The latest Marketing Trends Survey from The Chartered Institute of Marketing, conducted by Ipsos MORI, has found that marketers working in the financial sector are increasingly gloomy about the UK economy.

With the credit crunch looming large over the sector, 41 per cent of financial marketers believe the UK will be in recession during 2008 – more than any other industry sector.

Own organisation expected to see improvement

Only 9 per cent think the economy will improve (compared with 12 per cent for the UK as a whole) in the year ahead, whilst 61 per cent believe conditions will worsen – a significant rise on this time last year when just 36 per cent expected economic conditions to worsen.

When asked how their own organisation would fare, however, a surprising 42 per cent of marketers in the sector said that business would improve in the next 12 months, higher than the UK average (39 per cent).

Just 18 per cent thought business for their organisation would get worse.

Such confidence is reflected in attitudes towards staffing levels, with 26 per cent of marketers in the sector planning to increase the number of staff, although 9 per cent anticipate a reduction in the number of marketing staff in their own organisations.

The tougher economic climate has already impacted on anticipated sales performance figures, which have fallen sharply amongst financial marketers. 

The average figure of 6.6 per cent is slightly above the UK average of 6.2 per cent, but well below the 10.2 per cent marketers in the sector expected in the survey last spring.

Focusing on changing customer needs 

David Thorp, director of research and information at The Chartered Institute of Marketing, said, “With the end of the ‘nice’ decade, financial marketers are increasingly pessimistic about the UK economy. Many remain bullish about their own prospects, however, and will be looking for the opportunities an economic downturn can bring.”

He explained that professional marketers can help their organisations to not only survive but thrive in these challenging times by focusing on changing customer needs more precisely.

The Institute’s marketing trends survey also looked at awareness of the latest marketing laws and attitudes towards sustainability.

Financial marketers showed the least awareness of the recent Unfair Commercial Practices Law than their marketing colleagues in other sectors.

Just 21 per cent said they had a good understanding of this significant law, whilst a shocking 79 per cent described their understanding as poor or non-existent.

Three fifths of marketers in the finance sector believe that a company’s sustainability practices affect customers’ buying decisions (63 per cent) – the lowest figure across all industries.

When asked whether in an economic downturn, sustainability would drop down consumer’s concerns, more than half (53 per cent) agreed that it would.

Related articles

• City salaries defy credit crunch gloom
• Vodafone is most powerful UK brand
• Winners and losers in a troubled economy
• Counting the cost of advertising
• What finance execs really think of Marketing
• Playing by modern marketing rules
• CEOs focus on authentic communication

Related links

• Chartered Institute of Marketing