Welsh firms are among the top spenders on marketing

Feb 6 2008 by Sion Barry, Western Mail

BUSINESSES in Wales are among the biggest investors in marketing in the UK.

Research from the Chartered Institute of Marketing shows firms now spend an average of 7.3% of their turnover on marketing, which is above the UK average of 6.6%. Wales is the second-biggest spender on marketing in the UK, after the South West of England.

The research reveals that Welsh companies are also positive in their anticipated sales performance with marketers predicting sales increases of 9.8%, which is the highest figure in Britain and well above the UK average of 7.5%.

To match their high ambitions Welsh businesses are also confident that they will meet these targets, with 18% of businesses surveyed believing they will exceed their targets compared to a UK average of 16%.

However, despite this optimism, the survey also revealed that marketing professionals were pessimistic about the future of the economy, with only 6% believing it will improve over the next 12 months.

Richard Houdmont, the Chartered Institute of Marketing’s director for Wales, who has seen membership increase by 5% to almost 1,000 in less than a year, said, “This latest survey suggests that the jitters that are affecting other parts of the economy are now also taking their toll on the mood of the UK’s marketers including Wales.

“While Welsh companies think they’ll reach targets, the majority believe they’ll see a downturn in the economy this coming year.

“However, the organisations that continue to invest in the strategic function of marketing will be those who are most likely to thrive in all economic climates.

“It’s gratifying to see that Welsh businesses are investing to compete in the face of increasingly tough competition and that they remain confident of their own future performances, with 36% positive that their companies’ prospects are on the up.”

The survey also reveals that working for an organisation in which marketers can feel proud is much more important than just how much is in their pay packet.

When asked what mattered most when considering a job offer, just 29% said that salary was the most important criterion compared to 41% across the UK.

This makes marketers in Wales the least money-motivated.

Welsh marketers also feel strongly about the ethics of marketing, with 85% of marketing professionals stating that the recently-introduced codes prohibiting the TV advertising of junk food to children should be extended across all media, compared to the UK average of 74%.

Mr Houdmont said, “From these statistics it’s clear that marketers in Wales are passionate about what they do, and as well as being committed to marketing for profit they are dedicated to the exploitation of marketing strategies for social good.

“Social marketing is a tool that can be used to influence individuals to change their behaviour in a positive way and is a technique the Welsh Assembly Government can use to tackle issues like smoking, binge drinking and sustainability, so the institute is looking to actively engage with the National Assembly for Wales and the Welsh Assembly Government in 2008.”