| CAT Marketing
Spend - Part 2
Earlier
this year 101 CAD SPAGHETTI readers completed our web survey
on their marketing spend. In the second part
of our analysis of the resulting findings, we reveal how suppliers
to computer aided technology markets think marketing spend
will change over the next two years.
The
vast majority (95%) of our respondents had either shared or
sole responsibility for their companies' marketing activity.
The areas which they had responsibility for were as
follows:
34% - one European country
30% - worldwide
12% - USA
11% - Europe, Middle East and Africa
10% - more than one European country
3% - other
Spend!
Spend!
When
asked to consider how their overall marketing budget might
change in the next two years, 78% said it would increase to
some degree, and one in five felt it would increase significantly.
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Miss
the last CAD SPAGHETTI? Find out here
how
much suppliers are currently spending on marketing, how this
money is being spent, and how priorities have changes in recent
years.
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Our
Sample was made up of the following:
• 33% software developers
• 25% VARs
• 8% hardware
manufacturers
• 8% CAD/CAM/ engineering service providers
• 6% distributors
• 6% dealers
• 4% 'consultants'
• 11% 'others'
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Future
Communications
What do
suppliers see as the most cost-effective ways to get their messages
across in future? Respondents were asked how the allocation
of marketing budget might change for six activities; direct marketing
(targeted email, snail mail or telemarketing), non-web advertising,
market research, website and web advertising, exhibitions/conferences,
and public relations.
| The
marketing spend trends that this survey picked up for the last
two years look set to continue. More companies are looking
to increase their spend on direct marketing than any other activity.
Advertising and exhibitions/conferences are the only two
areas where a significant proportion of suppliers are planning
to decrease their spend (26% and 31% respectively). |
Developing a new
marketing strategy? Find
out how Business Advantage
can help you get the best results.
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Multiple
Challenges
Respondents
were asked to identify the main challenges in the next twelve months.
Picking trends from this proved difficult, not least because our
101 respondents managed to come up with nearly 100 different obstacles
between them. Coping with the economic downturn (10%) and
developing brand awareness (7%) were the most commonly cited challenges
for 2002. Among the more interesting identified were:
· 'Convincing CAD users that the Internet must change their
working practices now!'
· 'Anticipating Autodesk's changing strategy'
· 'Pulling our customers through disruptive technology'
· 'Combining mass marketing methods with outstanding customer
service levels'.
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Conclusion
As
pointed out in the first part of this feature, only broad
conclusions can be drawn from such a broad cross section of
suppliers at different stages of market development. The
majority have increased expenditure on direct marketing over
the last two years, and this is set to continue in future.
Direct marketing has been booming across the board in recent
years anyway, but its use is particularly relevant when times
are tough. Where customers/prospects are tightening
the purse strings and delaying investment in new solutions,
the ability to target them with tailored messages is a powerful
tool to keep brand name and associated productivity gains
in mind. It's also an activity that offers measurable
ROI, a key factor when budgets are being haggled over.
With
the Web's growing capacity to handle a broad range of prospect
and customer relationships, there's no surprise that 50% of
suppliers anticipate increasing expenditure on Web related
marketing in future.
For
the other marketing activities, we see a varied picture of
intentions on future spend as suppliers seek to find the most
cost-effective mix. Overall the outlook from this survey
is a healthy one, with the vast majority (78%) anticipating
an increase in their marketing budget in the next two years.
The signs are that most suppliers are sold on the idea
of investing in marketing in the good times and the bad.
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Companies throughout
the world are using Business Advantage to develop, carry out
and follow up on marketing strategies. Find
out what a selection has
said about the impact on their business.
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If you want to target potential customers
in worldwide markets, Business Advantage's
sales
and marketing services can
provide the solution. If you want to uncover details of the
strategies of your major competitors, find out how
competitor
analysis can help.
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