July 2014 The New Role of Marketing Survey Report

Transcription

1 July 2014 The New Role of Marketing Survey Report

2 Background and Methodology Marketing2020 Organizing for Growth is the most comprehensive global marketing leadership initiative ever undertaken. Focused on identifying how business leaders can best align their strategy, structure, and capabilities to generate business growth, Marketing2020 is designed to benchmark and share best practices among the more than 10,000 participants from 92 countries. This report comprises responses from 1,051 U.S.-based marketers and more than 125 one-on-one interviews with U.S. CMOs. Overperforming firms in this report are those which had overall revenue growth in the past three years in excess of their competitors; underperforming firms are those which had overall revenue growth below that of their competitors. 2

3 Executive Summary With the rise of digital, the need for more specialized roles, and marketing s enhanced position as a business growth driver, the size of the marketing department is expected to grow over the next five years. This is especially true in overperforming organizations. Marketing organizations in overperforming firms, relative to underperformers, are more highly regarded as strategic partners for driving business growth. There is also significantly higher collaboration between marketing, HR, IT, and finance in overperforming firms. This supports the fact that winning marketing organizations work more closely across functions and have a meaningful voice in the C-suite. Overperforming organizations have a superior understanding of, and alignment around, brand strategy and priority objectives relative to underperformers. are also better aligned on a global/local level. This underscores the importance of internal communications and having the right structures and tools in place to enable the sharing of knowledge and information on global, regional, and local scales. Although more than half of all respondents believe their organization sufficiently celebrates brand successes, there is still room for improvement among over- and underperforming organizations. 3

4 Demand Generation and Brand Building Are Identified as the Two Key Objectives of a Marketing Strategy Approximately half of all respondents said the main objective of their marketing strategy is demand generation/client acquisition, while about one-quarter cited brand building/management. Fewer mention customer loyalty/retention as their main objective. Please complete the following sentence: The main objective of your marketing strategy today is 3% Base: 1,051 15% 9% 27% 46% Demand generation/client acquisition Brand building/management Customer loyalty/retention Cross-selling/Up-selling Other 4

5 Marketing Departments Are Expected to Grow There is alignment among over- and underperforming firms on the future size of the marketing department. Both global and local marketing departments are expected to either maintain or increase their size in the next five years; less than 10 percent of respondents believe the marketing department will be smaller. Five years from now, what size do you expect the global marketing department to be? Five years from now, what size do you expect the local marketing department to be? Base: 1,051 More than 20 percent bigger 1 20 percent bigger About the same 1 20 percent smaller More than 20 percent smaller 5% 2% 0% 10% 5% 15% 31% 37% 43% 52% M o r 1-2 A b o 1-2 M o r 6% 19% 12% 7% 3% 0% 34% 42% 45% 32% 5

6 Chief Marketing Officers Speak Out Future Growth of Marketing With regard to the entire organization, the local marketing teams will stay about the same size and the global teams will see growth. Areas that are not part of the marketing department today, such as internal communications, will probably be part of marketing in the future. Due to the fact that we re still building a proper marketing competence, I do see the increased need to have specific competencies, particularly in the online sphere. I think the marketing ecosystem will grow. I don t know if the actual number of employees will grow we are so cost-focused here. But broader scale, agencies will continue to grow. I don t think we should grow the trend is to have good partners outside the company specialized in some areas. I think we should have more specialized people on our teams. 6

7 Marketing in Overperforming Firms Is Regarded as a Strategic Partner for Driving Business Growth It s clear that marketing organizations in overperforming firms, relative to underperformers, are more highly regarded as strategic partners for driving business growth. Only about one-third of all underperforming firms state that marketing is always regarded as a strategic partner for driving growth. Within the organization, is marketing regarded as a strategic partner for driving business growth? Base: 1,051 53% 44% 47% 30% 17% 9% Rarely Sometimes Always 7

8 Chief Marketing Officers Speak Out Strategic Role of Marketing "Most of the CMOs I know report to the CEO. I don t know if you'll see a lot of them on the company's board because there's a counter-trend about wanting more independent directors. So if a company is only going to make two or three choices for the board, it s probably going to be the CEO and the CFO. Yes, I am a part of the global executive board. Marketing is represented. If you were to look at the agenda of the executive committee, I would say a large proportion of its time is taken up on brands. It s on the agenda every time. The change I'm pushing for is to have a seat at the table with the C-suite. I'm the most senior marketer in the business, but there isn t a place for marketing around the table. But everything I'm doing and the team is doing is pushing in that direction. 8

9 Marketing, HR, IT, and Finance Work More Closely in Overperforming Organizations There is significantly higher collaboration between marketing, HR, IT, and finance at overperforming firms versus underperformers. The highest level of cooperation is with finance, with over one-third of overperforming firms saying they always work closely with finance to monitor ROI. We would like to understand the current role of marketing in your own organization. Please indicate for the following statements whether it is always, sometimes, or rarely true today. Base: 1,051 Always True 11% 24% 20% 31% 26% 35% Marketing works closely with HR on overall recruitment, retention, and development plans. Marketing works closely with IT on CRM/big data technology strategy. Marketing works closely with finance to monitor ROI. 9

10 Chief Marketing Officers Speak Out Marketing Department Relationships IT is really important now, and we have a good relationship with them. I think that s only going to strengthen. It's going to be all about getting objectives aligned. An example that things are changing: every two months I am invited by SAP, IBM, or Oracle to attend meetings and seminars. I am trying to integrate better with HR, IT, and finance. In many companies there are horrible silos, but here it keeps getting better. I'm lucky that the HR person is interested in using our skills to make HR better. And we need the IT people because, increasingly, the finance people are not savvy enough to get data from the finance systems. And there's stuff going on with social media and web front-ends that require clever IT people, so we have to do this together. We're embedded in HR. I also manage IT, both the back and front offices. We re the only organization that has a view on the whole strategy for the company." 10

11 Overperforming Organizations Have a Superior Understanding of, and Alignment Around, Brand Strategy and Priority Objectives Overperforming firms are aligned around the brand strategy and priority objectives to a much higher degree than underperformers. It s fully clear to me what the strategy is for the brand I am working on. It s fully clear to me what the top priority objectives are for our brand. Base: 1,051 49% 68% 58% 74% 17% 7% 28% 25% 13% 7% 24% 19% Disagree Neutral Agree Disagree Neutral Agree 11

12 Less Than Half of Respondents from Underperforming Firms Believe Their Brand Has a Winning Strategy Whereas a large majority of respondents support the global strategy of the brand they work on, less than half of respondents in underperforming organizations believe their brand has a winning strategy. Conversely, about three-quarters of all respondents in overperforming firms believe their brand has a winning strategy. I support the global strategy of the brand I am working for. My brand has a winning strategy. Base: 1,051 62% 79% 41% 38% 72% 5% 2% 19% 15% 17% 3% 24% Disagree Neutral Agree Disagree Neutral Agree 12

13 Are Better Aligned on Both a Global and Local Level than Underperforming Organizations The global teams at overperforming firms have a better understanding of local marketing needs relative to underperforming firms. Similarly, local marketing teams in overperforming organizations have a significantly better understanding of the global/central strategy relative to local marketing teams in underperforming firms. The global/central marketing team understands the market reality and needs of the local marketing teams. The local marketing team understands the global/central strategy for our brand. Base: 1,051 15% 12% 31% 34% 32% 49% 12% 10% 29% 26% 38% 58% Disagree Neutral Agree Disagree Neutral Agree 13

14 Communications Between Global, Regional, and Local Marketing Teams Can Be Improved in Both Over- and Underperforming Organizations Only one-fifth of underperforming organizations believe global, regional, and local marketing teams communicate sufficiently, versus one-third of overperforming firms. Global, regional, and local marketing teams communicate sufficiently. Base: 1,051 27% 23% 31% 35% 35% 20% Disagree Neutral Agree 14

15 Chief Marketing Officers Speak Out Global vs. Local Communication/Management Global marketing will not participate in routine activities. Global will be focused on strategic and long-term issues. I don t believe that things such as advertising campaign approvals will exist in the future. If brand purpose and values are clear, and local people are well trained, the decisions will be more local than global. Global will have to start thinking about how they can react faster to consumer/shopper needs. Similarly, the ability of the local markets to pick up these signals and feed them back into the global teams is going to go through a change. Some things are becoming more centralized and some things are becoming more localized. If I go back, say, three years, there were a large number of centrally created/global campaigns. Now, there is a small number of centrally-driven campaigns that are the big topics for the year. Those are the ones on which the company sets priorities and, pretty much, there's no concept of an opt-out. You can't put a one-size-fits-all standard on a company that has a combination of very strong categories that are local and brands that are very local. That, you will always have to manage locally. While you can manage brands and categories that have been developed from scratch that, you can and should manage globally. We need very good balance between local relevance and global scale. How the global and local teams work with each other is a very important cocktail. The success is in the co-creation and ability to globalize or adapt the mixes around a common core but customize to local taste, flavor, language, insight. 15

16 Internal Sharing of Brand Successes Can Be Improved Almost two-thirds of marketers in overperforming companies say that they share brand successes with others in their teams while only half of underperformers claim to share their successes with others. We sufficiently share brand successes with one another in our team. Base: 1,051 51% 62% 15% 12% 29% 25% Disagree Neutral Agree 16

17 About the ANA The ANA (Association of National Advertisers) provides leadership that advances marketing excellence and shapes the future of the industry. Founded in 1910, ANA s membership includes more than 600 companies with 10,000 brands that collectively spend over $250 billion in marketing and advertising annually. The ANA pursues collaborative mastery that advances the interests of marketers and promotes and protects the well-being of the marketing community. For more information, visit follow us on Twitter, or join us on Facebook. 17

18 About Millward Brown Vermeer EffectiveBrands and Millward Brown Optimor have combined to form Millward Brown Vermeer. As part of WPP and Millward Brown, Millward Brown Vermeer is a member of the world s largest network of advertising and marketing consultancies. Our team combines strategy consulting and marketing practitioner expertise to create a whole-brain advisory offer for clients. In addition to our work directly with clients, we re proud of the thought leadership we deliver, including the Marketing2020 study, the most global and comprehensive CMO research program in the market, and the BrandZ brand valuation database and annual BrandZ Top 100 Most Valuable Global Brands rankings. For more information, visit 18

19 For more insights from the M2020 initiative, visit: