CIM Claims 2003 Sales Targets Are The Most Cautious Ever
The Chartered Institute Of Marketing (CIM) has delivered further bad news to the UK marketing industry by claiming that sales targets for 2003 are some of the most cautious ever.
The research suggests that the marketing industry, which has been hit by a flurry of downgraded forecasts and bearish sentiment, has little to look forward to over the coming months.
The Winter 2002-2003 Marketing Trends Survey (MTS), which questions senior marketers about their plans for the future, estimates that advertisers are planning for sales growth of 4.6% over the coming year, just 0.3% above that achieved in recession-struck 2001.
On a brighter note the confidence index, which measures marketers confidence in meeting their company’s sales targets, has risen to a dramatic seven-year high of 98.5.
Douglas McWilliams, economic advisor to the CIM, claims: “This survey shows that UK marketers are extremely confident in their sales plans, but these plans are some of the most cautious we have ever seen. It is likely that the improvement in confidence has more to do with marketers cutting back their sales plans rather than improvements in the underlying economy.”
Mike Johnston, chairman of the CIM, added: “Despite cutbacks in sales targets, on average firms intend to increase marketing spend in order to boost margins and customer loyalty. This is a positive move, and shows that firms are making the right connections between marketing activity and long-term business success.”
Earlier this week WPP chairman, Sir Martin Sorrell, warned that the ‘impulse’ for a real recovery in advertising spend will not come until 2004 (see No Impulse For Ad Recovery Until 2004, Says Sorrell).
Chartered Institute Of Marketing: 01628 427 500 www.cim.co.uk
Recent Related Stories from NewsLine Marketing Budgets To Rise In 2003, Says Study IPC Ignite! Appoints McKinney As Marketing Director Nielsen Relaunches Direct Mail Measurement Tool
Subscribers can access ten years of NewsLine articles by clicking the Search button to the left