FOR IMMEDIATE RELEASE

Survey asking what matters most when marketing in a tough economy Cites significant shift to Internet Marketing 

  MarketWise Insights, Inc. and Smith & Suita, Inc. Study Reveals Increased Pressure for Measurable Results and Additional Funding for Customer Research; Advertising Losing its Luster

CHELMSFORD and GROTON, MA, June 30, 2002 – The majority of U.S.-based software marketing executives voted Internet marketing as the big winner in 2002 according to a first of its kind nationwide survey jointly conducted by Smith & Suita and Marketwise Insights, Inc. about “What Matters Most when Marketing in a Tough Economy”. 

Seventy percent of the companies interviewed are planning to increase their Internet marketing efforts and only five percent will spend less money in this area in 2002.  Online direct mail is also becoming increasingly important, respondents said, pointing to its lower cost, quicker response time and targeting flexibility when compared to print mail.

Findings support the widespread belief that advertising is losing its luster with 55 percent of the companies interviewed planning to decrease their spending in 2002, and only 27 percent planning to increase their advertising budgets.  Software executives mentioned that along with its expense, the impact of advertising is difficult to measure, and with marketing measurement being a key finding in the survey, many are moving money from advertising to other areas. 

Exhibiting at large national trade shows is less popular than in the past, due to what many respondents notice as a general drop in show attendance and their perceived lack of return on investment.  Money is shifting to highly targeted regional shows with an increasing emphasis on pursuing speaking opportunities. 

The study, whose respondents include top marketing executives from 44 software companies headquartered in the United States ranging in size from $6 million to over $15 billion in annual revenue, details spending and implementation considerations in over ten functional marketing disciplines as well as marketing budgets as a percentage of company revenue.  Specific categories include public relations; advertising; direct mail; Internet marketing; events; sales promotion; and, competitive, customer, market trend and product definition research.

Of those surveyed, 55 percent are publicly held companies.  50 percent increased their revenue year over year and 50 percent experienced a revenue decline.  

Focused Activities in Tough Economy

Not surprisingly, software companies in the study are struggling with generating sales and getting additional business while many are facing reduced marketing budgets and increased pressure to make each dollar spent accountable.  

 “Marketing executives spoke repeatedly about ‘getting value’ from marketing budgets and are placing renewed emphasis on carefully tracking the results of marketing activities and payoff for each marketing dollar spent,” said Paula Levis Suita, principal of Smith & Suita, Inc.  The report also noted that in many cases preference is given to marketing activities that can be easily measured and tracked.

In other findings, more than half of the respondents plan to increase their customer research dollars in 2002 to learn more about their prospective clients and the issues and challenges they face in their industry.  “Companies are putting their money where their mouth is and are backing up ‘customer-focused’ claims with more research, user groups and customer advisory panels,” said Carol Monaco, president of MarketWise Insights, Inc.

The study also found however that small ($50 million and under), medium ($51 to $249 million) and large software companies ($250 million and more) often have different implementation plans and discusses the varying tactics, approaches or issues different size companies are tackling in 2002.   It also analyzes marketing budgets as a percentage of revenue, marketing budget trends in 2002, and marketing budget spending in 2002 versus 2001 as a whole and segmented according to company size. 

The complete 40-page “What Matters Most When Marketing in a Tough Economy” study is available at $499 online using a credit card by clicking here. (and for a limited time, receive our special introductory price of only $299---a savings of  $200!).

Conducted by MarketWise Insights, Inc. of Chelmsford, MA, a market research and marketing consulting company, and Smith & Suita Inc. of Groton, MA, a public relations, investor relations and marketing services firm, the partnering firms sought to answer how software companies are modifying their marketing budgets, activities and tactics in tough economic times.

 About Smith & Suita, Inc. and Marketwise Insights, Inc.

Smith & Suita Inc. is a marketing service provider that applies objective business standards and expertise in Public Relations, Investor Relations and Marketing Services to solving marketing problems for its high technology clients.  Smith & Suita has been helping private and publicly held companies focus their strategic efforts and execute projects that achieve results since 1998.  The company is headquartered in Groton, Mass., and can be reached at info@smithandsuita.com or 978-448-5349.

MarketWise Insights, Inc. is a market research and marketing consulting company that helps high technology clients understand their markets, customers and competitors and create corresponding marketing strategies.  The company brings a unique perspective to market research and marketing through substantial knowledge of diverse industries and organizations ranging from emerging technologies to Fortune 500 companies.  MarketWise Insights, Inc. is located in Brighton, CO and can be reached at cmonaco@marketwise.biz or 303-659-8061. 

Contact:  Paula Levis Suita

                            Smith & Suita, Inc. and

                            MarketWise Insights, Inc.

                            781-784-2900

                            psuita@smithandsuita.com