The CMO Survey Highlights and Insights February 2012

54
Highlights and Insights February 2012 © Christine Moorman www.cmosurvey.org

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Transcript of The CMO Survey Highlights and Insights February 2012

Page 1: The CMO Survey Highlights and Insights February 2012

Highlights and InsightsFebruary 2012

© Christine Moormanwww.cmosurvey.org

Page 2: The CMO Survey Highlights and Insights February 2012

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 February 2012 survey was the eighth administration of The CMO Survey.

Sponsoring Organizations

Founder and Director

- Professor Christine Moorman, T. Austin Finch, Sr. Professor of Business Administration

2© Christine Moorman

Page 3: The CMO Survey Highlights and Insights February 2012

Survey Methodology

Survey Sample- 3401 Top U.S. Marketers at Fortune 1000, Forbes Top 200, CMO Club companies, and

Top Marketers who are AMA Members or Duke University Alumni and Friends

- 269 responded for a 7.9% response rate

Survey Administration- Email contact with four follow-up reminders

- Survey in field from January 31-February 16, 2012

- 91.2% 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

3© Christine Moorman

Page 4: The CMO Survey Highlights and Insights February 2012

Topic 1: Marketplace Dynamics 5-10

Topic 2: Firm Growth Strategies 11-17

Topic 3: Marketing Spending 18-24

Topic 4: Financial and Marketing Performance 25-30

Topic 5: Marketing and Social Media 31-35

Topic 6: Marketing Jobs 36-38

Topic 7: Marketing Organization 39-41

Topic 8: Marketing Leadership and CMO Insights 42-46

Topic 9: Marketing Analytics 47-51

The CMO Survey Award for Marketing Excellence 52-53

Preview of the Next Survey 54

Overview of Results

4© Christine Moorman

Page 5: The CMO Survey Highlights and Insights February 2012

5

Topic 1: Marketplace Dynamics

5

Page 6: The CMO Survey Highlights and Insights February 2012

Marketer optimism for overall U.S. economy rebounds to highest level in 3 years

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© Christine Moorman

Figure 1.2. Optimism for U.S. economy by sector

Februa

ry

200

9

August

200

9

Februa

ry

201

0

August

201

0

Februa

ry

201

1

August

2

011

Februa

ry

201

240

50

60

70

80

90

100

47.7

56.5 57.8 55.6

63.3

52.2

63.4

Marketer Optimism about Overall Economy

AnalyticsLeadership Organization Jobs Social Media PerformanceSpendingGrowthMarketplace

August 2011 February 201245

50

55

60

65

48

62.1

54.5

64.1

53.1

63.5

53.3

58.3

B2B-Product B2B-ServiceB2C-Product B2C-Service

Page 7: The CMO Survey Highlights and Insights February 2012

Optimists outweigh pessimists 8 to 1

7© Christine Moorman

Figure 1.3. Are you more or less optimistic about the overall U.S. economy compared to last quarter?

February 2009

August 2009

February 2010

August 2010

February 2011

August 2011

February 2012

0%

10%

20%

30%

40%

50%

60%

70%

80%

17.3

59.062.1

35.2

68.8

14.9

63.3

32.026.0

28.9

38.9

25.5 27.7 28.3

50.7

15.0

9.0

26.0

5.7

57.4

8.5

More Optimistic No Change Less Optimistic

% of Respondents

AnalyticsLeadership Organization Jobs Social Media PerformanceSpendingGrowthMarketplace

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Marketer optimism for own companies exceeds expectations for overall economy

© Christine Moorman 8

Figure 1.4. How optimistic are you on a 0-100 scale with 0 being the least optimistic and 100 the most optimistic?

AnalyticsLeadership Organization Jobs Social Media PerformanceSpendingGrowthMarketplace

February2009

August 2009

February 2010

August 2010

February 2011

August 2011

February 2012

40.00

50.00

60.00

70.00

80.00

90.00

100.00

47.69

56.45 57.7855.60

63.30

52.20

63.40

52.92

59.64

66.44 66.70

73.20

67.80

72.80

Overall Economy Own Company Revenue Growth

Page 9: The CMO Survey Highlights and Insights February 2012

Customer metrics forecast strong rebound: Increase in number of customers entering markets, purchase volume and likelihood of buying related offerings

9© Christine Moorman

Figure 1.5. Customer Metrics – Forecasted Customer Outcomes in Next 12 Months

August 2009

August 2010

August 2011

February 2012

10%

20%

30%

40%

50%

60%

70%

48

62

56.2

64.2

17

25

38.7 37.4

44

52

32.5

62.1

39

50

51.6

52.8

35

4341.4

49.8 Increased customer purchase volume

Increased customer price per unit

Customer will buy more related products and services from my firm

My firm's ability to retain current cus-tomers has increased

Increased entry of new customers into the market

% of Respondents

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Page 10: The CMO Survey Highlights and Insights February 2012

Customer priorities to shift from low price to service

Aug-11 Feb-12 % Change

Low Price 24.1% 16.4% -32.0%

Quality 24.1% 26.3% +9.1%

Innovation 13.7% 10.0% -27.0%

Service 13.7% 21.4% +56.2%

Trust 19.3% 18.9% -2.1%

Brand 6.8% 7.5% +10.3%

© Christine Moorman

Table 1.1. Rank order your Customer’s Top Priority in Next 12 Months

10

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Topic 2: Firm Growth Strategies

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Page 12: The CMO Survey Highlights and Insights February 2012

Growth strategies expected to shift to product/service development & diversification

Table 2.1. How Growth Spending is Expected to Change*

Existing Products/Services

New Products/Services

ExistingMarkets

Market Penetration

Strategy

Product/Service Development

Strategy

New Markets

Market Development

Strategy

Diversification Strategy

* % of spending across growth strategies

12© Christine Moorman

Types of Growth Strategies

StrategyActual

Spending in Past 12 Months

Expected Spending in

Next 12 Months

Percent Change

Expected

Market Penetration

Strategy56.7% 50.2% -11%

Market Development

Strategy15.5% 15.6% +1%

Product/Service Development

Strategy19% 23.8% +25%

Diversification Strategy 8.2% 10.5% +28%

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Page 13: The CMO Survey Highlights and Insights February 2012

© Christine Moorman

Table 2.2. Expected Change in Sector Growth Spending in Next12 Months Relative to Prior Year

Growth strategies vary by sector

13

B2B Products

B2B Services

B2C Products

B2C Services

Market Penetration Strategy -16.9% -11.5% -6.2% -7.2%

Market Development Strategy +17.0% +22.9% +21.6% +12.1%

Product/Service Development Strategy +17.7% -32.4% -2.0% +27.5%

Diversification Strategy +28.2% +125.6% +81.6% -28.2%

Notable shifts

• Less market penetration: B2B-Product (-17%)

• Greater focus on new markets/new products: B2B-Services (+126%) and B2C-Products (+82%)

• Greater focus on new services: B2C-Services (+27.5%)

• Greater focus on new markets: B2B-Services (+23%) and B2C-Products (+22%)

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Page 14: The CMO Survey Highlights and Insights February 2012

Stable patterns of growth strategies overall; sector differences significant

Table 2.3. How Firms Will Grow in the Next 12 Months*

14© Christine Moorman

Strategy Aug-10 Feb-11 Aug-11 Feb-12

Organic Growth 69.5% 72.0% 70.2% 70.6%

Growth from Acquisitions 10.8% 10.6% 11.4% 11.6%

Growth from Partnerships 13.9% 11.8% 13.5% 12.6%

Growth from licensing 5.8% 5.6% 5.1% 5.2%

* Percentage of spending across growth strategies

Table 2.4. Sector Use of Growth Strategies – February 2012

Organic Growth

Growth via Acquisition

Growth from Partnerships

Growth from Licensing

B2B Product 67.4% 13.9% 12.9% 5.8%

B2B-Service 74.4% 10.8% 10.9% 3.9%

B2C-Product 71.6% 7.5% 13.6% 7.3%

B2C-Service 78.9% 8.6% 10.7% 1.8%

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Page 15: The CMO Survey Highlights and Insights February 2012

International sales to continue upward trajectory in next 12 months

Figure 2.1. Percentage of Company Sales Expected to be International in Next 12 Months

© Christine Moorman 15

August 2010

August 2011

February2012

0%

5%

10%

15%

20%

25%

30%

35%

40%

18.7%

24.7%

32.4%

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Page 16: The CMO Survey Highlights and Insights February 2012

Which international market is your highest revenue growth market?

Figure 2.2. Which International Market is Your Highest Revenue Growth Market?

© Christine Moorman 16

Table 2.5. Sector Differences in Key Emerging Markets

Brazil Russia India China

B2B Product 6.8% 1.4% 2.7% 24.7%

B2B-Service 5.3% 0% 5.3% 10.5%

B2C-Product 10.3% 0% 3.4% 10.3%

B2C-Service 12.5% 0% 0% 6.3%

Western Europe23%

Canada16%

China15%

Mexico3%

Japan2%

Brazil7%

Middle East7%

Eastern Europe1%

India3%

Korea1%

Russia0%

Other20%

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New question in The CMO Survey

Page 17: The CMO Survey Highlights and Insights February 2012

20% sales revenue increase in top international market in last year

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Average increase across all top international markets: 19.7% (SD = 32.1)

Figure 2.3. Average Percent Increase in Sales Revenue from Top International Market

New question in The CMO Survey

Brazil Canada China Eastern Europe

India Japan Korea Mexico Middle East

Other Market

Russia Western Europe

0%

10%

20%

30%

40%

50%

60%

25.3

16.6

34.9

25.0

48.0

19.822.5

13.8

26.3

5.2

16.0

21.0

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Topic 3: Marketing Spending

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Page 19: The CMO Survey Highlights and Insights February 2012

Growth in marketing budgets remains high: B2B-Product companies expect 2x-4x growth of other industries

Figure 3.1. % Change in Marketing Budgets in Next 12 Months

19© Christine Moorman

Table 3.1. Sector Differences in Marketing Budgets

February

2009

August

2009

February

2010

August

2010

February

2011

August

2011

February

2012

0%

5%

10%

15%

20%

25%

0.5% 1.1%

5.9%

9.2%

6.7%

9.1%8.1%

Change in Marketing Spending % Change in Marketing Spending

B2B Product 13.2%

B2B-Service 6.2%

B2C-Product 3.3%

B2C-Service 4.6%

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Page 20: The CMO Survey Highlights and Insights February 2012

Marketing spending on traditional advertising expected to plummet further (-161%)

Table 3.2. % Change in Marketing Spending in Next 12 Months

20© Christine Moorman

Aug-11 Feb-12 % Change

Traditional advertising* spending 1.3% -0.8% -161.5%

Internet marketing spending 11.2% 12.8% +14.3%

New product introductions 10.4% 8.5% -18.3%

New service introductions 6.6% 4.2% -36.4%

Customer relationship management 6.5% 7.1% +9.2%

Brand building 5.7% 7.2% +26.3%

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*Refers to media advertising not using the web.

Page 21: The CMO Survey Highlights and Insights February 2012

Investments in building marketing knowledge remain strong

Table 3.3. Changes in Firm Spending on Marketing Knowledge in Next 12 Months

21© Christine Moorman

Feb-09 Aug-09 Feb-10 Aug-10 Feb-11 Aug-11 Feb-12

Marketing research and intelligence 1.8% 3.2% 7.3% 5.6% 8.0% 6.2% 6.2%

Marketing consulting services -4.5% 1.3% 2.9% 4.6% 4.7% 3.5% 1.7%

Developing knowledge about how to do marketing 3.4% 3.0% 6.4% 6.6% 8.8% 6.4% 4.6%

Integrating what we know about marketing 5.1% 4.1% 7.4% 8.9% 8.1% 6.0% 6.6%

Marketing training 1.2% 0.7% 4.3% 3.6% 5.6% 3.1% 3.7%

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Page 22: The CMO Survey Highlights and Insights February 2012

Marketing spending increases further to account for 10.4% of overall firm budgets

22

Figure 3.2. How Marketing Budgets Are Changing Over Time*

© Christine Moorman

February 2011

August 2011

February 2012

2%

4%

6%

8%

10%

12%

14%

16%

8.1%

10.0%10.4%

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*Question asked in Feb-11 for the first time.

Page 23: The CMO Survey Highlights and Insights February 2012

Size of marketing budget varies by company sector, sales, and internet sales

23

Table 3.4. Marketing Percentage of Firm Budget by Economic SectorB2B

ProductB2B

ServicesB2C

ProductB2C

ServicesAugust 2011 7.0% 11.1% 11.6% 12.1%

February 2012 8.7% 8.2% 16.1% 16.8%

<$25 Million

$26-99 Million

$100-499 Million

$500-999 Million

$1-9.9 Billion

>$10 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%

0% Internet Sales

1-10%Internet Sales

>10% Internet Sales

August 2011 8.7% 7.9% 16.8%February 2012 8.4% 9.5% 18.0%

Table 3.5. Marketing Percentage of Firm Budget by Company Sales Revenue

Table 3.6. Marketing Percentage of Firm Budget by Company Internet Sales

© Christine Moorman

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Page 24: The CMO Survey Highlights and Insights February 2012

Marketing spending as a percent of firm revenues

24© Christine Moorman

• Mean percentage: 8.5%

• 95 percent confidence Interval around mean: 5.6%-11.5%

Table 3.7. Marketing Spending as a Percentage of Firm Revenues by Economic Sector

B2B Product

B2B Services

B2C Product

B2C Services

February 2012 7.3% 4.8% 13.8% 16.6

<$25 Million

$26-99 Million

$100-499 Million

$500-999 Million

$1-9.9 Billion

>$10 Billion

February 2012 11.8% 9.0% 14.7% 1.7% 2.8% 5.2%

0% Internet Sales

1-10%Internet Sales

>10% Internet Sales

February 2012 6.3% 9.0% 14.4%

Table 3.8. Marketing Percentage of Firm Budget by Company Sales Revenue

Table 3.9. Marketing Percentage of Firm Budget by Company Internet Sales

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New question in The CMO Survey

Page 25: The CMO Survey Highlights and Insights February 2012

25

Topic 4: Financial and Marketing Performance

25

Page 26: The CMO Survey Highlights and Insights February 2012

Company performance on financial metrics shows significant improvement

26© Christine Moorman

August 2010

February 2011

August 2011

February 2012

0%

1%

2%

3%

4%

5%

6%

2.2%

4.0%3.8%

4.8%

1.8%

3.4%3.4%

3.9%

2.2% 2.7%

3.0%

3.5%

Firm sales Firm profits Marketing ROI

Firm Performance

on Metrics

Figure 4.1. Firm Performance in Prior 12 Months % Change Feb-2011 to

Feb-2012

Firm Sales 20%

Firm Profits 14.7%

Marketing ROI 29.6%

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Page 27: The CMO Survey Highlights and Insights February 2012

Companies build key customer and brand assets

27© Christine Moorman

August 2009

August 2010

August 2011

February 2012

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

3.5%

4.0%

4.5%

2.6% 2.6%

3.2%

3.8%

1.4% 1.6%

1.7%2.2%

3.2%

2.9%

3.5%

4.1%

Customer acquisition Customer retention Brand value

Firm Performance

on Metrics

Figure 4.2. Company Performance on Customer and Brand Metrics % Change Feb-2011 to

Feb-2012

Customer Acquisition 41.3%

Customer Retention 31.5%

Brand Value 37.5%

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Page 28: The CMO Survey Highlights and Insights February 2012

Firm performance goals skyrocket: 40%-110% increases over current performance

Table 4.1. Company Performance and Goals

Actual firm performance in prior 12 months

Goal in the next 12 months

% Increase in goal over performance

Firm sales 4.8% 6.8% 42%

Marketing return on investment 3.5% 5.1% 46%

Firm profits 3.9% 6.2% 59%

Customer acquisition 3.8% 5.7% 45%

Customer retention 2.2% 4.6% 110%

Brand value 4.1% 5.8% 41%

28© Christine Moorman

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Page 29: The CMO Survey Highlights and Insights February 2012

B2B-Service companies top most metrics

29© Christine Moorman

B2B-Product B2B-Services B2C-Product B2C-Services

Firm sales 7.0% 7.5% 6.6% 5.2%

Marketing return on investment 4.9% 5.8% 4.3% 5.3%

Firm profits 6.1% 6.7% 5.7% 5.6%

Customer acquisition 5.8% 6.1% 5.2% 5.1%

Customer retention 4.7% 5.2% 4.1% 3.6%

Brand value 5.9% 5.8% 5.5% 6.0%

Table 4.2. Sector Performance Metrics for Prior 12 Months

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Page 30: The CMO Survey Highlights and Insights February 2012

Flat company performance on social and environmental indicators

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* 5-point scale where 1 is “poor” and 5 is “excellent”

Figure 4.3. Firm Performance on Social and Environmental Metrics in Past 12 Months

Marketing that is beneficial for society Minimize impact of marketing on environment0

1

2

3

4

5

3.23.0

3.23.03.1

2.9

February 2010

February 2011

February 2012

30

Page 32: The CMO Survey Highlights and Insights February 2012

Social media spending growth continues: Expected to be 19.5% of marketing budgets in five years

32© Christine Moorman

Figure 5.1. Social Media Spending as a Percentage of Marketing Budgets Over Time

Current Levels Next 12 Months Next 5 Years0%

5%

10%

15%

20%

25%

7.4%

10.8%

19.5%

Percentage of Total Marketing

Budget (%)

AnalyticsLeadership Organization Jobs Social Media PerformanceSpendingGrowthMarketplace

Page 33: The CMO Survey Highlights and Insights February 2012

Sector differences in social media spending; B2C-Product companies lead al industry sectors

33© Christine Moorman

August 2011 February 2012

Current Social Media Spending

B2B - Product 4.2% 6.2%B2B - Services 8.6% 7.4%B2C - Product 10.5% 9.6%B2C - Services 5.9% 8.4%

Overall 7.1% 7.4%

Social Media Spending in the next 12 months

B2B - Product 7.0% 9.4%B2B - Services 11.5% 10.1%B2C - Product 13.6% 15.3%B2C - Services 9.4% 11.7%

Overall 10.1% 10.8%

Social Media Spending in the

next 5 years

B2B - Product 13.4% 18.5%B2B - Services 18.3% 19.1%B2C - Product 24.0% 23.0%B2C - Services 17.3% 19.0%

Overall 17.5% 19.5%

Table 5.1. Sector Differences in % Change in Social Media Spending

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Page 34: The CMO Survey Highlights and Insights February 2012

Social media integration gap not closing

34© Christine Moorman

Question: How effectively is social media integrated with your firm’s marketing strategy? 7-point scale (1=not integrated, 7=very integrated)

Results: Social media remains poorly integrated with marketing strategy:

• Feb, 2012: Mean = 3.8, SD = 1.9• Feb, 2011: Mean = 3.8, SD = 2.0

Mean (SD)Feb-2012

B2B-Product 3.6 (2.1)

B2B-Services 3.6 (1.9)

B2C-Product 4.4 (1.5)

B2C-Services 4.5 (1.6)

Table 5.2. Integration Scores by Sector

Figure 5.2. How Effectively Social Media is Integrated with Strategy

1 Not at all Integrated

2 3 4 5 6 7 Very Integrated

0%

5%

10%

15%

20%

25%

18.4%

11.9%

8.6%

17.8%

22.0%

14.1%

7.0%

Chart Title

% of Respondents

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Page 35: The CMO Survey Highlights and Insights February 2012

Social media employment doubles inside and outside the company

35© Christine Moorman

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Figure 5.3. Number of Employees In-House and Outsourced Performing Social Media for Company

Number of people employed in-house to do social media for company

Number of individuals from outside vendors providing social media support for the company

0

2

4

6

8

10

5.3

1.8

9.0

4.0

February 2011

February 2012

Page 36: The CMO Survey Highlights and Insights February 2012

36

Topic 6: Marketing Jobs

36

Page 37: The CMO Survey Highlights and Insights February 2012

Marketing employment remains positive but growth slows

Figure 6.1. Percentage Change in Marketing Hires Planned in Next 12 months

37© Christine Moorman

August 2010

February 2011

August 2011

February 2012

0%

5%

10%

15%

20%

25%

4.0%

6.2%7.2%

5.2%

B2B Product

B2B Services

B2C Product

B2C Services

August 2010 6.6% 3.7% 2.4% 0.1%

February 2011 3.7% 4.6% 5.1% 6.3%

August 2011 13.9% 11.3% 6.7% 2.3%

February 2012 2.1% 4.5% 1.9% 4.5%

Table 6.1. Percentage Increase in Marketing Hires by Sector

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Page 38: The CMO Survey Highlights and Insights February 2012

38

August 2010

February 2011

August 2011

February 2012

0%

5%

10%

15%

20%

25%

4.3% 4.5%

9.3%

3.2%

© Christine Moorman

Figure 6.2. Percentage of Company Marketing Expected to be Outsourced in Next 12 Months

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Outsourcing of marketing flattens with recovery

Page 39: The CMO Survey Highlights and Insights February 2012

39

Topic 7: Marketing Organization

39

Page 40: The CMO Survey Highlights and Insights February 2012

40© Christine Moorman

Figure 7.1. Marketing Employees as a Percentage of Total Number of Employees

August 2009

August 2010

August 2011

February 2012

0%

2%

4%

6%

8%

10%

12%

2.4% 2.3%

4.2%

11.0%

Size of marketing groups double during economic recovery

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Page 41: The CMO Survey Highlights and Insights February 2012

External focus levels off as recovery strengthens

Figure 7.2. Firm Outside-In Activities:

Information about customers and competitors … *

*7-point scale where 1 is “not at all” and 7 is “very frequently”

41© Christine Moorman

4.2

4.4

4.6

4.8

5

5.2

5.4

4.9

4.6 4.6

4.7

4.8 4.8

5.3

4.9

4.8

5

5.1

5

5.1

4.6

4.7 4.7

4.8

4.7

February 2011 August 2011 February 2012

Mea

n Va

lue*

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Page 42: The CMO Survey Highlights and Insights February 2012

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Topic 8: Marketing Leadership

42

Page 43: The CMO Survey Highlights and Insights February 2012

Marketing leaders retained through economic crisis; B2C-Product lowest retention levels

43© Christine Moorman

Figure 8.1. Marketing Leader Retention), and 2009 (34.7 months).

Top marketer time in current role in the firm Top marketer time in any role in the firm0

2

4

6

8

10

12

4.3

8.0

4.6

9.0

4.3

8.8

5.4

10.5

August 2009 August 2010 August 2011 February 2012

Year

s

Table 8.1. Sector Differences in Retention

Years in current role

B2B Product 5.5 years

B2B-Service 6.1 years

B2C-Product 3.9 years

B2C-Service 5.2 years

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Page 44: The CMO Survey Highlights and Insights February 2012

Marketer influence in firms holds during economic recovery

44© Christine Moorman

Figure 8.2. Number of Direct Reports to Top Marketer

August 2009

August 2010

August 2011

February 2012

2

4

6

8

10

4.6

7.2 7.3

6

Number of Reports

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Page 45: The CMO Survey Highlights and Insights February 2012

Marketing leadership increases on key strategic activities

Table 8.2. What Marketing Does in Companies

45

Stronger marketing leadership : • Brand• Social media• Competitive intelligence• New Products• CRM – Customer Relationship Management• Targeting• Pricing• Innovation

Maintaining marketing leadership:• Positioning• Lead generation• Customer service

Weaker marketing leadership: • Promotion• Marketing research• Public relations• Market entry• Sales

Small but growing leadership on managing stock market performance

Percentage of Companies Using Marketing for Activity

Activity Feb-11 Feb-12Positioning 79% 78%

Promotion 81% 79%

Brand 81% 84%

Marketing research 73% 71%

Social media 71% 73%

Competitive intelligence 58% 62%

Public relations 65% 53%

Lead generation 53% 53%

Market entry strategies 50% 46%

New products 44% 52%

CRM 38% 41%

Targeting/Market selection 31% 35%

Sales 32% 30%

Pricing 30% 34%

Innovation 33% 39%

Customer service 22% 21%

Stock market performance 0.4% 1.2%

AnalyticsLeadership Organization Jobs Social Media PerformanceSpendingGrowthMarketplace

Page 46: The CMO Survey Highlights and Insights February 2012

46© Christine Moorman

Best Practice from Marketing Leaders www.cmosurvey.org/cmo-insights/

AnalyticsLeadership Organization Jobs Social Media PerformanceSpendingGrowthMarketplace

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. The results have been impressive for this world-class retailer.

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.

Page 47: The CMO Survey Highlights and Insights February 2012

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Topic 9: Marketing Analytics

47

Page 48: The CMO Survey Highlights and Insights February 2012

Spending on marketing analytics to increase 60% in three years

48© Christine Moorman

Figure 9.1. Percent of Marketing Budget Spent on Marketing Analytics

Current Levels In Next 3 Years-2%

0%

2%

4%

6%

8%

10%

12%

5.7%

9.1%

AnalyticsLeadership Organization Jobs Social Media PerformanceSpendingGrowthMarketplace

Current In Next 3 years

<$25M 4.8% 7.3%

$26-99M 4.2% 11.3%

$100-499M 5.5% 7.6%

$500-999M 2.8% 8.8%

$1-9.9B 7.1% 10.2%

$10+B 7.3% 10.8%

Table 9.1. Firm Size Differences

Page 49: The CMO Survey Highlights and Insights February 2012

Size of marketing analytics groups to increase as well

49© Christine Moorman

Figure 9.2. Number of People Employed in Company in Marketing Analytics

Current In Next 3 Years2

3

4

5

6

7

8

5.8

6.9

Number of Company

Employees

AnalyticsLeadership Organization Jobs Social Media PerformanceSpendingGrowthMarketplace

Current In Next 3 years

<$25M 1.1 1.3

$26-99M 1.1 1.4

$100-499M 1.8 2.9

$500-999M 1.4 2.5

$1-9.9B 9.1 10.1

$10+B 26.4 32.4

Table 9.2. Firm Size Differences

Page 50: The CMO Survey Highlights and Insights February 2012

Most decisions fail to use marketing analytics

50© Christine Moorman

Figure 9.3. Percentage of Projects Company Using Marketing Analytics

Uses analytics Do not use analytics0%

10%

20%

30%

40%

50%

60%

70%

37%

63%

AnalyticsLeadership Organization Jobs Social Media PerformanceSpendingGrowthMarketplace

Page 51: The CMO Survey Highlights and Insights February 2012

Marketing analytics not formally evaluated in most companies

51© Christine Moorman

Figure 9.4. Does Your Company Formally Evaluate the Quality of Marketing Analytics?

AnalyticsLeadership Organization Jobs Social Media PerformanceSpendingGrowthMarketplace

Evaluate quality Do not evaluate quality0%

10%

20%

30%

40%

50%

60%

70%

80%

33%

67%

Page 52: The CMO Survey Highlights and Insights February 2012

The 2012 CMO Survey Award for Marketing Excellence – Overall Winner

52© Christine Moorman

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.

Page 53: The CMO Survey Highlights and Insights February 2012

53© Christine Moorman

General Electric (Manufacturing)

Google(Services)

Retail(McDonald’s)

Procter & Gamble (Consumer Packaged Goods)

The 2012 CMO Survey Award for Marketing Excellence – Industry Winners

Participants were asked to nominate a company in response to the question:

Which company in your industry sets the standard for excellence in marketing?

Page 54: The CMO Survey Highlights and Insights February 2012

Preview

54

Next survey: The CMO Survey will be administered again in July 2012

To participate: Sign up at http://www.cmosurvey.org/participate/

Media: Will be posted to http://www.cmosurvey.org/category/news/

Feedback: Send your thoughts to [email protected]

© Christine Moorman