Catalyst - Issue 11 - International Outlook

Catalyst - Issue 11 - International Outlook

Training International outlook New research by CIM and PwC Research is revealing how marketing can play a critical role in supporting opportunities for UK business overseas R apid technological change has had a huge impact on how organisations conduct business and how they engage with their customers. This, in turn, has impacted on marketing roles and remits, meaning there is limited upto-date information on the size of the marketing profession, and the value of the sector to the UK economy as a whole. Allied to this, the challenges posed by Brexit mean that the marketing industry needs to play a critical role in supporting UK businesses in identifying and capitalising on commercial opportunities overseas. CIM and PwC Research have collaborated to investigate these issues. The aims of the research include estimating the size and impact of the UK marketing industry in terms of GVA (gross value added) and numbers of employees, as well as understanding the challenges and opportunities inherent in export markets, and the impact that marketing can have in driving international sales. The ongoing study involves a survey of more than 300 UK businesses, a review of existing data and a series of expert interviews with CEOs and marketing gurus. Some interesting findings have already emerged in the early analysis of the data. A positive outlook UK organisations, especially exporters, are very optimistic that their marketing budgets will grow in the coming three years. Marketing agencies mirror this positivity. Exporters expect their volume of international sales to increase substantially in the same time period. Many lapsed exporters expect to start exporting again by 2020. The value of marketing Marketing is viewed as a major contributor to exporting success by most of the businesses in our sample that are currently engaged in international sales, with one in seven of those polled saying it has been vital. Exporting challenges When initially questioned on whether they have the requisite marketing skills to sell their goods and services in new markets, more than three-quarters of the sample agreed that they had. Further probing, however, revealed that current exporters are facing a number of key challenges. These include lack of know-how in adapting their export strategy to different cultures and markets, confidence in approaching new markets and accessing the right export marketing skills and capabilities. We also found that these same challenges are acting as barriers to getting non-exporters up and running with international selling. Clearly, further support in these areas would help UK businesses unlock even more opportunities overseas. The most difficult markets Certain markets are considered more challenging than others. China and the US were cited most often as the countries that UK businesses would like to export to but have found (or expect to find) most difficult. These are also the largest export markets for UK goods and services outside the EU, highlighting the size of the opportunity that might exist if the barriers and challenges can be effectively addressed. The next stage of our research will reveal the value and contribution of marketing tothe UK economy in terms of GVA and number of employees. Analysis will also delve deeper into the survey data, adding valuable insights and perspectives from the expert panel. The research will be available at the end of May. Check exchange.cim.co.uk forupdates. cim.co.uk/exchange