UK Marketers Up-Beat As Sales Continue To Rise
The UK marketing industry remains in an up-beat mood with sales expected to rise by a total of 8.5% over the coming year, according to new research from the Chartered Institute of Marketing.
The latest Marketing Trends survey of more than 100 leading media professionals shows that marketers are confident they can achieve ambitious sales targets despite predictions of an economic slowdown over the next few months.
The research suggests that on average firms are planning a 4.9% increase in their total sales resource this year. The internet is expected to be the biggest beneficiary with spend rising by a healthy 5.5%. Expenditure on information systems and PR will also be high and both will benefit from a 4% increase.
Just 3% of those that took part in the survey, which was carried out between July and August this year, said they were planning to cut back on marketing activity. Firms in Wales and East Anglia are the most optimistic with sales expected to increase by 14.2% and 8.3% respectively. However, companies in the South West are planning to up spend by just 1.3%.
Just under a third of respondents said that increasing their share of the UK market was their main marketing focus. Over a quarter mentioned improving customer loyalty, increasing product specification and volume growth as key priorities.
The majority of industry experts believe that the UK economy is at a turning point and that growth is likely to slowdown over the next year. However, few are willing to predict whether the slowdown is likely to be severe or a so-called ‘soft landing’.
Douglas McWiliams, chief economic advisor to the Chartered Institute of Marketing and chief executive of the centre for economics and business research, said: “This survey indicates that growth in business spending on marketing – which has proved to be a good pointer to business spending in general – is likely to remain at a record level.
He added: “Sales expectations in the machinery and equipment sector – which is closely related to business investment – are also strong. Taking the detailed results of the survey in conjunction with the buoyant overall results for sales growth and for confidence, and the prospects of continued low inflation, a ‘soft’ landing is more likely than a hard one.”
The Advertising Association remains positive over prospects for the coming year and forecasts that UK adspend will rise by 4.4% next year with online media owners expected to be the main beneficiaries. Conditions look set to be tougher for television advertising, which is only expected to see a nominal rise in expenditure next year (see UK Adspend Expected To Grow By 4.4% Next Year).
Chartered Institute Of Marketing: 01628 427 5000 www.cim.co.uk
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