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New Marketing Mix in Silicon Valley
Market4Demand's 2005 Silicon Valley Entrepreneur Outlook Survey Reveals New Marketing Trends — Email Direct Marketing (EDM) Still Strong, PR Back in Demand, SEO a Must-Have, and Blogs a Growing Part of the Mix
SAN FRANCISCO, Calif. - July 18, 2005 - Market4Demand, Inc., a Silicon Valley technology marketing services firm, announced results from its third annual Silicon Valley entrepreneur outlook survey. The purpose of this year's survey was to assess local entrepreneurs's perspectives on marketing. The latest survey reveals that entrepreneurs have strong preferences for the types of marketing initiatives their organizations will employ. The sampling pool was generated from members of local entrepreneurial and technology organizations, including Market4Demand's Marketing Educational Series for Entrepreneurs (MESE), an online professional connection resource for emerging enterprises (WorkIt.com) and Silicon Valley Association of Startup Entrepreneurs (SVASE).
"One of the most surprising findings in this year's survey is that most entrepreneurs are avoiding advertising in lieu of marketing vehicles that increase company or product credibility among prospects while driving them to the company website," said Sarah Autrand, founder and chief executive officer of Market4Demand. "Silicon Valley entrepreneurs are using a mix of new technologies like email direct marketing, search engine optimization and blogs. But there's also a strong preference for PR again. The lack of interest in traditional forms of advertising was evident across the board and reflects more sophisticated approaches to launching new products into the market. The trend could bode well for PR and website agencies alike."
Increase in Marketing Investment
77% of executives at emerging enterprises interviewed for the survey are expanding marketing and sales this year with the majority of respondents increasing their marketing budget. Spending has increased primarily in the areas of public relations and e-marketing, including webinars, websites, search engine optimization (SEO), and email direct marketing (EDM). Other areas of increased spending include such traditional areas as print collateral and events.
Public Relations Ranks High in Effectiveness
The majority of executives at emerging enterprises who participated in the survey stated that public relations and word of mouth promotion or viral marketing were the ideal ways to build a brand. While a few stated that a strong product also helps to build a brand, 0% touted advertising as a brand builder.
Email Direct Marketing (EDM) Still Alive and Well
66% of startup executives interviewed stated that email direct marketing (EDM) continues to be an effective marketing tool. In addition, 73% claimed that the impact of SPAM legislation and the proliferation of anti-spam technologies have not reduced the amount of email direct marketing their company practices.
Blogs Growing in Use as a Marketing Tool
Blogs, short for web logs, are web pages that serve as a personal journal for an individual. Usually updated daily, they often reflect the personality of the author and have a public following. Blogs are increasingly being used as a marketing tool among emerging enterprises, especially among companies with revenues $5M and under. 18% of startups are funding blogs as part of their marketing mix, compared to only 7% who funded them last year. The reasons cited varied, but many entrepreneurs claimed that blogs were extensions of their public relations, search engine marketing or word of mouth promotion initiatives.
Pay-per-Click (PPC) Ineffective
70% of companies with revenues under $5M said that pay-per-click (PPC) advertising had proven to be ineffective. In fact, one respondent went so far as to claim that PPC was a scam. On the other hand, search engine optimization (SEO), another form of search engine marketing that helps websites improve their organic listing on search engine results pages, was considered twice as effective as PPC advertising for increasing search engine exposure and attracting website visitors. In addition, 58% of companies under $5M regarded SEO as an effective marketing tool.
About Market4Demand
Market4Demand, a technology marketing services firm located in San Francisco, delivers strategic and tactical marketing services that help increase shareholder and customer value. Market4Demand specializes in marketing planning and implementation, interim marketing management, and marketing communications. The company offers expertise in both enterprise and consumer technology solutions. In 2001, it launched Market4Demand's Marketing Educational Series for Entrepreneurs (MESE), a sequence of workshops developed to empower entrepreneurs with practical, value-based technology marketing best practices. For more information about Market4Demand's services and Market4Demand's Marketing Educational Series for Entrepreneurs (MESE) visit www.market4demand.com.
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