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 operation
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 August 2014 survey was the twelfth administration of The CMO Survey.
Sponsoring Organizations
About The CMO Survey
2
Survey Sample
- 4262 top U.S. marketers at Fortune 1000, Forbes Top 200, and top marketers who are AMA Members
or Duke University Alumni and Friends
- 351 responded for a 8.3% response rate
Survey Administration
- Email contact with four follow-up reminders
- Survey in field from July 22- August 12, 2014
- 89% 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……………………………………………………… 5-10
Topic 2: Firm Growth Strategies…………………………………………………….. 11-14
Topic 3: Marketing Spending………………………………………………………… 15-26
Topic 4: Financial and Marketing Performance……………………………………. 27-33
Topic 5: Social Media…………………………………………………..…………….. 34-44
Topic 6: Marketing Jobs…………………………………………………………….... 45-49
Topic 7: Marketing Organization…………………………………………………….. 50-51
Topic 8: Marketing Leadership……………………………………………………..... 52-57
Topic 9: Marketing Analytics………………………………………………………..... 58-67
Survey topics
4
AnalyticsLeadershipOrganizationJobsSocial MediaPerformanceSpendingGrowthMarketplace
Marketer optimism for U.S. economy
reaches highest point in 5 years
Figure 1.1. How optimistic are you about the overall U.S. economy on a 0-100 scale with 0 being the
least optimistic and 100 the most optimistic?
6
47.7
56.5
57.8
55.6
63.3
52.2
63.4
58.4
62.7
65.7 66.1 66.4
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
Marketer Optimism About Overall Economy
AnalyticsLeadershipOrganizationJobsSocial MediaPerformanceSpendingGrowthMarketplace
Optimism for US economy remains high
across all sectors; B2B service leads
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 4548 46
51
66 66 66 66 6466 68 66 65 65
0
20
40
60
80
100
Overall B2B Services B2B Product B2C Product B2C Services
February 2009 February 2014 August 2014
AnalyticsLeadershipOrganizationJobsSocial MediaPerformanceSpendingGrowthMarketplace
75%69%
59%
49% 50%
34%
76%71%
67%
52% 51%
31%
0%
20%
40%
60%
80%
100%
Increased abilityto acquire new
customers
Increasedcustomer purchase
volume
Customers will buymore related
products & servicesfrom my firm
Increasedability to retain
customers
Increased entry ofnew customersinto the market
Increasedcustomer price
per unit
February 2014 August 2014
Positive customer acquisition, retention,
and growth metrics forecasted; price lags
Figure 1.3. Forecasted customer outcomes in next 12 months (% of respondents)
8
AnalyticsLeadershipOrganizationJobsSocial MediaPerformanceSpendingGrowthMarketplace
Figure 1.4. Customers’ top priority in next 12 months (% of respondents)
Service trumps product as customer’s
top priority; price inches up
9
31%
18%17%
19%
9%7%
26%
23%
19% 18%
9%
5%
0%
5%
10%
15%
20%
25%
30%
35%
40%
Superior ProductQuality
ExcellentService
LowPrice
TrustingRelationship
Superior Innovation Brand
February 2014 August 2014
Increased competition is expected –
rivalry, price-cutting, and innovation
AnalyticsLeadershipOrganizationJobsSocial MediaPerformanceSpendingGrowthMarketplace
Figure 1.5. Increased competitor interactions in next 12 months (% of respondents)
10
69%
59%56%
41%35%
23%
0%
20%
40%
60%
80%
100%
More intenserivalry forcustomers
More competitorprice-cutting
More competitorinnovation
Emergence ofnew domesticcompetitors
Emergence ofnew globalcompetitors
More cooperationon non-price
strategies
August 2014
*Question format used for the first time August-2014.
AnalyticsLeadershipOrganizationJobsSocial MediaPerformanceSpendingGrowthMarketplace
Firms decrease market penetration and move
toward riskier growth strategies in 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 across growth strategies
Growth
Strategy
Actual
Spending in
Past 12
Months
Expected
Spending in
Next 12
Months
Percent
Change
Expected
Market
Penetration
Strategy53% 46% -13%
Market
Development
Strategy15% 17% +13%
Product/Service
Development
Strategy22% 24% +9%
Diversification
Strategy10% 13% +30%
Table 2.1. How growth spending is expected to change*
12
AnalyticsLeadershipOrganizationJobsSocial MediaPerformanceSpendingGrowthMarketplace
Organic growth investments 74% of
growth budgets
Figure 2.2. How firms will grow in the next 12 months*
* Percentage of spending across growth strategies
13
Organic growth 73%
Growth from partnerships
12%
Growth from acquisitions
10%
Growth from licensing
arrangements4%
B2B
Product
B2B
Services
B2C
Product
B2C
Services
Growth from
within your firm
(organic growth)
73% 75% 71% 77%
Growth from
partnerships12% 11% 12% 12%
Growth from
acquisitions10% 11% 11% 6%
Growth from
licensing
arrangements
4% 3% 6% 5%
AnalyticsLeadershipOrganizationJobsSocial MediaPerformanceSpendingGrowthMarketplace
B2C companies are most likely to sell
through the Internet
Figure 2.3. Percent of company sales expected to be through the internet in next 12 months
14
Internet 11%
Other89%
B2B
Product
B2B
Services
B2C
Product
B2C
Services
Sales through
Internet10% 9% 15% 14%
Sales through
other channels90% 91% 85% 86%
AnalyticsLeadershipOrganizationJobsSocial MediaPerformanceSpendingGrowthMarketplace
Marketing budgets remain positive but
trend downward since 2010
Figure 3.1. Percent change in marketing budgets in next 12 months
16
0.5%1.1%
5.9%
9.2%
6.7%
9.1%8.1%
6.4%6.1%
4.3%
6.7%
5.1%
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
Change in Marketing Spending
AnalyticsLeadershipOrganizationJobsSocial MediaPerformanceSpendingGrowthMarketplace
Expenses including in marketing
spending
Table 3.1. Marketing spending in your company include the following items (% of respondents)
OverallB2B
Product
B2B
Services
B2C
Product
B2C
Services
Overhead costs associated
with marketing45.9% 48.2% 50.8% 35.8% 44.2%
Salaries and wages of
marketing employees43.9% 50.0% 49.2% 29.9% 38.5%
Marketing analytics 41.0% 42.9% 40.7% 43.3% 36.5%
Marketing research 40.7% 42.9% 38.1% 47.8% 34.6%
17
AnalyticsLeadershipOrganizationJobsSocial MediaPerformanceSpendingGrowthMarketplace
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%5.1%
4.4% 4.7%
7.0%
5.3%
0%
2%
4%
6%
8%
10%
Overall B2B Product B2B Services B2C Product B2C Services
February 2014 August 2014
AnalyticsLeadershipOrganizationJobsSocial MediaPerformanceSpendingGrowthMarketplace
Companies increase digital spend at
the expense of traditional advertising
*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
1.3%
-0.8%-1.9%
-2.7%-2.1%
-0.1%
-3.6%
11.2%
12.8%11.5%
10.2% 10.1%
8.2%
10.8%
-5%
0%
5%
10%
15%
Aug-11 Feb-12 Aug-12 Feb-13 Aug-13 Feb-14 Aug-14
Traditional Advertising Spend Digital Marketing Spend
AnalyticsLeadershipOrganizationJobsSocial MediaPerformanceSpendingGrowthMarketplace
Digital marketing spend increases
across sectors
Figure 3.4. Change in digital marketing spending in next 12 months by sector
20
8.2%9.0%
7.4% 7.7%8.2%
10.8% 10.7%11.5% 11.2%
9.0%
0%
2%
4%
6%
8%
10%
12%
14%
Overall B2B Product B2B Services B2C Product B2C Services
February 2014 August 2014
AnalyticsLeadershipOrganizationJobsSocial MediaPerformanceSpendingGrowthMarketplace
Spend in other marketing categories is
also increasing
Figure 3.5. Percent change in marketing spending in next 12 months
21
5.1%
7.8%
4.0%
4.9%
7.9% 7.8%
4.5% 4.3%
0%
2%
4%
6%
8%
10%
Customer RelationshipManagement
New Product Introductions New Service Introductions Brand Building
February 2014 August 2014
AnalyticsLeadershipOrganizationJobsSocial MediaPerformanceSpendingGrowthMarketplace
Integrating knowledge and consulting
services top knowledge investments
*Developing knowledge about how to do marketing refers to the development of new marketing capabilities,
while marketing training involves transferring existing marketing knowledge to employees.
Figure 3.6. Changes in firm spending on marketing knowledge in next 12 months
22
2.7%
1.8%
4.9%
3.1%2.4%
6.0%
4.0% 3.8% 3.8%
2.5%
0%
2%
4%
6%
8%
10%
Integrating whatwe know
about marketing
Marketingconsultingservices
Marketingresearch andintelligence
Developingknowledge about
how to do marketing
Marketingtraining
February 2014 August 2014
AnalyticsLeadershipOrganizationJobsSocial MediaPerformanceSpendingGrowthMarketplace
*Question asked in Feb-11 for the first time.
Marketing budgets represent 10.9% of
overall firm budgets
Figure 3.7. Marketing budget as a percent of firm budget*
23
8.1%
10.0% 10.4%11.4%
10.6%
9.4%
10.9% 10.9%
0%
2%
4%
6%
8%
10%
12%
14%
16%
Feb-11 Aug-11 Feb-12 Aug-12 Feb-13 Aug-13 Feb-14 Aug-14
% Marketing Budget
AnalyticsLeadershipOrganizationJobsSocial MediaPerformanceSpendingGrowthMarketplace
Table 3.2a. Marketing percentage of firm budget by economic sector
B2B
Product
B2B
Services
B2C
Product
B2C
Services
August 2014 10.5% 7.7% 17.0% 11.1%
<$25
Million
$26-99
Million
$100-499
Million
$500-999
Million
$1-9.9
Billion
>$10
Billion
August 2014 11.9% 8.6% 11.8% 14.2% 8.7% 14.0%
0%
Internet Sales
1-10%
Internet Sales
>10%
Internet Sales
August 2014 9.7% 10.7% 13.4%
Table 3.2b. Marketing percentage of firm budget by company sales revenue
Table 3.2c. Marketing percentage of firm budget by company internet sales
Who has the biggest marketing budgets?
24
AnalyticsLeadershipOrganizationJobsSocial MediaPerformanceSpendingGrowthMarketplace
Marketing spending as a percentage of
firm revenues is 8.3%
Figure 3.8. Marketing spending as a percentage of firm revenues*
*Question asked in Feb-12 for the first time.
25
8.5%
11.0%
7.9% 7.8%
9.3%
8.3%
0%
2%
4%
6%
8%
10%
12%
14%
16%
Feb-12 Aug-12 Feb-13 Aug-13 Feb-14 Aug-14
% Marketing Spend
AnalyticsLeadershipOrganizationJobsSocial MediaPerformanceSpendingGrowthMarketplace
Table 3.3a. Marketing spending as a percentage of firm revenues by economic sector
B2B
Product
B2B
Services
B2C
Product
B2C
Services
August 2014 7.8% 7.5% 9.0% 10.4%
<$25
Million
$26-99
Million
$100-499
Million
$500-999
Million
$1-9.9
Billion
>$10
Billion
August 2014 11.0% 7.3% 6.1% 3.7% 6.7% 11.9%
0%
Internet Sales
1-10%
Internet Sales
>10%
Internet Sales
August 2014 7.1% 6.9% 12.5%
Table 3.3b. Marketing spending as a percentage of firm revenues by company sales revenue
Table 3.3c. Marketing spending as a percentage of firm revenues by company internet sales
Marketing spending as a percentage of
firm revenues by firm and industry
26
AnalyticsLeadershipOrganizationJobsSocial MediaPerformanceSpendingGrowthMarketplace
Company performance on financial
metrics positive but flat
Figure 4.1. Percent change in firm performance in prior 12 months
28
3.9%
3.0%
3.4%
4.0%
3.2% 3.2%
0%
1%
2%
3%
4%
5%
Firm sales Firm profits Marketing ROI
February 2014 August 2014
AnalyticsLeadershipOrganizationJobsSocial MediaPerformanceSpendingGrowthMarketplace
Performance on key customer and
brand assets no significant change
Figure 4.2. Percent change in performance on customer and brand metrics in prior 12 months
29
3.6%
1.9%
3.5%3.3%
2.0%
3.7%
0%
1%
2%
3%
4%
5%
Customer acquisition Customer retention Brand value
February 2014 August 2014
AnalyticsLeadershipOrganizationJobsSocial MediaPerformanceSpendingGrowthMarketplace
B2B Product sector shows highest
performance gains
OverallB2B
Product
B2B
Services
B2C
Product
B2C
Services
Firm sales 4.0% 4.6% 4.1% 3.6% 3.0%
Marketing ROI 3.2% 3.8% 3.6% 1.8% 2.5%
Firm profits 3.2% 3.5% 3.1% 3.0% 2.8%
Customer acquisition 3.3% 4.0% 3.1% 3.2% 2.4%
Customer retention 2.0% 2.1% 2.2% 2.0% 1.3%
Brand value 3.7% 3.7% 4.1% 3.5% 3.3%
Table 4.1. Percent change in performance in prior 12 months by sector
30
AnalyticsLeadershipOrganizationJobsSocial MediaPerformanceSpendingGrowthMarketplace
Firm performance goals remain strong
Actual firm performance
in prior 12 months
Goal in the
next 12 months
Firm sales 4.0% 6.7%
Marketing ROI 3.2% 5.2%
Firm profits 3.2% 5.8%
Customer acquisition 3.3% 5.9%
Customer retention 2.0% 4.7%
Brand value 3.7% 5.8%
Table 4.2. Percent change in performance
31
Increased focus on marketing that benefits
society and minimizes environmental impact
Figure 4.3. Rate your firm on each the following non-financial metrics during the last 12 months
(% Excellent & Good on a 5-point scale where 1=Poor and 5=Excellent)
AnalyticsLeadershipOrganizationJobsSocial MediaPerformanceSpendingGrowthMarketplace
32
36.1%
31.1%
41.6% 41.6%
0%
10%
20%
30%
40%
50%
Marketing that isbeneficial for society
Minimizing the impact of marketingon the ecological environment
August 2013 August 2014
AnalyticsLeadershipOrganizationJobsSocial MediaPerformanceSpendingGrowthMarketplace
B2C companies more likely to be
marketing leaders
Figure 4.4. How would you rate your company’s marketing excellence? (7-point scale where 1=Very Weak and 7=Leader)
33
4.6% 5.5% 3.6% 6.8% 2.6%
44.6% 46.6% 47.6%36.4% 43.6%
29.2%30.1% 28.6%
31.8% 25.6%
21.7% 17.8% 20.3%25.0% 28.2%
0%
20%
40%
60%
80%
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
AnalyticsLeadershipOrganizationJobsSocial MediaPerformanceSpendingGrowthMarketplace
Social media spending expected to be
21.4% of marketing budgets in five years
Figure 5.1. Social media spending as a percent of marketing budgets
35
9.4%
13.2%
21.4%
0%
5%
10%
15%
20%
25%
Current Levels Over Next 12 Months In Next 5 Years
% of Marketing Budget
AnalyticsLeadershipOrganizationJobsSocial MediaPerformanceSpendingGrowthMarketplace
Social media spending across sectors
OverallB2B
Product
B2B
Services
B2C
Product
B2C
Services
Current Social Media
Spending9.4% 9.5% 9.2% 10.4% 8.6%
Social Media Spending in
the next 12 months13.2% 12.6% 13.3% 15.0% 11.9%
Social Media Spending in
the next 5 years21.4% 19.9% 22.2% 22.8% 21.0%
Table 5.1. Changes in social media spending across sectors
36
AnalyticsLeadershipOrganizationJobsSocial MediaPerformanceSpendingGrowthMarketplace
No growth on human capital for social media:
Tech investments appear to dominate?
Figure 5.2. Location of social media employees
In-house
social media
employees
Outsourced
social media
employees
B2B Product 4.1 2.0
B2B Services 4.1 1.5
B2C Product 5.7 3.9
B2C Services 4.9 2.1
Table 5.2. Social media employees by sector
37
1.7
2.4
4.1
2.9
1.11.3
2.1 2.1
0
1
2
3
4
5
Feb-13 Aug-13 Feb-14 Aug-14
In-house social media employees
Outsourced social media employees
AnalyticsLeadershipOrganizationJobsSocial MediaPerformanceSpendingGrowthMarketplace
Social media remains poorly integrated
with marketing strategy
38
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 3.8 3.9 3.8 3.9
1
2
3
4
5
6
7
Feb-11 Feb-12 Aug-12 Feb-13 Aug-13 Feb-14 Aug-14
Mean Integration Level
AnalyticsLeadershipOrganizationJobsSocial MediaPerformanceSpendingGrowthMarketplace
B2C Product companies have the
highest social media integration
Figure 5.4. How well is social media integrated with marketing strategy?
(1=Not At All Effectively, 7=Very Effectively)
39
24.9%30.2% 25.8%
18.7% 19.5%
53.1%51.9%
51.7%
54.2% 56.1%
22.1% 18.1% 22.5%27.1% 24.4%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Overall B2B Product B2B Services B2C Product B2C Services
Top 2 Box=6-7
Middle 3 Box=3-5
Bottom 2 Box=1-2
AnalyticsLeadershipOrganizationJobsSocial MediaPerformanceSpendingGrowthMarketplace
Persistent poor integration of customer
information across channels
Figure 5.5. How effectively does your company integrate customer information across purchasing,
communication, and social media channels (1=Not At All Effectively, 7=Very Effectively)?
40
3.5
3.8
3.4
3.5 3.6
1
2
3
4
5
6
7
Aug-12 Feb-13 Aug-13 Feb-14 Aug-14
Mean Integration Level
*Question asked in Aug-12 for the first time.
AnalyticsLeadershipOrganizationJobsSocial MediaPerformanceSpendingGrowthMarketplace
Only 15% of firms able to show impact
of social media on business
Figure 5.6.. Which best describes how you show the impact of social media on your business?
41
B2B
Product
B2B
Services
B2C
Product
B2C
Services
We haven't been
able to show the
impact yet54.2% 42.0% 46.9% 30.8%
We have a good
qualitative sense of
the impact, but not
a quantitative
impact
34.9% 43.2% 34.7% 51.3%
We have proven
the impact
quantitatively10.8% 14.8% 18.4% 17.9%
Have proven
the impact
quantitatively
15%Haven't been able
to show the
impact yet
45%Have a good
qualitative sense
of the impact, but
not a quantitative
impact
40%
Social media metrics: Firms shift toward referral
and text measures and away from financial metrics
LeadershipOrganizationJobsSocial MediaPerformanceSpendingGrowthMarketplace
Metrics August 2010 August 2014
Hits/visits/page views 47.6% 60.7%
Number of followers or friends 24.0% 45.0%
Repeat visits 34.7% 38.7%
Conversion rates (from visitor to buyer) 25.4% 31.3%
Buzz indicators (web mentions) 15.7% 24.2%
Sales levels 17.9% 16.8%
Online product/service ratings 8.2% 14.0%
Customer acquisition costs 11.8% 13.7%
Net promoter score 7.5% 12.8%
Revenue per customer 17.2% 12.5%
Other text analysis ratings 6.6% 11.7%
Customer retention costs 7.7% 6.3%
Abandoned shopping carts 3.8% 6.0%
Profits per customer 9.4% 6.0%
Table 5.3. Social Media Metrics Used by Firms*
*Red indicates metric use has decreased; green indicates that metric use has increased, and changes of 1% or less are classified as no change.
. 42
Use of online customer behavior data
expected to increase over timeAnalyticsLeadershipOrganizationJobsSocial MediaPerformanceSpendingGrowthMarketplace
Figure 5.7. Does your company use customer
behavior data collected online for
targeting purposes?
Figure 5.8. Is your company's use of such
data increasing, decreasing, or
staying the same over time?
43
Yes41%No
59%
81.7%
18.3%
0.0%0%
20%
40%
60%
80%
100%
Increasing About the same Decreasing
Most marketers have low levels of concern
over the use of online customer data
AnalyticsLeadershipOrganizationJobsSocial MediaPerformanceSpendingGrowthMarketplace
Figure 5.9. How worried are you that the use of online customer data could raise questions
about privacy? Mean = 3.4 (SD = 1.6)
44
12.8%
20.2%
14.7%
22.9%
21.1%
7.3%
0.9%
0%
5%
10%
15%
20%
25%
1Not At AllWorried
2 3 4 5 6 7Very
Worried
AnalyticsLeadershipOrganizationJobsSocial MediaPerformanceSpendingGrowthMarketplace
Marketing hiring positive but continues
to decline
Figure 6.1. Percentage change in marketing hires planned in next 12 months
46
6.2%7.2%
5.2%6.5%
5.4% 5.5%
4.7%3.8%
0%
3%
6%
9%
12%
15%
Feb-11 Aug-11 Feb-12 Aug-12 Feb-13 Aug-13 Feb-14 Aug-14
Increase in Marketing Hires in Next 12 Months
AnalyticsLeadershipOrganizationJobsSocial MediaPerformanceSpendingGrowthMarketplace
Sector differences in marketing hires:
B2B services largest hiring increase
Figure 6.2. Percentage change in marketing hires planned in next 12 months
47
3.8%
2.3%
5.3%
3.8% 3.6%
0%
2%
4%
6%
8%
10%
Overall B2B Product B2B Services B2C Product B2C services
AnalyticsLeadershipOrganizationJobsSocial MediaPerformanceSpendingGrowthMarketplace
Outsourcing of marketing jobs
increases
Figure 6.3. Percentage of company marketing expected to be outsourced in next 12 months
48
3.2% 3.1% 3.5%
2.6%
3.1%
4.3%
0%
2%
4%
6%
8%
10%
Feb-12 Aug-12 Feb-13 Aug-13 Feb-14 Aug-14
Percentage Change in Outsourcing
AnalyticsLeadershipOrganizationJobsSocial MediaPerformanceSpendingGrowthMarketplace
Marketing employees 5% of total
Figure 7.1. Marketing Employees as a Percentage of Total Employees
50
2.4% 2.0%
6.4%
2.3%
4.2%
1.1%
3.1%
2.5%1.2%
6.3%5.0%
0%
2%
4%
6%
8%
10%
12%
Feb-09 Aug-09 Feb-10 Aug-10 Aug-11 Feb-12 Aug-12 Feb-13 Aug-13 Feb-14 Aug-14
Percentage of Total Employees
Marketing and sales are equal partners
in most companies, esp. B2B ProductAnalyticsLeadershipOrganizationJobsSocial MediaPerformanceSpendingGrowthMarketplace
51
Figure 7.2. The marketing-sales relationship (% of respondents)
66%
12% 11% 8%
3%
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
We have a salesfunction, but not amarketing function
Sales and marketing work
together on an equal level
B2B Product 75.0%
B2B Services 59.7%
B2C Product 61.5%
B2C Services 66.7%
AnalyticsLeadershipOrganizationJobsSocial MediaPerformanceSpendingGrowthMarketplace
Marketing leadership erosion in key
strategic areas
Table 8.1. Percentage of companies in which marketing leads activity*
Weaker marketing leadership:
• Promotion
• Marketing research
• Market entry
• New products
• CRM
• Pricing
• Target/Market selection
• Innovation
• Customer service
Stronger marketing leadership:
• Brand
• Social media
• Public relations
• Competitive intelligence
Activity Aug-13 Aug-14
Brand 80.7% 84.4%
Advertising 83.9% 83.9%
Social media 74.9% 78.4%
Positioning 76.7% 76.9%
Promotion 80.3% 74.9%
Marketing analytics** 69.1% 68.3%
Public relations 62.3% 65.8%
Marketing research 66.4% 65.3%
Competitive intelligence 55.6% 57.3%
Lead generation 56.1% 56.3%
Market entry strategies 54.7% 52.3%
New products 48.4% 41.7%
CRM 40.4% 38.2%
Pricing 37.2% 32.2%
Targeting/Market selection 39.9% 30.7%
Innovation 32.7% 30.2%
Sales 27.8% 26.6%
Customer service 22.0% 19.6%
Stock market performance 3.1% 2.5%
* Red indicates marketing’s influence has decreased, green indicates that marketing’s influence has increased, and changes of 1% or less are classified as no change.
53
AnalyticsLeadershipOrganizationJobsSocial MediaPerformanceSpendingGrowthMarketplace
Marketing leaders retained for an average
of 5.3 years; likely to be insiders
Figure 8.1. Marketing leader retention
54
4.3 4.6 4.3
5.4
4.14.8
5.1
4.65.3
8.09.0 8.8
10.5
9.2
9.510.0
9.410.0
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
Years top marketer in current rolein the firm
Years top marketer in any role inthe firm
AnalyticsLeadershipOrganizationJobsSocial MediaPerformanceSpendingGrowthMarketplace
Number of people reporting to top
marketer
Figure 8.2. Number of people reporting to top marketer
55
7.2 7.3 6.0
8.6
5.6 6.95.5
17.0 15.4
25.4 24.6
17.5
16.1 16.3
0
5
10
15
20
25
30
Aug-10 Aug-11 Feb-12 Aug-12 Feb-13 Aug-13 Feb-14
Number of direct reports Number of indirect reports
Increasing pressure to prove the value
of marketingAnalyticsLeadershipOrganizationJobsSocial MediaPerformanceSpendingGrowthMarketplace
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?
56
Yes 62%
No 38%
65%
35%
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.
57
AnalyticsLeadershipOrganizationJobsSocial MediaPerformanceSpendingGrowthMarketplace
Spending on marketing analytics expected
to increase 73% in three years
Figure 9.1. Percent of marketing budget spent on marketing analytics
59
7.1%
12.3%
0%
3%
6%
9%
12%
15%
Current Levels In Next 3 Years
AnalyticsLeadershipOrganizationJobsSocial MediaPerformanceSpendingGrowthMarketplace
Spending on marketing analytics by
firm and industry characteristics
CurrentIn Next
3 years
<$25M 6.6% 11.2%
$26-99M 5.8% 10.2%
$100-499M 6.9% 11.9%
$500-999M 7.5% 13.0%
$1-9.9B 8.1% 15.1%
$10+B 9.8% 13.9%
Table 9.1c. Firm size differences
Table 9.1b. Firm internet sales differences
CurrentIn Next
3 years
0% 6.5% 11.8%
1-10% 7.5% 12.5%
>10% 7.9% 13.2%
Table 9.1a. Firm sector differences
CurrentIn Next
3 years
B2B Product 8.2% 13.1%
B2B Services 7.1% 12.0%
B2C Product 5.4% 9.8%
B2C Services 7.3% 14.4%
60
AnalyticsLeadershipOrganizationJobsSocial MediaPerformanceSpendingGrowthMarketplace
Only one-third of projects use marketing
analytics; no improvement despite spending
Figure 9.2. Percentage of projects using available or requested marketing analytics*
61
*This question was asked in Feb-12 for the first time.
37.0%35.0%
30.4%29.0%
32.5%
32.3%
20%
25%
30%
35%
40%
45%
50%
Feb-12 Aug-12 Feb-13 Aug-13 Feb-14 Aug-14
Percentage using marketing analytics
AnalyticsLeadershipOrganizationJobsSocial MediaPerformanceSpendingGrowthMarketplace
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
62
*This question was asked in Feb-12 for the first time.
3.93.7
3.53.7 3.7
1
2
3
4
5
6
7
Aug-12 Feb-13 Aug-13 Feb-14 Aug-14
Mean Contribution Level
Marketing analytics contributions by
sector and firm differences
63
AnalyticsLeadershipOrganizationJobsSocial MediaPerformanceSpendingGrowthMarketplace
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 3.6 (1.7)
Communications/Media 4.0 (2.1)
Consumer Packaged Goods 4.0 (2.0)
Energy 4.0 (2.2)
Healthcare/Pharma. 4.2 (1.7)
Manufacturing 3.3 (1.6)
Mining/Construction 4.0 (0.0)
Retail/Wholesale 4.1 (2.3)
Service/Consulting 2.9 (1.9)
Tech Software Biotech 4.3 (1.7)
Transportation 4.2 (0.8)
Sector Mean (SD)
B2B Product 3.6 (1.6)
B2B Services 3.4 (1.9)
B2C Product 4.3 (2.0)
B2C Services 4.2 (1.9)
Table 9.2b. Economic sector differences
Table 9.2c. Firm internet sales differences
Mean (SD)
0% of sales 3.5 (1.9)
1-10% of sales 3.7 (1.7)
>10% of sales 4.2 (1.9)
Majority of companies do not evaluate
marketing analytics
64
Figure 9.4. Does your company formally evaluate the quality of marketing analytics?
AnalyticsLeadershipOrganizationJobsSocial MediaPerformanceSpendingGrowthMarketplace
64
B2C
Services
B2B
Services
B2C
Product
B2B
Product
Yes,
evaluate
quality
47% 38% 29% 24%
No, do not
evaluate
quality
53% 62% 71% 76%
Yes33%
No67%
AnalyticsLeadershipOrganizationJobsSocial MediaPerformanceSpendingGrowthMarketplace
Companies lack quantitative metrics to
demonstrate impact of marketing spending
Figure 9.5. Metrics for demonstrating impact of marketing spending on business
65
37%
44%
19%
33%
44%
23%
0%
10%
20%
30%
40%
50%
We prove theimpact quantitatively
We have a good qualitativesense of the impact, but not a
quantitative impact
We haven't been able toshow the impact yet
Short-Term Impact Long-Term Impact
AnalyticsLeadershipOrganizationJobsSocial MediaPerformanceSpendingGrowthMarketplace
How companies measure marketing ROI
Figure 9.8. How companies measure marketing ROI
What percent of your marketing budget do
you spend measuring your marketing ROI?
• Mean = 2.31%
• SD = 3.26%
• 95% Confidence interval = 1.83% - 2.79%
66
Manager judgements
19.8%
Customer surveys20.7%
Econometric modeling
17.8%
Experiments11.9%
Other9.3%
We don't measure
marketing ROI
20.4%
Next survey: January 2015
Participate: Sign up here
Media: Press releases and coverage
Feedback: Send comments to [email protected]
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67