CMOs bullish about the future but not keen on launching new products

First Forbes/gyro CMO Index finds US chief marketing officers are investing in the future but cautious about growing in new markets

Chief marketing officers (CMOs) have a positive outlook over the next six months but continue to be cautious about entering new markets and launching products and services, a new report claims.

The inaugural Forbes Insights/gyro Index surveyed 876 US marketers and found 45 per cent are more optimistic about industry-wide marketing conditions, while 46 per cent are as optimistic about the future as they are today.

In addition, 39 per cent are increasing marketing budgets compared with 49 per cent who are retaining existing numbers. The quarterly poll was completed in October and based on respondents assigning a 0, 10 or 20 point sentiment score to each question.

One the issue of staffing, 54 per cent said they are maintaining existing employee numbers, while 36 per cent plan to add more staff.

In a sign of the continued caution in the market, however, 55 per cent of those surveyed are spending the greatest amount of their time growing existing markets, against 29 per cent who are preparing to enter new markets and 16 per cent who are focus on growing in new markets. The report authors said the overall sentiment score of 7.5 indicated a clear negative sentiment towards entering new markets.

The figure in perhaps unsurprising given industry-wide acknowledgement that customer retention is cheaper than new customer acquisition.

In addition, 58 per cent of respondents are focusing on growing existing product lines and services, while just 14 per cent are prioritising new product or services launches. The overall sentiment score was 5.8, again indicating the negative sentiment towards new product and service expansion currently.

Overall, Forbes and gyro, a global ad agency, assigned a 52.1 sentiment score to respondents for October. Across industry sectors, business services/legal/training and consulting gained the highest optimism score, while aerospace/defence recorded the lowest.

Marketers must transform their story to meet the new customer paradigm: McKinsey
How you can be a digital CMO
Should CMOs own product development?

Follow CMO on Twitter: @CMOAustralia, take part in the CMO Australia conversation on LinkedIn: CMO Australia, or join us on Facebook: https://www.facebook.com/CMOAustralia

Signup to CMO’s new email newsletter to receive your weekly dose of targeted content for the modern marketing chief.

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.
Show Comments

Latest Videos

Conversations over a cuppa with CMO: Microsoft's Pip Arthur

​In this latest episode of our conversations over a cuppa with CMO, we catch up with the delightful Pip Arthur, Microsoft Australia's chief marketing officer and communications director, to talk about thinking differently, delivering on B2B connection in the crisis, brand purpose and marketing transformation.

More Videos

Did anyone proofread this document before it was published?

Beau Ushay

CMO Momentum 2020: How to embrace agile marketing

Read more

he decision to limit the initial version of the code to two US companies is discriminatory and will inevitably give an unfair advantage t...

Azeem Sohail

Google hits out at ACCC draft code of conduct for news media negotiations

Read more

You’re a warrior woman from way back. Just let the muscle memory take over!

Hannah Sturrock

Why fear trumps marketing theory - Marketing edge - CMO Australia

Read more

What an inspiring piece of writing, Hannah, thank you so much for sharing! All right, team jersey out of the locker, brains on, eye of th...

Myriam Conrie

Why fear trumps marketing theory - Marketing edge - CMO Australia

Read more

Thanks for the post

Ashirwad Towers

How a brand facelift and content strategy turned real estate software, Rockend, around

Read more

Blog Posts

Creating a culture club builds ownership of teamwork

Workplace cultures are the sum of everyone’s beliefs, behaviours, attitudes and skills. This means that no single person is responsible for culture, it belongs to the team.

Colin D Ellis

Culture change expert, author

A Brand for social justice

In 2020, brands did something they’d never done before: They spoke up about race.

Dipanjan Chatterjee and Xiaofeng Wang

VP and principal analyst and senior analyst, Forrester

Determining our Humanity

‘Business as unusual’ is a term my organisation has adopted to describe the professional aftermath of COVID-19 and the rest of the tragic events this year. Social distancing, perspex screens at counters and masks in all manner of situations have introduced us to a world we were never familiar with. But, as we keep being reminded, this is the new normal. This is the world we created. Yet we also have the opportunity to create something else.

Katja Forbes

Managing director of Designit, Australia and New Zealand

Sign in