British marketers are optimistic over business prospects in the immediate future despite increasing fear of inflation, reports Britain's venerable Chartered Institute of Marketing.
The CIM's latest Marketing Trends survey sampled five hundred senior marketing professionals, the results reflecting a widely held view that the expected economic slowdown will represent a change of gear rather than recession.
Says Douglas McWilliams, chief executive of CIM economics and business research: "An important indicator of the continued confidence that there will not be a recession, is the relatively high forecast (by historic standards) for growth in marketing spend."
"Taking all the signals together, the survey points to steady, rather than booming, economic growth. But on the back of the strong upswing that has continued since 2003, the fact that even now recession is not expected is encouraging."
Key data emerging from the survey are …
- Overall sales are expected to increase by 8.9%, strengthening slightly afterthe summer. The optimism was widespread, with some industries including electronics, business and property services, and wholesale distributors expecting sales increases of over ten per cent.
- Spend on internet marketing is expected to enjoy the biggest growth - 7.2%. Marketing information systems and lead generation will also be priorities over the next twelve months, with both areas predicting spend increases of 4.8%.
- On average, those taking part in the survey expect to raise prices by 2.2%, up from 1.6% in the summer, as a result of increasing inflationary pressures in response to rising energy and fuel costs and to slightly higher labour cost inflation.
Data sourced from mad.co.uk; additional content by WARC staff