South west remains pessimistic about UK recovery

A The Chartered Institute of Marketing product story

Edited by the Marketingweek Marketplace editorial team Jul 1, 2009

The Chartered Institute of Marketing's (CIM) spring 2009 Marketing Trends Survey has revealed that many marketers in the south west remain pessimistic about the UK economy in the year ahead.

This contrasts with the rising optimism seen among marketers elsewhere in the UK.

The survey of more than 1,200 marketers nationwide was completed for the CIM by Ipsos Mori.

It revealed that although the number of marketers in the region who believe the UK economy will worsen in the next 12 months has almost halved to 39 per cent (down from 73 per cent in the autumn 2008 survey), this still significantly outweighs the 23 per cent who believe the UK economy will improve - the lowest figure across the UK.

A remarkable 82 per cent of marketers in the south west said the UK economy would not pull out of recession in 2009 - more than in any other region.

When questioned about the prospects for their own organisation in the year ahead, marketers in the region again remained cautious, with only 29 per cent believing business for their own organisation will improve in the year ahead - again the lowest across the UK.

Such pessimism is reflected in the anticipated sales performance of those in the region, which at 0.5 per cent growth is among the lowest across the UK, and significantly less than the 4.5 per cent growth expected just six months ago in the autumn 2008 survey.

This latest survey also reveals a significant decrease in marketing spend (excluding salaries), which for marketers in the south west now stands at 6.8 per cent of turnover - down sharply from the 9.4 per cent seen in the autumn 2008 survey.

David Thorp, director of research and information at the CIM, said: 'Despite fears over the economy for the rest of 2009, it is clear that for the UK as a whole we are turning a corner in marketers' confidence about the future.

Phil Comer, south west regional chairman for the CIM, added: 'Marketers in the south west are clearly anticipating tough times ahead and difficult trading times for many companies.

'But companies should be aware of the dangers of slashing marketing budgets when things get tight, and recognise the vital role marketing has to play in maintaining exposure in a less crowded market.

'A more targeted approach is required and will ensure companies are better placed for the recovery when it comes.