The Impact of Financial Crisis on Marketing Practices and Budgets in Central and Eastern Europe


The most prevalent barrier faced by marketers at a downturn would be funding limitations. According to research made that summer in CEE region by Linea Directa Communications, a direct marketing and call center company, organizations with small advertising budgets predominate concerning study participants, budgets undering 250.000 EUR being reported specially in Hungary (89,4 percent), Russia (88,6 percent) and Romania (85,4 percent).

The greatest resources, above 1.000.000EUR are fit in tiny proportions in Czech (5,4 percent), Slovakia (4,9 percent), Poland (4,5 percent) and Slovenia (4,3 percent).

Marketing budgets endured in ’09 a Great Deal of alterations

In ’09 the greatest reductions in marketing budgets are created in Russia (28,6 percent) and Romania (22,7 percent), businesses decreasing budgets upto 30 percent. Similar budgets like in 2008 come in large proportions in Hungary (44,4 percent), Slovenia (43,9 percent) and Poland (43,4 percent).

On the flip side, in addition, there are organizations buying marketing and sales communications, nations like Russia (19,6 percent), Poland (19,2 percent) or Slovenia (16,2 percent).

This currency will be spent in 30-70% chiefly in online promotion (with banner ads, blogs, internet sites, etc.), catalogues, mass-market (TV, papers, radio) and events&sidewalks business. The littlest budgets (representing maximum 30 percent from marketing funds) are allocated to sending SMS& Mobile Marketing, telemarketing, direct mailing and marketing.

As communicating stations, probably the most used are online (using banner ads, blogs, internet sites, etc.), e mailing, catalogs supply, events & fair company. In the long run we now have SMS and cell promotion, shed email and PR, believed to be less essential stations.

Telemarketing can be used also to generate sales prospects, to establish business meetings or to respond to clients that required by phone specific informations about a particular product or service”, said Dejan Grbic, Head of Business Development in Linea Directa Communications.

In accordance with the analysis, organizations organize marketing effort to be able to boost the variety of customers, to increase customer retantion and dedication and optimize the present clients through additional earnings. Additionally businesses simply take into consideration to come up with data bases used later within their own communicating effort, to generate a far better awarness and repositioning for new/ services and products.

For direct marketing businesses, like also Linea Directa Communications, 2009 has supposed that the continuation of collaborations were only available in preceding decades, but additionally new endeavors developed with big organizations but also with moderate ones.

In CEE region the majority are speaking now about outsourcing as a cost saving measure for those organizations.

Conclusion In Czech may be the largest proportion of organizations outsourcing direct marketing tasks (74,4 percent), followed by Poland (61,5 percent) and Romania (36,5).

O On the flip side, 84,8 percent of organizations aren’t outsourcing at Hungary, 74,6 percent in Slovakia, 68,6 percent in Slovenia and also 46,7 percent in Russia. These businesses aren’t outsourcing direct marketing and advertising tasks as they have internally resources to complete such surgeries or can’t afford it since they will have low communicating budgets or they also don’t really possess sufficient informations concerning the practice of outsourcing, what’s going on and also what type of benefits attracts.

The most publicized guide marketing and advertising tasks are the modern stations of communication such as Internet promotion (banner ads, Google ad words, bloging(social media), sidewalks and events groundwork and mass promotion (TV, advertising, papers), addressable direct-mail and catalog distribution. Les out-sourced are tele-marketing, e mailing, shed email and SMS or even Mobile marketing.

The analysis had been conducted in seven countries: Czech, Hungary, Poland, Romania, Russia, Slovenia and Slovakia. In general, engaged managers from various businesses ctive from IT, finance, FMCG, Pharma, auto, retail, and telecommunications, utilities and tourism.

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