The financial crisis and its impact on marketing

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

impacts • 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

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 exploration of agency Gf. K and advertising agency TBWA 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.

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 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=laz 0 MKIVLR 0 http: //www. youtube. com/watch? v=-5 f. TFdv. S 53 k&feature=related

http: //www. youtube. com/watch? v=-K 4 GG-e. K 958 http: //www. youtube. com/watch? v=8 Cl. Hv. DUJVtc

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 (Klick 4 Sky) 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 luxury goods in crisis Anna Zapletalová

luxury goods - two trends existential problems x growth

existential problems Christian Lacroix, Escada Luxury hotels Chanel GM, Chrysler Yachts

growth Jewelry, diamonds Hermès, Louis Vuitton Antiques Luxury vehicles Fine arts Private jets

strongest brands in 2009 1. Coca Cola 2. IBM 3. Microsft 4. GE 5. Nokia 6. Mc Donalds 7. Google 8. Toyota 9. Intel 10. Disney 11. HP 12. Mercedez Benz 13. Gillette 14. Cisco 15. BMW 16. Louis Vuitton 17. Malboro 18. Honda 19. Samsung 20. Apple

brand – helper in crisis Why people buy luxury goods? 1. be special 2. because of material 3. 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: B 2 C 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: B 2 C communication • • Tescoma: B 2 C 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: B 2 C 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!