Industrial Manufacturers Migrate to Online Marketing

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More than 75 percent of industrial manufacturing companies will increase their online marketing budgets in 2006, according to a study released yesterday by SVM E-Business Solutions.


The survey of 220 marketing executives at U.S. manufacturing firms found that 78 percent of industrial marketers plan to increase spending on their Web sites this year, 60 percent will boost spending on e-mail marketing and 48 percent on search engine marketing.


In fact, 52 percent of manufacturers surveyed consider their Web site to be their most powerful marketing tool.


The study found that the top three strategic objectives of a Web site, according to industrial manufacturers, are: provide information about the company, improve brand awareness and generate sales leads. Manufacturers increasingly consider the Web their primary lead generation vehicle, the study found.


Though less than half of industrial manufacturers currently engage in search engine marketing, 65 percent believe it will be one of the most effective marketing tactics over the next three years. Web sites were named by 78 percent of respondents as one of the most effective marketing tactics, and e-mail marketing by 55 percent.


Improved communication with customers tops the list of benefits realized from online marketing, with 57 percent reporting this as a benefit. Other benefits included improved competitive position (36 percent), increased efficiency or time savings (33 percent), increased revenue (28 percent) and reduced costs or cost savings (28 percent).


Chantal Todé covers catalog and retail news and BTB marketing for DM News and DM News.com. To keep up with the latest developments in these areas, subscribe to our daily and weekly e-mail newsletters by visiting www.dmnews.com/newsletters


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