Firms place major focus on increasing margins

The latest Marketing Trends Survey has suggested that firms intend to concentrate most of their marketing efforts on achieving higher margins this year.

According to the research on behalf of the Chartered Institute of Marketing (CIM), nearly half (48%) of all firms questioned cited increasing margins as a major marketing focus for the coming year.

The issue looms particularly high on the wholesale sector's agenda, with 70% of firms in that sector earmarking margins as a priority. Chemicals and utilities are two more sectors that see margins as important, as 57% of each quote it as a major priority.

Other key focuses identified in the Summer 2002 Marketing Trends Survey include improving the sales mix (47%), and improving product specification (45% of firms).

In contrast, only 15% of businesses regard increasing sales to Europe as an important concern. Entering new markets, improving customer services, forward planning, and brand development were also quoted by respondents as important priorities for the coming year.

David Wright, Head of Corporate Marketing at The Chartered Institute of Marketing (CIM), said: "In order to achieve the margins sought, marketers need to prove the link between better product specification and added value to the consumer."

(CL)