The Globe and Mail

Go to the Globe and Mail homepage

Jump to main navigationJump to main content

Globe Investor

News Sources

Take control of your investments with the latest investing news and analysis

Press release from Business Wire

Four in Ten Marketing Executives Unprepared to Meet Objectives Due to Lack of Funding and Internal Inefficiencies, Accenture Study Finds

<p class='bwalignc'> Investment in digital marketing and analytics set to rise </p>

Monday, April 29, 2013

Four in Ten Marketing Executives Unprepared to Meet Objectives Due to Lack of Funding and Internal Inefficiencies, Accenture Study Finds

08:30 EDT Monday, April 29, 2013

NEW YORK (Business Wire) -- Four in 10 top marketing executives say they are not well prepared to meet their objectives, citing a lack of funding and inefficient business practices as the main impediments to improved performance, according to global research by Accenture (NYSE:ACN). The research also reveals a growing commitment to digital marketing and analytics capabilities to tackle an increasingly complex customer environment.

According to the Accenture Interactive report, Turbulence for the CMO, 70 percent of the executives believe that corporate marketing will undergo a dramatic overhaul within the next five years and that their organizations must create a digital direction that will help them achieve higher revenue and increase market share.

“Marketing executives are growing increasingly concerned that tight budgets and the lack of a clear strategy for implementing digital technologies – are hurting their company's ability to compete in the digital age,” said Brian Whipple, global managing director of Accenture Interactive. “There is a clear performance gap between the demands of the marketplace and the ability of marketing organizations to apply the digital technology talent required to be more effective.”

The report shows that the need for change is being driven by increasingly demanding customers who expect more relevant interactions with brands. According to survey respondents, consumers' expectations for relevant, targeted experiences are having the greatest long-term impact on marketing strategy (65 percent).

Rising Investment in Digital Capabilities

As a response to these issues, significant steps are being taken to close the digital performance gap. The survey results show that two-thirds (66 percent) of marketing executives will be allocating at least one quarter of their budget to digital marketing next year, and nearly one-quarter (23 percent) say that more than half of their spend will be on digital marketing.

The survey shows that marketing executives also plan to invest more in their analytics capabilities, which are especially useful as the demand for multichannel marketing continues to increase. To help retain and grow their customer base, nearly half (48 percent) of the executives say they will spend more on managing customer data, 40 percent will increase budget spend on web analytics and 39 percent will spend more on marketing analytics. They are also taking a closer look at their use of marketing channels, ranking in-person contact with front-line employees, corporate website, media coverage and social media as the most important channels.

In order to obtain the greatest results, marketing executives say they are looking for more innovators – both by adding to their full-time staffs. Half of the executives said they would begin an internal reorganization to become more digitally focused, and more than half said they would be hiring more people with the necessary digital skills (52 percent) or providing their existing staff with digital training (55 percent).

“The growing investment in digital capabilities will help marketing executives improve their understanding of changing consumer needs and manage multiple channels,” said Whipple. “However, improved performance will require more than new digital and analytics talent. The challenge of digital transformation is how to implement beyond marketing and across the entire enterprise.”

Improved internal and agency collaboration

While a majority (55 percent) of marketing executives said they were satisfied with the level of collaboration with their outside agencies, there is a disconnect between their expectations and results. Only one-third (36 percent) of marketing executives said that their agencies execute flawlessly, and 36 percent said that the agencies are not able to deliver what they promised. Additionally, only 44 percent said that agency partners help marketing executives transform their marketing organization, which is a clear goal for marketing executives in 2013.

The study indicates that for many marketers, improving collaboration between business units can help them achieve their targets. Nearly one in five executives (19 percent) said that inefficient business practices currently hinder their ability to improve marketing performance and return on investment, while 17 percent said a lack of funding hurts these efforts.

Learn more at: www.accenture.com/cmo_insights.

Methodology

The 2012 CMO Insights Survey is the third in a series of global surveys sponsored by Accenture aimed at understanding the opinions, challenges and points of view of senior marketing executives from around the world. The results are based on 405 surveys across 10 countries with senior marketing executives. All respondents are from companies with at least $1 billion in annual revenues, with companies in France Australia, Singapore and Brazil all having an annual revenue of at least $500 million. Accenture conducted an online survey in August and September of 2012.

About Accenture

Accenture is a global management consulting, technology services and outsourcing company, with approximately 261,000 people serving clients in more than 120 countries. Combining unparalleled experience, comprehensive capabilities across all industries and business functions, and extensive research on the world's most successful companies, Accenture collaborates with clients to help them become high-performance businesses and governments. The company generated net revenues of US$27.9 billion for the fiscal year ended Aug. 31, 2012. Its home page is www.accenture.com.

Accenture Interactive helps the world's leading brands drive superior marketing performance across the full multichannel customer experience. Working with over 4,000 Accenture professionals dedicated to serving the marketing function, Accenture Interactive offers integrated, industrialized and industry-driven marketing solutions and services across consulting, technology and outsourcing powered by analytics. Follow @AccentureSocial or visit Accenture Interactive.

 

Editor Notes

           

Geography Analysis Global:

Geography       Count       Percentage
USA       145       36%
Canada       15       4%
France       40       10%
Germany       42       10%
Italy       41       10%
UK       40       10%
Brazil       20       5%
Australia       21       5%
China       21       5%
Singapore       20       5%
Total       405       100%
 
     

Functional Title Analysis Global:

Functional Title       Percentage
Other Vice President/Marketing       40%
Chief Marketing Officer       32%
Head of Brand       15%
Head of Digital       7%
Head of Communications       5%
Other       1%
Total       100%
 
     

Business Model Analysis Global:

Type       Percentage
Business to Consumer Company       37%
Business to Business Consumer Company       37%
Business to Business Company       26%
Total       100%
 
           

Industry Analysis Global:

Industry       Count       Percentage of Value
Consumer Goods & Services       29       7%
Pharma/Medical Products/Biotech       24       6%
Retail       23       6%
Transportation & Travel       24       6%
Industrial Equipment       15       4%
Automotive       6       1%
Banking       102       25%
Insurance       26       6%
Capital Markets       12       3%
Electronics & High Tech       32       8%
Telecom       19       5%
Media & Entertainment       14       3%
Energy       10       2%
Metals & Mining       10       2%
Utilities       7       2%
Chemicals       5       1%
Other       34       8%
Health Providers       12       3%
Health Payers       1       0%
Forest Products       0       0%
Total       405       100%
 

Accenture
Cam Granstra, + 312-693-5992
cameria.l.granstra@accenture.com
or
Kathryn Zbikowski, + 917-452-0127
kathryn.zbikowski@accenture.com

Products
  • Globe Unlimited

    Digital all access pass across devices. subscribe

  • The Globe and Mail Newspaper

    Newspaper delivered to your doorstep. subscribe

  • Globe2Go

    The digital replica of our newspaper. subscribe

  • Globe eBooks

    A collection of articles by the Globe. subscribe

See all Globe Products

Advertise with us

GlobeLink.ca

Your number one partner for reaching Canada's Influential Achievers. learn more

The Globe at your Workplace
Our Company
Customer Service
Globe Recognition
Mobile Apps
NEWS APP
INVESTING APP
Other Sections