The Chartered Institute of Marketing’s latest Marketing Trends Survey (Spring 2009) has revealed that many marketers believe the worst of the recession is over, although the rest of 2009 will remain extremely challenging.
The survey, conducted for The Institute by Ipsos MORI, reveals that the number of marketers who believe the UK economy will worsen in the next 12 months has halved to 34 per cent (down from 70 per cent in the Autumn 2008 survey). Likewise, those believing the UK economy will improve in the next 12 months has risen sharply to 26 per cent (up from 11 per cent in the Autumn 2008 survey).
When questioned about the prospects for their own organisation in the year ahead, more marketers believe business will improve (35 per cent) than believe it will get worse (24 per cent) – reversing the decline in confidence seen in the previous four surveys.
However, marketers remain gloomy about the prospects for the rest of 2009. Almost three quarters (72 per cent) of marketers surveyed said they did not think the UK economy would pull out of recession in 2009.
This is reflected in the all-time low annual sales performance forecast for this financial year – a 0.7 per cent increase – down from 3.1 per cent in Autumn 2008 and down sharply from the 8.9 per cent growth expected just two years ago.
As belts tighten, marketing spend is increasingly being focused on the activities that marketers believe deliver the best return on investment – Customer Relationship Management, Public Relations and email marketing. In contrast, marketing spend on advertising (excluding online) is down 4.9 per cent, reflecting the fact that 23 per cent of those surveyed believed it delivers the worst return on investment.
Marketers remain concerned about their employment prospects, with a third (32 per cent) worried about losing their job in the next 12 months, including 45 per cent of those in the technology and telecoms sector. In addition, 18 per cent of those who are self-employed are worried that the recession will cause them to close their business in the year ahead.
Commenting on the findings, David Thorp, director of research and information at The Chartered Institute of Marketing said, “Despite fears over the economy and job prospects for the rest of 2009, it is clear that we are turning a corner in marketers’ confidence about the future. For now, marketers are wisely concentrating their spend in the most effective activities, and as we move into 2010, I’m convinced this more professional approach will stand them in good stead when the economy recovers.”
