Analytics, Economics, Lithuania

Business has been looking for more effective forms of production and communication, old fashioned communication channels have disappeared and new sources of information and advertising that better meet consumers' demands are appearing.

A beginning of economic recession makes not only the state and its citizens but also enterprises and companies reconsider their budgets. In order to survive the crisis, businessmen reshuffle business strategies. They attract customers by giving additional value to products without increasing prices for their products.

As regards expenses to those spheres the benefit of which cannot be measured, such as communication, advertising and image creation, they are decreased.

"In good times, a strategy was what people do. It is possible that under the conditions of a crisis, the definition of a 'strategy' will change. The strategy will be what people do not do rather than what people do," says Mindaugas Lapinskas, a marketing expert.

"At present, the measurement of results will become more important. Enterprises will start considering whether it is beneficial for them or not. The understanding of "improving one's image" will lose its magical attraction," Lapinskas added.

Communication has not been interrupted altogether. However, proposals have been made to choose the most effective channels of it. In the opinion of some experts, during the crisis period only those communication channels should be chosen that reach consumers of a certain product.

For instance, if a buyer of a product is a sixty years old person, a commercial should be put on TV. If a client is forty and younger, the product should be advertised either in the press or on the Internet.

Recently, advertisements on the Internet and mobile technologies have become more popular than those on TV and in the press.

According to Lapinskas, the Internet offers possibilities for interactive communication between consumers and distributors. This makes it more attractive.

"One-sided communication, when an enterprise talks with consumers, will be replaced by a dialogue, when an enterprise will ask consumers their opinion and respect their demands. The Internet, as well as other marketing means, are for involving consumers into longer relationship."

Though the TV rates have been dropping all over the world and TV viewers are less influenced by advertising, customers who make orders have not yet disappeared from TV screens or the press. Media will stay popular for some time. Possibly, a certain part of audience will remain loyal to the press and TV.

Valdas Kaminskas, Director of the Corporate Communications Department of the company TEO, stated that traditional channels are still popular in Lithuania; however, more attention is now paid to the Internet and social nets as the means for advertising commodities.

"Traditional media means still prevail in Lithuania. In the future, the situation will change. As we see, social nets, various forums, blogs and other means have been gaining big popularity."

In the opinion of marketing expert Eduardas Patasinskas, innovation and creation of added value is very important. He believes that this is the way to sell a commodity to a consumer without spending much on advertising.

"There are two similar products. One of them has more functions that are beneficial for consumers or its characteristics have been improved without increasing the price. Means of creating a bigger added value for consumers should be sought. This is the way for encouraging competitiveness."

Experts say that the crisis may be beneficial for consumers as it makes business work more effectively not only in the production field but also in the sphere of communication with costumers.

Lapinskas noted that under such unfavourable conditions to business, companies will pay more attention to customers, their service and demands.

"When there is a big amount of money, poorer service can be covered by advertising or more attractive packaging. While now, every person is important and personal relations will become very important," the expert said.

Asked whether customers are now appreciated more, Valdas Kaminskas, Director of the Corporate Communications Department of the company TEO, said they are.

"Competition among companies has increased and the demand to keep their own customers has remained. Changes in pricing are one of the main means. Also, companies do their best to improve their service quality and preserve their loyal clients."

The change in a client's status influences a bigger variety of products and their prices. Lapinskas thinks that every client should know his value to a businessman and not be afraid of bargaining.

"When a client knows his or her importance for a provider of service or a commodity he can bargain and understand his importance," the expert said.

Experts also discussed ways of avoiding advertising. It is very important for a commodity to be sold in a strategically good place. The only reason for visiting a shop may be its location in the center of the city.