SALESFUEL TODAY

B2C Enterprises Lead in 2014 Marketing Budget Growth

by | 2 minute read

The Feb­ru­ary 2014 CMO study from Dr. Chris­tine Moor­man at Duke’s Fuqua School of Busi­ness has just been released. This bi-annu­al report tracks mar­ket­ing atti­tudes held by marketinggraphbusi­ness lead­ers across the U.S. The good news is that the opti­mism rat­ing for the over­all econ­o­my for the next 6 months is at 66.1, high­er than it has been at any point since Feb­ru­ary 2009. As a result, CMOs are boost­ing their mar­ket­ing bud­gets to sup­port new prod­ucts and ser­vices they're rolling out this year.

B2B and B2C prod­uct mar­keters are more opti­mistic than ser­vices providers. In addi­tion, CMOs have more opti­mism for their own busi­ness­es, 73.2, than they do for the gen­er­al econ­o­my. These pos­i­tive atti­tudes are lead­ing 74.7% of exec­u­tives to believe they'll be able to acquire new cus­tomers this year and 69.3% also expect to see increased cus­tomer pur­chase vol­ume.

These mar­keters plan to increase their mar­ket­ing bud­gets by 6.7%. Dig­i­tal mar­ket­ing will receive an 8.2% spend­ing boost, slight­ly less than in the past. Tra­di­tion­al media will be cut by 0.1% which is the small­est cut made to this for­mat in the past 3 years. The inten­tion to keep mar­ket­ing spend­ing on tra­di­tion­al media near­ly lev­el is worth pon­der­ing. Per­haps mar­keters believe they're reach­ing an equi­lib­ri­um between tra­di­tion­al and dig­i­tal.

By sec­tor, B2B prod­uct mar­keters will boost their dig­i­tal spend by 9.0% while B2C prod­uct mar­keters antic­i­pate boost­ing tra­di­tion­al spend­ing by 2.8%.

Mar­ket­ing spend­ing will increase in sev­er­al cat­e­gories:

  • New prod­uct intros: 7.8%
  • New ser­vice intros: 4.0%
  • CRM: 5.1%
  • Brand build­ing 4.9%

The aver­age mar­ket­ing bud­get as a per­cent­age of rev­enue for firms par­tic­i­pat­ing in this sur­vey is 10.9%, but there's sig­nif­i­cant vari­a­tion among sec­tors and size. For exam­ple, B2C prod­uct mar­keters spend the most, 15.2%, as do small­er firms. Enter­pris­es with rev­enues under than $25 mil­lion spend 13.9%. Just the oppo­site is true for mar­keters who sell more online. Those with  10% or more of rev­enue com­ing from online sources are spend­ing the most on mar­ket­ing, 18.6%.

How does your mar­ket­ing bud­get com­pare to the sta­tis­tics revealed in this sur­vey?

Kathy Crosett
Kathy is the Vice Pres­i­dent of Research for Sales­Fu­el. She holds a Mas­ters in Busi­ness Admin­is­tra­tion from the Uni­ver­si­ty of Ver­mont and over­sees a staff of researchers, writ­ers and con­tent providers for Sales­Fu­el. Pre­vi­ous­ly, she was co-own­er of sev­er­al small busi­ness­es in the health care ser­vices sec­tor.