Transcript The Challenges of Marketing Communications during crises in the

Integrated Marketing Communications
during crises
in the Republic of Macedonia
Ass. Prof. Ilijana Petrovska, Ph.D.
Prof. Nada Sekulovska, Ph.D.
University American College Skopje
UKIM, Faculty of Economics, Skopje
1
Introduction
Purpose: To research the marketing communications strategy
model during the last global financial crises in the financial
industry in the World and in Macedonia
World banks’ marketing communications is showing changes
in the approach, message strategy and communication
channels
In Macedonia, too
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Objectives
To find out the most suitable marketing communications model
during financial crises
To define what to be communicated during crises
To find out which promotional activities to be used
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Methodology
Literature review for world banks marketing communications approach
Secondary Data from media research agency for all Macedonian banks
advertising activities
Quantitative online research
Pre - structured questionnaire covering:
Budget allocation per activity
Budget allocation per product
Communications appeal
Sample: 5 banks from Macedonia, 42% from the total Banks marketing
communications budget
Time period: 3 years, 2007 - 2009
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Marcom during crises
Ogilvy (1985) presents the results from the recessions from
1974, better profit for those who didn’t cut the Adv. budgets
Crises in 2008/2009 decreased the ad budgets of top 10
banks (AdAge Data center)
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Change of the approach
Some banks, changed the communication tactics and did not decrease
their voice (Bulik, 2009)
Charles Schwab customize towards the customers
JPMorgan introduced “The Way Forward” message
City Bank started campaign “Never sleeps”
Credit Suisse Bank more emotional and human approach “Delivers what
really matters”
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Credit Suisse Bank
Source: www.credit-suisse.com
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Employees
Eagle (2008) stress the importance of the bank’s employees
Address same attitudes and customer’s concerns
Inform customer about their security
Persuade the customers about bank’s security and reputation
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Percent Change in Measured Ad Spending1
MEDIA
(Listed
in
spending)
SECTOR
order
of
Full Year 2009 vs. 2008
4th Quarter 2009 vs. 2008
TELEVISION MEDIA
-9.5%
-2.4%
- Network TV
-7.6%
4.1%
-1.4%
2.7%
-23.7%
-13.9%
-8.9%
-4.7%
- Syndication - National
-4.9%
-10.7%
MAGAZINE MEDIA5
-17.4%
-11.5%
- Consumer Magazines
-16.6%
-11.1%
- B-to-B Magazines
-26.2%
-22.7%
- Sunday Magazines
-11.0%
3.6%
- Local Magazines
-27.7%
-18.2%
-21.6%
-12.8%
NEWSPAPER MEDIA6
-19.7%
-8.9%
- Newspapers (Local)
-20.0%
-10.3%
- National Newspapers
-17.8%
0.4%
Spanish
Newspapers
-16.4%
-10.7%
INTERNET
(DISPLAY ADS ONLY)
7.3%
-2.1%
RADIO MEDIA
-20.3%
-12.5%
-20.6%
-11.7%
- National Spot Radio
-24.6%
-16.9%
- Network Radio
-8.7%
-7.9%
OUTDOOR
-13.2%
-5.4%
FSIs
3.0%
0.0%
TOTAL
-12.3%
-6.0%
- Cable TV
2
- Spot TV3
- Spanish-Language TV
Total Media
Budget
Biggest decrease is
for financial
services,
automotive industry,
local services, retail
and direct response
Spanish
Magazines
- Local Radio
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4
Language
Language
7
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Results
Budget
50% from the banks kept the same budget during the crises
50% decreased the marcom budget for 20-30% in 2009 compared to
2008
Total advertising budgets were decreased 23% compared to 2008
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Results
Media channels allocation
Same budget allocation for media
TV and newspapers the same allocation
Internet and outdoor growing slowly
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Media allocation changes
Media budget allocation by products type campaign for banks in Macedonia in 2007-2009
50%
46%
45%
40%
35%
33%
30%
30%
28%
25%
20%
17%
20%
19%
19%
17%
14%
15%
10%
10%
13%
10%
8%
10%
6%
5%
1%
0%
0%
Corporate
Housing Loans
Consumer Loans
2.007
Business Loans
2.008
Credit cards
Deposits
2.009
Source: data provided from Zenith Optimedia group Macedonia as from 15.01.2010
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Discussion
IMC in Macedonia
Mainly through Advertising
Few banks with IMC approach
Some with promotional activities
PR is much used
Direct marketing rarely used, only 2 banks
Lower budgets for sponsorships and donations
Internal communication, present
Research activities, low level
Outsourced advertising agencies are used
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Integrated Marketing communications
60%
60%
50%
40%
34%34%
30%
25%
20%
14%
10%
10%
5%
3%
0%
6%
3%
Public relations
12%
7%
3%3% 4%
0%
Media
13%
12%
11%
Consumer
Trade
promotions
promotions
6%
5%
2%
0%0%
Telemarketing
1%
0% 1%
Direct mailing
0% 0%
Production
Sponsorship and
Internal
promotional
donations
communication
1%1%1%
Research
2%
Agency work
materials
Average 2007
Average 2008
Average 2009
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Non-traditional media
Pioneering usage
Guerilla marketing (acrobats)
Digital media:
online advertising,
social media
E-mail direct mailings
Mobile sms advertising
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Conclusion
Communication not to be stopped
Integrated marketing communications
Communication focused on:
Advertising campaigns about credibility, reputation and corporate image
Promotion of new or improved products
Permanent public relations regarding bank’s stability and bank’s activities towards
customers
Internal marketing communication
New IMC approach – partnership relationship marketing
CRM implementation
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“The heightened turbulence is the new normality
that challenges business and government
leaders to better understand, accept, and create
strategies to deal with it
if we are going to succeed
in the years ahead.”
Kotler and Kaslione, 2009
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