Many domestic companies received their “market voucher” exactly during the Russian default in 1998 due to a sharp decrease in import sales inside the country, the Yuvelirnaya Rossiya Magazine writes. Besides, this default turned into an incentive for future successful development of new tacks in advertising business more suited to Russian realities than to Western experience.
In a crisis period, the market needs permanent online control, but no one should ever leave out long-term goals, because this is the very time for would-be competitors to turn hyperactive in the marketing field. And those determined to attack will be awarded having strengthened their positions on the market and seeing the brands passive in advertising lose their customers’ loyalty.
The annual analytic report made by the RosYuvelirExpert Agency demonstrated that demand rate for services offered to promote jewelry companies on the market was not lower than in the previous year, but it was different in terms of quality: some part of advertising spenders took an indefinite time-out due to their internal financial problems, but their place was taken by firms which kicked off their advertising campaigns right at that time.
Consumers will not use their money to “vote” for a brand which vanished out of sight. In crisis time, the recognition level of non-advertised brands drops down in no time. This is why it is very important to marry impact intensity and impact frequency in a marketing policy.
Scientists point it out that under recession consumers are more apt to look into the future than in the past. And according to psychological surveys, in such time people turn to be less dependent on their previous preferences while choosing among brands. The crisis makes them treat every buying instance in a very serious way taking into account every offering. This generates susceptibility towards new products and brands. Consumers become more positive about image advertising focused on permanent quality and sustaining a high grade of self-appraisal in people.
If advertising is not any more equally efficient and does not stir the same positive feelings as before the consumer will likely to draw a conclusion about some problems the company is having. In other words, to save on advertising quality is equal to saving on product quality. To stimulate dropping sales many companies need to bring their offerings, discounts and other “crisis bonuses” to the attention of their customers right now and not tomorrow. It is indicative, the Yuvelirnaya Rossiya says, that advertising in jewelry trade publications started to boom precisely during the crisis period.
According to the RBC daily surveys, the Russians are now more conscientious of advertising. Thus, 52% of respondents said that advertising helps them to be informed of new products offered by the market and understand their advantages. Almost one third of Russian inhabitants believe that it is advertising which helps them to make the right choice of goods they are buying, while 27% of our people say they save their time while shopping due to advertising. The survey analysts also noted positive movement in consumer competence: every second buyer was sure that well-known brands are a guarantee of high quality. Although in crisis environment many people are planning to substitute something more affordable for expensive brands in their everyday use, they are reluctant to lose in quality and resort to counterfeited goods.
Europe prefers print advertising chosen by 42% of companies. And despite the crisis the printed press is still the most favored place for advertising among CMOs in many retail networks. According to K. Fox-Simpson, a partner of BDO Seidman, that is because stores are recognizing that at the moment, it's chic to be cheap and everyone is very focused on saving money, which means that marketing messages "aren't about staying in front of customers - it's about getting in front of them when you have the very best deals." As for other shifts in advertising, “historically, in tough times, campaigns become less flashy, more sentimental and heavily focused on value-added items, such as sustainable products,” the expert believes.
Online advertising is another global leader. In recent months, U.S. marketing experts were a bit less optimistic about digital media and their development, but their presence is still significant.
Today, company executives have to see that their brand promotion is yielding some results. And online advertising is capable to do it in a most evident way.
Similar trends are indicative not only of the United States. For instance, in China the online advertising growth rate was more than double the growth in spending on television, newspaper or magazine advertising, the Wall Street Journal writes. Online ad revenue in China in the third quarter 2008 grew 42% from a year earlier to $541 million. As for online promotion of the Russian jewelry industry, this kind of advertising is also attracting more vivid interest, according to RosYuvelirExpert.
