Marketing confidence drops to new low
Dec 03 2001
Confidence among UK marketers has reached record lows, a new report is set to show.
The survey from the Chartered Institute of Marketing (CIM) will reveal that many small firms are pessimistic about future sales growth.
The report, due to be published later this month, draws on the results of the Autumn 2001 CIM Marketing Trends Survey, conducted between 21 September and 5 October, and produced by the Centre for Economics and Business Research (CEBR)."
The survey reveals that planned sales growth stands at 3.7 per cent. This is about half the level of a year ago and the lowest since the survey began in 1994. Moreover, only 40 per cent of the 150 respondents described these "low" targets as realistic. Not surprisingly the CIM Confidence Index has dipped to 83.9, from last year's 91.8.
Large firms, with turnovers over £100 million, are the most confident, expecting sales growth of 5.6 per cent this year, a slight drop from last year’s 5.9 per cent. But firms with turnovers between £10 million and £50 million are the least optimistic expecting sales to grow just 2.6 per cent this year. That’s slightly less pessimistic than last year when such medium-sized firms expected sales to grow 2.1 per cent.
Even smaller businesses were more downbeat last year, but have since brightened up. Those with income between £1 million and £10 million expected sales to grow 2.2 per cent last year but now think 4.8 per cent is possible. Whilst firms with sales below £1 million bracket now expect sales to grow 3.3 per cent, as against a very depressed forecast of 1.9 per cent last year.
Although large firms are the most confident about achieving their sales plans, only 57 per cent would describe them as "achievable". Just over half of the small firms' respondents – with turnover below £1 million– described their sales plan as either "very challenging" or "unrealistic".
The CEBR's Kevin McCauley provided some encouraging words, however. He advised marketers not to be too fearful, not to overreact, and not to cut their budgets unless they have to. He said, "The economy is only slowing down, growth is likely to pick up again next year," adding that in order to take advantage of the situation marketers will "want to be in a strong position."
Ray Perry, CIM's director of marketing, commented that in a period of economic uncertainty, marketers are facing challenging times. "It is however an opportunity for marketers to do what they are good at." As examples, he cited developing products and services, seeking and engaging customers and focusing on using the budget as efficiently as possible.
The survey will be available on the CIM's website soon. Visit www.cim.co.uk.
With thanks to Lloyds TSB Success4Business. For more news and information visit www.success4business.com.
(30/11/01)