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Trends in Industrial Marketing 2009:

How Manufacturers are Marketing Today

I N D U S T R Y T R E N D S & R E S E A R C H R E P O R T S

F O R I N D U S T R I A L M A R K E T E R S

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T RE NDS I N I NDU ST R I AL MARK E T I N G 2009 2009 G LO BALSP E C, I NC.

Contents

GlobalSpec Industrial Marketing Trends Survey .........................3

Highlights from Survey Results .....................................................3

Conclusions .................................................................................... 4

Recommendations .........................................................................5

Marketing Goals, Challenges and Philosophy .............................6

Marketing Channels and Programs ..............................................8

Marketing Budgets and the Economy ......................................... 12

The GlobalSpec Advantage ........................................................15

About GlobalSpec ........................................................................16

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Conclusions

1. The economy is impacting manufacturers marketing approach and

objectives.

Customer acquisition and lead generation have become imperatives in

the current economy, with 44% stating that customer acquisition is theirprimary marketing goal and 29% choosing lead generation as their primary

goal. Another 13% indicated that customer retention is their primary goal

in 2009, up from just 5% in 2008. This increase can be attributed to the fact

that companies cannot afford to lose customers now, and many realize it is

easier and more cost effective to keep current customers than it is to nd

new ones. As customer acquisition, customer retention and lead generation

become more important, branding has taken a back seat, as it often does

during a down economy. Only 11% reported brand awareness as their primary

marketing goal, down from 21% in 2008.

2. Evaluation and measurement of marketing are priorities.

In response to the current economic conditions, 69% stated they will

closely evaluate the performance of marketing options and reduce or

eliminate non-performing programs. 53% will choose marketing programs

that are measurable. These results indicate that the demand for marketing

accountability and measurement is stronger than ever, and that marketers

must respond by allocating their budget to programs whose performance

can be analyzed. Marketing with metrics means that you can see exactly

what is working and center more of your efforts and marketing dollars on the

successful programs - reducing waste, increasing results.

3. Its a fact. Marketers need more high quality leads and online marketing

programs deliver them.

Marketers stated that the quality of leads is the most important factor when

deciding where to allocate their marketing budget. Lead quality scored 9 out

of 10 in importance, while lead quantity scored 7.3. In terms of generating

quality leads, 3 of the 4 top sources are online: their company Web site,

GlobalSpec, and e-mail marketing. Bottom line, manufacturers customers are

online and online offers measurable marketing results. The shift away from

more traditional media is paying off for companies that need higher quality

leads in 2009 and more of them.

4. Industrial marketers must make the shift to online marketing with more

momentum.

Despite online marketings proven ability to deliver high quality leads, 42%

of respondents still said they are not generating enough high quality leads

for their sales teams, which indicates they need to shift more marketing

dollars to online programs. The shift has started for many marketers30%

are reducing tradeshow attendance, 38% are reducing print ads, and 48%

report that online is a greater proportion of their marketing budget in 2009

than in 2008. But overall the shift to online isnt happening fast enough at a

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time when virtually all engineering, technical, manufacturing and industrial

professionals go online to search for and locate information: less than a third

of industrial marketers are spending 50% or more of their marketing budget

online. Its not enough.

Recommendations Use measurable marketing programs.

The survey results show that marketing metrics and accountability are high

priorities for marketers. You should invest your marketing budget in programs

that provide measurement metrics and allow you to calculate ROI. Online

programs naturally lend themselves to measurement, as they allow you to

track exposure, clicks, and conversions that demonstrate the performance of

your marketing. With tightening marketing budgets, every marketing dollar

needs to provide results. Its time to eliminate or cut back on non-measurable

programs, such as print advertising, and reallocate dollars to marketing

programs whose performance can be clearly measured.

Choose targeted online programs that reach your customers and

prospects.

Lead quality, targeted audience exposure and reach of marketing programs

all rank higher than lead quantity as factors to consider when allocating

marketing budgets. Sales would rather have a handful of highly qualied leads

than a long list of anonymous Web clicks. Target online programs where

prospects are searching for information, products and services, deliver quality

leads with contact information offering your company sales opportunities

instead of anonymous clicks.

Continue to market despite the economic downturn.

68% of respondents stated that their companys revenues will be down in

2009. To prevent a downward spiral, companies must continue to market and

stay in front of their customers and prospects. Many companies are seeking

new ways to build business, with 43% reporting they will expand marketing

efforts to reach new industries. If you choose the right programsthose that

are measurable and focused on your target audience where they are online

you can continue to win business and potentially gain market share.

If you have any questions about this survey, please contact us at 800.261.2052.

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Marketing Goals, Challenges and Philosophy

Customer retention

13%

Other3%

Customer acquisition

44%

Lead generation

29%

Brand awareness11%

What is your primary marketing goal in 2009?

2009 GlobalSpec, Inc.

73% stated that customer

acquisition or lead generation

is their primary marketing goal

in 2009.

4 4%

2 9%

13 %

1 1%

3%

4 3%

3 1%

5 %

2 1%

2 %

0 % 5 % 1 0% 1 5% 2 0 % 2 5 % 3 0 % 3 5 % 4 0 % 4 5 % 5 0 %

2009 2008

2009 primary marketing goal compared to 2008

Customer acquisition

Lead generation

Customer retention

Brand awareness

Other

Customer retention has becomemore important in 2009 at the

expense of brand awareness,

an expected response to the

economic situation.

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Choose your top three marketing challenges for 2009.

0% 10% 20% 30% 40% 50% 60%

Too few resources (dollars, people and time)

Generating enough high quality leads for sales

Need to Improve my marketing ROI

Need to drive more customers to my companys Web site

Increased competition makes marketing harder than ever

Should be doing more online but not sure what works best

Not enough customers are finding us on Internet searches

Media that worked in the past isnt working as well today

Harder to get our marketing email delivered and read

Wasting marketing dollars because unable to reach buyers

Other

2009 GlobalSpec, Inc.

53% said that having too fewmarketing resources is one

of their top three marketing

challenges in 2009.

Select your level of agreement with the following statements

Scale of 1-10, with 1 = total disagreement and 10 = total agreement

0

There is greater pressure to

demonstrate accountability and

return on marketing investments

There is greater push to

shift marketing dollarsto online programs

1 2 3 4 5 6 7 8 9

7.9

6.1

2009 GlobalSpec, Inc.

Marketers agree there is greater pressure to demonstrate accountability and return on

marketing investments.

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0%

Online directories/Web sites

Which of these marketing channels do you plan to use in 2009?

60%50%40%30%20%10% 80%70%

E-mail marketing using in-house lists

Search engine optimization (SEO)

Internet banner advertising on individual site

Online newsletter sponsorships/ads

Search engines (paid traffic)

E-mail marketing using rented/purchased lists

Internet banner advertising networks

Webinars

Blogs

Podcasts

Other

2009 GlobalSpec, Inc.

The top three online marketing

channels in 2009 are Online

directories/Web sites, E-mail

marketing using in-house lists,

and Search Engine Optimization.

Marketing Channels and Programs

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0% 10% 20% 30% 40% 50% 60% 70% 80% 90%

IncreaseRemain the sameDecrease

Compared to 2008, how will your spending on the following

marketing channels change in 2009?

Trade magazine advertising

Tradeshows

Printed directories

Direct mail using rented/purchased lists

Direct mail using in-house lists

Internet banner advertising on individual site

Internet banner advertising networks

E-mail marketing using rented/purchased lists

Search engines (paid traffic)

Telemarketing

Online directories/Websites

Online newsletter sponsorships/ads

Podcasts

Blogs

Public relations

Webinars

E-mail marketing using in-house lists

Search engine optimization (SEO)

2009 GlobalSpec, Inc.

Trade magazine

advertising, printed

directories and

tradeshows are

the top two areas

for marketing cuts.

E-mail marketing

using in-house lists

and Search Engine

Optimization are

the top areas for

spending increases.

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0% 10% 20% 30% 40% 50% 60% 70%

Company Web site

Tradeshows

GlobalSpec

E-mail marketing

Public relations

Search engine optimization

Online directories

Trade magazine advertising

Direct mail

Search engines (paid traffic)

Telemarketing

Directories (printed)

Banner advertising

Webinars

Online newsletter sponsorships

Purchased lists for direct marketing

Check the top three sources of leads for your business.

2009 GlobalSpec, Inc.

The top sources of leads are

company Web sites, tradeshows,GlobalSpec and e-mail marketing.

Only survey respondents who are

GlobalSpec clients receive leads

from GlobalSpec.

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Which of the following features/functionality do you have on your company Web site?

Product specifications

Request for quotation feature

Site search

Searchable product catalog

Product availability information

Part number search

Web analytics package

Video content

Pricing information

E-commerce

CAD models

Company blog

Real time inventory information

2009 GlobalSpec, Inc.

75% have product specications

on their Web site, one of the key

features customers and prospects

look for on company Web sites.

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What percent of your 2009 marketing budget will be spent online?

Percent of

respondents

25%

20%

15%

10%

5%

0%

0-10% 11-20% 21-35% 36-50% 51-65% 66-80% 81-100%

Percent of budget spent online

13%

20%19% 19%

15%

9%

5%

2009 GlobalSpec, Inc.

29% will spend more than 50%

of their 2009 marketing budget

online. 48% will spend more

than one-third online.

How important are the following factors when allocating your marketing budget?

2009 GlobalSpec, Inc.

Quality of leads delivered

Reach of the audience exposure

Fit of the audience exposure

Branding impact

Cost per sales lead

Quantity of leads delivered

Cost per acquisition

Executive management interest

0 1 2 3 4 5 6 7 8 9 10

9

8.3

8.2

7.6

7.5

7.3

7.2

6.8

Quality of leads delivered and the reach and t of audience exposure are more

important to marketers than the quantity of leads delivered.

Marketing Budgets and the Economy

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What impact will the economy have on your business in 2009?

Anticipating sales tobe up in 2009

14%

Anticipating flat sales

compared to 2008

18% Anticipating sales to be

down from 2008

68%

2009 GlobalSpec, Inc.

The majority expect 2009 sales

to be down due to the impact of

economic conditions.

How does your online spending compare to last year?

Online is a smaller

portion than last year

12%

Online is the same

portion as last year

40%

Online is a greater portion

than last year

48%

2009 GlobalSpec, Inc.

88% will spend more or the same

on online marketing in 2009 as they

did in 2008 with 48% shifting more

dollars online in 2009.

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In light of current economic conditions, how will your marketing change in 2009?

2009 GlobalSpec, Inc.

0% 60%50%40%30%20%10% 70%

Evaluate performance and reduce/eliminate

nonperforming programs

Choose marketing options that are measurable

Expand marketing efforts to reach new industries

Spend a greater percentage of marketing

budget online

Target my marketing efforts on a few

industries/audiences

Allocate more budget to lead generating activities

Cut back on branding programs

No major changes to marketing tactics

Economic conditions are

motivating marketers to

evaluate the performance

of marketing programs and

reduce/eliminate non-

performing programs, and

also choose measurablemarketing options.

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About GlobalSpec

GlobalSpec.com is used regularly by engineering, technical, manufacturing and

industrial professionals worldwide to search for components, products, technical

information and services. GlobalSpec users benet from domain-expert search

engines, a broad range of proprietary and aggregated Web-based content, part

number search capabilities and 60+ e-newsletters helping them search for and

locate products and services, learn about suppliers and access comprehensive

technical content. SpecSearch, GlobalSpecs trademarked search technology,

allows users to search by specication more than 186 million parts in 2,350,000

product families from more than 24,000 supplier catalogs.

For manufacturers, distributors and service providers, GlobalSpec offers tailored

marketing solutions that put you in control and stay within your budget, as well

as expert online marketing advice to help you nd new customers. We work with

you to provide highly ltered sales leads and marketing opportunities, qualied

Web trafc to your site, product promotion and brand advertising platforms, and

a wide range of e-media advertising and marketing solutions including industry-leading e-newsletter advertisements, online conferences and trade show events,

an industrial banner ad network, a searchable catalog program that makes your

products discoverable by the attributes that make them unique, and a company

directory program - allowing you to choose the options that t your needs, despite

the challenging business environment faced by many companies today.

The ability to nd customers to tap into new markets or new regions that are

actively seeking your products to understand what prospects are looking

for to gain an integrated marketing program and a wealth of practical advice

about online marketing this is the GlobalSpec approach. And its why many

manufacturers, service providers and distributors choose GlobalSpec to help their

businesses grow, even in these uncertain economic times.

For more information on GlobalSpecs comprehensive marketing solutions that

complement your traditional programs, please call 800.261.2052 or visit

http://www.globalspec.com/advertising.

2006-2009 GlobalSpec, Inc. All rights reserved. GlobalSpec, the GlobalSpec logo, SpecSearch, TheEngineering Search Engine and The Engineering Web are registered trademarks of GlobalSpec, Inc.The Engineering Toolbar and DesignInfo are service marks of GlobalSpec, Inc.