The cmo survey_highlights_and_insights-aug-2011_final

47
Highlights and Insights August 2011 © Christine Moorman www.cmosurvey.org

description

This

Transcript of The cmo survey_highlights_and_insights-aug-2011_final

Page 1: The cmo survey_highlights_and_insights-aug-2011_final

Highlights and InsightsAugust 2011

© Christine Moormanwww.cmosurvey.org

Page 2: The cmo survey_highlights_and_insights-aug-2011_final

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 over time so trends can be discerned. Special topics are

introduced for each survey

- The most recent survey was the seventh time the survey was conducted.

Sponsoring Organizations

Founder and Director

- Professor Christine Moorman,

T. Austin Finch, Sr. Professor of Business Administration

2© Christine Moorman

Page 3: The cmo survey_highlights_and_insights-aug-2011_final

Survey Methodology

• Survey Sample

- 3662 Top Marketers at Fortune 1000, Forbes Top 200, CMO Club companies, and Top

Marketers who are AMA Members or Duke University Alumni and Friends

- 249 responded for a 6.8% response rate

• Survey Administration

- Email contact with four follow-up reminders

- Survey in field from August 1-23, 2011

- 82.8%% 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

3© Christine Moorman

Page 4: The cmo survey_highlights_and_insights-aug-2011_final

Topic 1: Marketplace Dynamics: Customers, Competitors, Channel Partners 5-10

Topic 2: Firm Growth Strategies 11-17

Topic 3: Marketing Spending 18-23

Topic 4: Financial and Marketing Performance 24-27

Topic 5: Marketing and Social Media 28-33

Topic 6: Marketing Jobs 34-37

Topic 7: Marketing Organization 38-41

Topic 8: Marketing Leadership & CMO Insights Reports 42-46

Preview and Review 47

Overview of Results

4© Christine Moorman

Page 5: The cmo survey_highlights_and_insights-aug-2011_final

5

Topic 1:

Marketplace Dynamics

5

Page 6: The cmo survey_highlights_and_insights-aug-2011_final

Marketer optimism for overall U.S. economy

reaches lowest point in two 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© Christine Moorman

Figure 1.2. Are you more or less optimistic about the

overall U.S. economy compared to last quarter?

47.69

56.45 57.7855.60

63.30

52.20

40

50

60

70

80

90

100

February 2009

August 2009

February 2010

August 2010

February 2011

August 2011

Marketer Optimism about Overall Economy

17.3

59.062.1

35.2

68.8

14.9

32.026.0

28.9

38.9

25.527.7

50.7

15.0

9.0

26.0

5.7

57.4

0

10

20

30

40

50

60

70

80

February 2009

August 2009

February 2010

August 2010

February 2011

August 2011

Per

cen

tag

e o

f R

esp

on

den

ts

More Optimistic No Change Less Optimistic

LeadershipOrganizationJobsSocial MediaPerformanceSpendingGrowthMarketplace

Page 7: The cmo survey_highlights_and_insights-aug-2011_final

Marketer optimism for own firms weakens

less than for overall economy

© Christine Moorman

Figure 1.4. Are you more or less optimistic about your own

company’s revenue prospects compared to last quarter?

7

LeadershipOrganizationJobsSocial MediaPerformanceSpendingGrowthMarketplace

Figure 1.3. How optimistic are you on a 0-100 scale with 0

being the least optimistic and 100 the most optimistic?

47.69

56.45 57.7855.60

63.30

52.20

52.92

59.64

66.44 66.70

73.20

67.80

40

50

60

70

80

90

100

February 2009

August 2009

February 2010

August 2010

February 2011

August 2011

Overall Economy Own Company Revenue Growth

59.0

29.5

11.9

18.7

9.7

22.915.8

23.2

19.1

17.5

22.825.7

25.1

47.2

68.963.9

67.5

51.4

0

10

20

30

40

50

60

70

80

February 2009

August 2009

February 2010

August 2010

February 2011

August 2011

Per

cen

tag

e o

f R

esp

on

den

ts

Less optimistic No change More optimistic

Page 8: The cmo survey_highlights_and_insights-aug-2011_final

Customer prices expected to increase; all

other customer metrics expected to drop in

the next 12 months

8© Christine Moorman

Figure 1.5. Customer Metrics – Customer Outcomes Expected in the Next 12 Months

LeadershipOrganizationJobsSocial MediaPerformanceSpendingGrowthMarketplace

48

66

62

74

56

17

26 25

3139

44

5452

59

33

39

47

50

53

52

35

4543

49 41

0

10

20

30

40

50

60

70

80

August 2009 February 2010 August 2010 February 2011 August 2011

Per

cen

tag

e o

f R

esp

on

den

ts 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

Page 9: The cmo survey_highlights_and_insights-aug-2011_final

Customers to continue quality focus; more

focus on price and less on innovation

Feb-11 Aug-11 % Change

Low Price 48.3% 53.0% +9.7%

Quality 62.4% 65.1% +4.3%

Innovation 34.0% 31.7% -6.8%

Service 71.2% 69.9% -1.8%

Trust 60.7% 59.0% -2.8%

Brand 25.5% 25.7% +0.8%

© Christine Moorman

Table 1.1. Customer Priorities in Next 12 Months

ExcellenceOrganizationJobsSocial MediaPerformanceSpendingGrowthMarketplace

Shifting Customer Priorities

• More customer focus on price (+9.7%)

• Less customer focus on innovation (-6.8%)

9

Page 10: The cmo survey_highlights_and_insights-aug-2011_final

Channel partner metrics to falter

in next 12 months

10© Christine Moorman

Figure 1.6. Channel Revenue Metrics

ExcellenceOrganizationJobsSocial MediaPerformanceSpendingGrowthMarketplace

25

36

52

47

54

42

19

24

40

3336

30

10

14

19 18

24

30

0

10

20

30

40

50

60

February 2009

August 2009

February 2010

August 2010

February 2011

August 2011

Percentage of

Respondents

Increased partner purchase volume

Increased partner purchase of related products and services from my firm

Increased partner price per unit

Page 11: The cmo survey_highlights_and_insights-aug-2011_final

11

Topic 2:

Firm Growth Strategies

11

Page 12: The cmo survey_highlights_and_insights-aug-2011_final

Growth strategies shift to market development

and product/service development

Table 2.1. Growth Spending in Next 12 Months*

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

12© Christine Moorman

Types of Growth Strategies

Strategy Feb-11 Aug-11

Market

Penetration

Strategy

49% 46%

Market

Development

Strategy

17% 20%

Product/Service

Development

Strategy

22% 25%

Diversification

Strategy 12% 10%

LeadershipOrganizationJobsSocial MediaPerformanceSpendingGrowthMarketplace

Page 13: The cmo survey_highlights_and_insights-aug-2011_final

StrategyB2B

Products

B2B

Services

B2C

Products

B2C

Services

Market

Penetration

Strategy44.3% 44.0% 45.3% 51.4%

Market

Development

Strategy20.6% 20.9% 16.9% 18.5%

Product/Service

Development

Strategy

25.9% 24.3% 24.8% 22.7%

Diversification

Strategy 9.1% 10.8% 13.0% 7.4%

© Christine Moorman

ExcellenceOrganizationJobsSocial MediaPerformanceSpendingGrowthMarketplace

Table 2.2. Sector Growth Spending in Next 12 Months*

* % of spending across growth strategies

Growth strategies vary by sector

13

Page 14: The cmo survey_highlights_and_insights-aug-2011_final

Organic growth remains dominant growth

strategy; partnerships rebound

Table 2.3. How Firms Will Grow in the Next 12 Months*

14© Christine Moorman

Strategy Feb-10 Aug-10 Feb-11 Aug-11

Growth from firm

internally

(organic growth)

69.5% 69.5% 72.0% 70.2%

Growth

from

acquisitions

10.4% 10.8% 10.6% 11.4%

Growth

from

partnerships

14.7% 13.9% 11.8% 13.5%

Growth

from

licensing

5.4% 5.8% 5.6% 5.1%

* Percentage of spending across growth strategies

LeadershipOrganizationJobsSocial MediaPerformanceSpendingGrowthMarketplace

Table 2.4. Sector Use of Organic Growth and Acquisitions*

Organic

Growth

Growth via

Acquisition

B2B Product 68.3% 10.4%

B2B-Service 67.1% 15.3%

B2C-Product 78.9% 4.8%

B2C-Service 70.7% 10.6%

Page 15: The cmo survey_highlights_and_insights-aug-2011_final

International sales to increase in

next 12 months

LeadershipOrganizationJobsSocial MediaPerformanceSpendingGrowthMarketplace

Figure 2.1. Percentage of Company Sales Expected to be International in Next 12 Months

© Christine Moorman 15

18.7%

24.7%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

40.0%

August2010

August 2011

Page 16: The cmo survey_highlights_and_insights-aug-2011_final

How sales revenue in international

markets is changing

Feb-11 Aug-11% Change

Feb-11 to Aug-11

Western Europe 33.2% 36.3% +9.3%

Canada 28.6% 25.1% -12.2%

China 16.4% 19.6% +19.5%

Mexico 8.2% 6.1% -25.6%

Japan 8.2% 5.6% -31.7%

Brazil 7.1% 7.3% +2.8%

Middle East 6.1% 2.2% -63.9%

Eastern Europe 5.7% 6.7% +17.5%

India 4.3% 6.1% +41.9%

Korea 2.1% 1.7% -19.1%

Russia 0.7% 0.6% -14.3%

Table 2.5. International Markets in Sales Revenue in the Next 12 Months

© Christine Moorman 16

Markets in which sales are increasing:

• Western Europe

• China

• Eastern Europe

• India

Markets in which sales are decreasing:

• Canada

• Mexico

• Middle East

Small changes difficult to interpret

• Korea

• Russia

• Brazil

LeadershipOrganizationJobsSocial MediaPerformanceSpendingGrowthMarketplace

Page 17: The cmo survey_highlights_and_insights-aug-2011_final

More firms go to market directly;

Internet sales as a % of total sales increaseLeadershipOrganizationJobsSocial MediaPerformanceSpendingGrowthMarketplace

Figure 2.2. Percentage of Firms Disintermediating Figure 2.3. Percentage of Firm Sales through Internet

21.6%

32.9%

15.0%

20.0%

25.0%

30.0%

35.0%

40.0%

45.0%

50.0%

55.0%

February2011

August 2011

8.4%

11.2%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

16.0%

February2011

August 2011

© Christine Moorman 17

Page 18: The cmo survey_highlights_and_insights-aug-2011_final

18

Topic 3:

Marketing Spending

18

Page 19: The cmo survey_highlights_and_insights-aug-2011_final

Growth in marketing budgets remains high;

B2C-Product companies +20% in next year

Figure 3.1. % Change in Marketing Budgets in Next 12 Months

19© Christine Moorman

LeadershipOrganizationJobsSocial MediaPerformanceSpendingGrowthMarketplace

Table 3.1. % Change in Marketing Budgets by

Firm Sales in Internet

Aug-11

0% Internet Sales 6.5%

1-10% Internet Sales 8.6%

>10% Internet Sales 21.8%

0.5% 1.1%

5.9%

9.2%

6.7%

9.1%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

February 2009

August 2009

February 2010

August 2010

February 2011

August 2011

Change in Marketing Spending

Page 20: The cmo survey_highlights_and_insights-aug-2011_final

Marketing spending shifts categories

Table 3.2. % Change in Marketing Spending in Next 12 Months

20© Christine Moorman

LeadershipOrganizationJobsSocial MediaPerformanceSpendingGrowthMarketplace

Feb-10 Aug-10 Feb-11 Aug-11

Traditional

advertising

spending-2.5% -0.6% 2.4% 1.3%

Internet

marketing

spending12.2% 13.6% 12.1% 11.2%

New

product

introductions9.1% 9.1% 8.2% 10.4%

New

service

introductions3.9% 7.2% 5.1% 6.6%

Customer

relationship

management9.9% 8.3% 9.1% 6.5%

Brand

Building 6.9% 8.3% 9.1% 5.7%

Notable shifts

• Rate of spending on traditional advertising

continues to decrease

• Rate of spending on new products and new

services increases

• Rate of spending on marketing assets (brand

and customer relationships) decreases

Page 21: The cmo survey_highlights_and_insights-aug-2011_final

Investments in building marketing

knowledge expected to drop off

Table 3.3. Changes in Firm Spending on Marketing Knowledge in Next 12 Months

21© Christine Moorman

LeadershipOrganizationJobsSocial MediaPerformanceSpendingGrowthMarketplace

Feb-09 Aug-09 Feb-10 Aug-10 Feb-11 Aug-11

Marketing research

and intelligence 1.8% 3.2% 7.3% 5.6% 8.0% 6.2%

Marketing consulting

services -4.5% 1.3% 2.9% 4.6% 4.7% 3.5%

Developing knowledge about how to do

marketing 3.4% 3.0% 6.4% 6.6% 8.8% 6.4%

Integrating what we

know about marketing 5.1% 4.1% 7.4% 8.9% 8.1% 6.0%

Marketing training 1.2% 0.7% 4.3% 3.6% 5.6% 3.1%

Page 22: The cmo survey_highlights_and_insights-aug-2011_final

Marketing spending increases to account

for 10% of overall firm budgets

22

Figure 3.2. How Marketing Budgets Are Changing Over Time

© Christine Moorman

LeadershipOrganizationJobsSocial MediaPerformanceSpendingGrowthMarketplace

Marketing Budget

as a Percent of

Overall Budget 8.1%

10.0%

2%

4%

6%

8%

10%

12%

14%

16%

February 2011 August 2011

Page 23: The cmo survey_highlights_and_insights-aug-2011_final

Size of marketing budget varies by

company sector, sales, and internet sales

23

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%

<$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%

0%

Internet Sales

1-10%

Internet Sales

>10%

Internet Sales

August 2011 8.7% 7.9% 16.8%

Table 3.5. Marketing Percentage of Firm Budget by Company Sales Revenue

Table 3.6. Marketing Percentage of Firm Budget by Company Internet Sales

© Christine Moorman

LeadershipOrganizationJobsSocial MediaPerformanceSpendingGrowthMarketplace

Page 24: The cmo survey_highlights_and_insights-aug-2011_final

24

Topic 4:

Financial and Marketing

Performance

24

Page 25: The cmo survey_highlights_and_insights-aug-2011_final

Firm performance metrics hold; ROI

(not revenues) may be reason

25© Christine Moorman

LeadershipOrganizationJobsSocial MediaPerformanceSpendingGrowthMarketplace

2.2%

4.0%3.8%

1.8%

3.4%3.4%

2.2%2.7%

3.0%

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

3.5%

4.0%

4.5%

August 2010

February 2010

August 2011

Firm Performance

on Metrics

Firm sales Firm profits Marketing ROI

Figure 4.1. Firm Performance in Prior 12 Months

Page 26: The cmo survey_highlights_and_insights-aug-2011_final

Firm performance goals stay optimistic

Table 4.1. Actual Performance Percentage Change and Goals

Actual firm

performance

Aug-2009

Actual firm

performance

Aug-2010

Actual firm

performance

Aug-2011

Goal in the

next 12 months

Firm sales* -0.6% 2.2% 3.8% 4.9%

Market share 2.2% 2.0% 4.0% 6.8%

Marketing return on investment 1.9% 2.2% 3.0% 5.3%

Firm profits 0.5% 1.8% 3.4% 6.0%

Customer acquisition 2.6% 2.6% 3.2% 6.1%

Customer retention 1.4% 1.6% 1.7% 4.2%

Brand value 3.2% 2.9% 3.5% 5.8%

26© Christine Moorman

* Question not asked in February 2009

LeadershipOrganizationJobsSocial MediaPerformanceSpendingGrowthMarketplace

Page 27: The cmo survey_highlights_and_insights-aug-2011_final

B2B-Product companies top most

performance metrics

27© Christine Moorman

LeadershipOrganizationJobsSocial MediaPerformanceSpendingGrowthMarketplace

B2B-Product B2B-Services B2C-Product B2C-Services

Firm sales 4.1% 4.0% 4.0% 2.9%

Market share 2.6% 2.3% 2.4% 2.3%

Marketing return on investment 3.4% 2.3% 2.8% 3.9%

Firm profits 4.4% 3.4% 3.5% 1.9%

Customer acquisition 3.9% 2.8% 3.3% 2.4%

Customer retention 0.9% 2.6% 2.6% 0.4%

Brand value 3.4% 3.7% 2.8% 4.4%

Table 4.2. Sector Performance Metrics for Prior 12 Months

Page 29: The cmo survey_highlights_and_insights-aug-2011_final

Social media spending growth continues to

soar: 17.5% increase expected in five years

29© Christine Moorman

Figure 5.1. Social Media Spending as a Percentage of Marketing Budgets Over Time

LeadershipOrganizationJobsSocial MediaPerformanceSpendingGrowthMarketplace

7.1%

10.1%

17.5%

0%

5%

10%

15%

20%

25%

Current Levels Over Next 12 Months In Next 5 Years

Percentage of

Total Marketing

Budget (%)

Page 30: The cmo survey_highlights_and_insights-aug-2011_final

Sector differences in social media spending;

B2C-product companies rebound to highest levels

30© Christine Moorman

August 2011

Current Social

Media Spending

B2B - Product 4.2%

B2B - Services 8.6%

B2C - Product 10.5%

B2C - Services 5.9%

Overall 7.1%

Social Media

Spending in the next

12 months

B2B - Product 7.0%

B2B - Services 11.5%

B2C - Product 13.6%

B2C - Services 9.4%

Overall 10.1%

Social Media

Spending in the next

5 years

B2B - Product 13.4%

B2B - Services 18.3%

B2C - Product 24.0%

B2C - Services 17.3%

Overall 17.5%

Table 5.1. Sector Differences in % Change in Social Media Spending

LeadershipOrganizationJobsSocial MediaPerformanceSpendingGrowthMarketplace

Page 31: The cmo survey_highlights_and_insights-aug-2011_final

Social media not well integrated with

firm strategy

LeadershipOrganizationJobsSocial MediaPerformanceSpendingGrowthMarketplace

31

22.3%

18.3%

12.0%

17.1% 16.6%

4.6%

9.1%

16.9%

12.8%

11.6%

14.0%

19.2%

12.8% 12.8%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

1 Not at all

Integrated

2 3 4 5 6 7 Very

Integrated

Per

cen

t o

f R

esp

on

den

ts (

%)

Overall Strategy Marketing Strategy

Figure 5.2. How Effectively Social Media is Integrated with Strategy

© Christine Moorman

Research question:

How effectively is social media integrated with your

firm’s strategy and marketing strategy? 7-point

scale (1=not integrated and 7=very integrated)

Overall results:

• Integration with Firm Strategy (Mean = 3.4;

Standard Deviation = 1.9)

• Integration with Firm Marketing Strategy (Mean =

4.0; Standard Deviation = 2.0)

Page 32: The cmo survey_highlights_and_insights-aug-2011_final

Social media groups are generally small,

internal, and from the marketing function

• Internal social media groups average - 2 people

• Percentage of social media employees within marketing - 59.1% from marketing

• Number of people from other companies working on social media average - 1.9 people

LeadershipOrganizationJobsSocial MediaPerformanceSpendingGrowthMarketplace

32© Christine Moorman

Page 33: The cmo survey_highlights_and_insights-aug-2011_final

Social media metrics used by firms

LeadershipOrganizationJobsSocial MediaPerformanceSpendingGrowthMarketplace

Metrics August 2010 August 2011

Hits/visits/page views 47.6% 52.2%

Repeat visits 34.7% 34.9%

Number of followers or friends 24% 34.1%

Conversion rates (from visitor to buyer) 25.4% 29.3%

Buzz indicators (web mentions) 15.7% 20.5%

Customer acquisition costs 11.8% 14.1%

Sales levels 17.9% 13.3%

Other text analysis ratings 6.6% 12.0%

Online product/service ratings 8.2% 10.4%

Revenue per customer 17.2% 9.6%

Net promoter score 7.5% 6.8%

Customer retention costs 7.7% 6.4%

Abandoned shopping carts 3.8% 4.8%

Profits per customer 9.4% 4.8%

Table 5.2. Social Media Metrics Used by Firms

33© Christine Moorman

Notable shifts

Metrics shift toward web-based customer

behaviors:

• Page visits, followers, buzz, text

analysis, online ratings, and

abandoned shopping carts

Financial metrics decline:

• Sales levels, revenue per

customer, profits per customer

No significant change:

• Repeat visits

• Net promoter score

• Customer retention costs

Page 34: The cmo survey_highlights_and_insights-aug-2011_final

34

Topic 6: Marketing Jobs

34

Page 35: The cmo survey_highlights_and_insights-aug-2011_final

Marketing employment prospects

continue to rise

Figure 6.1. Percentage Change in Marketing Hires Planned Over Next 12 months

35© Christine Moorman

LeadershipOrganizationJobsSocial MediaPerformanceSpendingGrowthMarketplace

12.9%

4.0%

6.2%7.2%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

February 2010 August 2010 February 2011 August 2011

Per

cen

tag

e In

crea

se in

Mar

keti

ng

Hir

es in

Nex

t 12

Mo

nth

s

Page 36: The cmo survey_highlights_and_insights-aug-2011_final

Opportunity for marketing jobs varies by

economic sector, sales, and internet sales

Table 6.1. Percentage Increase in Marketing Hires by Economic Sector

36© Christine Moorman

B2B

Product

B2B

Services

B2C

Product

B2C

Services

August 2010 4.8% 3.8% 4.2% 1.5%

February 2011 8.6% 4.9% 6.7% 3.4%

August 2011 11.6% 5.6% 0.2% 8.3%

<$25

Million

$26-99

Million

$100-499

Million

$500-999

Million

$1-9.9

Billion>$10 Billion

August 2010 5.4% 2.4% 2.2% 0.8% 2.9% 4.3%

February 2011 4.8% 9.3% 5.9% 4.5% 3.2% 3.1%

August 2011 14.8% 3.1% 4.6% 4.4% 1.4% 0.3%

0%

Internet Sales

1-10%

Internet Sales

>10%

Internet Sales

August 2010 3.0% 2.9% 8.2%

February 2011 5.2% 7.0% 5.9%

August 2011 10.4% 3.1% 4.9%

Table 6.2. Percentage Increase in Marketing Hires by Company Sales Revenue

Table 6.3. Percentage Increase in Marketing Hires by Company Internet Sales

ExcellenceOrganizationJobsSocial MediaPerformanceSpendingGrowthMarketplace

Largest percentage change in

marketing hires

• B2B Product companies

• Smallest companies

• Companies weak on

internet marketing

Page 37: The cmo survey_highlights_and_insights-aug-2011_final

ExcellenceOrganizationJobsSocial MediaPerformanceSpendingGrowthMarketplace

Outsourcing of marketing expected to

double in next year

37

0.0%

4.3% 4.5%

9.3%

0%

5%

10%

15%

20%

25%

February 2010

August 2010

February 2011

August 2011

© Christine Moorman

Figure 6.2. Percentage of Company Outsourcing of Marketing Expected in Next 12 Months

Page 38: The cmo survey_highlights_and_insights-aug-2011_final

38

Topic 7:

Marketing Organization

38

Page 39: The cmo survey_highlights_and_insights-aug-2011_final

Where marketing is located in firms

39© Christine Moorman

84.3%

26.5%

16.9%

10.8%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

Corporate Business Brand/Product Field Offices

Percentage of Firms (%)

Organization Level

Figure 7.1. Location of Marketing in Firm – Check all that apply

LeadershipOrganizationJobsSocial MediaPerformanceSpendingGrowthMarketplace

Page 40: The cmo survey_highlights_and_insights-aug-2011_final

Marketing and sales share customers in

most companies

40© Christine Moorman

Figure 7.2. The Marketing-Sales Relationship

LeadershipOrganizationJobsSocial MediaPerformanceSpendingGrowthMarketplace

74.0%

13.1%

8.3%

71.1%

8.2% 8.8%

69.7%

10.9%

7.3%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

Sales and marketing work on an equal basis

Marketing is within the sales function Sales is within the marketing function

Percentage of Respondents (%)

August 2009 August 2010 August 2011

Page 41: The cmo survey_highlights_and_insights-aug-2011_final

External focus improves during downturn

Figure 7.3. Firm Outside-In Activities:

Information about customers and competitors … *

*7-point scale where 1 is “not at all” and 7 is “very frequently”

41© Christine Moorman

LeadershipOrganizationJobsSocial MediaPerformanceSpendingGrowthMarketplace

4.9

4.6 4.6

4.7

4.8 4.8

5.3

4.9

4.8

5

5.1

5

4.2

4.4

4.6

4.8

5

5.2

5.4

Is collected on a regular basis

Is shared vertically across different levels of

the firm and business units

Is shared horizontally across different

functions and business units

Shapes the design of firm strategies

Influences the implementation of firm

strategies

Impacts the evaluation of firm strategies

MeanValue*

February 2011 August 2011

Page 42: The cmo survey_highlights_and_insights-aug-2011_final

42

Topic 8:

Marketing Leadership

42

Page 43: The cmo survey_highlights_and_insights-aug-2011_final

Marketing leaders retained through

economic crisis

43© Christine Moorman

Figure 8.1. Marketing Leader Retention Top marketers continue to beat oft-cited 231 and

281 month survival averages.

Given length of time in firms (~9 years),

marketing leaders appear to be appointed from

within.

1. http://content.spencerstuart.com/sswebsite/pdf/lib/CMO_brochureU1.pdf

2. http://www.btobonline.com/apps/pbcs.dll/article?AID=/20090130/FREE/901309991/1078

LeadershipOrganizationJobsSocial MediaPerformanceSpendingGrowthMarketplace

4.3

8.0

4.6

9.0

4.3

8.8

0

1

2

3

4

5

6

7

8

9

10

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

Yea

rs

August 2009 August 2010 August 2011

Page 44: The cmo survey_highlights_and_insights-aug-2011_final

Marketer influence in firms holds during

economic recovery

44© Christine Moorman

Figure 8.2. Number of Direct Reports to Top Marketer

4.6

7.27.3

4.0

4.5

5.0

5.5

6.0

6.5

7.0

7.5

8.0

August 2009 August 2010 August 2011

Number of Reports

LeadershipOrganizationJobsSocial MediaPerformanceSpendingGrowthMarketplace

Page 45: The cmo survey_highlights_and_insights-aug-2011_final

What marketing leads

Percentage of Companies

Using Marketing for Activity

Activity Aug-10 Aug-11

Positioning 78.6% 78.0%

Promotion 77.1% 79.3%

Brand 76.8% 81.1%

Marketing research 72.3% 78.0%

Social media 69.6% 75.6%

Competitive intelligence 62.7% 56.1%

Public relations 58.1% 58.5%

Lead generation 57.8% 58.5%

Market entry strategies 57.2% 51.2%

New products 51.2% 49.4%

Customer relationship management 44.3% 39.0%

Targeting/Market selection 41.0% 34.1%

Sales 37.0% 33.5%

Pricing 35.8% 34.8%

Innovation 33.4% 29.9%

Customer service 25.0% 23.8%

Stock market performance 1.2% 0.0%

Table 8.1 What Marketing

Does in Companies

45

• Stronger leadership on social media, brand,

and marketing research

• Less leadership on other strategic activities

• Competitive intelligence

• Market entry

• New products

• CRM

• Sales

• Innovation

• Targeting

• Maintaining leadership on other traditional

marketing areas:

• Positioning

• Promotion

• Public relations

• Lead generation

• Pricing

• Customer service

• No leadership on managing stock market

performance

LeadershipOrganizationJobsSocial MediaPerformanceSpendingGrowthMarketplace

Page 46: The cmo survey_highlights_and_insights-aug-2011_final

46

Completed CMO Insights – see http://www.cmosurvey.org/cmo-insights/

Planned CMO Insights:

• Kim Feil, CMO Walgreens (Fall, 2011)

• Beth Comstock, CMO General Electric (Spring, 2012)

© Christine Moorman

Marc Pritchard

CMO, Procter & Gamble

Listen – August, 2009

Stephen Quinn

CMO, Walmart

Read – February, 2010

Geert van Kuyck

CMO, Royal Philips Electronics

Watch – August, 2010

Candid conversations with top marketing leaders about best

practice and tools for success

LeadershipOrganizationJobsSocial MediaPerformanceSpendingGrowthMarketplace

Page 47: The cmo survey_highlights_and_insights-aug-2011_final

Preview and Review

47

Next survey- The CMO Survey will be administered again in February 2012.

- A special topic section examining “Marketing Analytics” will be included.

To get involved- If you are not a current participant, sign up at http://www.cmosurvey.org/participate/

Media- Media follow ups related to this data will be posted to

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

Feedback- Send your thoughts to [email protected]

© Christine Moorman