Research shows sales and marketing the key concerns of smaller manufacturers

15 March 2011

Despite the sector's recent resurgence, the ability of smaller manufacturers to lead the UK's economic recovery could be under threat because many are struggling to get their products to market, according to new figures from the Forum of Private Business.

More than one fifth of business owners responding to the not-for-profit Forum's latest survey of manufacturers cited 'sales and marketing' as their key concerns.

With 26.2% of the vote, overcoming difficulties in reaching emerging markets was deemed the top priority, above operations management (18.7%), human resources issues (13.4%) and new product development (12.1%).

In response, the Forum, which is one of the UK's leading business support and lobbying organisations, is offering its members in the manufacturing sector a free diagnostic of their sales and marketing needs, worth £500, and support on devising a strategy for success.

Forum Chief Executive Phil Orford said: “Smaller manufacturers should be able to be more flexible than their larger competitors and can move into new and emerging markets more quickly as the economy recovers – but this is not going to happen by itself. Producing a sales and marketing strategy should be a top priority, not an afterthought.

“Customers are highly unlikely to seek out your services under their own steam so it is important that small manufacturers embrace all of the options that are available to get their messages out there. Marketing is often seen as a mysterious process but we can help make it far less confusing and provide the support necessary for success.”

Other research, published by the Forum in February, shows that despite the sector proving to be more buoyant in recent months, smaller manufacturers are extremely concerned about the year ahead.

Just 20% of respondents to the Forum's quarterly Referendum survey said they believe 2011 will be easier for their businesses, compared to the 61% who fear it will be even tougher.

Despite more than a third (36%) planning to focus on fire fighting in order to survive, more (38%) anticipate 'growth' or 'strong growth'. However, just 10% are beginning to see an increase in new orders with 25% saying they expect to within six months, 26% in the next year and even more (36%) expecting a surge in orders in the 'longer-term'.

Subsequently, only 6% of respondents are seeking to recruit staff at the present time, even fewer (5%) expect to do so within six months, while the bulk of small businesses surveyed expect to create jobs in earnest within next year (21%) or longer-term (41%).

According to February's Referendum survey, many more smaller manufactures believe they need to amend their business and marketing strategies immediately (28%) or within six months (23%), compared to those willing to put this off until later in the year (7%) or longer-term (13%).

But the majority feel they require support and guidance to be able to reach new and emerging markets in the most effective way.

In all, 75% of smaller manufactures surveyed said they will need help on sales and marketing in the coming six months, but almost one third (31%) believe the necessary advice is not available to them.

"All too often, owner-managers will turn to a second-rate company to provide marketing services because it's local, it's run by a friend or it's the only marketing business they've heard of,” said the Forum's Marketing Adviser, Philip Dyer, of strategic marketing communications specialist nxo.

“And, often, as they're unsure as to what to expect, small business owners end up getting charged over the odds for inappropriate or ineffective services.

"Because of this, we can often identify huge savings on what businesses are already spending on things like websites, advertising and search engine optimisation.”

Mr Dyer said the most successful businesses in 2011 will be those run by individuals who understand the value of their product and can communicate this effectively to a well-targeted audience. He identified six steps to success:

Put the customer first; make sure that you know exactly what he or she wants. And if you don't know, ask them!

Understand the routes to market; know who buys your product AND who consumes it. Tailor your messages to each of these groups to maximise your chances.

Believe in the power of brand; a clear brand identity that is well aligned to the needs of your customers will differentiate you from the competition.

Talk to your customers; know the communication channels they use and never miss an opportunity to engage in conversation about your brand.

Have confidence in your product; embrace word of mouth, don't fear it, and let your customers be powerful sales agents for you.

Be brilliant at customer service; go the extra mile to make your customer smile!

Smaller manufacturers can find out more information about the Forum's sales and marketing diagnostic, which includes advice on a range of options from events, branding and leaflet design, through to SMS marketing and iPhone apps, by calling 0845 612 6266 or visiting here.

Guidance on marketing and sales is being provided as part of the Forum's Development Directorbusiness support solution, The Forum has recently introduced a range of other new products and services via seven other solutions – Finance Director, Legal Director, HR Director, Health and Safety Director, Purchasing Director, Communications Directorand Managing Directorin order to provide tailored business support to its members.

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