/Product Field Offices Organization Location *May exceed 100% if marketing is in multiple locations© Christine Moorman 43
  44. 44. Marketing and sales equal partners in most companies Marketplace Growth Spending Performance Social Media Jobs Organization Leadership Analytics Figure 7.2. The marketing-sales relationship August 2012 August 2011 August 2010 August 2009 80.0% 74.0% 71.1% 69.2% 69.7% 70.0% 60.0% 50.0% Percentage of 40.0% Respondents (%) 30.0% 20.0% 13.0% 13.1% 10.9% 10.3% 8.2% 8.8% 8.3% 10.0% 7.3% 0.0% Sales & marketing work on an equal basis Marketing is within the sales function Sales is within the marketing function© Christine Moorman 44
  45. 45. Topic 8:Marketing Leadership 45 45
  46. 46. Marketing leadership increases on keystrategic activitiesMarketplace Growth Spending Performance Social Media Jobs Organization Leadership Analytics Table 8.1. Percentage of companies in which marketing leads activity Stronger marketing leadership: • Positioning Activity Feb-11 Feb-12 Aug-12 • Promotion Positioning 79% 78% 82% • Marketing research Promotion 81% 79% 84% • Social media Brand 81% 84% 84% • Competitive intelligence Marketing research 73% 71% 75% • Public relations Social media 71% 73% 77% • Lead generation Competitive intelligence 58% 62% 67% • Market entry strategies Public relations 65% 53% 61% • CRM Lead generation 53% 53% 57% • Target/Market selection Market entry strategies 50% 46% 55% • Pricing New products 44% 52% 51% CRM 38% 41% 45% Maintaining marketing leadership: Targeting/Market selection 31% 35% 40% • Brand Sales 32% 30% 27% • New products Pricing 30% 34% 38% • Stock market performance Innovation 33% 39% 37% Weaker marketing leadership: Customer service 22% 21% 18% • Sales Stock market performance 0.4% 1.2% 1.0% • Innovation *Decreases of 1% or less are viewed as no change. • Customer service 46
  47. 47. Slight drop in retention but marketing leaders retained 4+ years, on average Marketplace Growth Spending Performance Social Media Jobs Organization Leadership Analytics ), and 2009 (34.7 months). Figure 8.1. Marketing leader retention Table 8.2. Sector differences in retention August 2010 August 2011 February 2012 August 2012 Years in current role 12 August-2012 10.5 B2B Product 3.9 10 9.0 8.8 9.2 B2B-Service 4.3 8 B2C-Product 3.6 B2C-Service 4.6 Years 6 5.4 4.6 4.3 4.1 4 2 0 Top marketer time in current role in the firm Top marketer time in any role in the firm© Christine Moorman 47
  48. 48. Marketer influence improves Marketplace Growth Spending Performance Social Media Jobs Organization Leadership Analytics Figure 8.2. Number of people reporting to top marketer Direct reports Indirect reports 30 25.4 24.6 25 20 17 15.4 14.4 Number of Reports 15 10 8.6 5 7.2 7.3 6.0 4.6 0 August August August February August 2009 2010 2011 2012 2012© Christine Moorman 48
  49. 49. Best Practice from Marketing Leaders: See full interviews at www.cmosurvey.org/cmo-insights/ Marketplace Growth Spending Performance Social Media Jobs Organization Leadership Analytics 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 his viewpoints 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.© Christine Moorman 49
  50. 50. Topic 9:Marketing Analytics 50 50
  51. 51. Spending on marketing analytics to increase 60% in three years Marketplace Growth Spending Performance Social Media Jobs Organization Leadership Analytics Figure 9.1. Percent of marketing budget spent on marketing analytics Table 9.1. Firm size differences In Next 16% Current 3 years 14% <$25M 5.4% 11.6% 13.5% $26-99M 7.1% 13.0% 12% $100-499M 8.9% 13.0% 10% $500-999M 8.1% 11.4% 8% 8.0% $1-9.9B 11.0% 18.8% 6% $10+B 9.8% 11.8% 4% Table 9.2. Firm internet sales differences In Next Current 2% 3 years 0% 6.9% 12.0% 0% Current Levels In Next 3 Years 1-10% 7.3% 12.2% Marketing Budget Spent on Marketing Analytics >10% 11.7% 17.8%© Christine Moorman 51
  52. 52. Most projects fail to use marketing analytics Marketplace Growth Spending Performance Social Media Jobs Organization Leadership Analytics Figure 9.2. Percentage of projects using marketing analytics in companies February 2012 August 2012 70% 65% 63% 60% 50% 40% 37% 35% 30% 20% 10% 0% Use analytics Do not use analytics© Christine Moorman 52
  53. 53. Majority of companies do not evaluate marketing analytics Marketplace Growth Spending Performance Social Media Jobs Organization Leadership Analytics Figure 9.3. Does your company formally evaluate the quality of marketing analytics? February 2012 August 2012 80% 70% 67% 60% 53.2% 50% 46.8% 40% 33% 30% 20% 10% 0% Evaluate quality Do not evaluate quality© Christine Moorman 53
  54. 54. Contribution of marketing analytics to company performance Marketplace Growth Spending Performance Social Media Jobs Organization Leadership Analytics New question • Mean on 7-point scale: 3.9 (SD = 1.9%) in The CMO Survey Figure 9.4. To what degree does the use of marketing analytics contribute to your companys performance? 25.0% 22.7% 20.0% 15.5% 16.2% 15.0% 13.6% 12.6% 12.0% 10.0% 7.4% 5.0% 0.0% 1 2 3 4 5 6 7 Not at all Very Highly© Christine Moorman 54
  55. 55. Preview Next survey: The CMO Survey will be administered in February 2013 To 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 55

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