Threat Of War Knocks UK Marketers’ Confidence
The continued economic uncertainty and the threat of war with Iraq has caused confidence among senior UK marketers to hit rock bottom, according to research from the Chartered Institute of Marketers (CIM).
The latest Marketing Trends Survey shows that marketers’ confidence in their ability to reach their sales targets has dropped to an all time low, with just 82.5% expecting to live up to expectations, down from 98.5% in the previous survey.
According to the CIM, this fall in confidence reflects the pessimism of the entire marketing profession, with only 36% of respondents describing their sales plan as realistic, compared to 58% on the winter of 2002. A further 62% described their sales plan as very challenging and only 3% as over achievable, compared to 20% and 19% respectively in the last survey.
Larger firms, with a turnover of more than £100 million, are forecasting 6.3% growth in their total sales resource for 2003, following only a 2.7% rise last year. Across the board, companies are planning a 1.7% increase in sales, down from the 2.4% rise reported in the winter of 2002.
The latest report shows that companies have turned their focus away from achieving higher margins and improving product specifications and are now concentrating on improving existing customer loyalty and generating additional income.
Commenting on the findings, Mike Johnston, international chairman of the CIM, said: “Clearly uncertainty about war in Iraq combined with a continuing consumer slowdown mean that senior UK marketers are concerned about the prospect of a recession.”
He added: “In a slowdown, marketers have a real opportunity to prove that marketing is the key driver of business success.”
Last month the CIM released a study suggesting that advertising that uses sex to sell products has fallen out of favour with consumers, with 46% of respondents recognising that women are regularly and inaccurately stereotyped by marketers (see New Research Suggests Sex Doesn’t Sell).
Chartered Institute Of Marketing: 01628 427 500 www.cim.co.uk
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