CIM Marketing Trends Survey for the Summer

According to the recently released Summer 2001 Marketing Trends Survey (MTS) from the Chartered Institute of Marketing (CIM), the marketing profession is facing a great deal of uncertainty. As a consequence, marketers have little confidence and have generally set very cautious company sales targets.

The new survey shows that forecasts for sales growth have been lowered from 4.9% earlier this year to 4.7% this summer. Even though these targets are at an all-time low since the survey started in 1994, marketers have little confidence in achieving them. The CIM Confidence Index has fallen to 89.1%. This represents its second lowest level since the introduction of the MTS.

Within the survey, although 59% of respondents maintain that their targets are realistic, the industry remains cautious. Twenty nine percent of respondents feel that their targets are 'very challenging' and a further nine percent say their targets are unrealistic. Some 40% of respondents say that they face formidable sales targets: this is true for marketers in most sectors, regions and sizes of companies. Only a handful of sectors are bucking the trend, mostly from the chemicals and service sectors, and businesses based in the North and the West Midlands.

No respondents believe they will beat their targets by a wide margin, but a small minority think they might beat their targets. There is no conclusive link between the confidence of marketers in achieving their targets and the size of companies, says CIM. Ten percent of marketers from companies with a turnover of between £50m and £100m a year seem optimistic and think that they can beat their targets. Marketers from companies with a turnover of between £10m and £50m a year are five times less likely to feel that they can achieve the same.

The predicted 4.7% sales growth for the current sales year is slightly lower than the 4.9% forecast in the Spring MTS. This decrease may seem small but is alarming when compared with previous surveys. Before 2001, planned sales growth never dropped below five percent and had only dropped below six percent on two occasions (in January 1998 and April 1996).

Overall, the Summer 2001 MTS confirms the results of the earlier Spring 2001 survey. The marketing profession has experienced a blow to its confidence and is moving forward very cautiously. Figures from the spring survey reflected a marketing profession reducing expenditure on all areas of activity and exercising caution in the face of potential economic problems. The Summer 2001 MTS maintains that confidence is subdued and that lack of confidence is affecting spending plans.

All articles 2006-22 written and edited by Mel Crowther and/or Nick Thomas unless otherwise stated.