The CMO Survey Highlights and Insights February 2015

Mission

- To collect and disseminate the opinions of top marketers in order to predict the future of markets, track

marketing excellence, and improve the value of marketing in firms and society.

- The survey is an objective source of information about marketing. It is a non-commercial service

dedicated to the field of marketing, not the sale of products and services.

Survey Operation

- Founded in August 2008, The CMO Survey is administered twice a year via an Internet survey. Many

questions repeat to observe trends over time.

- The February 2015 survey was the 13th administration of The CMO Survey.

Sponsoring Organizations

About The CMO Survey

2

Survey Sample

- 2630 top U.S. marketers at Fortune 1000, Forbes Top 200, and top marketers who are AMA Members

or Duke University Alumni and Friends

- 288 responded for a 10.9% response rate

Survey Administration

- Email contact with four follow-up reminders

- Survey in field from January 13, 2015 - February 3, 2015

- 84.3% of respondents VP-level or above

Results Interpretation

- M = sample mean; SD = sample standard deviation

- B2B = Business-to-Business firms; B2C = Business-to-Consumer firms

Survey methodology

3

Topic 1: Marketplace Dynamics……………………………………………………… 5-9

Topic 2: Firm Growth Strategies…………………………………………………….. 11-15

Topic 3: Marketing Spending………………………………………………………… 16-28

Topic 4: Financial and Marketing Performance……………………………………. 29-34

Topic 5: Marketing and Social Media ………………………………..…………….. 35-44

Topic 6: Marketing Jobs…………………………………………………………….... 45-47

Topic 7: Marketing Organization…………………………………………………….. 48-52

Topic 8: Marketing Leadership……………………………………………………..... 53-58

Topic 9: Marketing Analytics………………………………………………………..... 59-68

Topic 10: The CMO Survey Award for Marketing Excellence.…………………… 69-71

Survey topics

4

Topic 1:

Marketplace Dynamics

AnalyticsLeadershipOrganizationJobsSocial MediaPerformanceSpendingGrowthMarketplace

Marketer optimism for U.S. economy

reaches six year high

Figure 1.1. How optimistic are you about the overall U.S. economy on a 0-100 scale with 0 being the

least optimistic and 100 the most optimistic?

6

47.7

56.5

57.8

55.6

63.3

52.2

63.4

58.4

62.7

65.7 66.1 66.4

69.9

40

50

60

70

80

Feb-09 Aug-09 Feb-10 Aug-10 Feb-11 Aug-11 Feb-12 Aug-12 Feb-13 Aug-13 Feb-14 Aug-14 Feb-15

Marketer Optimism About Overall Economy


Optimism for US economy remains high

across all sectors

Figure 1.2. How optimistic are you about the overall U.S. economy on a 0-100 scale with 0 being the

least optimistic and 100 the most optimistic?

7

48 4845 46

51

66 66 66 66 6470 70 71

6772

0

10

20

30

40

50

60

70

80

90

100

Overall B2B Product B2B Services B2C Product B2C Services

February 2009 February 2014 February 2015


Optimists dominate pessimists: 5-to-1

8

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

59.3%

12.3%

25.7%27.6%

14.9%

60.1%

0%

10%

20%

30%

40%

50%

60%

70%

80%

February 2009 February 2015

Percentage of Respondents

Less Optimistic No Change More Optimistic


Positive customer acquisition, retention,

and growth metrics forecasted; price lags

Figure 1.4. Forecasted customer outcomes in next 12 months (% of respondents)

9

30% 32%37%

27%

14%

75%69%

59%

49% 50%

34%

78%72%

66%

52% 51%

34%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

Increasedacquisition of

new customers*

Increasedcustomer

purchase volume

Increased purchaseof related

products & services

Increasedcustomerretention

Increased entry ofnew customersinto the market

Increasedcustomer price

per unit


* Question not asked in Feb-09.


Figure 1.5. Customers’ top priority in next 12 months (% of respondents)

Service trumps product as customers’

top priority

10

19%

16%

30%

20%

11%

6%

31%

18%17%

19%

9%

7%

22%23%

15%

21%

14%

5%

0%

5%

10%

15%

20%

25%

30%

35%

SuperiorProduct Quality

ExcellentService

LowPrice

TrustingRelationship

SuperiorInnovation

Brand


Topic 2:

Firm Growth Strategies


Firms to decrease market penetration and

emphasize riskier growth strategies next year

Types of growth strategies

Existing

Products/

Services

New

Products/

Services

Existing

Markets

Market Penetration

Strategy

Product/Service Development

Strategy

New Markets

Market Development

Strategy

DiversificationStrategy

* % of spending for each growth strategy

Growth

Strategy

Actual

Spending in

Past 12

Months

Expected

Spending in

Next 12

Months

Percent

Change

Expected

Market

Penetration

Strategy56.4% 50.0% -11.3%

Market

Development

Strategy15.8% 17.7% +12.0%

Product/Service

Development

Strategy20.4% 22.7% +11.3%

Diversification

Strategy7.4% 9.6% +29.7%

Table 2.1. How growth spending is expected to change*

12


How will firms grow in the next year?

Figure 2.1. How firms will grow in the next 12 months*

* Percentage of growth spending in each category

13

B2B

Product

B2B

Services

B2C

Product

B2C

Services

Growth from

within your firm

(organic growth)76% 77% 75% 74%

Growth from

partnerships9% 10% 12% 11%

Growth from

acquisitions8% 10% 7% 10%

Growth from

licensing7% 3% 7% 5%

Growth from your firm internally

76%

Growth from partnerships

10%

Growth from acquisitions

9%

Growth from licensing

5%


Percent of sales through Internet

shows steady climb

Figure 2.2. Percent of company sales expected via the Internet in next 12 months

14

B2B Product 10.2%

B2B Services 10.9%

B2C Product 13.2%

B2C Services 21.7%9.2%

8.9%

9.9%11.3%

12.4%

0%

5%

10%

15%

20%

Feb-12 Aug-13 Feb-14 Aug-14 Feb-15


85% of sales revenues from domestic

markets

15

Figure 2.3. Percent of company sales that is domestic

B2B Product 78.0%

B2B Services 88.9%

B2C Product 87.0%

B2C Services 87.0%

77.6%

79.4% 77.5% 79.4%

85.4%

70%

75%

80%

85%

90%

Feb-12 Aug-13 Feb-14 Aug-14 Feb-15

Topic 3:

Marketing Spending


Marketing budgets expected to rebound

to highest point in 3 years

Figure 3.1. Percent change in marketing budgets in next 12 months

17

0.5% 1.1%

5.9%

9.2%

6.7%

9.1%8.1%

6.4% 6.1%

4.3%

6.7%

5.1%

8.7%

0%

2%

4%

6%

8%

10%

12%

Feb-09 Aug-09 Feb-10 Aug-10 Feb-11 Aug-11 Feb-12 Aug-12 Feb-13 Aug-13 Feb-14 Aug-14 Feb-15

Change in Marketing Spending


Sector differences in marketing spend

Figure 3.2. Percent change in marketing budgets in next 12 months

18

6.7%

5.4%

6.4%7.1%

5.8%

8.7%9.1% 9.2%

5.0%

13.4%

0%

3%

6%

9%

12%

15%




Digital marketing spend to increase 14.7%

in next year

*Refers to media advertising not using the web.

Figure 3.3. Percent change in traditional advertising* vs. digital marketing spend in next 12 months

19

-0.8%-1.9%

-2.7% -2.1%

-0.1%

-3.6%

-1.1%

12.8%11.5%

10.2% 10.1%

8.2%

10.8%

14.7%

-5%

0%

5%

10%

15%

20%

Feb-12 Aug-12 Feb-13 Aug-13 Feb-14 Aug-14 Feb-15

Traditional Advertising Spend Digital Marketing Spend


Digital marketing spend increases

across sectors

Figure 3.4. Change in digital marketing spending in next 12 months by sector

20

8%9%

7% 8% 8%

15% 15%16%

10%

18%

0%

5%

10%

15%

20%




Marketing spend on mobile expected to

triple in three years

21

B2B

Product

B2B

Services

B2C

Product

B2C

Services

Marketing budget spent

on mobile now2.2% 3.0% 5.5% 3.2%

Marketing budget spent

on mobile in next 3 years8.2% 8.3% 11.4% 9.9%

3.2%

9.0%

0%

3%

6%

9%

12%

15%

Current Levels In Next 3 Years

Figure 3.5. Marketing budget spend on mobile


Brand and customer investments

remain strong

Figure 3.6. Percent change in marketing spending in next 12 months

22

5.1% 4.9%

7.5%

5.6%

0%

2%

4%

6%

8%

10%

Customer Relationship Management Brand Building



Spending for service introductions

inches up

Figure 3.7. Percent change in marketing spending in next 12 months

23

8.0%

4.0%

6.9%

5.0%

0%

1%

2%

3%

4%

5%

6%

7%

8%

9%

New Product Introductions New Service Introductions



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

Marketing budgets represent 10% of

overall firm budgets

Figure 3.8. Marketing budget as a percent of firm budget*

24

8.1%

10.0% 10.4%11.4%

10.6%9.4% 10.9% 10.9%

10.1%

0%

3%

6%

9%

12%

15%

Feb-11 Aug-11 Feb-12 Aug-12 Feb-13 Aug-13 Feb-14 Aug-14 Feb-15

% Marketing Budget


Marketing spend 8.3% of company

revenues

Figure 3.9. Marketing spending as a percentage of company revenues*

*Question asked in Feb-12 for the first time.

25

8.5%

11.0%

7.9% 7.8%

9.3%8.3% 8.3%

0%

3%

6%

9%

12%

15%


% Marketing Spend


Table 3.1a. Marketing spending as a percentage of firm revenues by economic sector

B2B

Product

B2B

Services

B2C

Product

B2C

Services

February 2015 7.4% 8.6% 9.1% 9.3%

<$25

Million

$26-99

Million

$100-499

Million

$500-999

Million

$1-9.9

Billion

>$10

Billion

February 2015 11.1% 6.9% 4.5% 8.0% 6.9% 8.1%

Table 3.1b. Marketing spending as a percentage of firm revenues by company sales revenue

26

Who has the biggest marketing budgets?


Marketing budgets correspond with

Internet sales

27

Figure 3.10. Marketing spend as a percentage of firm revenues by company internet sales

6.1%

7.0%

13.3%

0%

3%

6%

9%

12%

15%

0% of sales through internet 1-10% of sales through internet >10% of sales through internet


Marketing spend on domestic markets

dominates

28


Percent of marketing budget

spent on domestic markets87.8% 82.2% 90.8% 88.1% 94.0%

Percent of marketing budget

spent on international markets12.2% 17.8% 8.2% 11.9% 6.0%

Table 3.3. Marketing spending on domestic and international markets

Topic 4:

Financial and Marketing

Performance


Company financial performance holds

Figure 4.1. Percent change in firm performance in prior 12 months

30

3.9%

3.0%

3.4%

4.1%

3.1%2.9%

0%

1%

2%

3%

4%

5%

Firm sales Firm profits Marketing ROI



Performance on key customer and

brand assets slips

Figure 4.2. Percent change in performance on customer and brand metrics in prior 12 months

31

3.6%

1.9%

3.5%

3.1%

2.1%

2.9%

0%

1%

2%

3%

4%

5%

Customer acquisition Customer retention Brand value



Sector performance differences

OverallB2B

Product

B2B

Services

B2C

Product

B2C

Services

Firm sales 4.1% 4.9% 4.1% 2.2% 5.5%

Firm profits 3.1% 2.9% 3.9% 1.8% 4.2%

Marketing ROI 2.9% 3.2% 2.8% 2.7% 3.1%

Customer acquisition 3.1% 2.6% 3.75 2.2% 4.5%

Customer retention 2.1% 2.9% 2.6% 0.7% 1.5%

Brand value 2.9% 3.9% 3.4% 0.8% 2.7%

Table 4.1. Percent change in performance in prior 12 months by sector

32


Performance goals remain strong

Actual firm performance

in prior 12 months

Goal in the

next 12 months

Firm sales 4.1% 4.5%

Marketing ROI 3.1% 5.1%

Firm profits 2.9% 5.9%

Customer acquisition 3.1% 5.8%

Customer retention 2.1% 4.6%

Brand value 2.9% 5.0%

Table 4.2. How actual performance compares to goals

33


Marketing excellence fails to improve

34

Figure 4.3. How would you rate your company’s marketing excellence?* (7-point scale where 1=Very Weak and 7=Leader)

4.5 4.5 4.7 4.5 4.6

1

2

3

4

5

6

7

Aug-13 Feb-13 Feb-14 Aug-14 Feb-15

Excellence rating

* Question asked in Aug-13 for the first time

Topic 5:

Marketing and Social

Media


Social media spend expected to be 22.4%

of marketing budgets in five years

Figure 5.1. Social media spending as a percent of marketing budgets

36

9.9%

13.5%

22.4%

0%

5%

10%

15%

20%

25%

Current Levels Over Next 12 Months In Next 5 Years

% of Marketing Budget


Social media spend across sectors: Service

companies outpace product companies

OverallB2B

Product

B2B

Services

B2C

Product

B2C

Services

Current Social Media

Spending9.9% 9.3% 9.6% 9.5% 12.9%

Social Media Spending

in the next 12 months13.5% 12.6% 14.3% 11.7% 16.3%

Social Media Spending

in the next 5 years22.4% 20.9% 23.1% 20.5% 27.7%

Table 5.1. Changes in social media spending across sectors

37


Social media remains poorly integrated

with marketing strategy

38

Figure 5.2. How effectively is social media linked to your firm’s marketing strategy?

(1=Not integrated, 7=Very integrated)

3.8 3.8 3.8 3.8 3.9 3.8 3.9 3.9

1

2

3

4

5

6

7

Feb-11 Feb-12 Aug-12 Feb-13 Aug-13 Feb-14 Aug-14 Feb-15

Mean Integration Level


B2C Product companies have the

highest social media integration

Figure 5.3. How well is social media integrated with marketing strategy?

(1=Not At All Effectively, 7=Very Effectively)

39

23.1%31.6%

20.3%15.0%

20.0%

57.8%

54.0%

58.2%57.5%

68.0%

19.1% 14.5%21.6%

27.5%

12.0%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%


Top 2 Box=6-7

Middle 3 Box=3-5

Bottom 2 Box=1-2


Persistent poor integration of customer

information across channels

Figure 5.4. How effectively does your company integrate customer information across purchasing,

communication, and social media channels (1=Not At All Effectively, 7=Very Effectively)?

40

*Question asked in Aug-12 for the first time.

3.8 3.8 3.8 3.8 3.9 3.8 3.9

3.7

1

2

3

4

5

6

7

Feb-11 Feb-12 Aug-12 Feb-13 Aug-13 Feb-14 Aug-14 Feb-15

Mean Integration Level


Social media activities increasingly

performed by outside agencies

41

Figure 5.5. Percent of company’s social media activities performed by outside agencies

B2B

Product

B2B

Services

B2C

Product

B2C

Services

1 year ago 17.6% 11.1% 29.8% 17.2%

Currently 17.5% 11.8% 36.0% 18.1%

17.4%

18.9%

15%

16%

17%

18%

19%

20%

One year ago Currently


Only 13% of firms able to prove the

impact of social media quantitatively

Figure 5.6.. Which best describes how you show the impact of social media on your business?

42

B2B

Product

B2B

Services

B2C

Product

B2C

Services

We haven't been

able to show the

impact yet44.7% 46.8% 42.5% 44.0%

We have a good

qualitative sense of

the impact, but not

a quantitative

impact

40.8% 41.8% 42.5% 44.0%

We have proven

the impact

quantitatively14.5% 11.4% 15.0% 12.0%

Haven't been able

to show the

impact yet

45%Have a good

qualitative sense

of the impact, but

not a quantitative

impact

40%

Have proven

the impact

quantitatively

13.2%

Have a good

qualitative sense of

the impact, but not a

quantitative impact

41.8%

Haven't been

able to show

the impact yet

45.0%

Use of online customer behavior data

expected to increase over timeAnalyticsLeadershipOrganizationJobsSocial MediaPerformanceSpendingGrowthMarketplace

Figure 5.7a. Does your company use customer

behavior data collected online for

targeting purposes?

Figure 5.7b. Is your company's use of such

data increasing, decreasing, or

staying the same over time?

43

Yes42%

No58%

92.3%

7.7%

0.0%0%

20%

40%

60%

80%

100%

Increasing About the same Decreasing

Most marketers have low levels of concern

about the use of online customer data


Figure 5.9. How worried are you that the use of online customer data could raise questions

about privacy? Mean = 3.2 (SD = 1.5)

44

10.9%

30.4%

18.5%

15.2%

19.6%

4.3%

1.1%

0%

5%

10%

15%

20%

25%

30%

35%

1Not At AllWorried

2 3 4 5 6 7Very

Worried

Topic 6:

Marketing Jobs


Marketing hiring positive but continues

downward trend

Figure 6.1. Percentage change in marketing hires planned in next 12 months

46

5.2%

6.5%

5.4% 5.5%4.7%

3.8% 3.5%

0%

3%

6%

9%

12%

15%


Percentage Change in Marketing Hires in Next 12 Months B2B Product 4.6%

B2B Services 4.5%

B2C Product 0.7%

B2C Services 1.3%


Outsourcing of marketing jobs

continues to increase

Figure 6.2. Expected change in outsourcing of marketing activities in next 12 months

47

3.2% 3.1%

3.5%2.6%

3.1%

4.3% 4.4%

0%

2%

4%

6%

8%

10%


Percentage Change in OutsourcingB2B Product 5.3%

B2B Services 4.1%

B2C Product 4.0%

B2C Services 3.5%

Topic 7:

Marketing Organization

Marketing and sales are equal partners

in most companies


49

Figure 7.1. The marketing-sales relationship (% of respondents)

69%

9% 9%13%

0%

10%

20%

30%

40%

50%

60%

70%

80%

Sales and marketingwork together

on an equal level

We don'thave a

sales function

Sales isin charge ofmarketing

Sales is withinthe marketing

function


Product/service structure dominates

but customer groups show growth

50

Figure 7.2. Organizational structure in companies

26.5% 26.7%30.2%

73.5% 73.3%69.8%

0%

20%

40%

60%

80%

100%


Organized by Customer Groups Organized by Product/Service Groups


Service companies more likely to adopt

customer structure

51

OverallB2B

Product

B2B

Services

B2C

Product

B2C

Services

Customer structure 30.2% 26.7% 39.3% 15.2% 38.9%

Product/service structure 69.8% 73.3% 60.7% 84.8% 61.1%

Table 7.1. Percent of companies using customer group vs. product/service structure

External focus drops off as recovery

strengthens


Figure 7.3. Company outside-in approach to strategy

(7-point scale where 1 =“not at all” and 7 = “very frequently”)

Information about customers and competitors is …

51

5.24.9 4.8

5.0 5.1 5.04.9

4.3 4.44.6 4.7 4.7

0

1

2

3

4

5

6

Collected ona regular basis

Shared vertically acrossdifferent levelsof the firm andbusiness units

Shared horizontallyacross differentfunctions andbusiness units

Shapes the design offirm strategies

Influences theimplementation of

firm strategies

Impacts theevaluation of

firm strategies


Topic 8:

Marketing Leadership


Marketing leadership gains and losses

54

Table 8.1. Percentage of companies in which marketing leads activity

Weaker marketing leadership:

• Advertising

• Promotion

• Brand

• Marketing research

• Social media

• Public relations

• Market entry

• Target/Market selection

Stronger marketing leadership:

• Competitive intelligence

• Lead generation

• New products

• Innovation

• Customer service

• Stock market performance

Maintaining marketing leadership:

• Customer relationship management

• Sales

• Pricing

Activity Feb-11 Feb-15

Advertising 85% 77.1%

Positioning 79% 77.1%

Promotion 81% 77.1%

Brand 81% 74.9%

Marketing analytics* - 75.4%

Marketing research 73% 68.6%

Social media 71% 61.7%

Competitive intelligence 58% 59.4%

Public relations 65% 50.9%

Lead generation 53% 58.3%

Market entry strategies 50% 46.9%

New products 44% 45.7%

CRM 38% 38.3%

Targeting/Market selection 31% 27.4%

Sales 32% 33.1%

Pricing 30% 29.7%

Innovation 33% 36.0%

Customer service 22% 25.7%

Stock market performance 0.4% 2.3%*Marketing analytics added in Feb-13.


Marketing leaders retained for an average

of 5.3 years

Figure 8.1. Marketing leader retention

55

4.3 4.6 4.3

5.4

4.14.8

5.1

4.6

5.3 5.3

8.09.0 8.8

10.5

9.2

9.510.0

9.4 10.09.4

0

2

4

6

8

10

12

Aug-09 Aug-10 Aug-11 Feb-12 Aug-12 Feb-13 Aug-13 Feb-14 Aug-14 Feb-15

Years top marketer in current rolein the firm

Years top marketer in any role inthe firm


But marketers lose reports

Figure 8.2. Number of people reporting to top marketer

56

6.08.6

5.66.9

5.5 5.1

25.4 24.6

17.516.1 16.3

10.9

0

5

10

15

20

25

30

Feb-12 Aug-12 Feb-13 Aug-13 Feb-14 Feb-15

Number of direct reports Number of indirect reports

Pressure to prove the value of

marketing


Figure 8.3. Do you feel pressure from your

CEO or Board to prove the value

of marketing?

Figure 8.4. Is this pressure increasing,

decreasing, or about the same?

57

Yes61%

No39%

58%

42%

0%0%

20%

40%

60%

80%

100%

Increasingpressure

Same Decreasingpressure

Best Practices from Marketing Leaders: See full interviews at www.cmosurvey.org/cmo-insights/

Senior Vice President and Chief Marketing Officer Beth Comstock discusses how GE approaches

marketing: “You have to create a platform that invites innovative ideas.” This platform involves four

capabilities that have produced an array of new products, services, customers, and business models.

Chief Marketing Officer Kim Feil discusses how she built a marketing function. From insights to

accountability, she describes the organization, processes, metrics, and talent management strategies

important to this effort.

Executive Vice President and Chief Marketing Officer Geert van Kuyck shares ideas on building the

essential skill set for CMOs and the importance of defining the CMO’s mission. He discusses the use

of the Net Promoter Score and other metrics to evaluate business results at Philips, touching on

Philips’ engagement with LinkedIn and social media metrics.

Executive Vice President and Chief Marketing Officer Stephen Quinn describes how Walmart rebuilt

its customer focus. Key steps involved harnessing internal support, generating market insight, using

customer-focused metrics, living the brand internally, and building marketing talent.

Global Marketing Officer Marc Pritchard shares views on how marketing contributes to P&G’s

performance. He talks about how P&G learns about customers and how it is relentless in its attention

to building loyal customers and strong brands in the store, on the web, and around the world.

58

http://www.cmosurvey.org/cmo-insights/

Topic 9:

Marketing Analytics


Spending on marketing analytics expected

to increase 83% in three years

Figure 9.1. Percent of marketing budget spent on marketing analytics

60

6.4%

11.7%

0%

3%

6%

9%

12%

15%

Current Levels In Next 3 Years


Spending on marketing analytics by

firm and industry characteristics

CurrentIn Next

3 years

<$25M 5.9% 12.4%

$26-99M 5.5% 9.0%

$100-499M 6.3% 11.2%

$500-999M 6.4% 11.2%

$1-9.9B 7.6% 12.2%

$10+B 9.0% 13.9%

Table 9.1c. Firm size differences

Table 9.1b. Firm internet sales differences

CurrentIn Next

3 years

0% 5.6% 10.9%

1-10% 6.3% 11.0%

>10% 7.9% 13.6%

Table 9.1a. Firm sector differences

CurrentIn Next

3 years

B2B Product 7.0% 11.8%

B2B Services 5.6% 12.1%

B2C Product 6.8% 11.0%

B2C Services 6.6% 11.0%

61


Less than a third of projects use marketing analytics; no

improvement despite spending increases

Figure 9.2. Percentage of projects using available or requested marketing analytics*

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*This question was asked in Feb-12 for the first time.

37.0%

35.0%

30.4%29.0%

32.5%32.3%

29.0%

10%

20%

30%

40%

50%


Percentage using marketing analyticsB2B Product 24.9%

B2B Services 23.3%

B2C Product 46.9%

B2C Services 30.6%


Contribution of marketing analytics

remains low and is not improving

Figure 9.3. To what degree does the use of marketing analytics contribute to your company's

performance? 1 = Not at all and 7 = Very highly

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3.93.7

3.53.7 3.7

3.2

2

3

4

5

6

Aug-12 Feb-13 Aug-13 Feb-14 Aug-14 Feb-15

Mean Contribution Level

*This question was asked in Aug-12 for the first time.

Marketing analytics contributions by

sector and firm differences

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To what degree does the use of marketing analytics contribute to your company's performance?

(1=Not At All, 7=Very Highly)

Table 9.2a. Industry sector differences

Sector Mean (SD)

Banking/Finance/Insurance 2.7 (1.5)

Communications/Media 3.6 (2.3)

Consumer Packaged Goods 4.5 (2.0)

Energy 2.7 (2.1)

Healthcare/Pharma. 2.9 (1.7)

Manufacturing 2.7 (1.4)

Mining/Construction 3.3 (2.5)

Retail/Wholesale 3.5 (2.0)

Service/Consulting 2.6 (1.6)

Tech Software Biotech 3.7 (2.1)

Transportation 3.7 (1.4)

Sector Mean (SD)

B2B Product 2.9 (1.7)

B2B Services 2.8 (1.7)

B2C Product 4.2 (1.8)

B2C Services 3.5 (2.1)

Table 9.2b. Economic sector differences

Table 9.2c. Firm internet sales differences

Mean (SD)

0% of sales 2.7 (1.7)

1-10% of sales 3.2 (1.6)

>10% of sales 4.0 (2.0)

Majority of companies do not evaluate

marketing analytics

65

Figure 9.4. Does your company formally evaluate the quality of marketing analytics?


65

Yes30.4%

No69.6%

B2B Product 27.7%

B2B Services 32.4%

B2C Product 40.5%

B2C Services 16.7%


Companies lack quantitative metrics to

demonstrate impact of marketing spending

Figure 9.5. Metrics for demonstrating impact of marketing spending on business

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42%39%

19%

34%

48%

18%

0%

10%

20%

30%

40%

50%

60%

Proved the impactquantitatively

Good qualitative senseof the impact, not quantitative

Haven't been able toshow the impact yet

Short-Term Impact Long-Term Impact


Improvement in quantitative metrics

over time

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36%42%

29%34%

0%

20%

40%

60%

80%

100%


Prove the Short-term Impact Quantitatively Prove the Long-term Impact Quantitatively


How companies use marketing

analytics to drive decision making

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Table 9.3. Percentage of companies using marketing analytics*

Greater use of marketing analytics:

• Customer acquisition

• Customer retention

• Social media

• Product line/assortment optimization

• Multichannel marketing

Weaker use of marketing analytics:

• Promotion strategy

• Marketing mix

• Recommendation engine

Activity Aug-13 Feb-15

Customer acquisition 31.7% 37.8%

Customer retention 27.6% 30.2%

Social media 21.0% 27.4%

Product line/assortment optimization 18.8% 26.4%

Branding 22.0% 26.0%

Pricing strategy 23.7% 23.3%

Promotion strategy 23.7% 21.9%

Marketing mix 21.7% 19.8%

Multichannel marketing 13.4% 14.6%

Recommendation engine 7.3% 5.6%

* Question has been asked two times: Aug-13 and Feb-15

Topic 10:

The CMO Survey Award for

Marketing Excellence

The 2015 CMO Survey Award for

Marketing Excellence – Overall Winner

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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.

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

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

The 2015 CMO Survey Award for Marketing

Excellence – Industry Winners

71

Next survey: July 2015

Participate: Sign up here

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The CMO Survey Highlights and Insights February 2015

Business

Transcript of The CMO Survey Highlights and Insights February 2015