about the cmo survey - deloitte united states · - founded in august 2008, the cmo survey is...

About The CMO Survey

2

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 and a non-commercial service

dedicated to the field of marketing.

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 2017 survey is the 18th administration of The CMO Survey.

Sponsoring Organizations- Individual survey data and participant lists are held in confidence and not provided to survey

sponsors.

Survey methodology

3

Survey Sample- 2813 top U.S. marketers at for-profit companies

- 388 responded for a 13.8% response rate

Survey Administration

- Email contact with four follow-up reminders

- Survey in field from January 16, 2017 - February 3, 2017

- 94.9% 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

Reports

- The Topline Report: All results reported at the aggregate level

- Results by Firm and Industry Characteristics: All results reported within sectors, size, and

Internet sales

Survey topics

4

Topic 1: Marketplace Dynamics………………………………........ 5-11

Topic 2: Firm Growth Strategies……………………………........... 12-21

Topic 3: Marketing Spending…………………………………......... 22-34

Topic 4: Financial and Marketing Performance…………………... 35-40

Topic 5: Social Media Marketing…………………………............... 41-50

Topic 6: Mobile Marketing…………………………………………... 51-54

Topic 7: Marketing Jobs…………………………………………….. 55-57

Topic 8: Marketing Organization…………………………............... 58-61

Topic 9: Marketing Leadership……………………………………... 62-67

Topic 10: Marketing Analytics………………………………………... 68-76

Topic 11: The CMO Survey Award for Marketing Excellence……. 77-79

Marketplace Growth Spending Performance Social Media Mobile Jobs Organization Leadership Analytics

Marketer economic optimism increases

6

More Optimistic

42.5%

LessOptimistic

26.6%

No Change30.9%

Figure 1.1. Are you more or less optimistic about the overall U.S. economy compared to last quarter?*

30.6%34.9%

42.5%

0%

20%

40%

60%

80%

100%

Feb-16 Aug-16 Feb-17

More Optimistic


Marketer economic outlook varies by

industry

7

Top 3 Industry Sectors

Transportation

Education

Pharmaceuticals


Consumer Services

Consumer Packaged Goods

Service/Consulting


Healthcare

Banking/Finance/Insurance

Mining/Construction

More Optimistic

42.5%

LessOptimistic

26.6%

No Change30.9%

Figure 1.2. Are you more or less optimistic about the overall U.S. economy compared to last quarter?*


All customer indictors positive: Customer

acquisition and sales volume lead forecasts

8

67%63%

60%

44% 42%

31%

73%

67%

61%

53%49%

35%

0%

10%

20%

30%

40%

50%

60%

70%

80%

Increasedacquisition of

new customers

Increasedcustomer

purchase volume

Increased purchaseof related products

& services

Increasedcustomerretention

Increased entry ofnew customersinto the market

Increasedcustomer price

per unit

August 2016 February 2017

Figure 1.3. Forecasted customer outcomes in next 12 months (% of respondents)


9

Quality, service, and trusting relationships remain

top customer priorities; trust largest yearly gain

29%27%

17%

14%13%

27%

22% 23%

17%

11%

25%24% 24%

16%

12%

0%

5%

10%

15%

20%

25%

30%

35%

SuperiorProduct Quality

ExcellentService

TrustingRelationship

LowPrice

SuperiorInnovation

February 2016 August 2016 February 2017

Figure 1.4. Customers’ top priority in next 12 months (% of respondents)


Fewer companies using channel partners to

go to market

10

70.7%

29.3%

55.5%

44.5%

0%

20%

40%

60%

80%

100%

Use channel partners Do not use channel partners

February 2013 February 2017

Figure 1.5. Percent of Companies Using Channel Partners to Reach Market (% of respondents)*

* Question asked irregularly. Full time series available shown.


All channel partner indicators forecasted

to improve

11

64%

44%

23% 22%

67%

50%

26%31%

0%

20%

40%

60%

80%

Increased partnerpurchase volume

Increased partner purchaseof related products

and services

Increased partner powerin relationship

Increased partnerprice per unit


Figure 1.6. Forecasted channel partner outcomes in next 12 months (% of respondents)*

* Question asked irregularly. Full time series available shown.


Investments in existing markets and

offerings dominate growth spending

13

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

StrategyAug-16 Feb-2017

Market

Penetration

Strategy

52.1% 51.1%

Product/Service

Development

Strategy

23.6% 24.2%

Market

Development

Strategy

15.4% 15.0%

Diversification

Strategy8.9% 9.7%

Table 2.1. Spending on Growth Strategies in

Past 12 Months*

Types of growth strategies


Internal activities drive overall

firm growth investments

14

Internal Partnerships Acquisitions Licensing

Overall 73.0% 11.4% 10.8% 4.9%

B2B Product 72.0% 11.4% 9.6% 7.0%

B2B Services 71.3% 15.3% 10.4% 3.0%

B2C Product 78.7% 7.7% 7.8% 5.8%

B2C Services 72.1% 6.7% 18.5% 2.7%

76.1%

10.1% 8.6%5.2%

73.0%

11.4% 10.8%4.9%

0%

20%

40%

60%

80%

100%

Growth from within yourfirm

Growth from partnerships Growth from acquisitions Growth from licensing


Figure 2.2. How firms will grow in the next 12 months*

* Percentage of growth spending in each category. Question asked irregularly. Full time series available shown.


Company sales through Internet remain

modest at 11.8%

15

Figure 2.1. Percent of company sales through the Internet

Overall 11.8%

B2B Product 8.7%

B2B Services 13.7%

B2C Product 14.2%

B2C Services 12.5%

9.2% 8.9% 9.9% 11.3% 12.4% 10.3% 11.3% 10.3% 11.8%

0%

20%

40%

60%

80%

100%

Feb-12 Aug-13 Feb-14 Aug-14 Feb-15 Aug-15 Feb-16 Aug-16 Feb-17

Percent of sales through the Internet


Internet sales are a quarter or less of total

sales across all industries

16

Figure 2.1. Percent of company sales from Internet

6.7%

25.1%

6.5%

21.0%

9.3%

13.3%

9.4% 8.8%

0.3% 0.0%

6.9%

15.2%13.2%

19.9%

0%

5%

10%

15%

20%

25%

30%


Company sales from domestic markets

continue to dominate

17

Figure 2.2. Percent of company sales from domestic marketsOverall 84.4%

B2B Product 80.9%

B2B Services 86.2%

B2C Product 81.1%

B2C Services 93.0%

77.6% 79.4%

77.5%79.4%

85.4%81.0%

83.0%81.2%

84.4%

50%

60%

70%

80%

90%

100%

Feb-12 Aug-13 Feb-14 Aug-14 Feb-15 Aug-15 Feb-16 Aug-16 Feb-17

Percent of sales - domestic


Marketing budget spent on international

markets drops further

18

Overall 10.2%

B2B Product 8.7%

B2B Services 13.7%

B2C Product 14.2%

B2C Services 12.5%

Figure 2.3. Percent of marketing budget spent on international markets

21.9%

17.4%

10.2%

0%

5%

10%

15%

20%

25%

30%

February 2016 August 2016 February 2017


Western Europe leads sales for current

international markets

19

Figure 2.4. Which international market is currently your largest (in terms of sales)?

Western

Europe:

32.9%Canada:

14.5%

China:

13.2%

Japan:

5.3%

Mexico:

6.6%

Northern

Europe:

6.6%

Middle East:

5.3%

Brazil:

5.3%Australia & New

Zealand: 3.9%

Central

America:

1.3%

Indonesia

& SE Asia:

1.3%

Eastern

Europe:

1.3% Korea:

1.3%


Location of international sales across

different economic sectors

20

Table 2.1. Which international market is currently your largest (in terms of sales)?

B2B

Product

B2B

Services

B2C

Product

B2C

Services

Western Europe 33.3% 42.3% 8.3% 40.0%

Canada 15.2% 11.5% 16.7% 20.0%

China 3.0% 23.1% 16.7% 20.0%

Japan 6.1% 3.8% 8.3% -

Mexico 6.1% - 25.0% -

Northern Europe 3.0% 7.7% 8.3% 20.0%

Middle East 6.1% - 16.7% -

Brazil 9.1% 3.8% - -

Australia/New Zealand 6.1% 3.8% - -

Central America 3.0% - - -

Indonesia and SE Asia 3.0% - - -


China and Western Europe are largest

future growth opportunities

21

Figure 2.5. Which international market that you are currently not in is your biggest opportunity for the future?

Western

Europe:

14.4%Canada:

8.7%

China: 16.3%

Japan: 1.9%

Mexico:

4.8%

Northern

Europe:

3.8%

Middle East:

5.8%

Brazil:

10.6%Australia & New

Zealand: 5.8%

Central

America:

2.9%

Indonesia &

SE Asia: 5.8%

Eastern

Europe:

2.9%

South American

Countries*: 6.7%

South

Africa: 3.8%

India:

3.8%

Russia: 1%

Taiwan: 1%

*South American Countries excludes Brazil


Marketing budgets expected to increase

23

Prior 12 months Next 12 months

Overall 7.3% 10.9%

B2B Product 6.6% 8.9%

B2B Services 9.1% 14.4%

B2C Product 5.2% 8.8%

B2C Services 7.0% 8.5%

Figure 3.1. Percent change in marketing budgets

6.0%

7.2%7.3%

10.9%

0%

2%

4%

6%

8%

10%

12%

Actual change in marketing budgetin prior 12 months

Expected change in marketing budgetin next 12 months



Forecasted marketing budgets expected to

increase 51.4%

24

Figure 3.2. Expected percent change in marketing budgets in next 12 months

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%

5.5%

6.9%7.2%

10.9%

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 Aug-15 Feb-16 Aug-16 Feb-17

Change in Marketing Spending


Nearly all industries expect growth in

marketing budgets

25

Figure 3.3. Expected percent change in marketing budgets in next 12 months

10.9% 10.4%12.0%

8.7%

15.5%

20.4%

-14.0%

10.1%6.6%

17.0%

5.0%

12.6% 12.2%15.2%

7.5%

-15%

-10%

-5%

0%

5%

10%

15%

20%

25%


Digital spend dominates; positive growth expected for

traditional advertising spend for first time in 5 years

2626

*Refers to media advertising not using the Internet. Showing only data from February surveys.

Figure 3.4. Percent change in traditional advertising* vs. digital marketing spend in next 12 months

-0.8%

-2.7%

-0.1%

-1.1%-3.2%

0.6%

12.8%10.2%

8.2%

14.7%

13.2%

14.6%

-5%

0%

5%

10%

15%

20%

Feb-12 Feb-13 Feb-14 Feb-15 Feb-16 Feb-17

Traditional Advertising Spend Digital Marketing Spend

Digital marketing dominates overall

marketing spend across economic sectors

27

*Refers to media advertising not using the Internet.

Figure 3.5. Percent change in traditional advertising* vs. digital marketing spend in next 12 months


13.0%

16.0%

12.1%

17.4%

-1.0% 0.4%

3.1% 2.7%

-5%

0%

5%

10%

15%

20%

B2B Product B2B Services B2C Product B2C Services

Digital marketing spending Traditional advertising spending


Brand building expected to continue strong

spending gains

28

Figure 3.6. Percent change in CRM and brand spending expected in next 12 months

7.9%7.5%

8.0%

7.1% 7.4%7.9%

4.3%

5.6% 5.4%5.0%

6.3%

9.7%

0%

2%

4%

6%

8%

10%

12%

Aug-14 Feb-15 Aug-15 Feb-16 Aug-16 Feb-17

Customer Relationship Management Brand Building


Marketing budgets represent 11.1% of

firm budgets

29

Figure 3.7. Marketing budget as percent of firm budget*Overall 11.1%

B2B Product 10.9%

B2B Services 10.1%

B2C Product 16.9%

B2C Services 8.2%

8.1%

10.0% 10.4%11.4%

10.6%9.4%

10.9% 10.9%10.1%

11.4%12.1%

11.3% 11.1%

0%

4%

8%

12%

16%

20%

Feb-11 Aug-11 Feb-12 Aug-12 Feb-13 Aug-13 Feb-14 Aug-14 Feb-15 Aug-15 Feb-16 Aug-16 Feb-17

% Marketing Budget

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


Marketing spend is 8.1% of company

revenues

30

Figure 3.8. Marketing spending as percent of company revenues*


Overall 8.1%

B2B Product 7.88%

B2B Services 6.92%

B2C Product 12.4%

B2C Services 7.75%

8.5%

11.0%

7.9% 7.8%

9.3%8.3% 8.3%

6.6%8.4%

7.5% 8.1%

0%

3%

6%

9%

12%

15%

Feb-12 Aug-12 Feb-13 Aug-13 Feb-14 Aug-14 Feb-15 Aug-15 Feb-16 Aug-16 Feb-17

% Marketing Spend


Marketing spend varies across industries

31

Figure 3.9. Marketing spending as percent of company revenues*

4.3%

11.0%

10.0%

13.9%

4.6%

0.5%

10.2%

2.7%

0.6%

6.2%

11.6%12.2%

11.2%

0%

2%

4%

6%

8%

10%

12%

14%

16%

*Pharmaceuticals are not displayed due to too few respondents.


Figure 3.10. Percent change in marketing knowledge investments expected in next 12 months

Firms emphasize knowledge investments;

capability investments to increase 113%

32

*Developing knowledge about how to do marketing refers to the development of new marketing capabilities; marketing training involves transferring

existing marketing knowledge to employees.

1.7% 1.8%

2.7%

6.2%

4.9%

5.3%

4.6%

3.1%

6.6%

3.7% 2.4%

2.6%

0%

2%

4%

6%

8%

10%

February 2013 February 2014 February 2017

Marketing consultingservices

Marketing research andintelligence

Developing knowledgeabout how to do marketing

Marketing training


Firms to increase their investments on

knowledge building

33

Overall Mean

(SD)

B2B

Product

B2B

Services

B2C

Product

B2C

Services

Marketing consulting

services2.7% 2.5% 4.4% -1.2% 2.5%

Marketing research and

intelligence5.3% 5.0% 6.0% 3.9% 5.6%

Developing knowledge about

how to do marketing6.6% 4.9% 8.5% 7.0% 5.5%

Marketing training 2.6% 2.4% 2.5% 3.2% 2.9%

*Developing knowledge about how to do marketing refers to the development of new marketing capabilities; marketing training involves

transferring existing marketing knowledge to employees.

Table 3.1. Percent change in marketing knowledge investments expected in next 12 months


Percentage of marketing budget devoted to training and development

(Overall mean = 3.8%, SD = 4.9, 95% Percent Confidence Interval Around the Mean: 3.2%-4.4%)

Overall budget spend averages 3.8% for

training and development

34

Table 3.2a. Industry sector differences

Sector* Mean

Banking/Finance/Insurance 3.4

Communications/Media 4.9

Consumer Packaged Goods 3.1

Consumer Services 1.8

Education 6.1

Energy 5.0

Healthcare 4.1

Manufacturing 4.4

Mining/Construction 0.7

Retail/Wholesale 2.5

Service/Consulting 3.2

Tech/Software/Biotech 4.4

Transportation 4.6

Sector Mean

B2B Product 4.3

B2B Services 3.8

B2C Product 3.6

B2C Services 2.7

Table 3.2b. Firm sector differences

Table 3.2c. Firm Internet sales differences

Firm sales Mean

0% of sales 3.0

1-10% of sales 4.1

>10% of sales 4.4

*Pharmaceuticals are not displayed due to too few respondents.


Performance metrics increased across all

economic sectors in past year

36

Overall Mean

(SD)

B2B

Product

B2B

Services

B2C

Product

B2C

Services

Sales 3.8% (5.8%) 3.9% (6.5%) 3.9% (5.4%) 4.7% (4.6%) 1.7% (6.3%)

Profits 3.1% (5.3%) 3.1% (5.3%) 2.7% (4.7%) 4.1% (5.4%) 2.8% (7.0%)

Marketing ROI 3.1% (4.5%) 3.2% (4.1%) 3.1% (4.6%) 3.2% (4.2%) 3.0% (5.7%)

Customer acquisition 3.1% (4.6%) 4.1% (4.0%) 3.0% (4.8%) 2.5% (4.4%) 1.6% (5.6%)

Customer retention 1.5% (4.8%) 1.1% (4.7%) 2.0% (5.0%) 2.0% (4.2%) 0.3% (5.2%)

Brand value 3.8% (4.2%) 4.1% (4.4%) 4.2% (4.4%) 3.9% (3.9%) 1.9% (3.7%)

Table 4.1. Percent change in financial and marketing performance in prior 12 months: Mean (S.D.) reported


Revenues, profits, and market ROI all

increased over prior 12 months

37

Figure 4.1. Percent change in performance on financial metrics in prior 12 months

3.8% 3.7%

3.3%

3.8%

3.1%2.9%

2.4%

3.1%2.8% 2.8%

2.4%

3.1%

0%

1%

2%

3%

4%

5%

Aug-15 Feb-16 Aug-16 Feb-17

Sales revenues Profits Marketing ROI


Customer acquisition and brand value

performance improve

38

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

2.9%

3.5%

2.4%

3.1%

1.7%

1.5%

1.8%

1.5%

2.8%

3.3%

3.2%

3.8%

0%

1%

2%

3%

4%

5%

Aug-15 Feb-16 Aug-16 Feb-17

Customer acquisition Customer retention Brand value


Marketing excellence ratings remain flat

39

* Question asked in Aug-13 for the first time.

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

4.5 4.54.7

4.5 4.6 4.5 4.5 4.4 4.5

1

2

3

4

5

6

7

Aug-13 Feb-13 Feb-14 Aug-14 Feb-15 Aug-15 Feb-16 Aug-16 Feb-17

Excellence rating


B2C Product companies more likely to be

marketing leaders

40

Figure 4.4. How would you rate your company’s marketing excellence? (7-point scale where 1=Very weak and 7=Leader)

8.1% 10.1%5.6%

9.4% 7.7%

41.0%

47.8%

40.9% 34.4%30.7%

27.8%17.4%

35.2%

28.1%34.6%

23.3% 24.6%18.3%

28.1% 26.9%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Overall B2B Product B2B Services B2C Product B2C Services

A Leader/ Excellent=6-7

Strong=5

Fair/Good=3-4

Very Weak/Weak=1-2


Marketers to expand social media spend by

90% in next 5 years

42

Figure 5.1. Social media spending as percent of marketing budgets

10.5%

12.9%

18.5%

0%

5%

10%

15%

20%

25%

Current Levels Over Next 12 Months In Next 5 Years

% of Marketing Budget


B2C Product leads social media spend; all

sectors to grow by ~20% in next year

43

OverallB2B

Product

B2B

Services

B2C

Product

B2C

Services

Current social media spending 10.5% 9.4% 10.7% 14.6% 7.9%

Social media spending in the

next 12 months12.9% 11.4% 13.2% 17.1% 11.0%

Social media spending in the

next 5 years18.6% 17.0% 17.9% 25.5% 16.3%

Table 5.1. Changes in social media spending across sectors


Social media spend fails to grow at prior

rate and fails to meet 5-year projections

44

Figure 5.2. Actual versus predicted social media spending as percent of marketing budget

*Predicted level is based on responses to 5-year predicted social media spend five years earlier (e.g., Aug-14 based on response from Aug-09).

13.7%

17.7% 17.7% 18.1%17.5%

19.5%

3.5%

5.6% 5.9% 5.6%

7.1% 7.4% 7.6% 8.4%

6.6%7.4%

9.4% 9.9%10.6% 10.6%

11.7%10.5%

0%

5%

10%

15%

20%

Aug-09 Feb-10 Aug-10 Feb-11 Aug-11 Feb-12 Aug-12 Feb-13 Aug-13 Feb-14 Aug-14 Feb-15 Aug-15 Feb-16 Aug-2016 Feb-17

Predicted Level* Current Level


Integration of social media and marketing

strategy shows minimal progress

45

Figure 5.3. How effectively is social media linked to your firm’s marketing strategy?

(1=Not integrated, 7=Very integrated)

3.8 3.8 3.8 3.9 3.8 3.9 3.94.2 4.2

3.94.1

1

2

3

4

5

6

7


Mean Integration Level


Integration of customer information across

channels shows no improvement

46

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)


3.8 3.8 3.8 3.8 3.9 3.8 3.93.7 3.6

3.43.2

3.4

1

2

3

4

5

6

7

Feb-11 Feb-12 Aug-12 Feb-13 Aug-13 Feb-14 Aug-14 Feb-15 Aug-15 Feb-16 Aug-16 Feb-17

Mean Integration Level


Use of outside social media agencies

experiences a significant drop

47

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

17.4%18.9%

21.7%

20.0%20.7%

16.6%

0%

5%

10%

15%

20%

25%

Feb-14 Feb-15 Aug-15 Feb-16 Aug-16 Feb-17

Percentage Outside Agencies


The impact of social media remains

difficult to prove

48

Figure 5.6.. Which best describes how you show the impact of

social media on your business?

Haven’t

shown impact

Qualitative

sense

Proven

quantitatively

Overall 43.3% 38.2% 18.4%

B2B Product 47.3% 36.5% 16.2%

B2B Services 44.4% 43.2% 12.3%

B2C Product 39.4% 33.3% 27.3%

B2C Services 34.5% 34.5% 31.0%

45.0% 41.5% 41.5% 47.9% 44.1% 43.3%

40.4% 43.5% 43.5%40.6%

35.7% 38.2%

14.6% 15.0% 15.0% 11.5%20.3% 18.4%

0%

20%

40%

60%

80%

100%

Aug-14 Feb-15 Aug-15 Feb-16 Aug-16 Feb-17

Have proven the impact quantitatively

Have a good qualitative sense of the imact, but not a quantitative impact

Haven't been able to show the impact yet


Social media perceived to contribute little

to company performance

49

Figure 5.7. To what degree does the use of social media contribute to

your company's performance? (1=Not at all, 7=Very highly)


Overall 3.2 3.1 3.2

B2B Product 2.5 2.7 2.9

B2B Services 3.4 3.1 3.1

B2C Product 3.2 3.8 3.9

B2C Services 4.0 3.4 3.2

3.2 3.1 3.2

1

2

3

4

5

6

7


Contribution to company performance

* Question asked in Feb-16 for the first time.


Top reason firms use social media:

Brand building and brand awareness

50

% UsingB2B

Product

B2B

Services

B2C

Product

B2C

Services

Brand awareness and brand building 46.1% 45.3% 48.9% 45.6% 43.9%

Acquiring new customers 31.4% 27.0% 30.4% 36.8% 40.4%

Introducing new products and services 28.9% 29.9% 27.4% 35.1% 24.6%

Retaining current customer 28.4% 26.3% 24.4% 33.3% 38.6%

Brand promotions (e.g., contests, coupons) 28.4% 27.7% 27.4% 38.6% 22.8%

Improving employee engagement 20.1% 17.5% 23.0% 15.8% 24.6%

Marketing research 14.7% 12.4% 14.8% 17.5% 17.5%

Identifying new customer groups you currently don't target 13.7% 14.6% 14.1% 15.8% 8.8%

Identifying new product and service opportunities 11.1% 8.8% 14.8% 7.0% 12.3%

Improving current products or services 7.2% 6.6% 8.9% 5.3% 7.0%

Table 5.2. How does your firm use social media? (Check all that apply)


Marketing spend on mobile expected to

increase 127% in three years

52

Figure 6.1. Percent of marketing budget spend on mobile Now 3 years

Overall 5.1% 11.6%

B2B Product 3.6% 9.1%

B2B Services 4.9% 10.1%

B2C Product 7.1% 17.2%

B2C Services 7.7% 15.6%

5.1%

11.6%

0%

5%

10%

15%

20%

Current Levels In Next 3 Years


Figure 6.2. Rate the performance of your company’s mobile marketing activities

(7-point scale where 1=Poor, 7=Excellent)

53

3.1

3.8

3.23.6

3.33.03.0

3.53.1

3.43.0

2.8

1

2

3

4

5

6

7

Customer acquisition

Customerengagement

Customerretention

Delivering yourbrand message

Sales Profits


Mobile marketing performance decreases

on key metrics


Mobile shows slight gain in contribution to

company performance; still too low

54

Figure 6.3. To what degree does the use of mobile marketing contribute

to your company's performance? (1=Not at all, 7=Very highly)


B2B Product 2.0 2.3 2.2

B2B Services 2.4 2.3 2.6

B2C Product 3.0 3.1 3.4

B2C Services 2.8 3.2 3.1

2.4 2.52.7

1

2

3

4

5

6

7


Overall Company Performance


Positive but declining forecast in marketing

hires planned in next year

56

Figure 7.1. Percentage change in marketing hires planned in next 12 months Overall 3.7%

B2B Product 4.2%

B2B Services 4.3%

B2C Product 3.7%

B2C Services 0.8%

5.2%

6.5%5.4% 5.5%

4.7%3.8% 3.5%

6.6%

5.1% 5.4%

3.7%

0%

3%

6%

9%

12%

15%


Percentage Change in Marketing Hires in Next 12 Months


Marketing outsourcing expected to increase

4.1% in next year

60

Percentage change in outsourcing of marketing in next 12 months (Overall mean = 4.1%, SD = 11.5)


Sector Mean

Banking/Finance/Insurance 7.4%

Communications/Media 5.3%

Consumer Packaged Goods 0.5%

Consumer Services 4.0%

Education 10.0%

Healthcare 5.5%

Manufacturing 0.9%

Mining/Construction 12.5%

Retail/Wholesale 7.1%

Service/Consulting 0.1%

Tech Software Biotech 2.6%

Transportation 5.0%

Sector Mean

B2B Product 3.6%

B2B Services 6.0%

B2C Product 2.3%

B2C Services 2.6%



Firm sales Mean

0% of sales 3.4%

1-10% of sales 5.8%

>10% of sales 2.7%

Energy and Pharmaceuticals are not displayed due to too few respondents


Marketing outsourcing expected to

increase 4.1% in next year

Percentage change in outsourcing of marketing in next 12 months (Overall mean = 4.1%, SD = 11.5)


Sector Mean

Banking/Finance/Insurance 7.4%

Communications/Media 5.3%

Consumer Packaged Goods 0.5%

Consumer Services 4.0%

Education 10.0%

Healthcare 5.5%

Manufacturing 0.9%

Mining/Construction 12.5%

Retail/Wholesale 7.1%

Service/Consulting 0.1%

Tech Software Biotech 2.6%

Transportation 5.0%

Sector Mean

B2B Product 3.6%

B2B Services 6.0%

B2C Product 2.3%

B2C Services 2.6%



Firm sales Mean

0% of sales 3.4%

1-10% of sales 5.8%

>10% of sales 2.7%

60

Energy and Pharmaceuticals are not displayed due to too few respondents


Marketing and sales are equal partners in

most companies

59

Figure 8.1. The marketing-sales relationship (% of respondents)

72.2%

10.2%7.8% 8.3%

1.5%

0%

10%

20%

30%

40%

50%

60%

70%

80%

Sales and marketing worktogether on an equal level

We don't have a salesfunction

Sales is in charge ofmarketing

Sales is within the marketingfunction

We have a sales function,but not a marketing function


Product / service structure remains

dominant

60

Figure 8.2. Organizational structure in companies% customer

groups

Overall 29.9%

B2B Product 25.4%

B2B Services 34.2%

B2C Product 26.5%

B2C Services 34.6%

*Question not asked in Aug-14.

26.5% 28.6% 26.7%30.2% 29.4% 31.9% 30.7% 29.9%

73.5% 71.4% 73.3%69.8% 70.6% 68.1% 69.3% 70.1%

0%

20%

40%

60%

80%

100%

Feb-13 Aug-13 Feb-14* Feb-15 Aug-15 Feb-16 Aug-16 Feb-17

Customer Groups Product/Service Groups


External information sharing increases

in companies

61

Figure 8.3. Company market focus approach to strategy (1 = “Not at all” and 7 = “All the time”)

Information about customers and competitors is …

4.9

4.3 4.4 4.6 4.7 4.75.1

4.7 4.6 4.6 4.7 4.7

1

2

3

4

5

6

7

Collected ona regular basis

Shared vertically acrossdifferent levels of the

firm andbusiness units

Shared horizontallyacross differentfunctions andbusiness units

Shapes the designof firm strategies

Influences theimplementation of

firm strategies

Impacts theevaluation of

firm strategies


* Question asked irregularly. Showing most recent data.


Marketing leadership losses outweigh gains

63

Table 9.1. Percentage of

companies in

which marketing

leads activity

Activity Aug-15 Feb-16 Aug-16 Feb-17**

Brand 82.1% 87.5% 89.4% 86.5%

Social media 79.5% 83.9% 75.7% 76.8%

Advertising 82.7% 82.1% 79.2% 76.3%

Public relations 64.1% 64.9% 65.5% 70.0%

Promotion 76.3% 76.2% 73.3% 69.1%

Positioning 80.1% 75.6% 67.8% 67.6%

Marketing research 70.5% 70.2% 67.1% 59.9%

Lead generation 55.8% 62.5% 60.8% 58.5%

Marketing analytics 75.0% 79.2% 69.0% 57.5%

Competitive intelligence 55.1% 56.5% 54.5% 42.0%

CRM 39.1% 37.5% 42.0% 41.1%

Market entry strategies 55.8% 46.4% 43.5% 35.3%

Revenue growth* - - 38.4% 34.3%

New products 37.8% 36.3% 40.0% 32.4%

Pricing 30.8% 32.1% 33.7% 26.6%

Innovation 23.1% 28.6% 29.8% 26.6%

e-commerce* - - 35.7% 23.7%

Market selection 30.1% 29.8% 32.9% 23.7%

Sales 32.1% 25.0% 24.7% 21.3%

Customer service 19.9% 17.3% 18.0% 12.6%

Distribution 12.2% 9.5% 10.2% 5.8%

Stock market performance 3.8% 1.8% 2.7% 0.5%

*Revenue growth and e-commerce were added in Aug-16.

**Red reflects a decrease and Green reflects an increase

of more than 2 percent between Aug-16 and Feb 17.


Marketing leader retention (6.0 years) while

total tenure at all-time high (11.4 years)

64

Figure 9.1. Marketing leader retention

8.0

9.0 8.89.2

10.0 10.0

8.0

9.8

11.4

4.3 4.6 4.3 4.1

5.1 5.34.5

6.66.0

0

3

6

9

12

15

Aug-09 Aug-10 Aug-11 Aug-12 Aug-13 Aug-14 Aug-15 Aug-16 Feb-17

Years top marketer in any role in the firm Years top marketer in current role in the firm


Direct reports decreases while indirect

reports show significant growth

65

Figure 9.2. Number of people reporting to top marketers*

*Aug-15 are revised from Highlights and Insights Feb-16 where the median levels were reported instead of mean levels.

8.66.9

5.56.8 6.5

5.0

24.6

16.1 16.2

18.6

15.7

24.6

0

5

10

15

20

25

30

Aug-12 Aug-13 Aug-14 Aug-15 Aug-16 Feb-17

Number of direct reports Number of indirect reports


Marketers experience less pressure to

prove the value of marketing over time

66

*Question asked irregularly. A complete time series of available data is shown.

Figure 9.3. Percent of CMOs reporting pressure from CEO or Board to prove the value of marketing*

66.4%62.0% 61.0%

56.9%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Aug-13 Aug-14 Feb-15 Feb-17

Leading practices from marketing leaders See full interviews at https://cmosurvey.org/cmo-insights/

67

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 an

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.


Spending on marketing analytics forecasted

to increase 376% in three years

69

Figure 10.1. Percent of marketing budget spent on marketing analytics

4.6%

21.9%

0%

5%

10%

15%

20%

25%

Current Levels In Next 3 Years

+376% Growth


Spending on marketing analytics by firm

and industry characteristics

70

CurrentIn Next

3 years

<$25M 4.7 17.8

$26-99M 4.1 15.0

$100-499M 4.8 23.3

$500-999M 3.6 18.1

$1-9.9B 5.2 32.4

$10+B 4.1 29.4

Table 10.1c. Firm size differences

Table 10.1b. Firm Internet sales differences

CurrentIn Next

3 years

0% 4.3 25.7

1-10% 3.9 20.9

>10% 5.9 15.9

Table 10.1a. Firm sector differences

CurrentIn Next

3 years

B2B Product 4.7 20.9

B2B Services 4.9 21.2

B2C Product 3.5 26.9

B2C Services 4.3 20.6


No improvement in use of marketing

analytics: B2C companies biggest users

71

Figure 10.2. Use of marketing analytics in decision making*

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

Overall 31.6%

B2B Product 31.0%

B2B Services 29.0%

B2C Product 33.2%

B2C Services 38.5%

37.0% 35.0%30.4% 29.0%

32.5% 32.3%29.0% 31.0%

35.3% 34.7%31.6%

0%

20%

40%

60%

80%

100%


Percent of projects using marketing analytics before a decision is made


Contribution of marketing analytics

remains low

72

Figure 10.3. To what degree does the use of marketing analytics contribute to

your company's performance? (1 = Not at all, 7 = Very highly)

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

Overall 3.8 (SD=1.8)

B2B Product 3.8 (SD=1.8)

B2B Services 3.4 (SD=1.8)

B2C Product 4.6 (SD=1.6)

B2C Services 4.3 (SD=1.9)

3.93.7

3.53.7 3.7

3.2

3.7 3.8 3.8 3.7

1

2

3

4

5

6

7

Aug-12 Feb-13 Aug-13 Feb-14 Aug-14 Feb-15 Aug-15 Feb-16 Aug-16 Feb-17

Mean Contribution Level


Process and people failures largest

disruptors of marketing analytics use

73

32.2%

28.6%

16.5%

14.9%

9.5%

7.5%

0% 10% 20% 30% 40% 50%

Lack of process/tools to measure success through analytics

Lack of people who can link to marketing practice

Not highly relevant to our decisions

Does not offer sufficient insight

Overly complex

Does not arrive when needed

Figure 10.4. What factors prevent your company from using more marketing analytics?


Most firms do not evaluate quality of

marketing analytics

74

30.4%

69.6%

34.9%

65.1%

0%

20%

40%

60%

80%

100%

Evaluate Do not evaluate


Figure 10.5. Does your company formally evaluate the quality of marketing analytics?


Marketing analytics contributions by sector

and firm differences

75

Table 10.2. To what degree does the use of marketing analytics contribute to your company's

performance? (1=Not at all, 7=Very highly)


Sector* Mean

Banking/Finance/Insurance 3.1

Communications/Media 4.2

Consumer Packaged Goods 4.4

Consumer Services 5.9

Education 5.4

Healthcare 3.9

Manufacturing 3.6

Mining/Construction 2.3

Retail/Wholesale 3.3

Service/Consulting 3.1

Tech Software Biotech 3.9

Transportation 3.5

Sector Mean

B2B Product 3.7

B2B Services 3.6

B2C Product 4.0

B2C Services 4.1



Firm sales Mean

0% of sales 3.3

1-10% of sales 3.8

>10% of sales 4.2

*Energy and Pharmaceuticals are not displayed due to too few respondents.


Most firms lack quantitative metrics to

demonstrate marketing spending impact

76

Figure 10.6. How companies demonstrate the impact of marketing spending

37.1%

42.4%

20.5%

34.5%

47.2%

18.3%

0%

10%

20%

30%

40%

50%

60%

Proved the impact quantitatively Good qualitative sense of the impact,not quantitative

Haven't been able to showthe impact yet

Short-Term Impact Long-Term Impact

The 2017 CMO Survey Award for

Marketing Excellence – Overall Winner

78

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.Apple has won this award for ten

consecutive years. Christine Moorman’s

review of this accomplishment in 2012

still largely holds:

http://www.forbes.com/sites/christinemo

orman/2012/07/10/why-apple-is-a-great-

marketer/#7897d34b6cb0

http://www.forbes.com/sites/christinemoorman/2012/07/10/why-apple-is-a-great-marketer/#7897d34b6cb0

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 2017 CMO Survey Award for Marketing

Excellence – Industry Winners

79

(Retail) (Transportation) (Consumer Packaged Goods) (Consumer Services)

(Consumer Goods)(Consulting/Services)(Communications/Media)(Manufacturing)

Preview

80

Next survey: July 2017

Participate: Sign up here

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