Survey Shows Business Confidence Is Returning To Britain
Almost 40% of companies are planning to increase their marketing and sales operations as business confidence returns to Britain, according to new research from the Chartered Institute Of Marketing (CIM).
The latest Marketing Trends Survey suggests the economy has enjoyed a powerful boost since the end of the war in Iraq, with businesses predicting that a 10% sales increase in the coming year will led to the strongest growth since the mid-nineties.
Peter Fisk, CIM chief executive officer, said: “This, coupled with the anticipated increase in size of marketing budgets reflects the fact that more and more businesses are recognising that marketing creates value.”
He added: “The marketing department is usually the first part of an organisation that can gauge an understanding of how the economy is reacting through its in-depth knowledge of sales activities and consumer preferences.”
The proportion of companies expecting their sales plans to be over-achieved has increased ten fold over the last three months from 3% to 30%. However, enthusiasm has shifted away from smaller firms towards larger companies that turnover more than £100,000 per year.
Andy Viner, partner at professional services firm, BDO Stoy Hayward, said: “The Marketing Trends Survey reflects the rising confidence and optimism that is gradually being felt in the professional practices sector, and across other service industries, nearly four months after the end of the main phase of the Iraq War.”
He added: “Our marketing and communications clients are starting to report signs of optimism although it continues to be patchy – some are budgeting for a slight upturn, whilst others are still suffering. We anticipate that there will be a gradual recovery in the sector in 2004, accelerating into 2005.”
This latest research comes just weeks after IPA’s quarterly Bellwether report quashed hopes of an improvement in fortunes for the advertising industry by revealing that marketing budgets were revised down again during the second quarter of this year.
According to the survey, which is drawn from a panel of over 200 UK marketing professionals, just 18% of companies increased their total marketing budget between April and June this year, compared to 29% that reported a decrease (see Bellwether Reveals Continuing Uncertainty For UK Marketers).
Chartered Institute Of Marketing: 01628 427 500 www.cim.co.uk
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