The CMO Survey Highlights and Insights February 2017

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Highlights and insights from the February 2017 CMO Survey.

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The CMO Survey Highlights and Insights February 2017

  1. 1. 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.
  2. 2. 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
  3. 3. 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
  4. 4. Marketplace Growth Spending Performance Social Media Mobile Jobs Organization Leadership Analytics Marketer economic optimism increases 6 More Optimistic 42.5% Less Optimistic 26.6% No Change 30.9% 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
  5. 5. Marketplace Growth Spending Performance Social Media Mobile Jobs Organization Leadership Analytics Marketer economic outlook varies by industry 7 Top 3 Industry Sectors Transportation Education Pharmaceuticals Top 3 Industry Sectors Consumer Services Consumer Packaged Goods Service/Consulting Top 3 Industry Sectors Healthcare Banking/Finance/Insurance Mining/Construction More Optimistic 42.5% Less Optimistic 26.6% No Change 30.9% Figure 1.2. Are you more or less optimistic about the overall U.S. economy compared to last quarter?*
  6. 6. Marketplace Growth Spending Performance Social Media Mobile Jobs Organization Leadership Analytics 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% Increased acquisition of new customers Increased customer purchase volume Increased purchase of related products & services Increased customer retention Increased entry of new customers into the market Increased customer price per unit August 2016 February 2017 Figure 1.3. Forecasted customer outcomes in next 12 months (% of respondents)
  7. 7. Marketplace Growth Spending Performance Social Media Mobile Jobs Organization Leadership Analytics 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% Superior Product Quality Excellent Service Trusting Relationship Low Price Superior Innovation February 2016 August 2016 February 2017 Figure 1.4. Customers’ top priority in next 12 months (% of respondents)
  8. 8. Marketplace Growth Spending Performance Social Media Mobile Jobs Organization Leadership Analytics 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.
  9. 9. Marketplace Growth Spending Performance Social Media Mobile Jobs Organization Leadership Analytics All channel partner indicators forecasted to improve 11 64% 44% 23% 22% 67% 50% 26% 31% 0% 20% 40% 60% 80% Increased partner purchase volume Increased partner purchase of related products and services Increased partner power in relationship Increased partner price per unit August 2013 February 2017 Figure 1.6. Forecasted channel partner outcomes in next 12 months (% of respondents)* * Question asked irregularly. Full time series available shown.
  10. 10. Marketplace Growth Spending Performance Social Media Mobile Jobs Organization Leadership Analytics 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 Diversification Strategy * % of spending for each growth strategy Growth Strategy Aug-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 Strategy 8.9% 9.7% Table 2.1. Spending on Growth Strategies in Past 12 Months* Types of growth strategies
  11. 11. Marketplace Growth Spending Performance Social Media Mobile Jobs Organization Leadership Analytics 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 your firm Growth from partnerships Growth from acquisitions Growth from licensing February 2015 February 2017 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.
  12. 12. Marketplace Growth Spending Performance Social Media Mobile Jobs Organization Leadership Analytics 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
  13. 13. Marketplace Growth Spending Performance Social Media Mobile Jobs Organization Leadership Analytics 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%
  14. 14. Marketplace Growth Spending Performance Social Media Mobile Jobs Organization Leadership Analytics Company sales from domestic markets continue to dominate 17 Figure 2.2. Percent of company sales from domestic markets Overall 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
  15. 15. Marketplace Growth Spending Performance Social Media Mobile Jobs Organization Leadership Analytics 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
  16. 16. Marketplace Growth Spending Performance Social Media Mobile Jobs Organization Leadership Analytics 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%
  17. 17. Marketplace Growth Spending Performance Social Media Mobile Jobs Organization Leadership Analytics 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% - - -
  18. 18. Marketplace Growth Spending Performance Social Media Mobile Jobs Organization Leadership Analytics 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
  19. 19. Marketplace Growth Spending Performance Social Media Mobile Jobs Organization Leadership Analytics 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 budget in prior 12 months Expected change in marketing budget in next 12 months August 2016 February 2017
  20. 20. Marketplace Growth Spending Performance Social Media Mobile Jobs Organization Leadership Analytics 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
  21. 21. Marketplace Growth Spending Performance Social Media Mobile Jobs Organization Leadership Analytics 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%
  22. 22. Marketplace Growth Spending Performance Social Media Mobile Jobs Organization Leadership Analytics 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
  23. 23. 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 Marketplace Growth Spending Performance Social Media Mobile Jobs Organization Leadership Analytics 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
  24. 24. Marketplace Growth Spending Performance Social Media Mobile Jobs Organization Leadership Analytics 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
  25. 25. Marketplace Growth Spending Performance Social Media Mobile Jobs Organization Leadership Analytics 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.
  26. 26. Marketplace Growth Spending Performance Social Media Mobile Jobs Organization Leadership Analytics Marketing spend is 8.1% of company revenues 30 Figure 3.8. Marketing spending as percent of company revenues* *Question asked in Feb-12 for the first time. 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
  27. 27. Marketplace Growth Spending Performance Social Media Mobile Jobs Organization Leadership Analytics 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.
  28. 28. Marketplace Growth Spending Performance Social Media Mobile Jobs Organization Leadership Analytics 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 consulting services Marketing research and intelligence Developing knowledge about how to do marketing Marketing training
  29. 29. Marketplace Growth Spending Performance Social Media Mobile Jobs Organization Leadership Analytics Firms to increase their investments on knowledge building 33 Overall Mean (SD) B2B Product B2B Services B2C Product B2C Services Marketing consulting services 2.7% 2.5% 4.4% -1.2% 2.5% Marketing research and intelligence 5.3% 5.0% 6.0% 3.9% 5.6% Developing knowledge about how to do marketing 6.6% 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
  30. 30. Marketplace Growth Spending Performance Social Media Mobile Jobs Organization Leadership Analytics 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.
  31. 31. Marketplace Growth Spending Performance Social Media Mobile Jobs Organization Leadership Analytics 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
  32. 32. Marketplace Growth Spending Performance Social Media Mobile Jobs Organization Leadership Analytics 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
  33. 33. Marketplace Growth Spending Performance Social Media Mobile Jobs Organization Leadership Analytics 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
  34. 34. Marketplace Growth Spending Performance Social Media Mobile Jobs Organization Leadership Analytics 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 4.5 4.7 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
  35. 35. Marketplace Growth Spending Performance Social Media Mobile Jobs Organization Leadership Analytics 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
  36. 36. Marketplace Growth Spending Performance Social Media Mobile Jobs Organization Leadership Analytics 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
  37. 37. Marketplace Growth Spending Performance Social Media Mobile Jobs Organization Leadership Analytics B2C Product leads social media spend; all sectors to grow by ~20% in next year 43 Overall B2B 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 months 12.9% 11.4% 13.2% 17.1% 11.0% Social media spending in the next 5 years 18.6% 17.0% 17.9% 25.5% 16.3% Table 5.1. Changes in social media spending across sectors
  38. 38. Marketplace Growth Spending Performance Social Media Mobile Jobs Organization Leadership Analytics 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
  39. 39. Marketplace Growth Spending Performance Social Media Mobile Jobs Organization Leadership Analytics 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 3.9 4.2 4.2 3.9 4.1 1 2 3 4 5 6 7 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
  40. 40. Marketplace Growth Spending Performance Social Media Mobile Jobs Organization Leadership Analytics 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) *Question asked in Feb-11 for the first time. 3.8 3.8 3.8 3.8 3.9 3.8 3.9 3.7 3.6 3.4 3.2 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
  41. 41. Marketplace Growth Spending Performance Social Media Mobile Jobs Organization Leadership Analytics 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
  42. 42. Marketplace Growth Spending Performance Social Media Mobile Jobs Organization Leadership Analytics 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
  43. 43. Marketplace Growth Spending Performance Social Media Mobile Jobs Organization Leadership Analytics 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) Feb-16 Aug-16 Feb-17 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 Feb-16 Aug-16 Feb-17 Contribution to company performance * Question asked in Feb-16 for the first time.
  44. 44. Marketplace Growth Spending Performance Social Media Mobile Jobs Organization Leadership Analytics Top reason firms use social media: Brand building and brand awareness 50 % Using B2B 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)
  45. 45. Marketplace Growth Spending Performance Social Media Mobile Jobs Organization Leadership Analytics 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
  46. 46. Marketplace Growth Spending Performance Social Media Mobile Jobs Organization Leadership Analytics 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 3.2 3.6 3.3 3.03.0 3.5 3.1 3.4 3.0 2.8 1 2 3 4 5 6 7 Customer acquisition Customer engagement Customer retention Delivering your brand message Sales Profits August 2016 February 2017 Mobile marketing performance decreases on key metrics
  47. 47. Marketplace Growth Spending Performance Social Media Mobile Jobs Organization Leadership Analytics 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) Feb-16 Aug-16 Feb-17 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 2.5 2.7 1 2 3 4 5 6 7 Feb-16 Aug-16 Feb-17 Overall Company Performance
  48. 48. Marketplace Growth Spending Performance Social Media Mobile Jobs Organization Leadership Analytics 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% Feb-12 Aug-12 Feb-13 Aug-13 Feb-14 Aug-14 Feb-15 Aug-15 Feb-16 Aug-16 Feb-17 Percentage Change in Marketing Hires in Next 12 Months
  49. 49. Marketplace Growth Spending Performance Social Media Mobile Jobs Organization Leadership Analytics 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) Table 7.1a. Industry sector differences 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% Table 7.1b. Firm sector differences Table 7.1c. Firm Internet sales differences 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
  50. 50. Marketplace Growth Spending Performance Social Media Mobile Jobs Organization Leadership Analytics 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) Table 7.1a. Industry sector differences 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% Table 7.1b. Firm sector differences Table 7.1c. Firm Internet sales differences 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
  51. 51. Marketplace Growth Spending Performance Social Media Mobile Jobs Organization Leadership Analytics 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 work together on an equal level We don't have a sales function Sales is in charge of marketing Sales is within the marketing function We have a sales function, but not a marketing function
  52. 52. Marketplace Growth Spending Performance Social Media Mobile Jobs Organization Leadership Analytics 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
  53. 53. Marketplace Growth Spending Performance Social Media Mobile Jobs Organization Leadership Analytics 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 4.7 5.1 4.7 4.6 4.6 4.7 4.7 1 2 3 4 5 6 7 Collected on a regular basis Shared vertically across different levels of the firm and business units 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 February 2015 February 2017 * Question asked irregularly. Showing most recent data.
  54. 54. Marketplace Growth Spending Performance Social Media Mobile Jobs Organization Leadership Analytics 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.
  55. 55. Marketplace Growth Spending Performance Social Media Mobile Jobs Organization Leadership Analytics 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 8.8 9.2 10.0 10.0 8.0 9.8 11.4 4.3 4.6 4.3 4.1 5.1 5.3 4.5 6.6 6.0 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
  56. 56. Marketplace Growth Spending Performance Social Media Mobile Jobs Organization Leadership Analytics 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. 8.6 6.9 5.5 6.8 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
  57. 57. Marketplace Growth Spending Performance Social Media Mobile Jobs Organization Leadership Analytics 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
  58. 58. 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.
  59. 59. Marketplace Growth Spending Performance Social Media Mobile Jobs Organization Leadership Analytics 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
  60. 60. Marketplace Growth Spending Performance Social Media Mobile Jobs Organization Leadership Analytics Spending on marketing analytics by firm and industry characteristics 70 Current In 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 Current In 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 Current In 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
  61. 61. Marketplace Growth Spending Performance Social Media Mobile Jobs Organization Leadership Analytics 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% Feb-12 Aug-12 Feb-13 Aug-13 Feb-14 Aug-14 Feb-15 Aug-15 Feb-16 Aug-16 Feb-17 Percent of projects using marketing analytics before a decision is made
  62. 62. Marketplace Growth Spending Performance Social Media Mobile Jobs Organization Leadership Analytics 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) 3.9 3.7 3.5 3.7 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
  63. 63. Marketplace Growth Spending Performance Social Media Mobile Jobs Organization Leadership Analytics 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?
  64. 64. Marketplace Growth Spending Performance Social Media Mobile Jobs Organization Leadership 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 February 2015 February 2017 Figure 10.5. Does your company formally evaluate the quality of marketing analytics?
  65. 65. Marketplace Growth Spending Performance Social Media Mobile Jobs Organization Leadership 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) Table 10.2a. Industry sector differences 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 Table 10.2b. Firm sector differences Table 10.2c. Firm Internet sales differences 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.
  66. 66. Marketplace Growth Spending Performance Social Media Mobile Jobs Organization Leadership Analytics 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 show the impact yet Short-Term Impact Long-Term Impact
  67. 67. 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
  68. 68. 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)
  69. 69. Preview 80 Next survey: July 2017 Participate: Sign up here Media: Press release and coverage Feedback: Send comments to moorman@duke.edu

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