Weekly Marketing News from the Chartered Institute of marketing

14 July 2010                                                                                       
Welcome to Cutting Edge, your weekly news bulletin rounding up the must-know news from the popular marketing press. Log in to our website to read the extended version of Cutting Edge, which contains the details on how to request full copies of many of the featured articles.

SMEs increase channels
According to research commissioned by B2 Group, many SMEs are increasing their marketing channels in order to enhance their business: these days 44.2% of SMEs use internet advertising as part of their marketing, while outbound email is used by 38.2%. However, the use of conferences and exhibitions, PR and direct marketing have all increased since the launch of the tracking study in February, showing that despite the increased use of online channels traditional platforms remain popular in this sector. SMEs are making sure they benefit from increased market demand as the recession recedes and clearly believe that marketing will help to make their future more secure. Further results from the survey are presented here.

Marketing Week, 8 July 2010, pp26-28

Social campaigns have public approval
A survey for Marketing has revealed that despite criticisms of the so-called 'nanny state' many people want to see the continuation of government campaigns aimed at dealing with social problems. When asked whether the government should cut back on ads intended to reduce binge drinking, 53% disagreed, while 48% were opposed to reducing ads tackling obesity.
Marketing, 7 July 2010, p1

Election ad spend
The three main political parties spent a total of £16.1m on media from March to May, leading up to the election. Neither Labour nor the Lib Dems spent any money on outdoor, while the Tories spent £5.2m of their £8.9m budget on posters. The move towards direct mail in political campaigning was first noted in 2005 and continued this year, with a colossal 66.9% of the parties' budget being spent on direct mail or door-drop. In contrast, just £137,867 was spent on press advertising by the three parties.

Campaign, 9 July 2010, p2

Cursor can show user intentions
Scientists at Emory University in Atlanta, Georgia, have created a new tool which can analyse the cursor behaviour of search engine users, in order to ascertain whether they are shopping or just surfing. They developed a web browser add-on that tracks the cursor and have discovered that the information gleaned from this enables them to distinguish between a browsing or shopping session with a 96% certainty. Working out a user's intentions could be useful in deciding whether to display ads in the searches.
New Scientist, 10 July 2010, p17

Recommendations affect intentions
Favourable recommendations on social networks can have a positive effect on purchasing intentions. A survey conducted by Skywrite and research agency Vanson Bourne has shown that two out of three consumers find out more about products after receiving a recommendation on a social media platform, while one in four of these will go on to make a purchase. In terms of gender differences, 75% of women will follow up a recommendation, while 50% of men will do so.

PR Week, 9 July 2010, p12

Amazon takes on supermarkets
Amazon.co.uk is to launch an online grocery service offering a range of 22,000 products, including household, niche and ethnic, which will compete directly with the major UK supermarkets. A similar service, Amazon Fresh, was launched in the US in 2007, but has since been restricted to Amazon's home town of Seattle.

The Independent, 8 July 2010, p3