Majority Of Marketers See Budget Increases And Action In 2003

The report has found a markedly different sentiment from marketing executive at the beginning of this year as compared with that of 2002 when the attitude was pretty much to hunker down and ride out the storm. This year, though, the outlook is for growth; on average, responding companies will be spending 11% more in 2003 than in 2002.

Of all marketing activities, by far the majority of respondents (71%) plan on implementing public relations exercises within the next twelve months. Advertising comes in at fifth place (56%), below direct mail, e-marketing and trade shows.

PMG says that there appear to be several main reasons for marketers’ willingness and ability to increase their marketing budgets in 2003. Firstly, the cost of remaining ‘invisible’ to customers is deemed to be too great – things were slowed as much as possible in 2002, according to one software executive.

Secondly, the overriding forecast is that economic conditions will be improving in 2003; revenues, operations and investments are all growing. Lastly, marketers feel that there is now a ‘pent-up demand’ to do business and grow market share and that many products have become ‘market-ready’ in 2003.

“In reading the survey transcripts, one has the immediate sense that people in dozens of industries are no longer willing to sit around and wait. Their patience is at an end and they’re planning to take aggressive action to grow revenue and market share,” says the report.