Have you cut marketing spend?

Most small businesses expect an economic downturn but have not altered their marketing plans to reflect this, according to research.

A poll by the New Brand Vision Group marketing agency found that 72% of small business owners expect tough times for the rest of the year but the same number said they had not altered their planned marketing campaigns as a result.

And while 70% said they did not believe in the old adage of spending your way out of a recession, 62% thought their business would not alter marketing spending plans and 17% thought this would actually increase.

"Many SMEs will not have been in business during the last recession and won't anticipate how they could be affected," said Ben Harris, managing director of New Brand Vision. "It's worrying that with so many firms expecting a downturn, so few are actually taking steps to plan for it.

"This ‘wait and see' approach may weaken their position if and when a downturn does take hold," he added. "Businesses should be armed and ready with their marketing and have other business materials prepared so if the hard times do hit they can immediately become proactive in generating new business."

Many SMEs will not have been in business during the last recession and won't anticipate how they could be affected. It's worrying that with so many firms expecting a downturn, so few are actually taking steps to plan for it

The research also revealed that updating their own website, search engine optimisation and direct mail were seen as the most effective marketing methods when budgets are tight, with traditional advertising in the media, updating company brochures and spending money on exhibitions perceived as the least effective.

The majority (61%) said they had no intention of making social networks such as Facebook, YouTube and Bebo part of their marketing strategy while 67% also saw blogs as overrated.

In terms of a return on investment, the most effective methods were updating their website, direct mail and PR while online banner advertising, exhibitions and online networks were viewed as the least effective.

"Despite increasing spends on online marketing by many companies our survey shows that few SME businesses are making it pay," added Harris.

"It may be that unlike traditional advertising, when the work goes in prior to campaign launch, online marketing often requires the bulk of the effort during the campaign. SMEs should persist, as well as being aware that their websites must accurately reflect the quality of their products and services."