Depicts key survey results and offers trends over time. You can see a slide show of this report below.

2. About The CMO Survey
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 February 2014 survey was the eleventh administration of The CMO Survey.
Sponsoring Organizations
2

3. Survey Methodology
Survey Sample
- 4582 top U.S. marketers at Fortune 1000, Forbes Top 200, and top marketers who are AMA Members
or Duke University Alumni and Friends
- 408 responded for a 8.9% response rate
Survey Administration
- Email contact with four follow-up reminders
- Survey in field from January 14, 2014 - February 4, 2014
- 88% 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

4. Survey topics
Topic 1: Marketplace Dynamics……………………………………………………… 5-11
Topic 2: Firm Growth Strategies…………………………………………………….. 12-16
Topic 3: Marketing Spending………………………………………………………… 17-28
Topic 4: Financial and Marketing Performance……………………………………. 29-34
Topic 5: Social Media…………………………………………………..…………….. 35-42
Topic 6: Marketing Jobs…………………………………………………………….... 43-46
Topic 7: Marketing Organization…………………………………………………….. 47-49
Topic 8: Marketing Leadership……………………………………………………..... 50-54
Topic 9: Marketing Analytics………………………………………………………..... 55-63
Topic 10: The CMO Survey Award for Marketing Excellence……………………. 64-66
4

5. Topic 1:
Marketplace Dynamics

6. Marketer optimism for U.S. economy
reaches highest point in 5 years
Marketplace
Growth
Spending
Social Media
Performance
Jobs
Organization
Leadership
Analytics
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?
Marketer Optimism About Overall Economy
80
70
63.4
63.3
60
50
56.5
57.8
65.7
66.1
Aug-13
Feb-14
62.70
58.40
55.6
52.2
47.7
40
Feb-09
Aug-09
Feb-10
Aug-10
Feb-11
Aug-11
Feb-12
Aug-12
Feb-13
6

7. Optimists almost quadruple since 2009
Marketplace
Growth
Spending
Performance
Social Media
Jobs
Organization
Leadership
Analytics
Figure 1.2. Are you more or less optimistic about the overall U.S. economy compared to last quarter?
Less Optimistic
No Change
More Optimistic
70%
60%
50%
% of
respondents
54.4%
59.3%
40%
32.3%
30%
25.7%
20%
14.9%
10%
13.3%
0%
February
2009
February
2014
7

8. Optimism for US economy grows across
all sectors
Marketplace
Growth
Spending
Performance
Social Media
Jobs
Leadership
Organization
Analytics
Figure 1.3. Optimism for U.S. economy by sector
February 2009
70
38%
66.2
February 2014
65.6
44%
45%
66.2
26%
64.1
60
50
48
45.3
46
B2B Services
B2C Product
50.8
40
30
20
10
0
B2B Product
XX%
B2C Services
Change between February 2009 and February 2014
8

9. Marketer optimism for own companies
and overall economy closest in five years
Marketplace
Growth
Spending
Social Media
Performance
Jobs
Organization
Leadership
Analytics
Figure 1.4. How optimistic are you on a 0-100 scale with 0 being the least optimistic and 100 the most
optimistic?
Optimism for Overall Economy
Optimism for Own Company
100
90
80
70
60
64.2
72.8
63.4
62.7
February
2011
February
2012
February
2013
72.4
73.2
66.1
57.8
50
40
73.2
63.3
70.0
47.7
February
2009
February
2010
February
2014
9

10. Positive customer metrics forecasted
Marketplace
Growth
Spending
Performance
Social Media
Jobs
Organization
Leadership
Analytics
Figure 1.5. Forecasted customer outcomes in next 12 months
February 2013
February 2014
80%
74.7%
69.3%
70%
60%
% of
respondents
predicting an
increase
67.7%
59.7%
59.1% 59.3%
40%
49.6%
49.0%
50%
43.8%
42.3%
32.8% 34.3%
30%
20%
10%
0%
Increased customer Increased customer Customers will buy Increased ability to
purchase volume
price per unit
more related
retain customers
products and
services from my firm
Increased entry of
new customers into
the market
Increased ability to
acquire new
customers
10

11. Customer priorities to shift to superior
product quality
Marketplace
Growth
Spending
Performance
Social Media
Jobs
Organization
Leadership
Analytics
Figure 1.6. Customers’ top priority in next 12 months
35%
30%
25%
% of
respondents
Low Price
Superior Product Quality
20%
Superior Innovation
15%
Excellent Service
Trusting Relationship
10%
Brand
5%
0%
August
2012
February
2013
August
2013
February
2014
11

12. Topic 2:
Firm Growth Strategies

13. Firms decrease market penetration and move
toward riskier growth strategies in next year
Marketplace
Growth
Spending
Performance
Types of growth strategies
Social Media
Jobs
Organization
Leadership
Analytics
Table 2.1. How growth spending is expected to change*
Existing
Products/
Services
New
Products/
Services
Existing
Markets
Market
Penetration
Strategy
Product/Service
Development
Strategy
New
Markets
Market
Development
Strategy
Diversification
Strategy
Growth
Strategy
Actual
Spending in
Past 12
Months
Expected
Spending in
Next 12
Months
Percent
Change
Expected
Market
Penetration
Strategy
52.9%
47.1%
-11.0%
Market
Development
Strategy
15.3%
17.0%
+11.1%
Product/Service
Development
Strategy
21.8%
24.3%
+11.5%
Diversification
Strategy
10.0%
11.5%
+15%
* % of spending across growth strategies
13

14. Companies to increase organic growth
and partnership strategies in next year
Marketplace
Growth
Spending
Performance
Social Media
Jobs
Leadership
Organization
Analytics
Table 2.2. How firms will grow in the next 12 months*
Strategy
February 2014
Average
B2B
Product
B2B
Services
B2C
Product
B2C
Services
Organic Growth
71.8%
70.4%
69.9%
79.5%
70.5%
Growth via Acquisitions
10.2%
9.1%
12.3%
7.6%
11.8%
Growth from Partnerships
12.8%
13.9%
13.9%
8.0%
12.2%
Growth from Licensing
5.2%
6.6%
3.8%
4.8%
5.5%
* Percentage of spending across growth strategies
14

15. Sales from international markets as a
percent of overall company sales
Marketplace
Growth
Spending
Social Media
Performance
Jobs
Leadership
Organization
Analytics
Figure 2.1. Percent of company sales expected to be international in next 12 months
35%
32.4%
30%
25%
24.7%
20%
15%
18.7%
19.6%
19.3%
19.5%
20.5%
February
2013
August
2013
22.5%
10%
5%
0%
August
2010
February
2011
August
2011
February
2012
August
2012
February
2014
15

16. Canada, Western Europe, and China remain
U.S. firms’ highest revenue growth markets
Marketplace
Growth
Spending
Performance
Social Media
Figure 2.2. Highest international revenue growth
markets (% respondents)
Eastern Europe
2%
Korea
2%
Middle East
2%
Australia
3%
India
3%
Russia
3%
Jobs
Leadership
Organization
Analytics
Figure 2.3. Average change in growth of
highest revenue international markets
30%
25%
Other:
13%
Mexico
4%
Japan
4%
Southeast Asia
5%
Brazil
7%
Western Europe
26%
20%
19.7%
15.6%
15%
China
15%
Canada
12%
18.4%
10%
5%
0%
February
2012
February
2013
February
2014
16

17. Topic 3:
Marketing Spending

18. Marketing budgets rebound
Marketplace
Growth
Spending
Performance
Social Media
Jobs
Organization
Leadership
Analytics
Figure 3.1. Percent change in marketing budgets in next 12 months
Change in Marketing Spending
12%
9.2%
10%
9.1%
6.7%
8%
8.1%
6.4%
5.9%
6%
6.7%
6.1%
4.3%
4%
2%
1.1%
0.5%
0%
Feb-09
Aug-09
Feb-10
Aug-10
Feb-11
Aug-11
Feb-12
Aug-12
Feb-13
Aug- 13
Feb-14
18

19. Digital marketing spend vs. traditional
advertising spend
Marketplace
Growth
Spending
Performance
Social Media
Jobs
Organization
Leadership
Analytics
Figure 3.2. Percent change in traditional advertising* spend in next 12 months
Traditional Advertising Spend
15%
12.8%
11.2%
11.5%
Digital Marketing Spend
10.2%
10.1%
10%
8.2%
5%
1.3%
-0.8%
0%
-0.1%
-1.9%
-2.7%
-2.1%
February
2013
August
2013
-5%
August
2011
February
2012
August
2012
February
2014
*Refers to media advertising not using the web.
19

20. Industry differences in digital vs.
traditional advertising spend
Marketplace
Growth
Spending
Performance
Social Media
Jobs
Organization
Leadership
Analytics
Table 3.1. Change in digital and traditional advertising spending in next 12 months by sector
B2B
Product
B2B
Services
B2C
Product
B2C
Services
Digital marketing spend
+9.0%
+7.4%
+7.7%
+8.2%
Traditional advertising* spend
-1.6%
+0.2
+2.8%
-1.3%
*Refers to media advertising not using the web.
20

21. All other marketing spend categories remain
positive, but slower growth expected
Marketplace
Growth
Spending
Performance
Social Media
Jobs
Organization
Leadership
Analytics
Table 3.2. Percent change in marketing spending in next 12 months
August 2012
February 2013
August 2013
February 2014
Overall marketing spending
+6.4%
+6.1%
+4.3%
+6.7%
New product introductions
+9.4%
+8.0%
+7.1%
+7.8%
New service introductions
+6.4%
+5.8%
+4.9%
+4.0%
Customer relationship management
+9.0%
+8.1%
+6.0%
+5.1%
Brand building
+7.5%
+6.8%
+4.6%
+4.9%
21

22. Investments in marketing knowledge
continue to decrease
Marketplace
Growth
Spending
Performance
Social Media
Jobs
Organization
Leadership
Analytics
Figure 3.3. Changes in firm spending on marketing knowledge in next 12 months
10%
Marketing research and intelligence
8%
Marketing consulting services
6%
Developing knowledge about how to
do marketing*
4%
Integrating what we know about
marketing
2%
Marketing training*
0%
August…
February…
August…
February…
*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.
22

23. Marketing budgets represent 10% of
overall firm budgets
Marketplace
Growth
Spending
Performance
Social Media
Jobs
Organization
Leadership
Analytics
Figure 3.4. Marketing budget as a percent of firm budget*
16%
14%
12%
10%
10.0%
10.4%
August
2011
February
2012
11.4%
10.9%
10.6%
9.4%
8.1%
8%
6%
4%
2%
0%
February
2011
August
2012
February
2013
August
2013
February
2014
*Question asked in Feb-11 for the first time.
23

24. Who has the biggest marketing budgets?
Marketplace
Growth
Spending
Performance
Social Media
Jobs
Leadership
Organization
Analytics
Table 3.3a. Marketing percentage of firm budget by economic sector
B2B
Product
February 2014
B2B
Services
B2C
Product
B2C
Services
10.4%
8.7%
14.9%
11.4%
Table 3.3b. Marketing percentage of firm budget by company sales revenue
<$25
Million
February 2014
$26-99
Million
$100-499
Million
$500-999
Million
$1-9.9
Billion
>$10
Billion
12.7%
12.6%
6.5%
6.6%
9.7%
7.8%
Table 3.3c. Marketing percentage of firm budget by company internet sales
0%
Internet Sales
February 2014
1-10%
Internet Sales
>10%
Internet Sales
9.4
10.8%
13.8%
24

25. Marketing spending as a percentage of
firm revenues increases to 9.3%
Marketplace
Growth
Spending
Performance
Social Media
Jobs
Leadership
Organization
Analytics
Figure 3.5. Marketing spending as a percentage of firm revenues
10%
9.3%
9%
9%
8%
7.9%
7.8%
8%
7%
February…
August…
February…
25

26. Marketing spending as a percentage of
firm revenues by firm and industry
Marketplace
Growth
Spending
Performance
Social Media
Jobs
Leadership
Organization
Analytics
Table 34a. Marketing spending as a percentage of firm revenues by economic sector
B2B
Product
February 2014
B2BServices
B2C
Product
B2C
Services
8.1%
5.8%
15.2%
11.0%
Table 3.4b. Marketing spending as a percentage of firm revenues by company sales revenue
<$25
Million
February 2014
$26-99
Million
$100-499
Million
$500-999
Million
$1-9.9
Billion
>$10
Billion
13.9%
6.1%
5.9%
2.9%
6.7%
5.5%
Table 3.4c. Marketing spending as a percentage of firm revenues by company internet sales
0%
Internet Sales
February 2014
1-10%
Internet Sales
>10%
Internet Sales
6.2%
7.8%
18.6%
26

27. Companies lack quantitative metrics to
demonstrate impact of marketing spending
Marketplace
Growth
Spending
Performance
Social Media
Jobs
Organization
Leadership
Analytics
Figure 3.6. Short-term and long-term impact of marketing spent on business
Which best describes how your company shows the short-term impact of marketing spend on your business?
Which best describes how your company shows the long-term impact of marketing spend on your business?
60%
50.0%
50%
40%
30%
51.5%
35.7%
28.6%
19.9%
20%
14.3%
10%
0%
We prove the
impact quantitatively
We have a good
qualitative sense
of the impact, but…
We haven't been able
to show the impact yet
27

28. B2C Product companies demonstrate
the impact of marketing quantitatively
Marketplace
Growth
Spending
Performance
Social Media
Jobs
Organization
Leadership
Analytics
Figure 3.7. Sectors that prove short-term and long-term impact of marketing quantitatively
Companies that prove the short-term impact of marketing quantitatively
Companies that prove the long-term impact of marketing quantitatively
70%
64.9%
60%
50%
39.5%
40%
30%
33.8%
28.2%
30.0%
25.0%
37.1%
20.0%
20%
10%
0%
B2B Product
B2B Services
B2C Product
B2C Services
28

29. Topic 4:
Financial and Marketing
Performance

30. Company performance on financial
metrics stable ~ 3-4% increase
Marketplace
Growth
Spending
Performance
Social Media
Jobs
Organization
Leadership
Analytics
Figure 4.1. Percent change in firm performance in prior 12 months
Firm sales
Firm profits
Marketing ROI
5%
4.1%
4%
3.9%
3.4%
3.3%
3%
3.1%
3.0%
August 2013
February 2014
2%
1%
0%
30

31. Performance on key customer and
brand assets also holds
Marketplace
Growth
Spending
Performance
Social Media
Jobs
Organization
Leadership
Analytics
Figure 4.2. Percent change in performance on customer and brand metrics in prior 12 months
Customer acquisition
4%
3.4%
3%
Customer retention
Brand value
3.6%
3.5%
3.1%
2%
2.0%
1.9%
August 2013
February 2014
1%
0%
31

32. Company performance by sector
Marketplace
Growth
Spending
Performance
Social Media
Jobs
Organization
Leadership
Analytics
Table 4.1. Sector performance metrics for prior 12 months
B2B
Product
B2B
Services
B2C
Product
B2C
Services
Firm sales
+3.6%
+5.1%
+3.6%
+2.7%
Marketing return on investment
+3.6%
+3.2%
+3.1%
+4.5%
Firm profits
+2.2%
+3.4%
3.2%
+3.3%
Customer acquisition
+3.8%
+3.9%
+2.5%
+3.6%
Customer retention
+1.5%
+2.5%
+1%
+2.9%
Brand value
+2.8%
+3.7%
+3.5%
+5.4%
32

33. Firm performance goals remain strong
Marketplace
Growth
Spending
Performance
Social Media
Jobs
Organization
Leadership
Analytics
Table 4.2. Company performance and goals
Actual firm performance
in prior 12 months
Goal in the
next 12 months
Expected change in
next 12 months
Firm sales
3.9%
6.8%
+74.4%
Marketing return on investment
3.4%
5.3%
+55.9%
Firm profits
3.0%
5.9%
+96.7%
Customer acquisition
3.6%
6.1%
+69.4%
Customer retention
1.9%
4.3%
+126.4%
Brand value
3.5%
5.4%
+54.3%
33

34. Marketing excellence ratings improve!
Marketplace
Growth
Spending
Performance
Social Media
Jobs
Organization
Leadership
Analytics
Figure 4.3. How would you rate your company’s marketing excellence?
40%
Marketing excellence over time
34.4%
35%
• Feb-2014: Mean = 4.7 (SD = 1.4)
30%
• Aug-2013: Mean = 4.5 (SD = 1.4)
25%
• Feb-2013: Mean = 4.5 (SD = 1.4)
20%
• Aug-2012: Mean = 4.4 (SD = 1.4)
14.7%
15%
15.4%
11.1%
10%
5%
16.1%
7.2%
1.1%
0%
1=Very Weak 2=Weak
3=Fair
4=Good
5=Strong 6=A leader, but
7=Excellent, one
not one of of the best in
the best
the world
34

35. Topic 5:
Marketing and Social
Media

36. Social media spending expected to be
18% of marketing budgets in five years
Marketplace
Growth
Spending
Performance
Social Media
Jobs
Organization
Leadership
Analytics
Figure 5.2. Social media spending as a percentage of marketing budgets
25%
20%
18.1%
% of total
marketing
budget
15%
10%
10.1%
7.4%
5%
0%
Current Levels
Over Next 12 Months
In Next 5 Years
36

37. Social media spending across sectors
Marketplace
Growth
Spending
Performance
Social Media
Jobs
Organization
Leadership
Analytics
Table 5.1. Changes in social media spending across sectors
B2B
Product
B2B
Services
B2C
Product
B2C
Services
Overall
Current Social Media
Spending
6.9%
7.2%
7.7%
8.9%
7.4%
Social Media
Spending in the next
12 months
9.7%
9.5%
10.4%
11.4%
10.1%
Social Media
Spending in the next
5 years
17.4%
18.4%
17.2%
20.3%
18.1%
37

38. Human capital related to social media:
Slow to grow, 2:1 internal to external
Marketplace
Growth
Spending
Social Media
Performance
Figure 5.2. Employees performing social media
in companies
Jobs
Leadership
Organization
Analytics
Table 5.2. Average number of employees
by sector
In-house social media employees
In-house
social media
employees
Outsourced social media employees
4.1
Outsourced
social media
employees
4.0
B2B Product
4.1
2.0
3.0
B2B Services
4.1
1.5
B2C Product
5.7
3.9
B2C Services
4.9
2.1
2.0
1.0
2.4
1.7
2.1
1.1
1.3
Feb-2013
August 2013
0.0
February 2014
38

39. Social media integration gap remains
Marketplace
Growth
Spending
Performance
Social Media
Figure 5.3. How well is social media integrated with
marketing strategy?
Jobs
Organization
Leadership
Table 5.2. Integration scores by sector
B2B Product
Mean (SD)
Feb-2014
3.5
B2B Services
3.6
B2C Product
4.3
B2C Services
3.7
Mean = 3.8 (SD = 1.8)
25%
20%
22.0%
17.0%
14.8%
14.0%
15%
Analytics
14.0%
11.4%
10%
6.8%
5%
0%
1
Not at all
Effectively
2
3
4
5
6
7
Very
Effectively
39

40. Social media remains poorly integrated
with marketing strategy
Marketplace
Growth
Spending
Social Media
Performance
Jobs
Organization
Leadership
Analytics
Figure 5.4. Average social media integration scores over time
Question: How effectively is social media linked to your firm’s marketing strategy?
(1=not integrated, 7=very integrated)
7
6
5
4
3.8
3.8
3.8
3.8
3.9
3.8
Feb-12
Aug-12
Feb-13
Aug-13
Feb-14
3
2
1
Feb-11
40

41. Persistent poor integration of customer
information across channels
Marketplace
Growth
Spending
Performance
Social Media
Jobs
Organization
Leadership
Analytics
Question:. How effectively does your company integrate customer information across purchasing,
communication, and social media channels (1=not at all, 7=very effectively)?
Results:
• Feb-14: Mean = 3.5, SD = 1.6
• Aug-13: Mean = 3.4, SD = 1.6
• Aug-12: Mean = 3.7, SD = 1.6
Table 5.4. Customer information integration gap across sectors
Average integration across all channels
Mean (SD)
B2B Product
3.4 (1.7)
B2B Services
3.4 (1.6)
B2C Product
4.1 (1.5)
B2C Services
3.7 (1.7)
41

42. Half of all firms haven’t been able to show
the impact of social media on business
Marketplace
Growth
Spending
Performance
Social Media
Jobs
Organization
Leadership
Analytics
Figure 5.5.. Which best describes how you show the impact of social media on your business?
We haven’t been able
to show the impact yet
15.9%
We have proven the
impact quantitatively
49.2%
34.8%
We have a good
qualitative sense of the
impact, but not a
quantitative impact
42

43. Topic 6:
Marketing Jobs

44. Marketing hiring drops off
Marketplace
Growth
Spending
Performance
Social Media
Jobs
Organization
Leadership
Analytics
Figure 6.1. Percentage change in marketing hires planned in next 12 months
7%
6.2%
6%
5.2%
5.4%
February
2012
February
2013
4.7%
5%
4%
3%
2%
1%
0%
February
2011
February
2014
44

45. B2B companies to hire more marketers
Marketplace
Growth
Spending
Performance
Social Media
Jobs
Organization
Leadership
Analytics
Figure 6.2. Percentage change in marketing hires planned in next 12 months
February
2013
February
2014
7%
5.9%
6%
5%
5.2%
4.9%
4.4%
4%
3.1%
3%
3.4%
2.3%
2.2%
2%
1%
0%
B2B Product
B2B Services
B2C Product
B2C Services
45

46. Outsourcing of marketing 3.1%
Marketplace
Growth
Spending
Performance
Social Media
Jobs
Organization
Leadership
Analytics
Figure 6.3. Percentage of company marketing expected to be outsourced in next 12 months
14%
12%
9.3%
10%
8%
6%
4.3%
4.5%
3.2%
4%
3.1%
3.5%
August
2012
February
2013
2.6%
3.1%
August
2013
February
2014
2%
0%
August
2010
February
2011
August
2011
February
2012
46

47. Topic 7:
Marketing Organization

48. Presence of marketing employees
surges
Marketplace
Growth
Spending
Performance
Figure 7.1. Number of Employees
Social Media
Jobs
Organization
Leadership
Analytics
Figure 7.2. Marketing Employees as a Percentage
of Total Employees
10%
9000
8800
8600
8400
8200
8000
7800
7600
7400
7200
7000
Marketing
Marketing Employees (90)
employees
(526)
8%
6.3%
6%
4.2%
Non-marketing
employees
Non-Marketing
(8318)
Employees
4%
2%
(7690)
3.1%
1.1%
2.5%
1.2%
0%
August Febrary August Febrary August Febrary
2011
2012
2012
2013
2013
2014
48

49. Product/service organizational
structure dominates
Marketplace
Growth
Spending
Performance
Social Media
Jobs
Organization
Leadership
Analytics
Figure 7.3. Organizational structure in companies
80%
73.3%
70%
60%
% of firms
50%
40%
30%
26.7%
20%
10%
0%
Customer Groups
Product/Service Groups
49

50. Topic 8:
Marketing Leadership

51. Consistent erosion of marketing
leadership
Marketplace
Growth
Spending
Performance
Social Media
Jobs
Organization
Leadership
Analytics
Table 8.1. Percentage of companies in which marketing leads activity*
Activity
Feb-11
Feb-12
Feb-13
Feb-14
Advertising
Positioning
Promotion
Brand
Marketing analytics**
Marketing research
Social media
Competitive intelligence
Public relations
Lead generation
Market entry strategies
New products
CRM
Targeting/Market selection
Sales
Pricing
Innovation
Customer service
Stock market performance
85%
79%
81%
81%
73%
71%
58%
65%
53%
50%
44%
38%
31%
32%
30%
33%
22%
0.4%
85%
78%
79%
84%
71%
73%
62%
53%
53%
46%
52%
41%
35%
30%
34%
39%
21%
1.2%
84%
82%
82%
84%
76%
76%
76%
68%
61%
56%
56%
47%
41%
36%
24%
31%
35%
24%
2.3%
79.9%
69.2%
74.8%
79.1%
68.4%
63.2%
74.4%
52.6%
59.8%
55.6%
47.9%
46.4%
33.3%
33.3%
29.5%
32.9%
29.5%
18.8%
1.3%
* Red indicates marketing’s influence has decreased, green indicates that marketing’s influence has increased, and
changes of 1% or less are viewed as no change.
**Marketing analytics added in Feb-13.
Weaker marketing leadership:
• Advertising
• Positioning
• Promotion
• Brand
• Marketing analytics
• Marketing research
• Social media
• Competitive intelligence
• Public relations
• Market entry
• CRM
• Target/Market selection
• Innovation
• Customer service
Stronger marketing leadership:
• Sales
• Pricing
Maintaining marketing leadership:
• Lead generation
• New products
• Stock market performance
51

52. Marketing leaders retained for an
average of 4.6 years
Marketplace
Growth
Spending
Social Media
Performance
Jobs
Leadership
Organization
Analytics
Figure 8.1. Marketing leader retention
Years top marketer in current role
in the firm
12
10.5
10
8
Years top marketer in any role in
the firm
9.0
8.0
6
9.2
8.8
5.4
4.3
4.6
4.3
Aug-2009
Aug-2010
Aug-2011
4.1
9.5
10.0
4.8
5.1
Feb-2013
Aug-2013
9.4
4.6
4
2
0
Feb-2012
Aug-2012
Feb-2014
52

53. Shifting direct and indirect influence
for top marketers
Marketplace
Growth
Spending
Social Media
Performance
Jobs
Organization
Leadership
Analytics
Figure 8.2. Number of people reporting to top marketer
Number of direct reports
Number of indirect reports
30
25.4
25
20
17.0
24.6
17.5
15.4
16.1
15
10
5
7.2
7.3
Aug-2010
Aug-2011
8.6
6.0
5.6
6.9
0
Feb-2012
Aug-2012
Feb-2013
Aug-2013
53

54. 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.
54

55. Topic 9:
Marketing Analytics

56. Spending on marketing analytics
expected to increase 72% in three years
Marketplace
Growth
Spending
Performance
Social Media
Jobs
Organization
Leadership
Analytics
Figure 9.1. Percent of marketing budget spent on marketing analytics
14%
12.2%
12%
10%
8%
7.1%
6%
4%
2%
0%
Current Levels
In Next 3 Years
56

57. Spending on marketing analytics by
firm and industry characteristics
Marketplace
Growth
Spending
Performance
Table 9.1a. Firm sector differences
Jobs
Organization
Leadership
Analytics
Table 9.1c. Firm size differences
B2B Product
7.9%
In Next
3 years
12.7%
B2B Services
5.6%
11.4%
B2C Product
9.9%
12.7%
B2C Services
7.2%
12.9%
Current
Social Media
Table 9.1b. Firm internet sales differences
0%
6.4%
In Next
3 years
11.6%
1-10%
7.5%
8.0%
In Next
3 years
<$25M
5.5%
10.5%
$26-99M
6.2%
10.7%
$100-499M
6.6%
11.4%
$500-999M
9.9%
16.1%
$1-9.9B
8.5%
13.8%
$10+B
7.6%
13.1%
12.4%
>10%
Current
13.6%
Current
57

58. Most projects fail to use marketing
analytics; slight shift upwards
Marketplace
Growth
Spending
Performance
Social Media
Jobs
Organization
Leadership
Analytics
Figure 9.2. Percentage of projects using available or requested marketing analytics
100%
80%
60%
40%
37%
35%
30.4%
29%
Feb-2013
Aug-2013
32.5%
20%
0%
Feb-2012
Aug-2012
Feb-2014
58

59. Contribution of marketing analytics
remains low
Marketplace
Growth
Spending
Performance
Social Media
Jobs
Organization
Leadership
Analytics
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
7
6
5
4
3.9
3.7
3.5
3.7
3
2
1
Aug-2012
Feb-2013
Aug- 2013
Feb-2014
59

60. Breakdown of marketing analytics’
contribution to company performance
Marketplace
Growth
Spending
Performance
Social Media
Jobs
Leadership
Organization
Analytics
Figure 9.4. To what degree does the use of marketing analytics contribute to your company's
performance?
Mean = 3.7 (SD = 1.9)
25%
20%
16.2%
16.2%
17.4%
15%
16.2%
13.7%
12.9%
10%
7.5%
5%
0%
1
Not at all
2
3
4
5
6
7
Very highly
60

61. Most companies do not have the right
talent to fully leverage marketing analytics
Marketplace
Growth
Spending
Performance
Social Media
Jobs
Leadership
Organization
Analytics
Figure 9.5. Does your company have the right talent to fully leverage marketing analytics?
Mean = 3.6 (SD = 1.7)
30%
24.5%
25%
18.4%
20%
18.0%
15.9%
15%
10%
9.0%
8.2%
6.1%
5%
0%
1
Does not have
the right talent
2
3
4
5
6
7
Has the right
talent
61

62. Marketing analytics talent
difficult to find
Marketplace
Growth
Spending
Performance
Social Media
Jobs
Leadership
Organization
Analytics
Figure 9.6. How challenging was it to find the right marketing analytics’ talent*
Mean = 4.8 (SD = 1.5)
30%
24.2%
25%
25.3%
17.9%
20%
15.8%
15%
10%
5%
7.4%
7.4%
2
3
2.1%
0%
1
Not at all
challenging
4
5
6
7
Extremely
challenging
*Answered by respondents stating they had hired marketing analytics talent in the last year
62

63. How companies measure marketing ROI
Marketplace
Growth
Spending
Performance
Social Media
Jobs
Organization
Leadership
Analytics
Figure 9.7. How companies measure marketing ROI
Lead generation to
sales metrics
2%
We don’t
measure
marketing
ROI 15%
Manager
judgments
27%
Experiments
16%
What percent of your marketing budget do you
spend measuring your marketing ROI?
Mean = 3.5% (SD = 5.1)
Econometric
modeling
18%
Customer
surveys
22%
95% Confidence interval around the mean = 2.8%-4.2%
63

64. Topic 10:
The CMO Survey Award
for Marketing Excellence

65. The 2014 CMO Survey Award for
Marketing Excellence – Overall Winner
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.
65

66. The 2014 CMO Survey Award for Marketing
Excellence – Industry Winners
Participants were asked to nominate a company in response to the question:
Which company in your industry sets the standard for excellence in marketing?
Amazon
GEICO
Google
(Online Retailer)
(Consumer Services)
(Online Advertising)
IBM
Procter & Gamble
The Coca-Cola Company
(Technology Solutions/Consulting)
(Consumer Packaged Goods: Non-food)
(Consumer Packaged Goods: Food)
66

67. Preview
Next survey: July 2014
Participate:
Sign up here
Media:
Press releases and coverage
Feedback:
Send comments to moorman@duke.edu
67