With the latest stats from Gartner revealing manufacturers are set to cut marketing budgets, we explore why marketing still matters in the sector. We explain how, when properly harnessed, strategic marketing is an essential tool to take manufacturing brands further.
What the numbers tell us
Gartner’s CMO Spend Survey shows marketing budgets in manufacturing decreased from 8.5% of total revenue in 2023 to 6.7% in 2024. According to the CBI industrial trends survey, manufacturers have cut back investment as output and orders have weakened.
During a cost-of-living crisis, it is perhaps hardly surprising that manufacturers are cutting their cloth accordingly. However, the percentage of manufacturers who consider marketing a high priority has also dropped, from 63% in 2021 to 49% in 2022*.
So why is it that marketing budgets are taking the hit? And when manufacturing businesses are feeling the pinch, why aren’t they using marketing to boost their sales?
Challenging misconceptions
In an industry filled with niche and technical products, there is a misconception that marketing is more difficult, and perhaps less important, than in other sectors. However, the complex nature of manufacturing innovation makes it even more imperative for brands to communicate the benefits of their products clearly.
In addition, disruption in the sector is occurring at pace, which can make it difficult for marketing teams to keep up. However, brands should consider developing an agile strategy that can flex to support the latest launches and innovations. A brand only has one shot to launch a product with lasting impact, so putting the groundwork in place will pay dividends in the long run.
We also know manufacturing brands are often trying to reach very specific audiences. There is a commonly held belief that this will make a campaign too costly or complex, when in fact, traditionally harder-to-reach audiences are now more accessible to marketeers than ever before. Rather than cutting marketing activity, manufacturers should therefore consider focussing on the elements which cut through best – think engaging digital campaigns, cost-effective content strategies, and precise audience targeting. With a bit of refocusing, even a smaller budget can deliver impressive results when the right channels are employed.
Finally, internal marketing teams often struggle to find an agency that can understand their technical product offering and bring this to life in a compelling way. At Cairn we are experts in the manufacturing sector. We pride ourselves on making the ordinary extraordinary and understand exactly how to communicate even the most advanced technologies in a way that resonates.
The art of storytelling
In this challenging market, quality is often better than quantity. Brands can make a big impact by focusing on meaningful storytelling to communicate the value their products bring. Story-driven campaigns are memorable – they speak to customers, create loyalty, and help audiences see a brand beyond its products.
A great example of this is the work we delivered for our client Blum who manufacture hinges, drawer and lift systems, and other motion technologies for home furniture.
Up against other global players and a slew of far East suppliers threatening a price-led race to the bottom, Cairn was tasked with delivering a UK brand-building campaign to consolidate Blum’s market leadership.
Our campaign broke with category conventions and reaffirmed Blum’s position as a solutions-based brand. Abandoning the mundane performance-led tropes of the sector, the ‘Your world. Made better’ campaign told a human story, showcasing a world in which Blum’s products spark new possibilities, in a light-hearted and memorable way.
Thinking outside of the box
When budgets are slim, it’s tempting to try and “play it safe” and stick to more traditional channels and tactics. However, it’s important to remember that creative thinking can resonate with every audience and will often deliver more bang for your buck.
This is the approach we took with a campaign we ran for our client Sika. As a leader in flat roofing solutions, our client wanted to stand out against “woolly”, commoditised competitors. Rather than trotting out the usual features and benefits, we developed a campaign which featured a flock of sheep grazing on one of Sika’s completed green roofs at The Flower Bowl near Preston.
With a brand-led messaging strategy that spoke directly to specifiers and contractors, wereinforced Sika’s eco credentials with a ‘green’ plant-able mailer. The launch campaign sent sales soaring and was named best B2B integrated campaign at the Summit International Awards.
Another reason for this approach is the strong IPA evidence suggesting that using emotion in B2B advertising plays a crucial role in brand recall – a theory usually associated with consumer brand comms. So, using humour (or in Sika’s case, sheep!), helped make the campaign, and in turn the brand, more memorable.
In summary
In these challenging economic times, it’s easy to understand why marketing is often viewed as expendable. But strategic marketing is anything but a luxury. It’s a powerful tool to differentiate a brand, build loyalty, and -create long term growth.
From targeted digital campaigns to story-driven brand building, manufacturers which prioritise marketing can not only weather economic storms but gain a significant advantage over their competitors.
Interested in making the most of your marketing budget? Get in touch with our team today to find out how we can take your brand further.
