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The CMO Survey:Updates and

Questions

Christine MoormanFuqua School of Business

Duke University August 4, 2007

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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?

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Completed Tasks Synthesized literature and interviews to derive:

Survey goals

Survey position

Standard survey questions

Special interest survey topics

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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.

http://www.cfosurvey.org/

Recent Broadcast Media

CNBC - Closing Bell, March 7, 2007 CNBC - Closing Bell, November 29,

2006 Bloomberg TV, November 3, 2006 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 The Canadian Press, June 8, 2006 CNN Headline News, June 8,2006

Recent Print Media

Wall Street Journal, March 8, 2007 Financial Times, March 8, 2007 Associated Press, March 7, 2007 Bloomberg News, March 8, 2007 Reuters Newswire, March 7, 2007 Columbus Dispatch, March 8, 2007 Syracuse Post-Standard, March 8, 2007 Accountancy Age, March 8, 2007 USA Today, February 27, 2007 Associated Press, November 29, 2006 Reuters. November 29, 2006

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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

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Survey PositionCMO

SurveyCMO Council

SurveysMarketing Leadership

Council Survey

Longitudinal (L) vs. Cross-sectional (C)

-General questions (L) -Special questions (C)Retain informants over time

Cross-sectional questions and respondents

Cross-sectional questions and respondents

Strategic vs. Tactics

Strategic Both Tactical

Objective vs. Partial Objective Pro-Marketing Pro-Marketing

Forward-looking vs. Historical

Mix with emphasis on Forward-looking

Historical Historical

Valuable to Marketers &

Nonmarketers vs. Marketers

Marketers and Nonmarketers

Marketers Marketers

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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

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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 1000. Business unit officers will be included when relevant

USA (Y1-Y3), Europe (Y4-Y5), next steps

Privacy key

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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

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Question Areas1. 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

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(1) Predictions of Marketplace Dynamics

Marketing predictions

Customer predictions

Competitor predictions

Intermediary/partner predictions

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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 0-100 with 0 being the least optimistic and 100 being the most optimistic

Question is similar to the CFO survey which asks about financial prospects

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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

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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

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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

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(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

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(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

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(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

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(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

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(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

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(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

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(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?

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(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)

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(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

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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

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Comments Please email additional feedback and suggestions to

moorman@duke.edu

Thank you very much