About The CMO Survey. Mission. Survey Operation. Sponsoring Organizations
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- Ethelbert Baldwin
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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 operation dedicated to the field of marketing, not the sale of products and services. Survey Operation - Founded in August 2008, The CMO Survey is administered twice a year via an Internet survey. Many questions repeat to observe trends over time. - The August 2014 survey was the twelfth administration of The CMO Survey. Sponsoring s 2
3 Survey methodology Survey Sample top U.S. marketers at Fortune 1000, Forbes Top 200, and top marketers who are AMA Members or Duke University Alumni and Friends responded for a 8.3% response rate Survey Administration - contact with four follow-up reminders - Survey in field from July 22- August 12, % 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: Dynamics 5-10 Topic 2: Firm Strategies Topic 3: Marketing Topic 4: Financial and Marketing Topic 5: Topic 6: Marketing Topic 7: Marketing Topic 8: Marketing Topic 9: Marketing
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6 Marketer optimism for U.S. economy reaches highest point in 5 years Figure 1.1. How optimistic are you about the overall U.S. economy on a scale with 0 being the least optimistic and 100 the most optimistic? 80 Marketer Optimism About Overall Economy Feb-09 Aug-09 Feb-10 Aug-10 Feb-11 Aug-11 Feb-12 Aug-12 Feb-13 Aug-13 Feb-14 Aug-14 6
7 Optimism for US economy remains high across all sectors; B2B service leads Figure 1.2. How optimistic are you about the overall U.S. economy on a scale with 0 being the least optimistic and 100 the most optimistic? 100 February 2009 February 2014 August Overall B2B Services B2B Product B2C Product B2C Services 7
8 Positive customer acquisition, retention, and growth metrics forecasted; price lags Figure 1.3. Forecasted customer outcomes in next 12 months (% of respondents) 100% February 2014 August % 75% 76% 69% 71% 67% 60% 59% 52% 49% 50% 51% 40% 34% 31% 20% 0% Increased ability to acquire new customers Increased Customers will buy customer purchase more related volume products & services from my firm Increased ability to retain customers Increased entry of new customers into the market Increased customer price per unit 8
9 Service trumps product as customer s top priority; price inches up Figure 1.4. Customers top priority in next 12 months (% of respondents) 40% February 2014 August % 30% 25% 31% 26% 23% 20% 18% 17% 19% 19% 18% 15% 10% 5% 9% 9% 7% 5% 0% Superior Product Quality Excellent Service Low Price Trusting Relationship Superior Innovation Brand 9
10 Increased competition is expected rivalry, price-cutting, and innovation Figure 1.5. Increased competitor interactions in next 12 months (% of respondents) August % 80% 69% 60% 59% 56% 40% 41% 35% 20% 23% 0% More intense rivalry for customers More competitor price-cutting More competitor innovation Emergence of new domestic competitors Emergence of new global competitors More cooperation on non-price strategies *Question format used for the first time August
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12 Firms decrease market penetration and move toward riskier growth strategies in next year Types of growth strategies Table 2.1. How growth spending is expected to change* Existing Markets New Markets Existing Products/ Services Market Penetration Strategy Market Development Strategy New Products/ Services Product/Service Development Strategy Diversification Strategy Strategy Market Penetration Strategy Market Development Strategy Actual in Past 12 Months Expected in Next 12 Months Percent Change Expected 53% 46% -13% 15% 17% +13% Product/Service Development Strategy 22% 24% +9% Diversification Strategy 10% 13% +30% * % of spending across growth strategies 12
13 Organic growth investments 74% of growth budgets Figure 2.2. How firms will grow in the next 12 months* from acquisitions 10% from licensing arrangements 4% from within your firm (organic growth) B2B Product B2B Services B2C Product B2C Services 73% 75% 71% 77% from partnerships 12% from partnerships from acquisitions 12% 11% 12% 12% 10% 11% 11% 6% Organic growth 73% from licensing arrangements 4% 3% 6% 5% * Percentage of spending across growth strategies 13
14 B2C companies are most likely to sell through the Internet Figure 2.3. Percent of company sales expected to be through the internet in next 12 months Internet 11% B2B Product B2B Services B2C Product B2C Services Sales through Internet Sales through other channels 10% 9% 15% 14% 90% 91% 85% 86% Other 89% 14
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16 Marketing budgets remain positive but trend downward since 2010 Figure 3.1. Percent change in marketing budgets in next 12 months 12% Change in Marketing 10% 8% 6% 4% 5.9% 9.2% 6.7% 9.1% 8.1% 6.4% 6.1% 4.3% 6.7% 5.1% 2% 0% 0.5% 1.1% Feb-09 Aug-09 Feb-10 Aug-10 Feb-11 Aug-11 Feb-12 Aug-12 Feb-13 Aug-13 Feb-14 Aug-14 16
17 Expenses including in marketing spending Table 3.1. Marketing spending in your company include the following items (% of respondents) Overall B2B Product B2B Services B2C Product B2C Services Overhead costs associated with marketing Salaries and wages of marketing employees 45.9% 48.2% 50.8% 35.8% 44.2% 43.9% 50.0% 49.2% 29.9% 38.5% Marketing analytics 41.0% 42.9% 40.7% 43.3% 36.5% Marketing research 40.7% 42.9% 38.1% 47.8% 34.6% 17
18 Sector differences in marketing spend Figure 3.2. Percent change in marketing budgets in next 12 months 10% February 2014 August % 6% 4% 6.7% 5.1% 5.4% 4.4% 6.4% 4.7% 7.1% 7.0% 5.8% 5.3% 2% 0% Overall B2B Product B2B Services B2C Product B2C Services 18
19 Companies increase digital spend at the expense of traditional advertising Figure 3.3. Percent change in traditional advertising* vs. digital marketing spend in next 12 months Traditional Advertising Spend Digital Marketing Spend 15% 10% 11.2% 12.8% 11.5% 10.2% 10.1% 8.2% 10.8% 5% 1.3% 0% -0.8% -1.9% -2.7% -2.1% -0.1% -3.6% -5% Aug-11 Feb-12 Aug-12 Feb-13 Aug-13 Feb-14 Aug-14 *Refers to media advertising not using the web. 19
20 Digital marketing spend increases across sectors Figure 3.4. Change in digital marketing spending in next 12 months by sector 14% February 2014 August % 10.8% 10.7% 11.5% 11.2% 10% 8% 8.2% 9.0% 7.4% 7.7% 9.0% 8.2% 6% 4% 2% 0% Overall B2B Product B2B Services B2C Product B2C Services 20
21 Spend in other marketing categories is also increasing Figure 3.5. Percent change in marketing spending in next 12 months 10% February 2014 August % 7.9% 7.8% 7.8% 6% 4% 5.1% 4.0% 4.9% 4.5% 4.3% 2% 0% Customer Relationship Management New Product Introductions New Service Introductions Brand Building 21
22 Integrating knowledge and consulting services top knowledge investments Figure 3.6. Changes in firm spending on marketing knowledge in next 12 months 10% February 2014 August % 6% 6.0% 4.9% 4% 2% 2.7% 1.8% 4.0% 3.8% 3.8% 3.1% 2.4% 2.5% 0% Integrating what we know about marketing Marketing consulting services Marketing research and intelligence Developing knowledge about how to do marketing Marketing training *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 10.9% of overall firm budgets Figure 3.7. Marketing budget as a percent of firm budget* 16% % Marketing Budget 14% 12% 10% 8% 8.1% 10.0% 10.4% 11.4% 10.6% 9.4% 10.9% 10.9% 6% 4% 2% 0% Feb-11 Aug-11 Feb-12 Aug-12 Feb-13 Aug-13 Feb-14 Aug-14 *Question asked in Feb-11 for the first time. 23
24 Who has the biggest marketing budgets? Table 3.2a. Marketing percentage of firm budget by economic sector B2B B2B B2C B2C Product Services Product Services August % 7.7% 17.0% 11.1% Table 3.2b. Marketing percentage of firm budget by company sales revenue <$25 Million $26-99 Million $ Million $ Million $1-9.9 Billion >$10 Billion August % 8.6% 11.8% 14.2% 8.7% 14.0% Table 3.2c. Marketing percentage of firm budget by company internet sales 0% Internet Sales 1-10% Internet Sales >10% Internet Sales August % 10.7% 13.4% 24
25 Marketing spending as a percentage of firm revenues is 8.3% Figure 3.8. Marketing spending as a percentage of firm revenues* 16% % Marketing Spend 14% 12% 10% 8% 8.5% 11.0% 7.9% 7.8% 9.3% 8.3% 6% 4% 2% 0% Feb-12 Aug-12 Feb-13 Aug-13 Feb-14 Aug-14 *Question asked in Feb-12 for the first time. 25
26 Marketing spending as a percentage of firm revenues by firm and industry Table 3.3a. Marketing spending as a percentage of firm revenues by economic sector B2B B2B B2C B2C Product Services Product Services August % 7.5% 9.0% 10.4% Table 3.3b. Marketing spending as a percentage of firm revenues by company sales revenue <$25 Million $26-99 Million $ Million $ Million $1-9.9 Billion >$10 Billion August % 7.3% 6.1% 3.7% 6.7% 11.9% Table 3.3c. Marketing spending as a percentage of firm revenues by company internet sales 0% 1-10% >10% Internet Sales Internet Sales Internet Sales August % 6.9% 12.5% 26
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28 Company performance on financial metrics positive but flat Figure 4.1. Percent change in firm performance in prior 12 months 5% February 2014 August % 3% 3.9% 4.0% 3.0% 3.4% 3.2% 3.2% 2% 1% 0% Firm sales Firm profits Marketing ROI 28
29 on key customer and brand assets no significant change Figure 4.2. Percent change in performance on customer and brand metrics in prior 12 months 5% February 2014 August % 3.6% 3.3% 3.5% 3.7% 3% 2% 1.9% 2.0% 1% 0% Customer acquisition Customer retention Brand value 29
30 B2B Product sector shows highest performance gains Table 4.1. Percent change in performance in prior 12 months by sector Overall B2B Product B2B Services B2C Product B2C Services Firm sales 4.0% 4.6% 4.1% 3.6% 3.0% Marketing ROI 3.2% 3.8% 3.6% 1.8% 2.5% Firm profits 3.2% 3.5% 3.1% 3.0% 2.8% Customer acquisition 3.3% 4.0% 3.1% 3.2% 2.4% Customer retention 2.0% 2.1% 2.2% 2.0% 1.3% Brand value 3.7% 3.7% 4.1% 3.5% 3.3% 30
31 Firm performance goals remain strong Table 4.2. Percent change in performance Actual firm performance in prior 12 months Goal in the next 12 months Firm sales 4.0% 6.7% Marketing ROI 3.2% 5.2% Firm profits 3.2% 5.8% Customer acquisition 3.3% 5.9% Customer retention 2.0% 4.7% Brand value 3.7% 5.8% 31
32 Increased focus on marketing that benefits society and minimizes environmental impact Figure 4.3. Rate your firm on each the following non-financial metrics during the last 12 months (% Excellent & Good on a 5-point scale where 1=Poor and 5=Excellent) 50% 40% 30% 36.1% August 2013 August % 41.6% 31.1% 20% 10% 0% Marketing that is beneficial for society Minimizing the impact of marketing on the ecological environment 32
33 B2C companies more likely to be marketing leaders Figure 4.4. How would you rate your company s marketing excellence? (7-point scale where 1=Very Weak and 7=Leader) 100% 80% 21.7% 17.8% 20.3% 25.0% 28.2% A Leader/ Excellent=6-7 60% 29.2% 30.1% 28.6% 31.8% 25.6% Strong=5 40% 20% 0% 44.6% 46.6% 47.6% 36.4% 43.6% 4.6% 5.5% 3.6% 6.8% 2.6% Overall B2B Product B2B Services B2C Product B2C Services Fair/Good=3-4 Very Weak/Weak=1-2 33
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35 Social media spending expected to be 21.4% of marketing budgets in five years Figure 5.1. Social media spending as a percent of marketing budgets 25% 20% % of Marketing Budget 21.4% 15% 13.2% 10% 9.4% 5% 0% Current Levels Over Next 12 Months In Next 5 Years 35
36 Social media spending across sectors Table 5.1. Changes in social media spending across sectors Overall B2B Product B2B Services B2C Product B2C Services Current in the next 12 months in the next 5 years 9.4% 9.5% 9.2% 10.4% 8.6% 13.2% 12.6% 13.3% 15.0% 11.9% 21.4% 19.9% 22.2% 22.8% 21.0% 36
37 No growth on human capital for social media: Tech investments appear to dominate? Figure 5.2. Location of social media employees Table 5.2. Social media employees by sector In-house social media employees Outsourced social media employees In-house social media employees Outsourced social media employees B2B Product B2B Services B2C Product B2C Services Feb-13 Aug-13 Feb-14 Aug-14 37
38 Social media remains poorly integrated with marketing strategy Figure 5.3. How effectively is social media linked to your firm s marketing strategy? (1=Not integrated, 7=Very integrated) 7 Mean Integration Level Feb-11 Feb-12 Aug-12 Feb-13 Aug-13 Feb-14 Aug-14 38
39 B2C Product companies have the highest social media integration Figure 5.4. How well is social media integrated with marketing strategy? (1=Not At All Effectively, 7=Very Effectively) 100% 90% 80% 22.1% 18.1% 22.5% 27.1% 24.4% Top 2 Box=6-7 70% 60% 50% 40% 53.1% 51.9% 51.7% 54.2% 56.1% Middle 3 Box=3-5 30% 20% 10% 24.9% 30.2% 25.8% 18.7% 19.5% Bottom 2 Box=1-2 0% Overall B2B Product B2B Services B2C Product B2C Services 39
40 Persistent poor integration of customer information across channels Figure 5.5. How effectively does your company integrate customer information across purchasing, communication, and social media channels (1=Not At All Effectively, 7=Very Effectively)? 7 Mean Integration Level Aug-12 Feb-13 Aug-13 Feb-14 Aug-14 *Question asked in Aug-12 for the first time. 40
41 Only 15% of firms able to show impact of social media on business Figure Which best describes how you show the impact of social media on your business? B2B Product B2B Services B2C Product B2C Services Have proven the impact quantitatively 15% Have a good qualitative sense of the impact, but not a quantitative impact 40% Haven't been able to show the impact yet 45% We haven't been able to show the impact yet We have a good qualitative sense of the impact, but not a quantitative impact We have proven the impact quantitatively 54.2% 42.0% 46.9% 30.8% 34.9% 43.2% 34.7% 51.3% 10.8% 14.8% 18.4% 17.9% 41
42 Social media metrics: Firms shift toward referral and text measures and away from financial metrics Table 5.3. Metrics Used by Firms* Metrics August 2010 August 2014 Hits/visits/page views 47.6% 60.7% Number of followers or friends 24.0% 45.0% Repeat visits 34.7% 38.7% Conversion rates (from visitor to buyer) 25.4% 31.3% Buzz indicators (web mentions) 15.7% 24.2% Sales levels 17.9% 16.8% Online product/service ratings 8.2% 14.0% Customer acquisition costs 11.8% 13.7% Net promoter score 7.5% 12.8% Revenue per customer 17.2% 12.5% Other text analysis ratings 6.6% 11.7% Customer retention costs 7.7% 6.3% Abandoned shopping carts 3.8% 6.0% Profits per customer 9.4% 6.0% *Red indicates metric use has decreased; green indicates that metric use has increased, and changes of 1% or less are classified as no change.. 42
43 Use of online customer behavior data expected to increase over time Figure 5.7. Does your company use customer behavior data collected online for targeting purposes? Figure 5.8. Is your company's use of such data increasing, decreasing, or staying the same over time? 100% 80% 81.7% No 59% Yes 41% 60% 40% 20% 18.3% 0% 0.0% Increasing About the same Decreasing 43
44 Most marketers have low levels of concern over the use of online customer data Figure 5.9. How worried are you that the use of online customer data could raise questions about privacy? Mean = 3.4 (SD = 1.6) 25% 20% 20.2% 22.9% 21.1% 15% 12.8% 14.7% 10% 7.3% 5% 0% 1 Not At All Worried 0.9% Very Worried 44
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46 Marketing hiring positive but continues to decline Figure 6.1. Percentage change in marketing hires planned in next 12 months 15% Increase in Marketing Hires in Next 12 Months 12% 9% 6% 6.2% 7.2% 5.2% 6.5% 5.4% 5.5% 4.7% 3.8% 3% 0% Feb-11 Aug-11 Feb-12 Aug-12 Feb-13 Aug-13 Feb-14 Aug-14 46
47 Sector differences in marketing hires: B2B services largest hiring increase Figure 6.2. Percentage change in marketing hires planned in next 12 months 10% 8% 6% 5.3% 4% 3.8% 3.8% 3.6% 2% 2.3% 0% Overall B2B Product B2B Services B2C Product B2C services 47
48 Outsourcing of marketing jobs increases Figure 6.3. Percentage of company marketing expected to be outsourced in next 12 months 10% Percentage Change in Outsourcing 8% 6% 4% 3.2% 3.1% 3.5% 2.6% 3.1% 4.3% 2% 0% Feb-12 Aug-12 Feb-13 Aug-13 Feb-14 Aug-14 48
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50 Marketing employees 5% of total Figure 7.1. Marketing Employees as a Percentage of Total Employees 12% Percentage of Total Employees 10% 8% 6% 4% 2% 2.4% 2.0% 6.4% 2.3% 4.2% 1.1% 3.1% 2.5% 1.2% 6.3% 5.0% 0% Feb-09 Aug-09 Feb-10 Aug-10 Aug-11 Feb-12 Aug-12 Feb-13 Aug-13 Feb-14 Aug-14 50
51 Marketing and sales are equal partners in most companies, esp. B2B Product Figure 7.2. The marketing-sales relationship (% of respondents) 80% 66% 70% 60% 50% 40% Sales and marketing work together on an equal level B2B Product 75.0% B2B Services 59.7% B2C Product 61.5% B2C Services 66.7% 30% 20% 10% 12% 11% 8% 3% 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 51
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53 Marketing leadership erosion in key strategic areas Table 8.1. Percentage of companies in which marketing leads activity* Activity Aug-13 Aug-14 Brand 80.7% 84.4% Advertising 83.9% 83.9% Social media 74.9% 78.4% Positioning 76.7% 76.9% Promotion 80.3% 74.9% Marketing analytics** 69.1% 68.3% Public relations 62.3% 65.8% Marketing research 66.4% 65.3% Competitive intelligence 55.6% 57.3% Lead generation 56.1% 56.3% Market entry strategies 54.7% 52.3% New products 48.4% 41.7% CRM 40.4% 38.2% Pricing 37.2% 32.2% Targeting/Market selection 39.9% 30.7% Innovation 32.7% 30.2% Sales 27.8% 26.6% Customer service 22.0% 19.6% Stock market performance 3.1% 2.5% Weaker marketing leadership: Promotion Marketing research Market entry New products CRM Pricing Target/Market selection Innovation Customer service Stronger marketing leadership: Brand Social media Public relations Competitive intelligence * Red indicates marketing s influence has decreased, green indicates that marketing s influence has increased, and changes of 1% or less are classified as no change. 53
54 Marketing leaders retained for an average of 5.3 years; likely to be insiders Figure 8.1. 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 54
55 Number of people reporting to top marketer Figure 8.2. Number of people reporting to top marketer Number of direct reports Number of indirect reports Aug-10 Aug-11 Feb-12 Aug-12 Feb-13 Aug-13 Feb-14 55
56 Increasing pressure to prove the value of marketing Figure 8.3. Do you feel pressure from your CEO or Board to prove the value of marketing? Figure 8.4. Is this pressure increasing, decreasing, or about the same? 100% No 38% Yes 62% 80% 60% 40% 20% 0% 65% Increasing pressure 35% Same 0% Decreasing pressure 56
57 Best 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. 57
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59 on marketing analytics expected to increase 73% in three years Figure 9.1. Percent of marketing budget spent on marketing analytics 15% 12% 12.3% 9% 6% 7.1% 3% 0% Current Levels In Next 3 Years 59
60 on marketing analytics by firm and industry characteristics Table 9.1a. Firm sector differences Current Table 9.1b. Firm internet sales differences Current In Next 3 years B2B Product 8.2% 13.1% B2B Services 7.1% 12.0% B2C Product 5.4% 9.8% B2C Services 7.3% 14.4% In Next 3 years 0% 6.5% 11.8% 1-10% 7.5% 12.5% >10% 7.9% 13.2% Table 9.1c. Firm size differences Current In Next 3 years <$25M 6.6% 11.2% $26-99M 5.8% 10.2% $ M 6.9% 11.9% $ M 7.5% 13.0% $1-9.9B 8.1% 15.1% $10+B 9.8% 13.9% 60
61 Only one-third of projects use marketing analytics; no improvement despite spending Figure 9.2. Percentage of projects using available or requested marketing analytics* Percentage using marketing analytics 50% 45% 40% 35% 30% 37.0% 35.0% 30.4% 29.0% 32.5% 32.3% 25% 20% Feb-12 Aug-12 Feb-13 Aug-13 Feb-14 Aug-14 *This question was asked in Feb-12 for the first time. 61
62 Contribution of marketing analytics remains low and is not improving Figure 9.3. To what degree does the use of marketing analytics contribute to your company's performance? 1 = Not at all and 7 = Very highly 7 Mean Contribution Level Aug-12 Feb-13 Aug-13 Feb-14 Aug-14 *This question was asked in Feb-12 for the first time. 62
63 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 9.2a. Industry sector differences Sector Mean (SD) Banking/Finance/Insurance 3.6 (1.7) Communications/Media 4.0 (2.1) Consumer Packaged Goods 4.0 (2.0) Energy 4.0 (2.2) Healthcare/Pharma. 4.2 (1.7) Manufacturing 3.3 (1.6) Mining/Construction 4.0 (0.0) Retail/Wholesale 4.1 (2.3) Service/Consulting 2.9 (1.9) Tech Software Biotech 4.3 (1.7) Transportation 4.2 (0.8) Table 9.2b. Economic sector differences Sector Mean (SD) B2B Product 3.6 (1.6) B2B Services 3.4 (1.9) B2C Product 4.3 (2.0) B2C Services 4.2 (1.9) Table 9.2c. Firm internet sales differences Mean (SD) 0% of sales 3.5 (1.9) 1-10% of sales 3.7 (1.7) >10% of sales 4.2 (1.9) 63
64 Majority of companies do not evaluate marketing analytics Figure 9.4. Does your company formally evaluate the quality of marketing analytics? B2C Services B2B Services B2C Product B2B Product No 67% Yes 33% Yes, evaluate quality No, do not evaluate quality 47% 38% 29% 24% 53% 62% 71% 76% 64 64
65 Companies lack quantitative metrics to demonstrate impact of marketing spending Figure 9.5. Metrics for demonstrating impact of marketing spending on business 50% Short-Term Impact 44% Long-Term Impact 44% 40% 37% 33% 30% 20% 19% 23% 10% 0% We prove 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 65
66 How companies measure marketing ROI Figure 9.8. How companies measure marketing ROI We don't measure marketing ROI 20.4% Manager judgements 19.8% What percent of your marketing budget do you spend measuring your marketing ROI? Other 9.3% Experiments 11.9% Customer surveys 20.7% Mean = 2.31% SD = 3.26% 95% Confidence interval = 1.83% % Econometric modeling 17.8% 66
67 Preview Next survey: January 2015 Participate: Sign up here Media: Press releases and coverage Feedback: Send comments to 67
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