The financial crisis and its impact on marketing

Monika Arnoštová, Věra Hrubá, Monika Chytilová, Jaroslava Kafková, Lucie Řepková, Lenka Šustrová,

Anna Zapletalová

Financial crisis

Jaroslava Kafková

• The financial crisis began in the USA in 2007 and still lasts, all started as a result of US housing bubble (2005-2006)

Easilly for short: the prises of realty grew and banks gave

cheap mortgages, the american homeowners used to take another mortgages to pay the first and then didn´t have credit to pay, then the prises of realty came down under the primary prise and banks didnť have buyers for confiscated realty

• Also expensive oil lowered GDP (touched advanced countries)

• Can be compared to Great Depressin in 1930‘s• Spread to whole world, to our country came at

the end of 2008, made problems in all segments of economics

• Every investments sounded like risks, companies became insolvent

• Evoked collective redundances, that made all insolvent – not just companies

• Iceland went bankrupt, many countries have problems, the USA stoped to be the strongest contry

• Bankruptcies (CIT Group Inc. And many others)• People loose homes, save money, don‘t vant to spend

money headlong, are afraid of loosing job• Dominate general distress, fear and helplessness• Expensive loans, prices fall, people think over their

investments (they want qualitty)

• Abusing employees fear• Circle – companies don‘t pay to employees, employees

don‘t spend money – companies don‘t have money so don‘t pay employees

impacts

Marketing trends in crisis

Monika Chytilová

the most common processes czech companies in financial crisis

Every company wants to be successful, effective and earning

Often make mistakes, who he thinks will increase their business for less money

Common mistakes:

reduction marketing budgets

release of experienced managers

less members in the work team to more work

bonus services are considered unnecessary luxury

five points, which compaines should hold in financial crisis

1. Excellent choice of target groups. Not waste time with potential clients without any clear motivation for the use of our services.

2. Clear profile of services - communicate clearly and beat the contents and value of service.

3. Increased attention to contacts and relationships - regret the means to keep and develop a positive relationship.

4. Focusing on modern communications technology. An example is dramatically increasing efficiency Facebook.

5. Don´t lose attention after crisis - remember the marketing mix targeted for a period of recovery and boom.

modern trends of communication in times of economic crisis

The modern concept of advertising, PR and change to management of publicity. - transition from an advertising campaign to the information campaign - CSR, transition from the sponsorship of major events to low-cost one, but with an appropriate targeting Use of low-cost communication like buzzmarketing, viral marketing and WOM

marketing Improved communication with existing customers The boom in Internet communications in crisis ( newsletter, smard cards, e-shops)

how see czech managers marketing in crisis

Managers most save in the production and human resources.

The graph also shows that Czech managers learn and sacrifice marketing finance is not the first attack against crisis.

exploration of agency GfK and advertising agency TBWA

finally a few recommendations

Think of the future, but bring your value to customers today - innovate products and processes to better meet customer needs.

Use different media, interactive media allow you to personalize ads tailored chosen target group of customers.

Constantly build awareness about your brand, build confidence in customer and the feeling of familiarity with your company.

You can make the most of opportunities of publicity on the Internet.

Guerilla marketing can bring interesting results with minimal cost.

Take advantage of viral marketing, people believe more friends than any marketing.

finally a few recommendations

Remember that a good brand and good customer relationships, enhance competitiveness.

Help a man who shares a passion. Help him share it through your brand.

Work with creative agencies in the realm of ideas in marketing and in its implementation.

Differentiate themselves from their competitors, f. e. manner of distribution.

Cause study Komerční banka

Lenka Šustrová

TV spot in 2005 and in 2008 http://www.youtube.com/watch?v=laz0MKIVLR0

http://www.youtube.com/watch?v=-5fTFdvS53k&feature=related

http://www.youtube.com/watch?v=-K4GG-eK958 http://www.youtube.com/watch?v=8ClHvDUJVtc

Impact of the crisis in the advertising market

Lucie Řepková

time-line 2008-2009

How opinions have changed to the crisis over time

September-October„We do not plan to limit marketing

expenditures,“ Jan Kaše (Klick4Sky)Nowember-December→ first firing of employees, ending of some

agencies (Křídla, Tanagra)

time-line 2009

January – February → ongoing firing of employees and further austerity

measures→ f. e. also Unilever manages its activities from

Hungary because of saving money

Other effects of crisis→ half empty audience of exhibitions (Autosalon)→ closed agencies→ special anti-crisis offers

decrease of takings

→ ad takings of media decrease in ČR by 2,27%→ so takings were 53,6 million crowns→ radio: takings decrease by 4,61%→ print: - 10,12%→ cinemas: - 14,22%→ tv: takings increase by 6,51% → digiboards: increase of takings

winners

→ Agencies that work with better tools and immediate impact on sales

→ agencies that are focused on marketing research

→ and also promo and digital agencies→ those, who offer cheap material and good

servis→ new media like digiboards and also internet

internet marketing and the financial crisis

→ internet marketing increase → 11%→ on-line advertising campaigns→ investors are moving their advertising activity

on the Internet → using the Internet ads can be targeted to

reach potential customers

Brand and luxury goods in crisis

Anna Zapletalová

luxury goods - two trends

existential problems x

growth

existential problems

Christian Lacroix, EscadaLuxury hotelsChanelGM, ChryslerYachts

growth

Jewelry, diamondsHermès, Louis VuittonAntiquesLuxury vehiclesFine artsPrivate jets

strongest brands in 2009

1. Coca Cola2. IBM3. Microsft4. GE5. Nokia6. Mc Donalds7. Google8. Toyota9. Intel10. Disney

11. HP12. Mercedez Benz13. Gillette14. Cisco15. BMW16. Louis Vuitton17. Malboro18. Honda19. Samsung20. Apple

brand – helper in crisis

Why people buy luxury goods?1. be special2. because of material3. impress others

Advantage of the old and strong brands

Advertising requires

Enhancing brand perception

social responsibility

52 % of consumers globally are more likely to recommend a brand that supports a good cause over one that does not

42% say that if two products are of the same quality and price, commitment to a social purpose trumps factors like design, innovation and brand loyalty when choosing one brand over the other

Important firms in our region and their marketing communication it the

time of crisis

Monika Arnoštová

barum Continental: B2C communication

• Internet:– change of e-shop– Facebook communication– PR articles on specialized web pages

• Radio:– Nationwide station Evropa 2

• Outdoor• Event:

– Barum Rally Zlín• In the time of crisis they do not use: sponsorship, TV advertising• The main strategy in the time of crisis is f.e. cooperation with competitors like web

page nejlevnejsipneu.cz

tescoma: B2C communication

• Tescoma: B2C communication• Internet:

– e-shop– facebook communication

• Print: – PR articles on specialized magazines

• (Apetit, Beverage & Gastro, Chef Gurmán, Nejlepší recepty, La Cucina Italiana)– Advertising in these magazines

• Outdoors• TV:

– Tescoma s chutí - Nova – programme about cooking • Direct e-mail

– Regularly offer of Tescoma products• Sales promotion

hamé: B2C communication

• Internet:– web page– PR articles on specialized web pages

• Print: – PR articles

• TV:– Ads on their products

• Sales promotion• Tescoma and Hamé experience impacts of the economic crisis like Barum

Continental.

Hrubá

Věra Hrubá

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That is all.

Have a nice day!