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Marketing Spending by High Tech and Telecom Providers to Increase in 2010

Marketing spending among high-tech and telecom providers (HTTPs) is picking up in 2010, according to a survey by Gartner. The survey found that 44 percent of 2010 HTTP marketing budgets will be flat compared with 2009, 41 percent will increase and only 15 percent are likely to decrease. This compares favorably to 2009 when more than half of providers' marketing organizations took cuts in their budgets compared to 2008.

Gartner's survey was conducted in December 2009 in order to understand the allocation of 2010 marketing budgets for HTTPs and drew on responses from 206 providers worldwide. Hardware, software, IT services, telecommunications and semiconductor companies were all represented in the survey.

While there are signs of growth in IT spending in 2010, Gartner analysts have predicted a "new normal" in which IT buyers who were forced to rethink the entirety of their spending approach because of the economy may never return to their prerecession ways. This will impact how HTTPs market to end users.

"Marketing has to continue to look at becoming more efficient and cost-effective," said Laura McLellan, research vice president at Gartner. "For some, this means adopting lower-cost alternatives; for others, outsourcing what was once done in-house; for all, it means revisiting how they plan to support the growth of their companies through traditional and new channels, while keeping the core brands strong."

The survey found that some companies making marketing budget increases plan significant rises. Thirty percent of these companies expect to increase budgets by between 1 and 15 percent, while 13 percent of respondents are planning budget increases of between 16 and 30 percent or more. For those companies planning an increase in budgets, sales programs to support the direct sales force as well as programs supporting positioning and external communications are key priorities. Following those are customer segmentation, strategic marketing, management of marketing efforts and sales programs to support indirect sales.

Even though the ratio of in-house to external spending is planned to be about 1:3 in 2010, fixed and recurring costs are expected to consume the largest portion (23 percent) of the 2010 marketing budget, according to the majority of respondents. That will be followed by sales channel marketing and programs at 17 percent, and 15 percent of respondents identified positioning and external marketing communications.

When asked how they allocated their marketing communications budget, 22 percent of respondents said that events will receive the highest percentage of spending, 16 percent of those surveyed identified advertising, and 11 percent of respondents selected direct mail.

"In various inquiries with providers, we found that many marketing managers were of two minds about the 2009 budget cuts," Ms. McLellan said. "On one hand, while they understood the economic pressures, they found the cuts damaging and antithetical to the wisdom expressed by many marketing gurus that in difficult economic times you should maintain or increase your marketing spending to take business away from competitors and prepare for the recovery. On the other hand, some found that the cuts were a call to action to find better and more-cost-effective ways of doing what needed to be done. The second group also found themselves searching for better ways to measure and show the value of marketing."

Источник: Cellular news

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