1 in 3 new businesses don’t know what marketing is

[projectword]

Almost 40% of new companies do not have a marketing plan and almost half of new businesses launch without any form of marketing or advertising budget. Most worryingly, almost 1 in 3 new businesses don’t understand what marketing is or what role it plays for new companies.

A recent survey of 3,081 UK business owners shows that almost 40% of start-up companies have no marketing plan and almost 50% of businesses launch without any form of marketing or advertising.

These statistics may explain why almost half of new companies fail within their first year of trade and only 1 in 4 companies will survive beyond year four.

The survey was conducted by www.ProjectWORD.co.uk, an online business directory, which enables companies to purchase key words that can be directly linked to their website and therefore increasing (the ways for them to be found in Google.

The survey they conducted found that a huge percentage of new companies were unaware of the benefits of marketing, and out of the 50% who had or planned no form of marketing to assist with their launch, 36% said they would rely purely on word of mouth to make a success of their company.

Jamie Delo, founder of Project W.O.R.D, comments on the recent findings;

“These statistics establish the downfall of many new companies that just assume consumers will have heard of their website. When, in reality, thousands of companies are failing every year due to lack of marketing.”

www.ProjectWORD.co.uk was created to assist with the success of businesses by providing marketing at an affordable price. For just £1.00 per word, companies can select relevant Keywords and Project W.O.R.D can link their website directly to their chosen word/s; allowing companies with a very small marketing budget to be found easily through Google; a key factor in online business success.

This innovative new site hopes to decrease the number of companies failing due to lack of understanding of marketing and advertising and so far over 4,500 words have been bought by different companies in the first 2 months.

The survey, completed by over 3,080 UK business owners reflects the growing concern for the UK economy and the survival of new companies.

[Cracking Media]

An interesting press release Jamie. Where are results of your survey published?

[Indizine]

I made a comment on one of Duane (Kashflow's) press releases, where simalar to above (and 10yetis had done the press release im sure) they reveal the amont of people surveyed and the reuslt (say 50%) is then worded as is '50% of all businesses', or '1 in 3' thus distoring the true extent.

Depending who this businesses were (demographics here please) and if they SME's micro's or corporates or a equal mixture of all 3, would enable us to see what type of business doesnt have a 4 x 2 about marketing.

Given the amount of businesses in the UK, surveying 3081 isnt representative of the true figure and out of the hundreds and hundreds of busnesses plus hundreds and hundreds of start ups, who I have met, I can say I have not met 1 in 3 that do not know what marketing is.

ps I bought 2 words and I think its a good idea and hope it goes well so I get lots of clicks! Be interesting to see where this site ends up. I got an email just 2 weeks ago for the exact same thing from another company.

[moverspacker]

Excellent press release

I think you are right but we must plan our business before starting.

[sharp end training]

I have a colleague who does sales & marketing training for small businesses. Dave the tyre fitter from the industrial estate type of business.

He often says that some of these people are in business by accident...

[Indizine]

I agree that there will be quite a few that fall into it rather than aim to be in it, perhaps moreso with family businesses too.

ps I'll call you later Jonathan about the training bid.

[sharp end training]

The thing is - most people start off wanting to work for themselves for the WRONG reasons.

I want to show my old boss, no one is going to make a monkey out of me etc etc

Michael Gerbers The e myth sums it up perfectly with the lady who bakes cakes - just focusing on the cakes and nothing else...

(I am in all day today)

[Quest49]

An excellent post.

[Steven123]

Am I being pendantic here or do we actually need to define marketing vs promotion?

Marketing is about so much more than promoting your product/service, it is about establishing if there actually is a market for your product/service.

How many companies fail because their marketing starts by missing out the vital first step - who are your market, what benefits do they want to buy from me, what are their problems, how can I solve these, how do they wish to communicate with me?

These are just a few questions that you need to ascertain before you start promoting.

Be interested to hear comments on that?

[Indizine]

I do separate market research from marketing itself, marketing is a bit of an umbrella word but yes there are 'modules' within that though in dont think many people consciously separate and deal with them in their own right, sometimes foregoing research and jump straight to promotion and waiting for the phone to ring, people to buy, etc.