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Downturn triggers field marketing surge

An IMS product story
Edited by the Marketingweek Marketplace editorial team Jul 1, 2008

Leading UK retail brands are turning to traditional field marketing in ever-increasing numbers as they go 'back to the future' in a bid to beat the credit crunch.

Field marketing specialist IMS has witnessed a rise in business over the past six months as tough economic trading conditions on the high street begin to bite - and clients turn to marketing campaigns that can offer a clear return on investment.

"Despite the continuing slowdown in the economy, we've experienced a 10.2 per cent increase in sales inquiries in the first half of this year - and much of this has been prompted by the knock-on effects of the credit crunch," said IMS founder and Sales and Marketing Director, Laura Holden.

"In a jittery marketplace, where under-pressure budgets are being further squeezed, field marketing is enjoying somewhat of a renaissance because of its unique ability to prove return on investment, and assess sales against spend.

"There is much more of a focus on the bottom line - and how to maintain and improve it.

"ROI is a powerful tool to demonstrate how a budget has performed and this can be tracked very easily for traditional field marketing - right down to the individual visit".

Holden added: "We believe that investment in field marketing will continue to increase - possibly to unprecedented levels - at the expense of other marketing disciplines and vehicles which are unable to justify a budget with the same accuracy, or to the same levels.

"Among the decision-makers, the buzz word has changed noticeably in recent months from 'awareness' to 'sales'.

This tipping of the balance clearly plays to the strengths of the innovators in traditional field marketing who excel at ensuring every Pound of client spend goes as far as possible - achieving returns on investment as high as 20:1.

IMS' specialism - Point of Purchase marketing - is also attracting new-found appeal among clients.

It is estimated that as many as 70 per cent of purchasing decisions are made at point of purchase.

Holden said that without POP activity to drive the sale, all the marketing and associated investment made beforehand is lost.

Consumers too were also very aware of the tough trading climate, which also underlined the need for manufacturers to ensure their POP activity is spot-on to entice the consumer.

She added: "Consumers have less disposable income and are more economical with their in-store spend.

Promotional compliance and eye-catching POS shouting about special offers, such as BOGOFs, are essential to drive sales.

This can only be ensured with traditional field marketing.

"If products are not available on-shelf, then there is a danger that this may make consumers switch to another, possibly cheaper, brand if pockets are empty.

If this happens just once, a brand may lose a customer for life to a competitor.

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