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Highlights and Insights August 2012

© Christine Moorman

www.cmosurvey.org

http://www.cmosurvey.org/

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

2 © Christine Moorman

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


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

Overview of Results


5

Topic 1:

Marketplace Dynamics

5

Marketer optimism for U.S. economy slumps

again; B2B sectors show greatest pessimism

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?


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

Analytics Leadership Organization Jobs Social Media Performance Spending Growth Marketplace

47.69

56.45 57.78

55.60

63.30

52.20

63.4

58.40

40.00

50.00

60.00

70.00

80.00

90.00

100.00

February 2009

August 2009

February 2010

August 2010

February 2011

August 2011

February 2012

August 2012

Marketer Optimism about Overall Economy

48

62.1

55.4 54.5

64.1

62.3

53.1

63.5

60.8

53.3

58.3

51.9

45

50

55

60

65

August 2011 February 2012 August 2012

B2B-Product B2B-Service B2C-Product B2C-Service

Uncertainty abounds: Optimists decrease and Pessimists increase


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


50.7

15.0

9.0

26.0

5.7

57.4

8.5

35.8 32.0

26.0 28.9

38.9

25.5 27.7 28.3

35.2

17.3

59.0

62.1

35.2

68.8

14.9

63.3

29

0.0

10.0

20.0

30.0

40.0

50.0

60.0

70.0

80.0

February 2009

August 2009

February 2010

August 2010

February 2011

August 2011

February 2012

August 2012

% of Respondents

Less Optimistic No Change More Optimistic

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?


47.69

56.45 57.78

55.60

63.30

52.20

63.4

58.4 52.92

59.64

66.44 66.70

73.20

67.80

72.8

69.6

40.00

50.00

60.00

70.00

80.00

90.00

100.00

February 2009

August 2009

February 2010

August 2010

February 2011

August 2011

February 2012

August 2012

Overall Economy Own Company Revenue Growth

Customer metrics forecast bleak: Marketers expect decreases in purchase volume, likelihood of buying

related offerings, retention, acquisition, and price paid


Figure 1.5. Forecasted customer outcomes in next 12 months


66

62

74

56

64

56.1

26 25

31

39

37.4

30.4

54

52

59

33

62.1

52.9

47 50

53 52

52.8

45.4

45 43

49

41

49.8

43

20

30

40

50

60

70

80

February 2010

August 2010

February 2011

August 2011

February 2012

August 2012

% of Respondents

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 customers has increased

Increased entry of new customers into the market

Customer priorities shift toward low price


Figure 1.6. Customers’ top priority in next 12 months

10


24.1%

16.4%

23.2%

24.1%

26.3%

24.7%

13.7%

10.0%

9.4%

13.7%

21.4%

18.8% 19.3% 18.9%

17.3%

6.8%

7.5% 6.8%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%


Low Price Quality

Innovation Service

Trust Brand

Channel partner metrics to soften

in next 12 months


Figure 1.7. Channel metrics in next 12 months


36

47

42

38.6

14

18

30

21.4

24

33 30

30.4

0

5

10

15

20

25

30

35

40

45

50

August 2009

August 2010

August 2011

August 2012

Percentage of Respondents

Increased partner purchase volume Increased partner price per unit Increased partner purchase of related products and services from my firm

Competitor metrics show increased intensity: More competitors, more rivalry, more innovation


Figure 1.8. Competitor metrics in next 12 months


5.3 5.4

4.8 4.9

4.5

4.7

3.5 3.8

3.4 3.5

2

2.5

3

3.5

4

4.5

5

5.5

6

August 2011

August 2012

More intense rivalry for customers

More competitor price-cutting

More competitor innovation

More cooperation on non-price strategies

Emergence of new domestic competitors

*Measured on 7-point scale where 1=not at all likely and 7=very likely

Exception is increased willingness to

cooperate on non-price strategies

13

Topic 2:

Firm Growth Strategies

13

Growth strategies expected to take on

more risk in next year

Table 2.1. How growth spending is expected to change*

Existing

Products/

Services

New

Products/

Services

Existing

Markets

Market Penetration

Strategy

Product/Service Development

Strategy

New Markets

Market Development

Strategy

Diversification Strategy

* % of spending across growth strategies


Types of Growth Strategies

Strategy

Actual

Spending in

Past 12

Months

Expected

Spending in

Next 12

Months

Percent

Change

Expected

Market

Penetration

Strategy

51.7% 45.7% -11.6%

Market

Development

Strategy

15.7% 18.1% +15.3%

Product/Service

Development

Strategy

22.8% 25.0% +9.6%

Diversification

Strategy 9.7% 11.2% +15.5%



Table 2.2. Expected changes in sector growth spending

in next 12 months relative to prior year

Growth strategies vary by sector

15

B2B

Product

B2B

Service

B2C

Product

B2C

Service

Market Penetration

Strategy -5.6% -5.9% -6.3% -7.8%

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%

Notable shifts

• B2C-Service companies take on most risk

• B2C-Service companies largest focus on new

markets

• B2B-Service companies largest focus on new

products/services and diversification


Growth from acquisitions & licensing expected

to increase; sector differences significant

Table 2.3. How firms will grow in the next 12 months*


Strategy Aug-10 Aug-11 Aug-12

Organic

Growth 69.5% 70.2% 68.9%

Growth from

Acquisitions 10.8% 11.4% 12.2%

Growth from

Partnerships 13.9% 13.5% 12.9%

Growth from

Licensing 5.8% 5.1% 6.1%

* Percentage of spending across growth strategies

Table 2.4. Sector use of growth strategies – August 2012*

Strategy B2B

Product

B2B-

Service

B2C-

Product

B2C-

Service

Organic

Growth 66.2% 67.6% 76.9% 72.2%

Growth via

Acquisition 14.9% 12.3% 7.8% 10.4%

Growth from

Partnerships 12.0% 14.8% 9.6% 12.5%

Growth from

Licensing 6.9% 5.3% 5.7% 4.9%


Canada and China leading international

growth markets

Figure 2.1. Highest international revenue growth markets

(% respondents)



Table 2.5. Change in highest revenue growth

markets

Feb-12 Aug-12

Western Europe 23% 16.3%

Other 20% 20.6%

Canada 16% 24.2%

China 15% 21.5%

Brazil 7% 4.6%

Middle East 7% 4.0%

India 3% 1.8%

Mexico 3% 2.1%

Eastern Europe 2% 1.8%

Japan 2% 1.8%

Korea 1% 0.6%

Russia 1% 0.6%

Western Europe 16.3%

Other 20.6%

Canada 24.2%

China 21.5%

Brazil 4.6%

Middle East 4.0%

India 1.8%

Mexico 2.1%

Eastern Europe 1.8%

Japan 1.8%

Korea 0.6%

Russia 0.6%

China revenue growth by sector: B2C companies sales increase by over 100%


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%

Top international markets continue to grow

(up 20%+ in the last year) Analytics Leadership Organization Jobs Social Media Performance Spending Growth Marketplace

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

49.7

10.7

51.5

13.4

26.2

16.3

75.0

12.5

38.4

9.4

20.0

29.0

0%

10%

20%

30%

40%

50%

60%

70%

80%

Brazil Canada China Eastern Europe

India Japan Korea Mexico Middle East

Other Market

Russia Western Europe

20

Topic 3:

Marketing Spending

20

Growth in marketing budgets drops: Consumer industries show positive growth; B2B flat or down

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


Table 3.1. Sector differences in marketing budgets

Change in Marketing

Spending

Feb-12 Aug-12

B2B Product 13.2% 5.7%

B2B-Service 6.2% 6.2%

B2C-Product 3.3% 8.6%

B2C-Service 4.6% 6.8%


0.5% 1.1%

5.9%

9.2%

6.7%

9.1% 8.1%

6.4%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

February 2009

August 2009

February 2010

August 2010

February 2011

August 2011

February 2012

August 2012

Change in Marketing Spending

Marketing spending on traditional advertising

expected to plummet (-137%)

Table 3.2. Percent change in marketing spending in next 12 months


Aug-11 Feb-12 Aug-12 % Change,

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

management 6.5% 7.1% 9.0% +26.8%

Brand building 5.7% 7.2% 7.5% +4.2%


*Refers to media advertising not using the web.

Investments in building marketing

knowledge expected to remain strong

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%


Marketing budgets increase as percentage

of firm budgets

24

Figure 3.2. Marketing budgets as a percent of firm budgets*



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

8.1%

10.0% 10.4%

11.4%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

16.0%

February 2011

August 2011

February 2012

August 2012

Size of marketing budget varies by

company sector, sales, and internet sales

25

Table 3.4. Marketing percentage of firm budget by economic sector

B2B

Product

B2B

Services

B2C

Product

B2C

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%

<$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%

August 2012 11.9% 10.2% 9.5% 7.7% 9.7% 18.1%

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%

August 2012 10.2% 10.2% 16.4%

Table 3.5. Marketing percentage of firm budget by company sales revenue

Table 3.6. Marketing percentage of firm budget by company internet sales



Marketing spending as a percentage

of firm revenues


• 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

Product

B2B

Services

B2C

Product

B2C

Services

February 2012 7.3% 4.8% 13.8% 16.6%

August 2012 11.4% 11.9% 9.8% 16.1%

<$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%

August 2012 17.8% 10.7% 10.6% 9.4% 6.1% 13.1%

0%

Internet Sales

1-10%

Internet Sales

>10%

Internet Sales

February 2012 6.3% 9.0% 14.4%

August 2012 11.0% 9.3% 18.3%

Table 3.8. Marketing spending as a percentage of firm revenues by company sales revenue*

Table 3.9. Marketing spending as a percentage of firm revenues by company internet sales*


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

27

Topic 4:

Financial and Marketing

Performance

27

Company performance on financial

metrics remains positive but weakens


Figure 4.1. Firm performance in prior 12 months % Change

Feb-2012 to

Aug-2012

Firm Sales -16.7%

Firm Profits -15.4%

Marketing ROI -8.6%


2.2%

4.0% 3.8%

4.8%

4.0%

1.8%

3.4% 3.4%

3.9%

3.3%

2.2%

2.7% 3.0%

3.5% 3.2%

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

3.5%

4.0%

4.5%

5.0%

August 2010

February 2010

August 2011

February 2012

August 2012

Firm sales

Firm profits

Marketing ROI

Key customer and brand assets follow suit


Figure 4.2. Change in company performance on customer and brand metrics % Change

Feb-2012 to

Aug-2012

Customer

Acquisition -13.2%

Customer

Retention -9.1%

Brand

Value -17.1%


2.6% 2.6%

3.2%

3.8%

3.3%

1.4%

1.6% 1.7%

2.2%

2.0%

3.2%

2.9%

3.5%

4.1%

3.4%

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

3.5%

4.0%

4.5%

August 2009

August 2010

August 2011

February 2012

August 2012

Customer acquisition Customer retention Brand value

Company performance by sector


B2B-

Product

B2B-

Services

B2C-

Product

B2C-

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%

Table 4.1. Sector performance metrics for prior 12 months


Firm performance goals remain strong

Table 4.2. Company performance and goals

Actual firm performance

in prior 12 months

Goal in the

next 12 months

% Increase in goal

over performance

Firm sales 4.0% 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%



How would you rate your company's

marketing excellence?


• Mean on 7-point scale: 4.4 (SD = 1.4%)

Figure 4.3. Ratings of marketing excellence in companies

New question

in The CMO Survey


2.0%

8.5%

14.4%

23.2%

29.7%

17.5%

4.8%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

1=Very Weak 2=Weak 3=Fair 4=Good 5=Strong 6=A leader but not one of the best

7=Excellent, one of the best in the world

33 33

Topic 5:

Marketing and Social Media

33

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Social media spending growth continues: Expected to be 18.8% of marketing budgets in five years


Figure 5.1. Social media spending as a percentage of marketing budgets over time


7.6%

10.7%

18.8%

0.0%

5.0%

10.0%

15.0%

20.0%

Current Levels Over Next 12 Months In Next 5 Years

Per

cen

tag

e o

f To

tal M

arke

tin

g B

ud

get

(%

)

Social media spending across sectors



Current Social

Media

Spending

B2B - Product 4.2% 6.2% 5.0%

B2B - Services 8.6% 7.4% 9.4%

B2C - Product 10.5% 9.6% 9.0%

B2C - Services 5.9% 8.4% 9.0%

Overall 7.1% 7.4% 7.6%

Social Media

Spending in

the

next 12

months

B2B - Product 7.0% 9.4% 8.4%

B2B - Services 11.5% 10.1% 12.7%

B2C - Product 13.6% 15.3% 11.4%

B2C - Services 9.4% 11.7% 12.1%

Overall 10.1% 10.8% 10.7%

Social Media

Spending in

the

next 5 years

B2B - Product 13.4% 18.5% 15.3%

B2B - Services 18.3% 19.1% 20.0%

B2C - Product 24.0% 23.0% 24.4%

B2C - Services 17.3% 19.0% 19.3%

Overall 17.5% 19.5% 18.8%

Table 5.1. Sector differences in change in social media spending


Social media integration gap not closing


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:

• Aug, 2012: Mean = 3.8, SD = 1.9

• Feb, 2012: Mean = 3.8, SD = 1.9

• Feb, 2011: Mean = 3.8, SD = 2.0

Mean (SD)

Aug-2012

B2B-Product 3.0 (1.9)

B2B-Services 4.1 (1.7)

B2C-Product 4.3 (1.6)

B2C-Services 4.3 (1.8)

Table 5.2. Integration scores by sector

Figure 5.2. How social media is integrated with strategy


16.7%

13.3% 13.9% 13.9%

22.2%

13.3%

6.8%

0%

5%

10%

15%

20%

25%

1 Not at all

Integrated

2 3 4 5 6 7 Very

Integrated

Percent of Respondents (%)

Poor integration of customer

information across channels


Question:. How effectively does your company integrate customer

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)

Average integration across all

purchasing channels

Mean

Average integration across all communication

& social media channels

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

Table 5.3. Integration scores by sector


New question

in The CMO Survey

Social media employment drops off



Figure 5.3. Number of employees in-house and outsourced performing social media for company

5.3

1.8

9.0

4.0 3.6

2.0

0

1

2

3

4

5

6

7

8

9

10

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

February 2011

February 2012

August 2012

39

Topic 6: Marketing Jobs

39

Marketing employment on the rise: B2B-Service companies biggest percentage increase

Figure 6.1. Percentage change in marketing hires planned

in next 12 months


B2B

Product

B2B

Service

B2C

Product

B2C

Service

February

2012 2.1% 4.5% 1.9% 4.5%

August

2012 4.0% 11.3% 4.1% 5.9%

Table 6.1. Percentage increase in marketing

hires by sector


4.0%

6.2%

7.2%

5.2%

6.5%

0%

1%

2%

3%

4%

5%

6%

7%

8%

August 2010

February 2011

August 2011

February 2012

August 2012

Per

cen

tag

e In

crea

se in

Mar

keti

ng

Hir

es in

Nex

t 12

Mo

nth

s


Figure 6.2. Percentage of company marketing expected to be outsourced in next 12 months


Outsourcing of marketing flat at 3.1%

4.3% 4.5%

9.3%

3.2% 3.1%

0.0%

5.0%

10.0%

15.0%

20.0%

August 2010

February 2011

August 2011

February 2012

August 2012

Per

cen

t o

f C

om

pan

ies

Ou

tso

urc

ing

Mar

keti

ng

Act

ivit

ies

Exp

ecte

d t

o

Ch

ang

e in

Nex

t 12

Mo

nth

s (%

)

42

Topic 7:

Marketing Organization

42

Where marketing is located in companies: Drop in corporate and increase in business unit locations


Figure 7.1. Location of marketing in companies*


84.3%

26.5%

16.9%

10.8%

79.7%

38.3%

17.3%

9.3%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

90.0%

Corporate Business Brand/Product Field Offices

Organization Location

Percentage of Firms (%)

August 2011 August 2012

*May exceed 100% if marketing is in multiple locations

Marketing and sales equal partners in

most companies


Figure 7.2. The marketing-sales relationship


69.2%

13.0% 10.3%

69.7%

10.9%

7.3%

71.1%

8.2% 8.8%

74.0%

13.1%

8.3%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

Sales & marketing work on an equal basis Marketing is within the sales function Sales is within the marketing function

Percentage of Respondents (%)

August 2012 August 2011 August 2010 August 2009

45

Topic 8:

Marketing Leadership

45

Marketing leadership increases on key

strategic activities

Table 8.1. Percentage of companies in which marketing leads activity

46

Stronger marketing leadership:

• Positioning

• Promotion

• Marketing research

• Social media

• Competitive intelligence

• Public relations

• Lead generation

• Market entry strategies

• CRM

• Target/Market selection

• Pricing

Maintaining marketing leadership:

• Brand

• New products

• Stock market performance

Weaker marketing leadership:

• Sales

• Innovation

• Customer service

Activity Feb-11 Feb-12 Aug-12

Positioning 79% 78% 82%

Promotion 81% 79% 84%

Brand 81% 84% 84%

Marketing research 73% 71% 75%

Social media 71% 73% 77%

Competitive intelligence 58% 62% 67%

Public relations 65% 53% 61%

Lead generation 53% 53% 57%

Market entry strategies 50% 46% 55%

New products 44% 52% 51%

CRM 38% 41% 45%

Targeting/Market selection 31% 35% 40%

Sales 32% 30% 27%

Pricing 30% 34% 38%

Innovation 33% 39% 37%

Customer service 22% 21% 18%

Stock market performance 0.4% 1.2% 1.0%


*Decreases of 1% or less are viewed as no change.

Slight drop in retention but marketing leaders

retained 4+ years, on average


Figure 8.1. Marketing leader retention ), and 2009 (34.7 months).

Table 8.2. Sector differences in retention

Years in current role

August-2012

B2B Product 3.9

B2B-Service 4.3

B2C-Product 3.6

B2C-Service 4.6


4.6

9.0

4.3

8.8

5.4

10.5

4.1

9.2

0

2

4

6

8

10

12

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

Years

August 2010 August 2011 February 2012 August 2012

Marketer influence improves


Figure 8.2. Number of people reporting to top marketer


4.6

7.2 7.3 6.0

8.6

14.4

17 15.4

25.4 24.6

0

5

10

15

20

25

30

August 2009

August 2010

August 2011

February 2012

August 2012

Number of Reports

Direct reports Indirect reports


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


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.

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



http://cmosurvey.org/files/2010/10/Philipslogo2.jpg

http://cmosurvey.org/files/2010/10/walmart-logo2.jpg

http://cmosurvey.org/files/2010/10/PG_logo2.png

50

Topic 9:

Marketing Analytics

50

Spending on marketing analytics to

increase 60% in three years


Figure 9.1. Percent of marketing budget spent on marketing analytics


Current In Next

3 years

<$25M 5.4% 11.6%

$26-99M 7.1% 13.0%

$100-499M 8.9% 13.0%

$500-999M 8.1% 11.4%

$1-9.9B 11.0% 18.8%

$10+B 9.8% 11.8%

Table 9.1. Firm size differences

8.0%

13.5%

0%

2%

4%

6%

8%

10%

12%

14%

16%

Current Levels In Next 3 Years

Marketing Budget Spent on Marketing Analytics

Table 9.2. Firm internet sales differences

Current In Next

3 years

0% 6.9% 12.0%

1-10% 7.3% 12.2%

>10% 11.7% 17.8%

Most projects fail to use marketing analytics


Figure 9.2. Percentage of projects using marketing analytics in companies


37%

63%

35%

65%

0%

10%

20%

30%

40%

50%

60%

70%

Use analytics Do not use analytics

February 2012 August 2012

Majority of companies do not evaluate

marketing analytics


Figure 9.3. Does your company formally evaluate the quality of marketing analytics?


33%

67%

46.8%

53.2%

0%

10%

20%

30%

40%

50%

60%

70%

80%

Evaluate quality Do not evaluate quality

February 2012 August 2012

Contribution of marketing analytics to

company performance


Figure 9.4. To what degree does the use of marketing analytics contribute to your company's performance?


• Mean on 7-point scale: 3.9 (SD = 1.9%) New question

in The CMO Survey

15.5%

12.6% 12.0% 13.6%

22.7%

16.2%

7.4%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

1 Not at all

2 3 4 5 6 7 Very Highly

Preview

55

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 [email protected]


http://www.cmosurvey.org/participate/

http://www.cmosurvey.org/category/news/

mailto:[email protected]

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