Think Big, Act Small. SME insights: A CIM perspective

Think big, act small

Date 20 May 2015Location Warwick University

Welcome and introductions

Dr Paul ConnorChair CIM Midlands Region

CIM | BRILLIANT MARKETING IDEAS FOR AGILE BUSINESSES | MAY 2015

Housekeeping

Please set phones and tablets on silent

Join in! This is an interactive event, so

speak up

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SME insights – a CIM perspective

Steve WoollyExternal Affairs Manager CIM


What I’d like to share today

Why CIM is looking into the role of marketing amongst

entrepreneurs and business owners

Some of the early findings from our major research

study amongst this community

Some context for our interactive panel

discussion!

The role of marketing in SMEs


The UK Government recently published its 2014 small business survey results.

It showed increased confidence since 2012: 73% are looking to grow, more have increased turnover, and more are hiring staff.

Most feel they're good at business strategy, yet only 28% say they are good at entering new markets and just 44% think they are good at developing and introducing new or improved products and services. Which is a bit of a worry when nearly 60% see competition as a major barrier to success.

It looks like marketing is needed to deliver those growth ambitions – yet only 7% are seeking help.

Why we’re interested in these issues


UK-based respondents Survey conducted by YouGov and ResearchNow More than 2,400 professionals surveyed over approximately six weeks 2,000 are client-side professionals across a range of functions 400 are marketing agencies and consultancies

Our research explored… Business performance and confidence Attitudes and motivations of entrepreneurs and business owners Approaches to marketing – resourcing & skills Key challenges internally and externally Finding advice and support

A little about our research

Early findings from the research study

HEADLINEWE’RE SEE ING GROWING OPTIMISM AND

CONFIDENCE IN BUSINESS PERFORMANCE AND TRADING CONDIT IONS

More than half report improved business performance over the last 12 months, and over a third report a stable trading environment.

Newer businesses, those with a B2B focus and exporters stand out as strongest.

Looking ahead to the next 12 months there is even more optimism, with almost two thirds predicting growth in top-line performance.

This is particularly positive as the research was conducted before the General Election, with all of the uncertainty that can bring.

Looking over three years, the positive sentiment continues, with seven out of ten SMEs predicting continued improvement in trading conditions.

Overall we see a strong and growing sense of optimism about future prospects

HEADLINETHE MAJORITY OF SMEs ARE IN IT FOR THE LONG TERM, FOCUSING ON STABIL ITY AND BUILDING A SUSTAINABLE ENTERPRISE FOR

THE FUTURE


Sell-strategies and blue-chip ambitions don’t appeal

Few organisations are looking for quick routes to growth through exit plans or sell-strategies.

Equally, building the next big blue-chip business lacks appeal.


SMEs are in it for the long-term

Instead, stability and long-term success is a major motivator.

This is an important commitment to economic and employment growth.

A longer-term perspective is also where marketing – done well by professionals – can help to build sustainable competitive advantage through customer relationships and brand development.


Innovation and ethics are taken seriously

It’s great news to see SMEs recognising the importance of values and responsible business behaviour.

Positively, more than half of SMEs see innovation as critical – and this is where customer-centricity, insight and professional marketing can both add value and de-risk investments for entrepreneurs and business owners.


Stability doesn’t necessarily inhibit investment

Half of our research participants value maintaining current performance over significant growth.

Positively this doesn’t inhibit their willingness to reinvest profits back into the business to ensure a stable future.

HEADLINEAGENCY USE TENDS TO BE AD HOC RATHER THAN A PARTNERSHIP APPROACH, THOUGH

SMEs ARE CONFIDENT IN THEIR AGENCY CHOICES.

Price, a responsive approach to briefing and aligning with client needs, expertise and ‘chemistry’ are the top five drivers of agency selection for SMEs.

“Ability to articulate ideas and plans in plain English without using buzzwords.”“Easy to get on with, not trendy annoying types.”

“Ability to give us the right person.”“Able to listen.”

Most SMEs avoid retainers or on-going fixed costs, preferring to use agencies and third parties on an ad hoc, tactical basis.

Whilst potentially more cost effective in the short-term, this loses the potential benefits of a longer-term partnership approach with agencies.

That being said, most SMEs are confident in their ability to find and appoint the right partner for a project.

HEADLINESMEs UNDERTAKE MOST ‘MARKETING’

ACTIV IT IES IN-HOUSE, LEAVING OUTSOURCING FOR COMMS AND EXECUTION – BUT THERE’S

A QUESTION OF R ISK OVER A LACK OF TRAINED AND QUALIF IED PROFESSIONALS.


Strategic marketing activities are largely done in-house


Specialist and execution focused activities are more likely to be outsourced to third parties


Reassuringly, SMEs take data compliance and CRM seriously and largely retain this in-house


But the in-house resources undertaking these activities lack experience, training and qualifications


3-Month trial membership

Includes:

Access to Marketing Expert Small business marketing online resources Register Today

https://www.cim.co.uk/tbas/



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