Exclusive research conducted with CEOs to understand how satified, or not, they are with the performance of their marketing function. Fieldwork courtesy of CEO Magazine (USA, 2014).

1. GREAT EXPECTATIONS:
What CEOs expect from their CMOs

4. 4

5. OUR PURPOSE
5
By identifying what's most important to B2B marketers’
success globally, we help make our clients' brands the most
important in their markets

6. CLIENTS
6

7. GREAT EXPECTATIONS…
UNMET?
47% of CEOs are
unsatisfied with the level
of agility demonstrated
by their CMOs
51% of CEOs are
looking for bettercustomer
insights fromtheir
marketing organizations
53% of CEOs feel
they aren’t getting the
strategic thinking they
need from marketing
61% of CEOs are
not satisfied with the
innovation shown by
their CMOs

8. GREAT EXPECTATIONS…
MET?

9. GREAT EXPECTATIONS…
MET!
CMO / CFO
73%
CMO / CIO
70%
CMO / CSO
74%
CMO / CEO
86%

11. 11
WHY THIS MATTERS MORE
81%
of CEOs
the importance of
marketing has
increased –
46% significantly
81%
of CEOs
expectations of
marketing have
increased –
44% significantly
71%
of CEOs
level of
involvement in
marketing has
increased

12. WHY?
12
Greater
importance
and impact of
organization
and product
brands
Need for
stronger value
propositions to
drive growth
and sustain
margin
Need for
sharper
differentiation
amid tougher
competition
Need for
customer
intimacy and
engagement

13. //“Customer engagement –
understanding and responding to
the customer – is needed to grow
the business. It’s a huge
opportunity to lead, but a huge
challenge at the same time.”
Source / Stein IAS / Great Expectations: What CEOs Want From Marketing

14. //“…Customer led disruption… it is
imperative to refocus your
marketing activities – in fact your
enterprise-wide activities – through
the kaleidoscopic lens of the
customers you seen to serve.”
Source / Forrester / The CMO’s Role in theAge of the Customer

15. //“Marketers need to be
customer-obsessed in this
new customer-centered
ecosystem.”
Source / Forrester / The CMO’s Role in theAge of the Customer

16. 16
At larger
companies…
Growing
marketing
complexity
Marketing
innovation
leveraging
technology
Need for
marketing,
sales and IT
alignment
WHY?

17. //“We live in a post-digital
age, which we define as the era in
which digital is no longer the ‘new
thing’ but is mandatory for
marketing success. It’s where your
customers spend their time.”
Source / Forrester / The CMO’s Role in theAge of the Customer

18. //“The marketing discipline is going
through a change unmatched in
pace and proportion, as the
perfect storm of fragmented
media, data availability and cheap
distribution has arrived.”
Source / Forrester / The CMO’s Role in theAge of the Customer

19. 19
Over the past five years, market dynamics with the greatest impact on marketing and business success
All respondents
Need for ongoing customer engagement 62%
Need for stronger value proposition to drive growth and sustain margins 57%
Need for sharper differentiation amid tougher competition 52%
Need for marketing, sales and IT alignment 42%
Impact of social media 40%
Growing marketing complexity 39%
Need for greater product innovation to drive growth 38%
Marketing innovation leveraging technology 29%
Changes in sales dynamics – more prospects engaging farther along in the sales continuum/funnel 28%
Increased pressure to tie marketing activity and investment to revenue 28%
Increased availability of and need to leverage big data/analytics 18%
MARKET DYNAMICS AND MARKETING IMPACT

20. AN IMPORTANT ASIDETHE “CONNECT”

21. BRAND DYNAMICS
Lead with purpose
CUSTOMER ENGAGEMENT,
STRONGER VALUE
PROPOSITIONS,
SHARPER DIFFERENTIATION

22. AN IMPORTANT ASIDE
TODAY IT ALL COMES
FROM PURPOSE

23. //
“I understand and
believe in what my
company is trying
to achieve.”
“I’m part of something
that really matters.”
“What’s important to
me is important to
my company.”
“I’m proud of where
I work and what I do
for a living.”
PURPOSE
MOTIVATES
EMPLOYEES

24. //
“This is where
I want to take my
company.”
“My goals for the
company are the
same as yours.”
“I am focused on
the difference we can
make in the world.”
“I want us to
accomplish something
significant that endures
beyond us.”
PURPOSE
GIVES LEADERS
A PERSONAL
PLATFORM

25. //
Organizations driven by purpose and values: Firms that have cultures based on shared
values out-perform companies that don’t:
• Outperformed the general market 15:1
• Outperformed comparison companies 6:1 • Revenues grew 4X faster
• Jobs creation was 7X
• Stock prices grew 12X
Jim Collins and Jerry Porras, Built to Last John Kotter and James Jaskett, Corporate Culture and Performance
PURPOSE
DRIVES
SUSTAINABLE
ADVANTAGE

26. Help people be their best in
the moments that matter
Google
Organize the world’s information
and make it universally accessible
and useful
IBM
Ensure that our world becomes more
intelligent, and serves us better
Be the place where people can come
to find and discover anything they
might want to buy online
Newell Rubbermaid
Help people flourish every day,
where they live, learn, work and play
Deloitte
Help customers solve their
toughest problems
PURPOSE-DRIVEN
Brands

27. Provide society with superior
products…and investors with
a superior rate of return
Merck
Help people live a better life
Make great things happen…help
patients, customers, partners and
communities around the world live
a better life
PURPOSE-DRIVEN
Brands

28. AN IMPORTANT ASIDETHE “DISCONNECT”

29. 29
Over the past five years, market dynamics with the greatest impact on marketing and business success
All respondents
Companies $250M+
in revenue
Need for ongoing customer engagement 62% 67%
Need for stronger value proposition to drive growth and sustain margins 57% 58%
Need for sharper differentiation amid tougher competition 52% 51%
Need for marketing, sales and IT alignment 42% 54%
Impact of social media 40% 42%
Growing marketing complexity 39% 54%
Need for greater product innovation to drive growth 38% 49%
Marketing innovation leveraging technology 29% 54%
Changes in sales dynamics – more prospects engaging farther along in the sales continuum/funnel 28% 30%
Increased pressure to tie marketing activity and investment to revenue 28% 28%
Increased availability of and need to leverage big data/analytics 18% 30%
CEOS’ INCREASED EXPECTATIONS: THE RIGHT EXPECTATIONS?

30. 30
More involved in thought leadership, strategy and customer engagement – but less so in analytics and demand
Greater marketing involved than in previous years
Top Box Top 2 Box
Thought leadership 39% 71%
Setting marketing strategy 27% 67%
Driving customer engagement/satisfaction 24% 62%
Enhancing brand and reputation 25% 59%
Aligning marketing and other key functions 22% 59%
New product development 27% 56%
Brand/product portfolio enhancement 22% 55%
Analytics and ROI measurement 18% 46%
Demand generation 14% 40%
Media/analyst/influencer engagement 8% 35%
CEOS’ INCREASED DIRECT INVOLVEMENT IN MARKETING

31. 31
Over the past five years, marketing team has played a greater role in…
All respondents
Companies $250M+
in revenue
Brand/product differentiation and positioning 70% 73%
Web presence 68% 71%
Market and competitor intelligence 58% 67%
Strategic direction of the organization 53% 58%
Social media strategy and execution 53% 56%
Customer insights 50% 64%
WHERE DO CEOS THINK THEIR MARKETERS ARE STEPPING UP? Above the line…

32. 32
Over the past five years, marketing team has played a greater role in…
All respondents
Companies $250M+
in revenue
Corporate communications/reputation management 45% 56%
New product development 43% 62%
Content creation/marketing 43% 40%
Sales enablement 41% 56%
Marketing and technology integration 35% 49%
Digital marketing 34% 42%
Demand generation 33% 31%
Event marketing 33% 44%
Corporate mission, vision and purpose 30% 40%
Analytics/reporting (return on marketing investment) 24% 31%
Thought leadership 22% 24%
Marketing automation 20% 31%
Investor relations 8% 22%
Other 3% 2%
Below the line…WHERE DO CEOS THINK THEIR MARKETERS ARE STEPPING UP?

33. //BUT WHERE DO
MARKETERS THINK
THEY’RE STEPPING
UP?

34. 34
MARKETERS’ BUDGETS
AVERAGE INCREASE OF 6%
- Technology
- Data analytics
- Innovation
- IT support

35. 35
MARKETERS’ 2014 FOCUS
Brand – most important
Measurement – biggest gap
Effectiveness – only 40%!
Content reigns - 31% still in dark age
Mobile and social intensification

36. 36
MARKETERS’ 2014 FOCUS
Inbound vs. outbound
Connect marketing to bottom line
New bag of tricks: data-driven and revenue focused
Personas and personalized marketing
Demand creation strategies with personalized, customized
messaging = 2X sales pipeline
Enabled buyers need enabled sellers

37. 37
MARKETERS’ 2014 FOCUS
Change
Difficult and cross-organizational
CMO evolution: diverse demands, different species

38. //“Marketing will not ‘return to normal.’
It is vital for marketers to embrace new
marketing approaches, vehicles and
organizational approaches, while
recognizing that there is no set recipe for
success…in today’s world, marketing by
the books is the biggest risk of all.”
Marketing in the Brave New DigitalWorld, The BostonConsultingGroup

39. PURPOSE IS HARD.
This is
harder.
PURPOSE IS HARD.
THIS IS HARDER.

40. Buyers now in control
They act like digital natives
Share a good or bad experience
BUYER DYNAMICS
New customer experience

41. is completed before getting in touch with suppliers
MORE EMPOWERED
70% of the purchase cycle

42. Sales dominated
One-way, single channel, relationship driven
Marketing plays critical role
Internet driven, analytics driven
BUYING PROCESS
Shift to marketing driven

43. On-line and off-line channels
Acct
teams
Telesales
CRM and
Customer /
prospect data
Nurturing and sales enablement
iPad apps, presentations, brochures, etc
Tracking of
customer social
engagement
Revenue performance
management
Leads and
opportunities
Social media traffic
You
Tube
Slide-
share
Twitter LinkedIn
Social content pushed to
branded social channels
Social ‘likes’ and shares
Campaign integration and
Employee engagement
Blogs
Branded
social
network
Social media
press room
Social engagement platforms
Social content and feeds pulled into Web page apps
Tweets, discussions, blog posts, etc
Social media
management and
monitoring
Re-
targeting
Implicitprofiling
Track online behaviour
to build a profile of
prospects and
customers
Campaign
Automation
Data capture
Lead scoring
Lead routing
Nurtures
Digital body language
Based on
pages viewed
Page
views
Down-
load
Web
visits
Form
fills
User goal Contact
request
User goal Down-
load
Segmented hubsWeb site homepage
Search
On/off
PR
Offline
events
PPC
ads
Online
ads
Print
ads
User goal
Landing pages (segmented)
E-mail
D-mail
PURL
Segmented by:
Business Size
Business Sector
Job Function
Locations
Affiliate
Sponsor-
ship
Virtual
events
Mobile
SMS
Timeline driven content strategy
Functionality:
• Social feeds
• Product selectors
• ROI calculators
Content types:
• Webinars
• Whitepapers
• E-books
Content formats:
• Video
• Infographics
• Apps
Mobile
Web
Social
RSS
feeds
E-news
Campaign measurement and analytics
Targets: (SME,
Corporate and Partner)
Live chat
Click to call
Sales integration
Marketing, sales and
CRM integration
Channels
On-line and off-line
channel integration
Social business
Integration with social
and Web 2.0
Analytics
Marketing ROI and
measurement
Web platforms
Targeted user
journeys and content

44. //“45% of big data
initiatives are driven
by marketing”
Source / Forrester / GlobalBig Data Online Survey

45. //“By 2017 the CMO will
spend more on IT
services than the CIO”
Source / Gartner / Profile of Marketing as a Technology Buyer

47. 47
Top Two Box Top Two Box Difference
Agility and responsiveness – ability to respond quickly to market
trends as well as internal plans 85% 53% 32%
Customer expertise – to know what customers want – even before
customers know what they want 82% 49% 33%
Teamwork/collaboration – invests their time in understanding the other
departments they interact with [and] act like a companywide leader 81% 64% 17%
Business strategy impact and expertise – to be thought leaders for the
corporation, providing a broad-based commercial perspective on the
business
76% 47% 29%
Brand stewardship – prime movers of their brands’ perception, the
custodians of their brand in all areas and among how all constituencies –
customers, employees, the media, regulators – view their company
74% 55% 19%
CROSSING THE ATTRIBUTE CHASM: IMPORTANT VS. SATISFIED

48. 48
Top Two Box Top Two Box Difference
Customer advocacy – to be the voice of the customer in the executive
suite, providing a filter for the rest of the executive team on how the
brand is performing, innovations, cultural discussions and new
technologies or strategies
74% 52% 22%
Innovative – expanding the brand to adjacent categories, strategic
partnerships, and new marketing strategies and tools 74% 39% 35%
Data analytics expertise – ability to deliver concrete, understandable
marketing metrics and fact-based decision-making 70% 52% 18%
Financial stewardship – ability to define the return on investment
for marketing dollars spent, can justify the expense by
demonstrating how technology delivers on success metrics like
acquisition, retention and cross-selling
70% 36% 34%
Internal activation – turn employees into brand ambassadors, activate
the brand and drive consistency internally 68% 39% 29%
Social media expertise –understand roles such new media opportunities
and challenges will play in the overall marketing strategy 54% 35% 19%
CROSSING THE ATTRIBUTE CHASM: IMPORTANT VS. SATISFIED

49. 49
23% of CEOs are extremely satisfied
with their marketing leadership today
Extremely satisfied 23%
Somewhat satisfied 48%
Neutral/undecided 19%
Somewhat dissatisfied 9%
Extremely dissatisfied 1%
29%
+61 NPS

50. 50
“Able to deliver the "impossible”
“Willing to embrace change”
“Align marketing with strategy”
“Leverage the digital world for more growth”
The Good

51. 51
Less Good
“Needs management experience”
“Needs to drive bottom-line results”
“Needs flexibility and forward
thinking”
“Needs to take initiative in tackling
marketing challenges”
“Challenged by differentiating the
brand in rapidly changing market”
“Challenged by competition and
market fragmentation”
“Challenged by technology changes,
growth of channels, big data”

52. 52
The Less Good
“Unable to keep up with the pace of change”
“Need to re-think processes and be more
creative in their response”
“Need to think more strategically to move
the company forward”
“Need to understand the business better
(rather than at a 50,000 ft. view)”

53. //“The market is difficult but
we should have been
ready for it.”
Source / Stein IAS / Great Expectations: What CEOs Want From Marketing

54. //“I see marketing as more
critical than ever because
the lines of competition
are blurring.”
Source / Stein IAS / Great Expectations: What CEOs Want From Marketing

55. //“Other C-suite players still see
Marketing as an expense rather
than as an investment and
believe that simply making the
product better will, magically,
result in sales!”
Source / Stein IAS / Great Expectations: What CEOs Want From Marketing

56. //“Marketing is a key part of
conducting research on the
competitive landscape, providing
input to senior management and
getting the message out to
customers in terms of what the
company brings to the table.”
Source / Stein IAS / Great Expectations: What CEOs Want From Marketing

57. //“Marketing leadership will
need to grow our customer
base 10% faster with
acceptable margins.”
Source / Stein IAS / Great Expectations: What CEOs Want From Marketing

58. //“Our products usually “sell
themselves” but more
recently we have found a
need to make more effort to
sell our products against
competition.”
Source / Stein IAS / Great Expectations: What CEOs Want From Marketing

59. 59
Customer intelligence expertise
• “Know what customers want even before customers know what they want”
Business strategy/perspective
• “Help drive the business strategy”
• “Strategic thinker across all disciplines and functions”
• “Broader knowledge of business operations”
• “The ability to convey the importance of marketing to his or her peers”
Leadership skills
• “Forward thinker...ability to create the future”
Collaboration
• “Teamwork and collaboration, involvement across departments”
Agility
• “Keep an open mind and respond quickly”
Sales-driven
• “Ability to generate and grow profitable sales revenue”
CMO JOB SPEC

60. 60
KNOW THE CUSTOMER
KEEP UP WITH CHANGE
LEVERAGE BIG DATA
GO BEYOND THE BRAND
BREAK THROUGH
CMO WAKE-UP CALL

61. 61
BE A LEADER
GET INNOVATIVE
GET INVOLVED
GET ASSERTIVE
STAY FOCUSED
BE BOLD
CMO WAKE-UP CALL

62. //“The desire among CEOs
for marketing to assert
leadership at the most
strategic level is
palpable.”
Source / Stein IAS / Great Expectations: What CEOs Want From Marketing

63. PURPOSE IS HARD.
This is
harder.
THINK LIKE A CEO

64. 64
LEAD FROM THE FRONT LINES
EVERYTHNG STARTS WITH PURPOSE
THE REST OF EVERYTHING: DIGITAL
AND DEMAND ECOSYSTEMS
CEO WAKE-UP CALL
BRAND– DIFFERENTIATION– CUSTOMERINTIMACY–
CUSTOMERDELIGHT– INNOVATION – RESULTS/GROWTH

65. //“CEOs who are unhappy with
marketing have no one to blame but
themselves for creating or
maintaining an untenable situation.
‘That’s a failure of executive
management including the CEO’.”
Source / Stein IAS / Great Expectations: What CEOs Want From Marketing

66. PURPOSE IS HARD.
This is
harder.
THINK LIKE A CMO

67. STEIN IAS
THANK YOU
67
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