1 The CMO Survey: Updates and Questions Christine Moorman Fuqua School of Business Duke University August 4, 2007

2 Completed Tasks Reviewed relevant practitioner and academic literature. Interviewed 30 academic and practitioner thought leaders (e.g., CMOs, CEOs, COO, profs, consultants) Interview focus: What is marketing’s unique source of insight that can lead thought and practice? What do decision makers need to know about marketing in the future? What do nonmarketers need to know about marketer’s views and marketing activities?

3 Completed Tasks Synthesized literature and interviews to derive: Survey goals Survey position Standard survey questions Special interest survey topics

4 Survey Goals Lead thinking about marketing by predicting the future of the marketplace and marketing actions Rationale: This is marketers’ unique knowledge. Rationale: Many non-marketers need the views of marketing leaders. Calibrate marketing thinking Rationale: Marketers don’t know how their ideas, strategies, organization, and outcomes compare to other firms. Build longitudinal data about marketing in top firms Rationale: Limited data exists and this limits knowledge development.

Recent Broadcast Media CNBC - Closing Bell, March 7, 2007 CNBC - Closing Bell CNBC - Closing Bell, November 29, 2006 CNBC - Closing Bell Bloomberg TV, November 3, 2006 Bloomberg TV BBC TV Asia Business Report (broadcast from Singapore). September 14, 2006 BBC World, June 8, 2006 Bloomberg TV Asia June 8, 2006 CNBC - Closing Bell, June 7, 2006 CNBC - Closing Bell The Canadian Press, June 8, 2006 CNN Headline News, June 8,2006 Recent Print Media Wall Street Journal, March 8, 2007 Wall Street Journal Financial Times, March 8, 2007 Financial Times Associated Press, March 7, 2007 Bloomberg News, March 8, 2007 Bloomberg News Reuters Newswire, March 7, 2007 Reuters Newswire Columbus Dispatch, March 8, 2007 Columbus Dispatch Syracuse Post-Standard, March 8, 2007 Syracuse Post-Standard Accountancy Age, March 8, 2007 Accountancy Age USA Today, February 27, 2007 USA Today, Associated Press, November 29, 2006 Associated Press, Reuters. November 29, 2006 Reuters

6 Survey Positioning Dimensions Longitudinal vs. Cross-sectional (participants, questions) Objective vs. Partial to interest Strategic vs. Tactical Forward-looking vs. Historical Valuable to marketers and non-marketers vs. Valuable to marketers

7 Survey Position CMO Survey CMO Council Surveys Marketing Leadership Council Survey Longitudinal (L) vs. Cross-sectional (C) -General questions (L) -Special questions (C) Retain informants over time Cross-sectional questions and respondents Strategic vs. Tactics StrategicBothTactical Objective vs. Partial ObjectivePro-Marketing Forward-looking vs. Historical Mix with emphasis on Forward-looking Historical Valuable to Marketers & Nonmarketers vs. Marketers Marketers and Nonmarketers Marketers

8 Steps in the Design Process AMA Coalition feedback Informant feedback CMO feedback CEO feedback Financial analyst feedback Marketing knowledge/service provider feedback News organization feedback

9 Operational Issues: Current Thinking Survey incentives Customized feedback promised Help develop a thought-leadership role for marketing Survey implementation Once or twice a year Likely follow CFO web/mail model Database of top marketing officers currently being developed from Fortune Business unit officers will be included when relevant USA (Y1-Y3), Europe (Y4-Y5), next steps Privacy key

10 Your Assistance Question topics Goal: Narrow to 5-7 depending on number of questions Rationale: Larger than CFO survey because once a year; however, not fatiguing (15 mins. max) Specific questions Goal: Narrow number of questions to most impactful set

11 Question Areas 1. Predictions of Marketplace Dynamics 2. Predictions of Spending on Marketing and Growth 3. Marketing Performance and Goals 4. Marketing Knowledge Investments 5. Marketing-HR 6. Marketing & Society 7. Marketing Portfolio 8. Marketing Function 9. CMO and Firm Characteristics

12 (1) Predictions of Marketplace Dynamics Marketing predictions Customer predictions Competitor predictions Intermediary/partner predictions

13 Marketing Predictions: General Are you more or less optimistic about the marketing prospects for your company compared to last year? Scale: More, less, no change Question is similar to the CFO survey which asks about financial prospects Are you more or less optimistic about the marketing prospects for your company? Rate your optimism on a scale from with 0 being the least optimistic and 100 being the most optimistic Question is similar to the CFO survey which asks about financial prospects

14 Customer Predictions - Specific Which direction will the following customer indicators in your industry move in the next year? Demand levels Focus on price, quality, innovation, and service Loyalty Level of response to marketing efforts Speed of response to marketing efforts Use of technology to interact with firms How valuable marketing is to the customer How valuable marketing is to society at large Ratings: Increase, decrease, stay the same % change

15 Competitor Predictions In the next 6-12 months, which direction do you anticipate competitors in your industry will take the following actions? Focus on price, quality, innovation, and service Imitate your firm’s marketing approaches Introduce new marketing approaches Enter new markets Introduce new products Intensity of rivalry Ratings: Increase, decrease, stay the same % change

16 Intermediaries/Partner Predictions In the next 6-12 months, how likely is it that your partners will engage in the following activities? Focus on price, quality, innovation and service Information sharing Commitment to the relationship Outsource some of the services they perform for you Ratings: Increase, decrease, stay the same % change

17 (2) Predictions of Spending on Marketing Relative to the previous year, rate your firm’s % change in spending during the next year? Overall marketing Web-related marketing Traditional advertising CRM activities Branding Building knowledge about marketing Channel relationships Partner relationships Marketing training Marketing research Relative to the previous year, rate your firm’s % change in spending for growth during the next year? Current markets, services, products New products developed by your firm, acquired by your firm, licensed by your firm, developed through partnerships New services developed by your firm, acquired by your firm, developed through partnerships New markets developed by your firm, acquired by your firm, reached through partnerships

18 (2) Predictions of Spending on Growth Relative to the previous year, rate your firm’s % change in spending for growth during the next year? Current markets, services, products New products: Developed by your firm Developed through partnerships Acquired by your firm Licensed by your firm New services: Developed by your firm Developed through partnerships Acquired by your firm Licensed by your firm New markets: Developed by your firm Developed through partnerships Acquired by your firm Licensed by your firm

19 (3) Marketing Performance/Goals Rate your firm’s % change in performance on the following metrics during the last year? Revenue Growth Margin Growth Marketing ROI Firm Profit Market Capitalization Tobin’s q Market Share Customer Satisfaction, Customer Retention, Customer Acquisition Brand Equity What % change in performance do you expect on the following metrics during the next year? Revenue Growth Margin Growth Marketing ROI Firm Profit Market Capitalization Tobin’s q Market Share Customer Satisfaction, Customer Retention, Customer Acquisition Brand Equity

20 (4) Knowledge/Learning Rate your likelihood of using the following services to build knowledge about any aspect of marketing in the next year: Internal marketing research units Internal marketing consulting units Marketing research firms Marketing consultants Advertising agencies Academic consultants Non-university Executive Education training programs University Executive Education training programs In-house training Executive MBA programs

21 (5) Marketing-HR In the next year, what is the % change in your firm’s hiring in each of the following areas: Marketing, marketing analytics, sales In the past year, rate how easy or hard it has been to acquire the marketing employees you need and want. Very easy to very difficult In the past year, rate how easy or hard it has been to retain the marketing employees you need and want. Very easy to very difficult

22 (6) Marketing & Society Rate the level of importance your firm’s marketers place on what is good for society in your decision making? Very important to not at all important

23 (7) Marketing Portfolio In the last year, how many different separate products or services did your firm offer? In the last year, how many different segments of customers does your firm target? In the last year, how many separate marketing plans did your firm develop in the last planning cycle?

24 (8) Marketing Function Rate the degree to which nonmarketers in your firm would agree with the following statement: “Half of my marketing budget is working; I just don’t know which half.” How many current high-level managers in your firm have come through marketing? How many direct reports to you have? If your firm were to experience an earnings disappointment, how likely would your CEO be to phone you for solutions? Where is marketing located? Business unit level, brand or product level, field offices, corporate (check all that apply)

25 (9) CMO and Firm Characteristics CMO Characteristics To whom do you report? What is your formal title? Years with current firm in this role Years with current firm in any role Years of education Years of work experience Demographics Firm Characteristics Number of marketing employees Number of employees Industry sector $US revenue $WW revenue ROMI

26 Special Survey Topics (5-10 Questions) The role of marketing in growth Brand building Knowledge and knowledge relationships Impact of technology on marketing Metrics, SOX, Marketing-Finance Customer insight tools International and emerging markets Relationship management Compensation Mix of media used by firms The role of the channel Marketing and sales HR: Marketer competencies/Skill sets Privacy, ethics and social responsibility, including green Segmentation and Positioning Women and minority marketers: Hiring, retention, work atmosphere, high level managers The role of marketing in the firm

27 Comments Please additional feedback and suggestions to Thank you very much