Technology Marketing Survey Predicts Larger Budgets and Staff Increases in 2003
A majority of technology companies plan to boost their marketing budgets in 2003 to increase revenues, according to a new marketing survey by the CMO Council.
The CMO Council, Palo Alto, Calif., is a 60-member group of marketing professionals created by independent public relations/marketing firm GlobalFluency, Palo Alto and the Aberdeen Group, Boston. Council members come from such companies as Microsoft, Sun, Xerox and Dell. The survey- Marketing Under Siege 2002-polled 350 marketing executives and the results showed key findings such as marketing organizations doing more with less.
Nearly 74% of respondents claim they had staff reductions over the past year that resulted in them working more effectively with less resources. Approximately 37% expect to increase marketing budgets and 36% plan to hire more staff in 2003.
“What we saw from the survey responses is that most of the participants agreed 2002 was an awful year for business, but tech companies are looking to get back on track in 2003,” said Charles Caudill, managing director of GlobalFluency. “They realize they need to focus on their customers’ needs and not so much on the product. Many respondents felt that by using marketing and public relations efforts they will be more successful in reaching customers than by throwing money behind large ad campaigns.”
Hugh Bishop, senior vice president of Aberdeen, said the leveling-off of revenues at technology companies has given them some breathing room to assess their marketing needs.
“I think some organizations saw that they may have cut their marketing resources a little too deep last year and now they are freeing up some extra dollars for more staff and programs such as competitive intelligence and sales-lead generating,” Bishop said. “That does mean we expect a big increase. It most likely means marketing departments will be able to hire one or two extra bodies.”
The CMO Council will hold a handful of meetings to explain the survey findings with its members over the next six weeks in Boston, New York and Silicon Valley.
GlobalFluency can be contacted at 650-328-5555. The Aberdeen Group can be contacted at 617-723-7890.
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