About The CMO Survey. Mission. Survey Operation. Sponsoring Organizations

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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 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 2016 survey was the 16th administration of The CMO Survey. Sponsoring Organizations - All individual survey data and participant lists are held in confidence and not provided to survey sponsors. 2

3 Survey methodology Survey Sample top U.S. marketers responded for a 9.3% response rate Survey Administration - contact with four follow-up reminders - Survey in field from January 12, February 4, % 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 Topic 2: Firm Growth Strategies Topic 3: Marketing Spending Topic 4: Financial and Marketing Performance Topic 5: Social Media Marketing Topic 6: Mobile Marketing Topic 7: Marketing Jobs Topic 8: Marketing Organization Topic 9: Marketing Leadership Topic 10: Marketing Analytics Topic 11: The CMO Survey Award for Marketing Excellence

5 Topic 1: Marketplace Dynamics

6 Marketers outlook on U.S. economy weakens Figure 1.1. How optimistic are you about the overall U.S. economy on a scale with 0 being least optimistic and 100 most optimistic? 80 Marketer Optimism About Overall Economy Overall 64.4 B2B Product 64.3 B2B Services 63.2 B2C Product 64.7 B2C Services 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 6

7 Marketer optimism swings negative Figure 1.2. Are you more or less optimistic about the overall U.S. economy compared to last quarter? No Change 41.6% More Optimistic 45.5% No Change 34.9% More Optimistic 30.6% Less Optimistic 12.9% Less Optimistic 34.5% August 2015 February

8 Marketing leaders more optimistic about own companies than overall economy Figure 1.3. Marketing leader optimism for overall economy and company (0=least optimistic) 100 Figure 1.4. Percent of marketing leaders that are more optimistic compared to last quarter 100% % 60 60% 54.9% 40 40% 30.6% 20 20% 0 Overall Economy Own Company 0% Overall Economy Own Company 8

9 Customer indicators expected to weaken in next year Figure 1.5. Forecasted customer outcomes in next 12 months (% of respondents) 100% February 2015 February % 60% 40% 78% 72% 72% 66% 59% 59% 56% 52% 51% 48% 20% 34% 26% 0% 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 9

10 Customers expected to emphasize product quality and service excellence Figure 1.6. Customers top priority in next 12 months (% of respondents) 35% August 2015 February % 25% 20% 26% 29% 24% 27% 15% 10% 18% 17% 17% 14% 12% 13% 5% 0% Superior Product Quality Excellent Service Trusting Relationship Low Price Superior Innovation 10

11 Topic 2: Firm Growth Strategies

12 Firms to decrease market penetration and emphasize riskier growth strategies next year Types of growth strategies Table 2.1. Current and future growth spending* Existing Markets New Markets Existing Products/ Services Market Penetration Strategy Market Development Strategy New Products/ Services Product/Service Development Strategy Diversification Strategy Growth Strategy Market Penetration Strategy Market Development Strategy Actual Spending in Past 12 Months Expected Spending in Next 12 Months Percent Change Expected 56.2% 50.1% -10.9% 14.5% 16.3% +12.4% Product/Service Development Strategy 21.0% 22.8% +8.6% Diversification Strategy 8.3% 10.8% +30.1% * % of spending for each growth strategy 12

13 Company sales through Internet remain modest Figure 2.1. Percent of company sales from Internet 25% Percent of sales through the Internet Overall 11.3% B2B Product 8.0% B2B Services 11.6% B2C Product 8.3% B2C Services 20.4% 20% 15% 10% 9.2% 8.9% 9.9% 11.3% 12.4% 10.3% 11.3% 5% 0% Feb-12 Aug-13 Feb-14 Aug-14 Feb-15 Aug-15 Feb-16 13

14 Company sales from domestic markets continue to dominate Figure 2.2. Percent of company sales from domestic markets 100% Percent of sales - domestic Overall 83.0% B2B Product 76.0% B2B Services 85.9% B2C Product 82.4% B2C Services 91.9% 90% 80% 77.6% 79.4% 77.5% 79.4% 85.4% 81.0% 83.0% 70% 60% 50% Feb-12 Aug-13 Feb-14 Aug-14 Feb-15 Aug-15 Feb-16 14

15 International markets: Current sales and future growth opportunities Table 2.2. Largest current international market (sales) Table 2.3. Largest future international market opportunities Countries/ Regions (%) Largest current market* Countries/ Regions (%) Largest future opportunity* Western Europe 33.3% Topic 3: Canada 15.6% China 12.5% Japan 9.4% Mexico 6.3% Middle East 3.1% Indonesia and SE Asia / Brazil / Central America 2.1% Eastern Europe / Korea / South Africa / South America, not Brazil 1.0% Western Europe 18.7% China 10.3% Canada 8.4% South America, not Brazil 7.5% Eastern Europe / Mexico / Middle East 6.5% Brazil / India 5.6% Australia/New Zealand / South Africa 3.7% Central America / Indonesia and SE Asia / Northern Europe / Russia 2.8% Japan / Korea / Taiwan 1.9% *Regions reported in the same row each received the same percentage. 15

16 Topic 3: Marketing Spending

17 Marketing budgets forecasted to increase 6.9% Overall 6.9% Figure 3.1. Percent change in marketing budgets in next 12 months 12% Change in Marketing Spending B2B Product 8.1% B2B Services 7.5% B2C Product 1.3% B2C Services 8.0% 10% 8% 6% 4% 5.9% 9.2% 9.1% 6.7% 8.1% 6.4% 6.1% 4.3% 6.7% 5.1% 8.7% 5.5% 6.9% 2% 0.5% 1.1% 0% 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 17

18 What s in your marketing budget? Table 3.1. Expenses included in marketing budgets (check all that apply)* Direct expenses of marketing activities Overall B2B Product B2B Services B2C Product B2C Services 61.6% 68.5% 53.4% 64.9% 66.7% Social media 51.6% 52.2% 44.9% 62.2% 59.5% Marketing analytics 49.5% 57.6% 39.0% 59.5% 52.4% Other overhead costs associated with marketing 45.7% 37.3% 45.9% 54.8% 37.5% Marketing research 43.6% 31.4% 56.8% 50.0% 28.1% Marketing employees 43.3% 36.4% 35.1% 50.0% 28.1% Marketing training 33.6% 23.7% 37.8% 38.1% 20.8% Sales employees 12.5% 11.0% 5.4% 23.8% 13.5% *Percentage reflect the number of marketers agreeing that the expense is included in their company s marketing budget. 18

19 Digital marketing spend up 13.2% and traditional advertising spend down 3.2% in next year Figure 3.2. Percent change in traditional advertising* vs. digital marketing spend in next 12 months 20% Traditional Advertising Spend Digital Marketing Spend 15% 10% 12.8% 11.5% 10.2% 10.1% 10.8% 14.7% 12.2% 13.2% 5% 8.2% 0% -5% -0.8% -2.1% -0.1% -2.1% -1.1% -2.7% -3.6% -3.2% -1.9% Feb-12 Aug-12 Feb-13 Aug-13 Feb-14 Aug-14 Feb-15 Aug-15 Feb-16 *Refers to media advertising not using the Internet. 19

20 Forecasted changes in customer and brand spending Figure 3.3. Percent change in CRM and brand spending in next 12 months 12% Customer Relationship Management Brand Building 10% 8% 7.9% 7.5% 8.0% 7.1% 6% 4% 5.1% 4.9% 4.3% 5.6% 5.4% 5.0% 2% 0% Feb-14 Aug-14 Feb-15 Aug-15 Feb-16 20

21 Marketing budgets represent an increasing percent of firm budgets Figure 3.5. Marketing budget as percent of firm budget* 14% % Marketing Budget Overall 12.1% B2B Product 10.3% B2B Services 11.6% B2C Product 19.6% B2C Services 11.3% 12% 10% 10.0% 10.4% 11.4% 10.6% 10.9% 10.9% 10.1% 11.4% 12.1% 8% 8.1% 9.4% 6% Feb-11 Aug-11 Feb-12 Aug-12 Feb-13 Aug-13 Feb-14 Aug-14 Feb-15 Aug-15 Feb-16 *Question asked in Feb-11 for the first time. 21

22 Marketing budgets correspond with Internet sales and differences widening Figure 3.4. Marketing budget (as a percent of overall firm budget) by firm Internet sales 25% February 2015 February % 15% 10% 5% 6.1% 9.1% 7.0% 13.9% 13.3% 16.8% 0% 0% of sales through Internet 1-10% of sales through Internet >10% of sales through Internet 22

23 Marketing spend 8.4% of company revenues Figure 3.6. Marketing spending as percent of company revenues* 15% % Marketing Spend Overall 8.4% B2B Product 6.9% B2B Services 8.6% B2C Product 9.5% B2C Services 10.4% 12% 9% 6% 8.5% 11.0% 7.9% 7.8% 9.3% 8.3% 8.3% 6.6% 8.4% 3% 0% Feb-12 Aug-12 Feb-13 Aug-13 Feb-14 Aug-14 Feb-15 Aug-15 Feb-16 *Question asked in Feb-12 for the first time. 23

24 Topic 4: Financial and Marketing Performance

25 Firm performance metrics in last 12 months Table 4.1. Percent change in financial and marketing performance in prior 12 months Overall B2B Product B2B Services B2C Product B2C Services Sales 3.8% 3.0% 4.5% 2.9% 4.3% Profits 2.9% 2.0% 2.9% 2.5% 5.6% Marketing ROI 2.8% 2.4% 3.0% 1.8% 4.2% Customer acquisition 3.5% 2.8% 4.5% 0.1% 5.0% Customer retention 1.5% 1.1% 1.4% 0.1% 3.8% Brand value 3.3% 3.0% 3.6% 1.4% 4.4% 25

26 Performance on customer retention lags further Figure 4.1. Percent change in performance on customer and brand metrics in prior 12 months 5% Customer acquisition Customer retention Brand value 4% 3% 3.5% 3.7% 3.6% 3.3% 2.9% 2.8% 3.3% 3.5% 3.1% 2.9% 2% 1% 1.9% 2.0% 2.1% 1.7% 1.5% 0% Feb-14 Aug-14 Feb-15 Aug-15 Feb-16 26

27 No improvements in marketing knowledge metrics Figure 4.2. Rate your company on each marketing knowledge metric during the last 12 months (1=poor, 5=excellent) 5 Sharing valuable marketing knowledge Developing and using customer insights Feb-11 Aug-13 Aug-14 Feb-16 *Question asked irregularly; reporting complete time series

28 Performance on societal metrics remain unchanged after 5 years Figure 4.3. Rate your company on each societal metric during the last 12 months (1=poor, 5=excellent) 5 Marketing that is beneficial for society Minimize the impact of marketing on the ecological environment Feb-11 Aug-13 Aug-14 Feb-16 *Question asked irregularly; reporting complete time series

29 Marketing excellence ratings show no improvement Figure 4.4. How would you rate your company s marketing excellence?* (7-point scale where 1=Very Weak, 7=Leader) 7 Excellence rating Aug-13 Feb-13 Feb-14 Aug-14 Feb-15 Aug-15 Feb-16 * Question asked in Aug-13 for the first time 29

30 Services companies more likely to be marketing leaders Figure 4.5. How would you rate your company s marketing excellence? (7-point scale where 1=Very Weak and 7=Leader) 100% 90% 80% 21.3% 14.5% 23.5% 20.0% 32.1% A Leader/ Excellent=6-7 70% 60% 50% 30.3% 27.4% 29.4% 50.0% 25.0% Strong=5 40% 30% 20% 10% 0% 48.4% 41.5% 41.1% 39.3% 25.0% 6.8% 9.7% 5.8% 5.0% 3.6% Overall B2B Product B2B Services B2C Product B2C Services Fair/Good=3-4 Very Weak/Weak=1-2 30

31 Topic 5: Social Media Marketing

32 Marketers plan to drastically increase social media spend in the next 5 years Figure 5.1. Social media spending as percent of marketing budgets 25% % of Marketing Budget 20% 20.9% 15% 10% 10.6% 13.2% 5% 0% Current Levels Over Next 12 Months In Next 5 Years 32

33 Social media spend across sectors Table 5.1. Changes in social media spending across sectors Overall B2B Product B2B Services B2C Product B2C Services Current social media spending 10.6% 7.5% 12.9% 9.0% 12.9% Social media spending in the next 12 months 13.2% 9.3% 15.7% 12.2% 16.3% Social media spending in the next 5 years 20.9% 17.2% 21.7% 22.1% 26.1% 33

34 Integration of social media and marketing strategy moderate and holding Figure 5.2. How effectively is social media linked to your firm s marketing strategy? (1=Not integrated, 7=Very integrated) 7 Mean Integration Level Feb-12 Aug-12 Feb-13 Aug-13 Feb-14 Aug-14 Feb-15 Aug-15 Feb-16 34

35 Integration of customer information across channels continues to worsen Figure 5.3. How effectively does your company integrate customer information across purchasing, communication, and social media channels? (1=Not At All Effectively, 7=Very Effectively) 7 Mean Integration Level Feb-11 Feb-12 Aug-12 Feb-13 Aug-13 Feb-14 Aug-14 Feb-15 Aug-15 Feb-16 *Question asked in Feb-11 for the first time. 35

36 Twenty percent of social media activities performed by outside agencies Figure 5.4. Percent of company s social media activities performed by outside agencies 50% Percent Outside Agencies 40% 30% 20% 10% 17.4% 18.9% 21.7% 20.0% 0% Feb-14 Feb-15 Aug-15 Feb-16 36

37 Few firms able to prove the impact of social media quantitatively Figure Which best describes how you show the impact of social media on your business? Have proven the impact quantitatively 11.5% Have a good Have a good qualitative qualitative Have a good sense of sense qualitative the impact, of the impact, sense but not a but of the quantitative impact not impact, a quantitative but not a quantitative 41.8% impact impact 40.6% 40% Haven't been able to show Haven't the been impact Haven't able yet to been show able the impact yet 45% to show the impact 45.0% yet 47.9% We have proven the impact quantitatively We have a good qualitative sense of the impact, but not a quantitative impact We haven't been able to show the impact yet B2B Product B2B Services B2C Product B2C Services 9.1% 10.5% 14.3% 17.6% 29.9% 47.4% 42.9% 44.1% 61.0% 42.1% 42.9% 38.2% 37

38 Forecasted social media investments Table 5.2. Forecasted areas for social media investments in the next year Area of investment % of companies* Content creation 62.6% Analytics 43.6% Campaign optimization 41.5% Social listening 41.5% Community engagement 40.5% Customer care 30.8% New technology 26.6% Employee engagement 26.0% Crisis monitoring and communication 23.5% Talent acquisition 21.5% Training employees 18.7% Developing new products 15.6% *Percent of companies planning investment in the next year. 38

39 Social media contributes little to company performance Figure 5.6. To what degree does the use of social media contribute to your company's performance? (1=Not at all, 7=Very highly) 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 18.3% 21.7% 23.4% 11.5% 14.9% Not at all Very highly 6.8% Overall B2B Product B2B Services B2C Product B2C Services 3.4% Mean level 3.2 (SD=1.7) 2.5 (SD=1.4) 3.4 (SD=1.8) 3.2 (SD=1.4) 4.0 (SD=1.7) 39

40 Topic 6: Mobile Marketing

41 Marketing spend on mobile expected to increase 147% in three years Figure 6.1. Marketing budget spend on mobile 20% 15% 14.6% Now 3 years Overall 5.9% 14.6% B2B Product 3.8% 10.5% B2B Services 5.7% 13.7% B2C Product 9.2% 22.2% B2C Services 8.8% 20.3% 10% 5% 5.9% 0% Current Levels In Next 3 Years 41

42 Mobile marketing underperforms on key marketing outcomes Figure 6.2. Rate the performance of your company s mobile marketing activities (7-point scale where 1=Poor, 7=Excellent) 7 August 2015 February Customer acquisition Customer engagement Customer retention Delivering your brand message Sales Profits 42

43 Mobile marketing contributes little to company performance 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) 100% 90% 80% 70% 60% 50% Overall B2B Product B2B Services B2C Product B2C Services Mean level 2.4 (SD=1.5) 2.0 (SD=1.2) 2.4 (SD=1.7) 3.0 (SD=1.6) 2.8 (SD=1.5) 40% 30% 20% 10% 0% 40.2% 21.9% 11.9% 13.7% 9.6% 2.3% 0.5% Not at all Very highly 43

44 Topic 7: Marketing Jobs

45 Marketing hiring growth slows: Focus on B2B marketers Figure 7.1. Percentage change in marketing hires planned in next 12 months 15% Percentage Change in Marketing Hires in Next 12 Months Overall 5.1% B2B Product 5.7% B2B Services 5.5% B2C Product 4.4% B2C Services 3.1% 12% 9% 6% 3% 5.2% 6.5% 5.4% 5.5% 4.7% 3.8% 3.5% 6.6% 5.1% 0% Feb-12 Aug-12 Feb-13 Aug-13 Feb-14 Aug-14 Feb-15 Aug-15 Feb-16 45

46 Topic 8: Marketing Organization

47 Marketing and sales are equal partners in most companies Figure 8.1. The marketing-sales relationship (% of respondents) 80% 70% 67.9% 60% 50% 40% 30% 20% 10% 11.9% 8.3% 8.3% 3.6% 0% 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 47

48 Product/service structure dominates, but customer groups continue to inch up Figure 8.2. Organizational structure in companies Customer Groups Product/Service Groups 100% 80% % customer groups Overall 31.9% B2B Product 26.2% B2B Services 41.0% B2C Product 26.3% B2C Services 28.0% 60% 73.5% 73.3% 69.8% 70.6% 68.1% 40% 20% 26.5% 26.7% 30.2% 29.4% 31.9% 0% Feb-13 Feb-14 Feb-15 Aug-15 Feb-16 48

49 Topic 9: Marketing Leadership

50 Marketing leadership gains and losses Table 9.1. Percentage of companies in which marketing leads activity Activity Feb-11 Aug-15 Feb-16** Brand 81% 82.10% 87.50% Social media 71% 79.50% 83.90% Advertising 85% 82.70% 82.10% Marketing analytics* % 79.20% Promotion 81% 76.30% 76.20% Positioning 79% 80.10% 75.60% Marketing research 73% 70.50% 70.20% Public relations 65% 64.10% 64.90% Lead generation 53% 55.80% 62.50% Competitive intelligence 58% 55.10% 56.50% Market entry strategies 50% 55.80% 46.40% CRM 38% 39.10% 37.50% New products 44% 37.80% 36.30% Pricing 30% 30.80% 32.10% Targeting/Market selection 31% 30.10% 29.80% Innovation 33% 23.10% 28.60% Sales 32% 32.10% 25.00% Customer service 22% 19.90% 17.30% Stock market performance 0.40% 3.80% 1.80% *Marketing analytics added in Feb-13. **Red reflects a decrease and Green reflects an increase of more than 2 percent between Aug-15 and Feb-16. Stronger marketing leadership: Brand Social media Marketing analytics Lead generation Innovation Weaker marketing leadership: Positioning Market entry strategies Sales Customer service Stock market performance Maintaining marketing leadership: Advertising Promotion Marketing research Public relations Competitive intelligence CRM New products Pricing Targeting/Market selection 50

51 Marketing leader retention at all-time high (5.7 years) Figure 9.1. Marketing leader retention Years top marketer in current role in the firm Years top marketer in any role in the firm Aug-09 Aug-10 Aug-11 Feb-12 Aug-12 Feb-13 Aug-13 Feb-14 Aug-14 Feb-15 Aug-15 Feb-16 51

52 However, marketers continue to lose reports Figure 9.2. Number of people reporting to top marketer Number of direct reports Number of indirect reports Feb-12 Aug-12 Feb-13 Aug-13 Feb-14 Feb-15 Aug-15 Feb-16 52

53 Leading practices from marketing leaders See full interviews at 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. 53

54 Topic 10: Marketing Analytics

55 Spending on marketing analytics to increase 66% in three years Figure Percent of marketing budget spent on marketing analytics 15% 12% 11.1% 9% 6% 6.7% 3% 0% Current Levels In Next 3 Years 55

56 Spending on marketing analytics by firm and industry characteristics Table 10.1a. Firm sector differences Current Table 10.1b. Firm Internet sales differences Current In Next 3 years B2B Product 6.1% 11.0% B2B Services 7.8% 12.0% B2C Product 7.0% 10.7% B2C Services 5.1% 9.5% In Next 3 years 0% 5.9% 10.0% 1-10% 6.6% 10.6% >10% 8.1% 13.9% Table 10.1c. Firm size differences Current In Next 3 years <$25M 6.5% 10.7% $26-99M 6.1% 9.6% $ M 6.4% 12.1% $ M 5.0% 12.3% $1-9.9B 7.8% 10.7% $10+B 8.9% 13.8% 56

57 More decisions use marketing analytics Figure Percentage of decisions using marketing analytics* 50% Percentage using marketing analytics Overall 35.3% B2B Product 22.8% B2B Services 29.6% B2C Product 45.6% B2C Services 34.5% 40% 30% 37.0% 35.0% 30.4% 29.0% 32.5% 32.3% 29.0% 31.0% 35.3% 20% 10% Feb-12 Aug-12 Feb-13 Aug-13 Feb-14 Aug-14 Feb-15 Aug-15 Feb-16 *This question was asked in Feb-12 for the first time. 57

58 However, contribution of marketing analytics remains low Figure To what degree does the use of marketing analytics contribute to your company's performance? (1 = Not at all, 7 = Very highly) Overall B2B Product B2B Services B2C Product 3.8 (SD=1.8) 3.3 (SD=1.7) 3.8 (SD=1.8) 4.1 (SD=1.6) Mean Contribution Level B2C Services 4.6 (SD=1.6) Aug-12 Feb-13 Aug-13 Feb-14 Aug-14 Feb-15 Aug-15 Feb-16 *This question was asked in Aug-12 for the first time. 58

59 Marketing analytics contributions by sector and firm differences 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 4.3 Consumer Services 4.8 Education 4.8 Energy 3.2 Healthcare/Pharma. 3.4 Manufacturing 3.1 Mining/Construction 3.5 Retail/Wholesale 3.7 Service/Consulting 3.9 Tech Software Biotech 4.3 Transportation 4.7 Table 10.2b. Economic sector differences Sector Mean B2B Product 3.3 B2B Services 3.8 B2C Product 4.1 B2C Services 4.6 Table 10.2c. Firm Internet sales differences Firm sales Mean 0% of sales % of sales 3.7 >10% of sales

60 Companies lack quantitative metrics to demonstrate marketing spending impact Figure How companies demonstrate the impact of marketing spending 60% Short-Term Impact Long-Term Impact 40% 46% 51% 37% 31% 20% 17% 19% 0% Proved the impact quantitatively Good qualitative sense of the impact, not quantitative Haven't been able to show the impact yet 60

61 How marketing analytics is driving marketing decision making Table Percent of companies using marketing analytics in each marketing decision area Marketing decision area Aug-13 Aug-15 Feb-16 Customer insight* 46.4% Customer acquisition 31.7% 36.6% 43.6% Customer retention 27.6% 30.7% 38.1% Digital marketing* 36.7% Segmentation** 29.2% 31.8% Marketing mix 21.7% 31.5% 31.5% Social media 21.0% 30.7% 29.4% Branding 22.0% 26.5% 30.8% Promotion strategy 23.7% 29.2% 28.7% New product or service development** 20.2% 25.3% Product or service strategy*** 18.8% 20.2% 21.8% Pricing strategy 23.7% 21.8% 21.5% Multichannel marketing 13.4% 16.3% 20.8% *Question was asked for the first time in February **Question was asked for the first time in August ***This question was changed from product line optimization to product or service strategy in August **Green reflects an increase of more than 2 percent between Aug-15 and Feb

62 Topic 11: The CMO Survey Award for Marketing Excellence

63 The 2016 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. 63

64 The 2016 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? 64

65 Preview Next survey: July 2016 Participate: Sign up here Media: Press releases and coverage Feedback: Send comments to 65