US Marketers Gear Up For Improved 2004
The economy is still weak and as a result marketing activity has been limited, according to a new US survey. However, it would appear that conditions have bottomed out and marketers are confident of a revival in 2004.
However, there is a groundswell of belief in recovery and companies are adopting new strategies in order to benefit from any upturn.
“With the sluggish economy, many marketing executives feel like they’ve had their hands tied behind their backs, yet they are fiercely hopeful about the future,” said Craig Shields, PMG partner and author of the report. “And depending on whom you ask, the turnaround is either right around the corner, or it’s already in full swing.”
| Perceptions Of The Economy And Its Effects On Business | |
| Statement | % |
| In our sector, the economy is very weak. Spending is down, and this is hurting us significantly | 35 |
| The economy is weak overall, but spending in our sector is not too bad | 42 |
| The economy is strong, or recovering quickly | 9 |
| The state of the economy is not terribly relevant to success in our specific sector | 4 |
| Other | 3 |
| Source: Patrick Marketing Group, December 2003 | |
PMG notes that in the current climate, consumers are under pressure to cut costs and have the time and resources to seek out the lowest price for products. As a consequence, many sectors have seen the collapse of traditional price structures and competition has intensified.
Many companies have repositioned themselves in order to offer greater value to customers. This tends to involve research into the needs of a particular market segment. Other tactics have included the development of new channel strategies, the introduction of innovative new products, a shift into unexplored markets and a reassessment of pricing models.
The adherence to accountability has ensured that the most popular initiatives are those which have been proven to drive sales. New media is increasingly regarded as good value in ROI terms and internet adspend was up 20% in the third quarter of 2003 (see US Internet Advertising Revenue Rises 20% In Q3).
In the survey, 48% of those questioned said that they planned to spend more on electronic advertising in 2004. Some 40% intend to invest more heavily in other online marketing and 29% are prepared to increase expenditure on keyword purchases (through Google, Overture etc). As for print advertising, only a fifth of marketing executives say they will spend more in this area, the same proportion who plan to cut the budget.
| Plans To Increase Or Decrease Marketing Spending In 2004 | |||
| Discipline | Increase | Decrease | No Change |
| Seminars & Other Events | 50% | 9% | 41% |
| Electronic Advertising | 48% | 8% | 44% |
| Direct Mail | 42% | 15% | 43% |
| Other Online Marketing | 40% | 4% | 56% |
| Public Relations | 35% | 12% | 53% |
| Telemarketing | 30% | 15% | 55% |
| Keyword Purchases | 29% | 7% | 64% |
| Trade Shows | 26% | 18% | 56% |
| Print Advertising | 20% | 20% | 60% |
| Source: Patrick Marketing Group, December 2003 | |||
