Marketers Remain Upbeat Despite Economic Slowdown
12 June 2008
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Latest Marketing Trends Survey reveals that marketers remain positive about their prospects, whilst recognising the UK economy is headed for challenging times
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Marketing spend continues to rise – especially amongst small businesses
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More marketers recruiting than cutting staff
The Chartered Institute of Marketing’s latest Marketing Trends Survey (Spring 2008) reveals that marketers remain surprisingly upbeat about their own organisations’ prospects – even if they are increasingly gloomy about the UK’s economic outlook.
The survey, completed for The Institute by Ipsos MORI, reveals that more than a third of marketers believe the UK will be in recession in 2008, and the number of marketers who expect general economic conditions to worsen over the next 12 months has risen substantially since the previous survey in September 2007(from 40 per cent to 57 per cent).
However, marketers remain stubbornly optimistic about their own organisation’s performance, with a surprisingly high 39 per cent of marketers confident that business for their organisation will improve over the next 12 months, with 41 per cent saying that it will stay the same, and only 17 per cent believing conditions will worsen for their business.
Commenting on the findings, David Thorp, Director of Research and Information at The Chartered Institute of Marketing said, “Marketers remain confident about their own prospects, despite the end of the ‘nice’ decade. This may be because today’s professional marketers know that they can help their organisations’ exploit the opportunities an economic downturn brings. By focusing on changing customer needs more precisely, in these challenging times, they can help their organisations to not only survive but thrive.”
As if to confirm marketers’ optimism, The Institute’s survey shows that spending on marketing continues to rise, accounting for an average of 7.7 per cent of an organisation’s turnover (up from 6.6 per cent in September 2007). Amongst small businesses the figure is even higher at 8.6 per cent for those with turnover under £1 million, and 8.8 per cent for those with turnover between £1 million and £10 million.
Such confidence in their own prospects is also reflected in marketers’ expectations about staffing levels over the current sales year. 30 per cent of marketers expect to be adding staff, with only 10 per cent expecting a decrease in the size of their organisation’s marketing function.
Ends.
Notes:
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Source: The Chartered Institute of Marketing’s Marketing Trends Survey Spring 2008, conducted by Ipsos MORI. To obtain a copy please contact Ray Jones: rayjones@cim.co.uk
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A total of 2,058 marketing professionals completed the online questionnaire which was hosted by the independent market research organisation, Ipsos MORI, between 27 March and 14 April 2008. A broad cross-section of organisations by sector, turnover and geographic location was achieved.
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A copy of the “key findings” document’ and supporting graphics and photographs are available on request.