New businesses lack marketing ability |
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Sales and Marketing
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Written by Gary Howes
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Tuesday, 23 September 2008 |
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Report suggests that up to 33% of startup's don't know what marketing is. It has been suggested today that 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.
This is according to a recent survey conducted by Projectword.com, an online business directory. The company stands by their results as they surveyed 3,081 UK startup's.
The results show almost 40% of startup 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 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.”
The survey, completed by over 3,080 UK business owners reflects the growing concern for the UK economy and the survival of new companies.
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