• by Masha Geller , December 12, 2001

According to the results of the 2001 Business Change Survey from MST Research, business leaders across the US plan to change their long-range marketing and sales strategies and reduce employees, trade show participation and business travel as a result of the economic slowdown and Sept. 11.

According to MST's President Debbie Rapin, 60% of the business leaders surveyed said they are considering changing one or more of their key marketing strategies. "Nearly a third also plan to reduce employees by up to 15%. Their overall business direction is toward cost-cutting coupled with an increased pressure to realize ROI on every marketing expenditure."

Results also revealed that 39% of study participants plan to reduce trade show participation by 30% or more, 12% will change how they sell products or services, and 9% will increase usage of video and Web conferencing.

The most frequently mentioned options for change were enhanced product and market development efforts and increased spending for direct marketing.

Rapin said, "We're seeing the impact of this trend already in reduced attendance at trade shows, fewer exhibitors and higher hotel vacancy rates. On the positive side, using alternative lead generation sources and finding new ways to communicate with the market will get increased attention.

"As marketing budgets get soft or are reduced, business leaders across industries are asking the same question: How can I be more cost efficient and still maintain or increase my sales? This survey shows that American business remains highly optimistic and will use the current economic conditions to fuel the development of more efficient business practices."