Marketing companies urged to box clever as growth expectations fall
Aug 17 2001
Smaller UK marketing companies have once again lowered their planned sales growth forecasts for the year - from a spring forecast of 4.9% to a summer forecast of 4.7% - a figure which is actually a six year low.
The Chartered Institute of Marketing's Summer 2001 Marketing Trends Survey (MTS) also reveals lower expectations for price increases and a lower level of confidence in achieving current sales plans (the CIM Sales Plan Confidence Index fell from 89.7 in the Spring MTS to 89.1 for the summer).
It is the marketing groups with sales between £10 million and £50 million which appear to be the most pessimistic overall - 51% of them described their sales targets as either "very challenging" or "unrealistic." On either side of this bracket, businesses were more optimistic. 64% of firms with a turnover of under £1 million viewed their sales plans as "realistic" or even "over-achieved" and 59% of large firms were the most confident of achieving their sales goals.
"Seize the opportunities"
John Hilsdon, CIM's Senior Corporate Communications Officer, explained that smaller marketers may be more cautious as some of their income may be dependent on the business of larger companies; a knock-on effect over a period of time could be a worry.
However, he did offer some good words of advice: "Marketers don't stop marketing in a recession. This is a period of competitive advantage which is there to be seized." According to Hilsdon, it is a time for marketers to look at their expenditure and sales plans and "cut out the bits that are the least effective." Hilsdon also reckons that any slowdown is an opportunity for small marketing groups to look at their budgets in relation to their competitors, and keep an eye on those areas rivals are having to cut back on. The implication is that clever companies may be able to win clients from rivals that are cutting back on certain areas and emerge from the difficult environment with more customers and improved economies of scale. Overall though, he opines that marketers need to make sure that they are "absolutely on target" when it comes to marketing to their chosen audiences.
Those businesses interested in accessing an executive summary of this report as well as earlier surveys, should log on to www.marketingportal.cim.co.uk .
With thanks to Lloyds TSB Success4Business. For more news and information visit www.success4business.com .
(17/8/01)
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