the role of the cmo: marketing strategies

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The Role of the CMO:Marketing Strategies for 2010

November 2009



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About the SurveyThe survey was fielded between October 13, 2009 and November 13,2009 among four separate audiences:

• Attendees of the 2009 Annual CMO Summit;• The Forbes Advisory Panel, an opt-in panel of senior executive Forbes subscribers

surveyed regularly on business trends, ideas and issues;

• Forbes.com users, a subscriber database consisting of business decision-makerswho have registered on the Forbes website; and

• Marketing executive members of ExecuNet, a membership-only networking andcareer organization for executive leaders

Forbes subscribers (members of the Advisory Panel and Forbes.com)received the survey via email; ExecuNet respondents were invited toparticipate in the survey via the Marketing Roundtable, a moderatedmembers-only group of senior marketing executives

A total of 114 responses were received; 72 were Forbes-affiliated and 42were members of ExecuNet



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More than half of respondents’ media budgets are less

than $1 million; nearly one-quarter are $5 million ormore

Approximate size of total media budgetTotal respondents

Q1. What is the approximate size of your total media budget? N=114

Estimatedaverage budgetapproximately$5.2 million



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Of those with budgets of $5 million or more,

one-third have between $10- and $20 million;3 in 10 have more than $30 million

Respondents with marketing budgets of $5 million or moreN=27

Q1. What is the approximate size of your total media budget? N=27



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One-third of respondents expect their marketing

budgets to increase in 2010; 6% anticipate an increaseof 20% or more

Expected change in marketing budget, FY10 v. FY09Total respondents

Q2. Compared to fiscal year 2009, to what extent do you expect your organization’s marketing budget to decrease, stay about the same or increase in fiscal year 2010? N=114

Decrease

Increase



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6 in 10 respondents with marketing budgets of $5

million or more anticipate budget increases in 2010;11% foresee increases of 20% or more

Expected change in marketing budget, FY10 v. FY09Total respondents v. Respondents with $5MM+ budgets

Decrease

Increase

Q2. Compared to fiscal year 2009, to what extent do you expect your organization’s marketing budget to decrease, stay about the same or increase in fiscal year 2010? N=114, N=27



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Social media, SEO, online display on branded sites, PR and WOMare the top areas total respondents expect to receive a higherpercentage of marketing spend over the next 6 months (blue);traditional media – most notably, print publications – will see thebiggest declines (red)

Plans for allocation of marketing spend over the next 6 months,Increase in allocation (blue) vs. Decrease in allocation (red)

Total respondents

Q3. How do you see your organization’s marketing spend allocation changing over the next six months? N=114



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Respondents with $5MM+ marketing budgets are far

more likely to plan to increase marketing spend onpaid search, television and online display on portals,while total respondents are likelier to look to WOM

Plans for allocation of a higher percentage of marketing spend over the next 6 monthsTotal respondents v. Respondents with $5MM+ budgets

Q3. How do you see your organization’s marketing spend allocation changing over the next six months? N=114, N=27



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Total respondents are far less likely to allocate any

marketing budget on a much wider range of mediatypes than are those with $5MM+ budgets; WOM isthe sole exception

Media types for which there is no currently marketing spend allocationTotal respondents v. Respondents with $5MM+ budgets

Q3. How do you see your organization’s marketing spend allocation changing over the next six months? N=114; N=27



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Respondents with $5MM+ budgets tilt more toward

measurement and accountability over the “Big Idea” asthe most important aspect of a marketing campaign;total respondents are more evenly split

Most important aspect of marketing program

Q4. Which of the following is more important to your marketing program? N=114; N=27

Total Respondents $5MM+



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Advertising, research and PR are the top areas

falling under the purview of marketing, followeddistantly by internal communications and CSR

Areas falling within responsibility of marketing group

Total respondents

Q5. Which of the following areas fall within your responsibility as Chief Marketing Officer? (Please select all that apply) N=114



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Respondents with $5MM+ budgets unanimously count

advertising as a marketing responsibility, and 9 in 10 also point to market research; PR, internal communications and CSR followdistantly, at a significantly lower rate than for total respondents

Areas falling within responsibility of marketing group

Total respondents



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Social media seen as the single-most promising form of new mediathat will be a useful tool for marketing in an unaided question,followed distantly by mobile applications; respondents with$5MM+ budgets tilted heavily toward social media and mobileapplications

Media type Total Respondents $5MM+

Social media/networking 31 11

Mobile applications 9 6Measurement/analytics 6 1

Search engine marketing 5 1

Behavioral targeting 3 1

Most promising or experimental new form of media seen as auseful tool for marketing initiatives in the coming years

N=72, N=21

Q6. What do you feel is the single-most promising or experimental new form of media that will be a useful tool for your marketing initiatives in the coming years? (open-ended) N=72; N=21



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Total respondents’ primary concerns about tracking consumerbehavior focus on getting a return on their investment

(effectiveness and usefulness), far more so than government regulation and consumer privacy issues

Level of concern about aspects of tracking consumer behavior for data mining purposes

Total respondents

Q7. How concerned are you about tracking consumer behavior for data mining purposes when it comes to each of the following? N=114



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Marketing executives with $5MM+ budgets were notably less

concerned with nearly all aspects of tracking consumer behavior,with the exception of privacy issues

Level of concern about aspects of tracking consumer behavior for data mining purposes,“Extremely Concerned”Total respondents v. $5MM+

Q7. How concerned are you about tracking consumer behavior for data mining purposes when it comes to each of the following? N=114; N=27



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Demographics, Total Respondents

Title Company Size Company Revenue

65% VP or above One-quarter of respondents fromenterprise-sized companies

Average company sizeapproximately $1.7 billion

Q8. Which of the following best describes your title? N=114 Q9. Which of the following ranges most closely represents the total number of employees in your organization worldwide? Your best estimate is fine. Please select one response only. N=114 Q10. Which of the following categories represents your organization’s enterprise-wide annual revenue (across your worldwide organization, including all of its branches, divisions, and subsidiaries)

for your most recent fiscal year? Please select one response only. N=114



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Demographics, $5MM+ budget

Title Company Size Company Revenue

78% VP or above 6 in 10 respondents fromenterprise-sized companies

Average company sizeapproximately $4.5 billion

Q8. Which of the following best describes your title? N=27

Q9. Which of the following ranges most closely represents the total number of employees in your organization worldwide? Your best estimate is fine. Please select one response only. N=27 Q10. Which of the following categories represents your organization’s enterprise-wide annual revenue (across your worldwide organization, including all of its branches, divisions, and subsidiaries)

for your most recent fiscal year? Please select one response only. N=27



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Questionnaire1. What is the approximate size of your total media budget?2. Compared to fiscal year 2009, to what extent do you expect your organization’s marketing

budget to decrease, stay about the same or increase in fiscal year 2010? Please select one

response only.3. How do you see your organization’s marketing spend allocation changing over the next six

months?4. Which of the following is more important to your marketing program?5. Which of the following areas fall within your responsibility as Chief Marketing Officer? (Please

select all that apply)

6. What do you feel is the single-most promising or experimental new form of media that will be auseful tool for your marketing initiatives in the coming years? (open-ended)7. How concerned are you about tracking consumer behavior for data mining purposes when it

comes to each of the following?8. Which of the following best describes your title?9. Which of the following ranges most closely represents the total number of employees in your

organization worldwide? Your best estimate is fine. Please select one response only.

10. Which of the following categories represents your organization’s enterprise-wide annualrevenue (across your worldwide organization, including all of its branches, divisions, andsubsidiaries) for your most recent fiscal year? Please select one response only.

the role of the cmo: marketing strategies

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