CMO Trends 2009 by Michael Leander

CMO Trends 2009

A survey about Chief Marketing Officer’s

Trends

1

About the survey

The survey was conducted by Michael Leander Nielsen from Q4-2008 to January 2009

More than 432 CMO’s completed the survey

Please note that this survey provides indications and is not necessarily representative for your region

2

Survey objectives

Identify key marketing instrumentationtrends as Chief Marketing Officer’s (CMO) see them

Uncover how the economic situation affects marketing budgets

Identify the preferred marketing metrics of C-level marketing executives

Identify the need for continued education in marketing departments

(c) Michael Leander Nielsen, 2009 3

Survey sponsor


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Official blog


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Part 1 About the survey respondents


More than half reside in Europe, 16% in North America and 8% in Asia-Pacific

(c) Michael Leander Nielsen, 2009

7

96% are directly involved in strategical marketing decisions


Nearly 50% are CMO’s


Title %

CMO’s 46,45%

CEO 12,80%

Business development

9,48%

Brand manager

6,16%

CSO 5,21%

In which of the following areas are you involved with the decision making about strategic direction, investments and/or results? (3 answers max)


# Area Percentage

1 Marketing strategy 87,20%

2 Branding 72,51%

3 Email marketing 71,56%

4 Website/webproperties 67,77%

5 Internet media 65,40%

6 Direct marketing 61,61%

7 CRM/database 52,61%

8 Customer experience 47,39%

9 Outdoor 37,44%

10 TV/Radio adverts 31,28%

CHALLENGEManaging a highlydiversified set of instruments

What is your company's global annual marketing/advertising budget in Euro?


Part 2 Is the current economic climate affecting marketing budgets?


I expect my company’s marketing budget in 2009 to be...


Which of the following describe the reasons for impending or past cuts in your company’s marketing budget?


Companywide expense cuts have been allocated in roughly equal proportion across all departments/functions, including marketing

35.08%

Lack of appreciation of marketing effectiveness by CEO or other top management

26.70%

Marketing programs are not given sufficient time to demonstrate ROI 17.80%

Funds for brand-building and other marketing programs with less demonstrable ROI are being reallocated to sales promotions and other programs with more direct bottom-line impact

16.23%

Specific marketing programs have not met objectives and are being eliminated, though successful programs remain fully funded

15.18%

General inability of marketing to demonstrate ROI 14.66%

Overall marketing effectiveness has not met objectives 7,85%

Take away – ROMI (Return on Marketing Investment)

• Have you ensured that your marketing programs are measurable?

• Have you defined your critical few marketing objectives?

• Have you discussed your marketing objectives with top management?

• Have you discussed your marketing objectives with sales management?

• Are marketing activities closely tied to sales activities?


Part 3 Question 1: Which media are most important to your company’s marketing objectives today? Select up to three.

Question 2: In 12 months’ time, which mediums do you think will be most important to your company’s marketing objectives? Select up to three.


Summary of part 3

Email marketing and conferences/events are by far the most important instruments to meet CMO objectives for 2009 with conferences/events seeing the highest growth from 2008 to 2009Use of direct mail and advertising in print magazines are seeing the largest decline from 2008 to 2009Use of online portals/content sites will enjoy the highest growth rates from 2008 to 2009Use of search engine marketing and video sites only growing modestly


CMO Trends 2009 - results

18

Which media are most important to your company’s marketing objectives today and in 12 months time? Select up to three

(c) Michael Leander Nielsen, 2009

19

Medium 2008 2009 DifferenceEmail newsletters 42,86% 43,45% 0,59%

Conferences/events 38,92% 40,39% 1,47%Direct mail 28,57% 19,21% -9,36%

Social networks 27,09% 28,57% 1,48%Consumer/business

magazines 23,15% 15,76% -7,39%Search engines 23,15% 25,12% 1,97%Online content

sites/portals 21,29% 32,51% 11,22%Trade magazines 16,26% 12,32% -3,94%

Television 15,27% 14,29% -0,98%Online portals 13,79% 11,82% -1,97%

Outdoor advertising 8,37% 6,40% -1,97%Newspapers 7,39% 6,90% -0,49%

Webinars 6,90% 7,88% 0,98%Mobile marketing 4,43% 6,40% 1,97%

Radio 3,95% 3,45% -0,50%Online video sites 2,96% 4,43% 1,47%

Telemarketing 1,48% 1,48% 0,00%

Which media are most important to your company’s marketing objectives today and in 12 months time? Select up to three

Part 4 Which objectives are important to CMO’s?.


How important are the following objectives of your company’s marketing campaigns?


Veryimportant

Important Neutral Not important

Un-important

Brand-building/ brand-awareness 51.0% 34.5% 7.5% 5.0% 1.5%

Customer acquisition 67.0% 23.0% 7.0% 1.5% 0.5%

Lead generation 44.5% 34.5% 13.5% 3.5% 1.5%

Cross-selling/up-selling

23.0%38.5% 23.0% 7.0% 5.0%

Customer retention 50.0% 29.5% 16.0% 3.5% 1.0%

Let’s talk about that for a moment

22

How important are the following objectives of your company’s marketing campaigns?


Veryimportant

Important Neutral Not important

Un-important

Brand-building/ brand-awareness 51.0% 34.5% 7.5% 5.0% 1.5%

Customer acquisition 67.0% 23.0% 7.0% 1.5% 0.5%

Lead generation 44.5% 34.5% 13.5% 3.5% 1.5%

Cross-selling/up-selling

23.0%38.5% 23.0% 7.0% 5.0%

Customer retention 50.0% 29.5% 16.0% 3.5% 1.0%

Take away (Michael Leander)

• Selling to an existing customers is not only easier, but also cheaper than acquiring a new customer

• Delivering excellent customer experiences can initiate recommendation if you deserve it AND if you ask for it

• Utilizing your marketing investments with the best possible mix between acquisition and retention is crucial

• Read a book or talk to an expert about customer lifetime value and customer lifecycle marketing automation


Part 5 How do CMO’s measure ROI (or Return on Marketing Investment)?


How important to your company are these measures of ROI for media campaigns?

Very Important

Important NeutralLess important

Un-important

Response/ conversion rates

38.5% 42.5% 11.0% 2.0% 2.0%

Cost per response 26.0% 34.5% 26.0% 5.5% 2.0%

Sales/revenue data 39.0% 35.0% 17.0% 2.0% 2.5%

Cost per sale data 27.5% 32.0% 25.0% 8.0% 1.5%

Customer/ consumer brand-awareness surveys

27.5% 29.0% 20.5% 12.5% 4.5%


Take away: Defining your marketing-sales funnel is crucial

Branding/Awareness Email

signup ProfiledSignup Trial

signup Trialbuy Purchase

CPO= £$€ ?

Banner

Video

Blogs

Email

• Measure conversions

• Monitor successes

CPI

= £$€ ?

Affiliates

“Far too many marketers are busy deciding the color of the Ferrari – when they should be

busy checking the motor”

Michael Leander


Part 6 Focus on brand building at the expense of direct marketing?Is there a need for more education of marketing team members?


"My company’s marketing strategy is focused on brand-building at the expense of other initiatives with more demonstrable ROI. "


"Due to the apparent economic decline, my company’s marketing strategy will focus more on direct marketing in 2009 than it did in 2008"


Our marketing staff need education in the field of direct marketing and interactive marketing in order to be able to effectively deliver tangible results in these areas?


Closing remarks


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1. Are you extrovert – customer driven?2. Are your marketing results visible internally?3. Have you defined a set of critical few marketing objectives?4. Are you positive that you are creating a good to great customer experience in every single touchpoint? 5. Are you listening to your customers?6. Do you have a great agency relationship with a set of well defined objectives? 7. Are you making sure that your staff are continually educated to meet new challenges?(c) Michael Leander Nielsen, 2009 35

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“If you can find a path with no obstacles, it probably doesn't lead anywhere.

”

Frank A. Clark(c) Michael Leander Nielsen, 2009 37

http://thinkexist.com/quotation/if_you_can_find_a_path_with_no_obstacles-it/205851.html



Thank you for your interest

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CMO Trends 2009 by Michael Leander

Business

marketing objectives

direct marketing

marketing budgets

marketing strategy

email marketing

marketing investment

specific marketing programs

companys marketing budget