In business, it’s often the basics that make-or-break long-term growth. Yet our latest research, drawn from nearly 2,000 SMEs across the UK, shows that many are quietly neglecting the very foundations of effective marketing.
This article is by Lucy Hogarth, co-founder of The Marketing Centre.
The numbers speak for themselves: fewer than one in three SMEs has a formal marketing action plan, fewer than half have a documented business plan, and less than 60% can point to a clearly defined vision.
Even more worrying is the downward trend – adoption of marketing action plans has dropped from 41% in 2020 to just 25% in 2024. Business plan adoption has also slipped, from nearly half of businesses in 2020 to just over 40% today.
This isn’t just a statistical quirk; it reflects a growing complacency in how businesses approach marketing. Leaders may feel that because they’re active on social media, running campaigns, or producing content, they are “doing marketing.” But the truth is that without direction and measurement, much of that activity risks becoming busywork rather than business growth.
Strategy in Decline
The most concerning insight from the research is the decline in formal planning. It suggests that many businesses are operating reactively, making short-term marketing decisions without aligning them to long-term objectives. That might keep the lights on, but it won’t sustain growth – especially in competitive or disrupted markets.
One reason for this decline may be the rapid shift to digital over the past five years. Many SMEs have leaned heavily on digital channels, encouraged by their accessibility and apparent measurability. But chasing likes and impressions is not the same as building a strategic growth plan. Without the discipline of clear goals, marketing becomes tactical and fragmented.
As businesses scale, the cracks widen. Our data showed that mid-sized firms performed worse than both micro-businesses and large enterprises. Smaller businesses often benefit from agility and focus, while large companies have structure and resources. But many mid-sized businesses fall between the cracks – too big for DIY marketing, too small to justify a full-time senior marketing hire. That “messy middle” is where poor planning becomes most dangerous.
A False Sense of Strength
Interestingly, when asked to self-assess, many SMEs scored themselves highly on brand (70.1%), customer engagement (70.4%), and compliance (70.3%). On the surface, these numbers look encouraging. But we believe they are inflated by optimism bias. A strong brand isn’t just about logos or messaging – it’s about how consistently the whole organisation delivers on its promise. Engagement only matters if it drives conversions, sales, or loyalty. Compliance, while necessary, doesn’t drive competitive advantage.
What matters most – the connective tissue between business vision, strategy, and execution – is still too often missing.
Regional and Sector Gaps
The study also revealed striking disparities across regions and industries. Businesses in Southern England outperformed the national average, while those in the East of England consistently lagged. Professional services firms such as accounting, consulting, and healthcare scored highest overall, while traditional sectors like manufacturing and construction were at the bottom of the maturity curve.
This suggests that some sectors have adapted more readily to a digital-first world, while others remain reliant on traditional sales-led growth. Manufacturing and construction businesses, in particular, risk being left behind if they don’t modernise their marketing approach.
But the good news is, there is a way forward. One manufacturer we worked with had no formal marketing plan. After working with a fractional CMO, they defined their strategy and quickly opened up new business opportunities. This shows that with the right support, even sectors that feel “behind” can achieve rapid, measurable improvements – often just by focusing on the fundamentals.
The Human Factor
Another key challenge lies in leadership mindset. Too often, marketing is treated as a cost centre rather than an investment. Many SME leaders are stretched thin and default to short-term firefighting over long-term planning. Others delegate marketing entirely to junior staff or external agencies without providing the strategic steer needed to ensure alignment with business goals.
This disconnect is what keeps so many SMEs on “marketing autopilot”; active but ineffective. When we step into businesses as fractional CMOs, one of the first things we do is reconnect marketing to the business vision. That shift in thinking is often the catalyst for measurable growth.
So, what should SMEs take from this? For me, it comes back to discipline. Every business, no matter its size, needs three things:
A vision that everyone understands – not just a line in a presentation, but a guiding direction lived by the whole organisation. A business plan that connects that vision to commercial reality; and a marketing plan that translates both into measurable, consistent activity.
When these elements are missing, businesses lose the ability to measure what’s working, to hold teams accountable, and to make confident investment decisions. When they’re present, marketing stops being a cost centre and becomes a growth engine.
At The Marketing Centre, we’ve worked with more than 1,400 businesses since 2011, and we’ve seen the transformation first-hand. Marketing doesn’t have to be complicated. But it does have to be intentional. Going back to basics, by defining vision, planning strategically, and measuring what matters, is the surest way for SMEs to regain control and accelerate growth.
