New survey says start-ups believe in the value of PR

San Francisco: PR is considered the most effective marketing tool

by start-up technology companies, and formed the largest single

marketing investment for them in 2001, according to a survey released by

Launch Pad and Blanc & Otus.



In 2001, the average marketing budget increased from $2.2 million

to $2.8 million, although as a percentage of total spending they

fell from 20% in 2000 to 15%.



"PR was also considered the second-biggest area in which companies think

they under-invested in during 2000," said Shelley Harrison, CEO of

Launch Pad. Most respondents thought they over-invested in

advertising.



"What is also happening is that every dollar that goes to marketing

spending has to show measurable results," said Harrison. "That's why we

saw a dramatic increase in direct marketing, and a distaste for large

trade shows."



The number-one marketing challenge cited was generating awareness. "Last

year, this was also number one, but this year it was number one by

double the number of respondents," Harrison said.



The study targeted marketing executives in 32 b-to-b companies during

the second quarter of 2001, across a range of industries including

retail systems, internet infrastructure, and global management systems.



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