Insights from the Global Chief
Marketing Officer Study ~
A North America Perspective
Nanci Knight
IBM Academic Initiative
Relationship Manager | West Region
email: nknight@us.ibm.com
The 2011 Global CMO Study is part of our C-suite Study series
encompassing interviews with more than 15,000 C-suite executives
’04-’05
’06-’07
’08-’09
’10-’11
CEO
CIO
CFO
CHRO
CSCO
CMO
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© 2012 IBM Corporation
In this largest sample of face-to-face CMO interviews, we spoke with
more than 1,700 CMOs worldwide, 300 in North America
The study represents organizations in
64 countries and 19 industries
3%
Public
Sectors
21%
Industrial
Regions
16%
Communications
17%
North America
44%
Growth markets
24%
Financial Services
10%
BU CMOs
36%
Distribution
4%
Japan
North America
Rest of the World
8%
BU CMOs
14%
Country CMOs
11%
Regional CMOs
35%
Europe
33%
Global CMOs
46%
Country CMOs
65%
Global CMOs
Growth Markets include Latin America, Central and Eastern Europe, Middle East and Africa and Asia Pacific (excluding Japan); n=1734
North America sample size n = 300, Rest of World n = 1333
3
14%
Regional CMOs
© 2012 IBM Corporation
North America CMOs: swimming, treading water or drowning?
In this digital era...
CMOs have to...
 Globalization has brought the world to
everyone’s backyard
 Do more than ever, inside and outside
the organization
 Everyone is a broadcaster, publisher and
a critic: there is nowhere to hide
 Be more accountable for return on
investment (ROI)
 Transparency is the new price of entry
 Use tools and technologies that their
children understand better than they do
And...
more data, more sources,
more devices, less clarity
And...
CMOs have just two to three years
to make their mark
“The role went from marketing, to marketing and client
experience, to marketing and client experience and channel.
And now I am also doing technology prioritization and all of
our service model structure. It really has turned into a
revenue officer role, versus a marketing officer role.”
Banking EVP & CMO USA
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© 2012 IBM Corporation
“None of the changes in Marketing today are evolutionary,
they are all revolutionary and transformational.”
Insurance SVP of Marketing, USA
“Really good marketing has always been about
creating a brand promise and delivering on it. It
“I'd like to get less data
and more information.”
is just that with today's tools and technology,
more people are watching.”
Industrial Products SVP Marketing, USA
Telco VP, Canada
“I think the biggest marketing challenge will be the
analysis and diffusion of data. I firmly believe
CMOs and marketers need to become ‘analytic
athletes’ to do their jobs.”
Maureen Schumacher, Southeast Regional Director, Google
“Traditionally, corporate culture and character have been managed by HR, but it
can't remain there in a digital environment. The world of separate internal and
external messages is gone, and internal actions, memos and decisions can
impact your brand just as much as an advertising campaign.”
Financial Markets EVP, Head of Global Marketing, USA
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© 2012 IBM Corporation
The key areas of under-preparedness are the same areas CMOs
identify as most critical to enabling the marketing agenda
Marketing Priority Matrix
1
Data explosion
2
Social media
3
Growth of channel and device choices
4
Shifting consumer demographics
5
Financial constraints
6
Decreasing brand loyalty
7
Growth market opportunities
8
ROI accountability
9
Customer collaboration and influence
10
Privacy considerations
11
Global outsourcing
Factors impacting
marketing
12
Regulatory considerations
Percent of CMOs selecting
as “Top five factors”
13
Corporate transparency
Under-preparedness
Percent of CMOs reporting
under preparedness
1
70
2
3
4
60
5
6
10
7
11
50
9
8
12
13
40
0
20
40
60
Mean
Source: Q7 Which of the following market factors will have the most impact on your marketing organization over the next 3 to 5 years? n1=1733; Q8 How prepared are you to
manage the impact of the top 5 market factors that will have the most impact on your marketing organization over the next 3 to 5 years?
n2=149 to 1141 (n2 = number of respondents who selected the factor as important in Q7)
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© 2012 IBM Corporation
Being a CMO in North America is 1.6 times more complex than the
global average
Expected level of complexity and preparedness to handle
Percent of North America CMOs responding
North America
Global
79%
84%
Expect high/very high
level of complexity
over 5 years
Expect high/very high
level of complexity
over 5 years
35%
Feel prepared for
expected complexity
49%
complexity
gap
31%
complexity
gap
48%
Feel prepared for
expected complexity
1.6x more complex
Key
Drivers
 Simultaneous investment in traditional and emerging capabilities
 Marketing and technology alignment more challenging
 Managing the skills mix
Source: Q4 How much complexity will your organization have to master over the next 3 to 5 years compared to today? n=1709; Q6 How prepared do you feel for the expected
complexity ahead? n=1712
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© 2012 IBM Corporation
North America CMOs are simultaneously investing in emerging and
foundational capabilities; well beyond the global averages
North America
Plans to increase the use of technology
Percent of CMOs selecting technologies
Emerging Capabilities
9%
Foundational Capabilities
3%
87%
Global
11%
2%
87%
87%
80%
82%
75%
82%
75%
73%
68%
66%
72%
73%
67%
81%
77%
70%
63%
61%
56%
Predictive
Analytics
Mobile
Apps
Social
Media
Collaboration
Tools
Tablet
Apps
Scorecards
Dashboards
Content
Mgmt.
Single
view of
customer
Customer
Analytics
Campaign
Mgmt.
Source: Q22 Do you plan to decrease or increase the use of the following technologies over the next 3 to 5 years? n=259 to 264
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© 2012 IBM Corporation
Within North America, CMO alignment with their technology
organizations varies with the geographic scope of their role
After cost, the top barriers preventing technology adoption
North America
Lack of marketing and IT
alignment
Lack of IT integration with
rest of company
10%
BU CMOs
1.6x
14%
Country
CMOs
2.1x
11%
Regional
CMOs
65%
Global CMOs
“The biggest issue is prioritization and funding. IT funds most technology projects but if the
technology is only marketing specific then it may need to be funded by Marketing.”
Source: Q23 What are the top 5 barriers to using technology? n=268
9
Insurance Marketing VP, Canada
© 2012 IBM Corporation
North America CMOs have a strong desire to drive the required
changes in order to activate their corporate character
North America
Top 5 initiatives driven by transparency
Global
Percent of CMOs selecting initiatives
50%
Enhance engagement with
customers and citizens
80%
Manage brand reputation within
and beyond the company
78%
75%
74%
Expand data collection, analysis
and insights capabilities
72%
67%
Strengthen collaboration
across the enterprise
72%
64%
Orchestrate a single view
of the brand
64%
61%
Pink – out performing organizations, Blue - underperformers.
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Source: Q9 To what extent does transparency create a need for you to: n=293 to 297
© 2012 IBM Corporation
Globally, to deal with the broad level of under-preparedness, CMOs
signaled three key domains of improvement
Deliver value to
empowered
customers
Capture value,
measure results
Foster lasting
connections
“Marketing must become more adept at managing
the magnitude of change now taking place.
Otherwise, it will be like going into battle with a
Swiss Army knife.”
Financial Services Vice President, Marketing, USA
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© 2012 IBM Corporation
North America CMOs have a unique opportunity to lead by addressing
under-preparedness and closing the complexity gap
Addressing
Under-preparedness
Closing the
Complexity Gap
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• Requires a balance of external customer feedback and experience
based insights to drive decisions
• Utilizes customer analytics is a way to get better prepared
• Engages with customers as a critical driver to better articulate corporate
character
• Rethinking the skill mix as the primary driver to close gap supported
next by investment in technology and integrating insights
• Investing simultaneously in both emerging tools and technologies and
traditional campaign management, scorecards and dashboards
© 2012 IBM Corporation
Rethinking the skills mix, not technology alone, will help North
America CMOs address the challenges
77% of North American CMOs put the “Data Explosion”
at the top in terms of under-preparedness.
Here is how they plan to be better prepared as compared to Global CMOs:
Global CMOs:
North America Regional CMOs:
Invest in
technology
73%
Integrate
insights
69%
Rethink
skill mix
Invest in
technology
Understand
analytics
65%
Integrate
insights
Rethink
skill mix
64%
Understand
analytics
Collaborate
with peers
52%
Validate
ROI
Address
privacy
49%
28%
Collaborate
with peers
Validate
ROI
Address
privacy
Source: Q8 How prepared are you to manage the impact of the top 5 market factors that will have the most impact on your marketing organization over the next 3 to 5 years?
n=149 to 1141; Q20 To what extent will the opportunity to collect unprecedented amounts of data require you to change? n=1629 to 1673
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© 2012 IBM Corporation
IBM Academic Initiative
Our mission: Partner with faculty to develop the skills needed
to build a more competitive IT workforce
IBM agenda: align university partnerships
to build and sustain high growth markets.
University goals: build differentiating
competencies and prepare students for the
jobs of tomorrow.
IBM, its customers and its partners need Smarter Planet skills – and that
means careers for students in high growth markets.
What we offer:
• Extensive expertise, assets, and community
resources to develop world-class curricula
• Access to IBM software & courseware at no
charge
• Repeatable skill building programs, from
ecosystem events to student competitions
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© 2012 IBM Corporation
BAO Teaching Portal for Faculty
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Example Analytics Degree Programs with University Partners
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How To Engage
Connect with your regional IBM
Academic Initiative Relationship
Manager
Explore how AI & Smarter Planet nocharge faculty resources can be
leveraged to enhance current - or jumpstart new - curriculum at your university
Join the IBM Academic Initiative at:
www.ibm.com/academicinitiative
Browse the IBM Smarter Planet portal
at: www.ibm.com/smarterplanet
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© 2012 IBM Corporation
IBM Academic Initiative ~ Relationship Managers
North Central 2
Mary Lyons
312-529-3841
mwlyons@us.ibm.com
North Central 1
Valinda Kennedy
Central
Jerry Haan
630-747-8807
vscarbro@us.ibm.com
WA
North East 2
Rick McKean
914-766-1741
rmckean@us.ibm.com
317-249-9544
jehaan@us.ibm.com
ME
MT
VT
ND
NH
NY
MA
OR
MN
West
Nanci Knight
ID
WI
CT
SD
MI
WY
PA
707-529-9603
nknight@us.ibm.co
m
IA
IL
OH
NE
MD
IN
WV
NV
UT
NJ
VA
DC
North East 1
Bob Bry
617-693-3939
robert_bry@u
s.ibm.com
MO
CO
KS
KY
NC
CA
TN
OK
AZ
SC
AR
NM
MS
AL
GA
Mid-Atlantic
Penelope Gardner
TX
720- 396-4902
penelope@us.ibm.com
LA
South Central/East
Dennis Bly
FL
512-286-9181
dbly@us.ibm.com
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© 2012 IBM Corporation
Through these in-depth discussions, we are better able to
understand the evolving role and function of the CMO in the C-suite
Scope
Approach
 Sample consists of private sector
CMOs (97%) and public sector
leaders (3%)
 Representative sample across
64 nations and 19 industries
 Private sector organizations
with revenue more than US$500
million in mature markets and
more than US$250 million in
growth markets; public sector
organizations with more than
1,000 employees
 Face-to-face one hour
interviews with 1,734 CMOs
 Facilitated using structured
questionnaire
 Wide coverage: from highly
profiled organizations (48 of
the 100 top Interbrand
organizations) to lower profile
local organizations
Analysis
 Statistical analysis of 35
questions and the related 236
discrete factors
 In-depth analysis based on
self-reported performance
characteristics for differences
between “outperformers” and
“underperformers”
 Comprehensive review and
analysis of more than 10,000
interview quotes
Marketing in the Digital Era
 Deliver value to empowered customers
 Foster lasting connections
 Capture value, measure results
Note:
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Outperformers and underperformers were identified by answers to questions about their organization’s competitive position. Those who selected “significantly outperform industry
peers” were identified as outperformers; those who selected “somewhat or significantly underperform industry peers” were grouped as underperformers.
© 2012 IBM Corporation