MEDIA RELEASE
Monday, 16th June 2008
AUSTRALIAN COMPANY DIRECTORS PLAN TO INCREASE MARKETING
SPEND
A survey of Australian company directors has revealed an overwhelming trend
to continue – or increase their marketing spend, despite the slowing of the
Australian economy.
The survey was conducted by the Australian Institute of Company Directors
and strategy and marketing consultancy, Growth Solutions Group (GSG) to
guage a boardroom perspective on priority marketing issues and intent for level
of marketing spend
One hundred and thirty-four Australian company directors responded to the
survey, with only 1% planning to cut marketing investment, with 94%
confirming no intent to cut marketing spend of which 49% are planning to
increase.
More than one third (37%) identified their biggest marketing challenge as staying
competitive in a difficult marketplace with limited resources, including time and budget.
GSG co-founder and Managing Director, Graeme Chipp said the survey results
emphasise that when times are tough, confidence in strategy and willingness to sustain a
focused marketing investment are paramount.
“Staying competitive in an increasingly difficult market place with limited resources was
clearly the number one challenge for Board Directors,” Mr Chipp said.
“The survey we conducted shows company leaders clearly understand that to do this they
must maintain their presence in the market,” he said.
The survey also found that the main reason behind plans to increase were offensive
marketing reasons. 28% of respondents felt an increased marketing spend was important
to increase awareness and share of mind, 14% to stay ahead of competition – as they cut
And 8% to grow share/ enter new markets.
The survey findings also highlighted that the interaction and direction of marketing is
mixed across many boards.
40% stated that marketing was not a key driver or had limited impact on
company’s competitive advantage
While 70% felt the marketing function effectively engaged the board, 30% did not.
44% board’s discuss role and impact of marketing at best once or twice year.
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Only half of the Company Directors surveyed planned to spend more time on
customer related issues.
“Our experience is that a ‘whole of company’ marketing approach starts in the boardroom.
This data provides further evidence of the continuing challenge facing marketers to earn
the due respect and attention of many directors around the role and impact marketing can
deliver to company value.” Mr Chipp said.
“Those Board Directors who valued the role of marketing, considered its role pivotal in
securing their company’s competitive advantage, invested more time in the marketing
process and will be better equipped to witness the results on the bottom line.”
-ends-
For further information or to organize an interview with Graeme Chipp, please contact
Lahra Carey on (03) 9685 3193
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