Hrvoje Pilić (Degordian): In a crisis, companies that combine defensive and offensive moves fare the best

It is well known that marketing in Croatia follows foreign trends quite well, and there are companies that set the trends. Among them is certainly Degordian, which has grown into one of the digital leaders in the market in just a few years, thanks to its ability to effectively combine business, marketing, and new technologies. Based on these foundations, its new Demand Generation Marketing department focused on the B2B segment has emerged. This is a type of marketing where significantly larger amounts of money are involved compared to the B2C segment and which requires a new approach.

This new approach, emphasizes Hrvoje Pilić, performance marketing director, should be particularly interesting in the upcoming period where marketing expects a further decline in demand, as this service could help companies absorb shocks and stimulate demand and better utilize their budgets.

What is it about?

– It is an advanced concept that connects lead generation, inbound marketing, marketing automation, account-based marketing, advertising, and outbound sales. At Degordian, we like to constantly look ahead and continually ask ourselves in which direction we can further go, which path to grow, and which concepts or solutions to build.

Degordian’s Performance Marketing department is at the intersection of sales, marketing, and technology. Recently, within this unit, we have also introduced a new concept called demand generation, primarily aimed at the B2B segment. Demand generation is suitable for most B2B companies; we have experience working with early-stage startups and unicorns, as well as traditional B2B companies.

How would you explain to a business person who does not speak the meta-language of marketing what you can provide with your new service and how you intend to implement it?

– It is necessary to reach people through marketing activities in all three phases of the purchasing process. In the first phase, it is essential to raise awareness and attract them to the web-site, bringing in as many targeted visitors as possible; in the second phase, direct them to educational and informational materials such as gated content with the aim of generating as many leads as possible, and then in the third phase, use marketing automation to help leads become customers.

The typical purchasing process in a B2B environment is complex, involving multiple people, often lasting for months, and has a high transaction value. Therefore, B2B strategies for revenue growth and acquisition are more complex and significantly different from traditional B2C marketing strategies. Demand generation is a set of services that follows the entire purchasing process from awareness that the product exists, creating and stimulating demand to the final transaction, or purchase. The tactics are focused on educating and attracting target customers by combining inbound and outbound activities, where marketing and sales must be integrated and synchronized.

During the last recession, marketing departments were the first to be hit. What scenarios are you preparing for if a recession occurs and companies start to cut advertising budgets?

– Unfortunately, periods of crisis are an integral part of the economic cycle, and marketing departments are often under pressure to cut budgets and resources. It is important to emphasize that it is very likely that traditional marketing will be hit harder this time as well.

Namely, digital marketing during the previous recession, and even during the COVID crisis, was not only less affected but also experienced a boost and growth. Digital will continue to grow and remain a particularly important channel; in some areas, such as display advertising, there may be stagnation, but areas like performance marketing and those oriented towards sales, such as demand generation, will continue to thrive. In such times, budget cuts for advertising are most often present among companies that target a broad mass of customers, i.e., companies that choose a defensive strategy in preparation for a crisis.

Defensive companies can be recognized by their tendency to minimize risks during a crisis, primarily by cutting costs, reducing sales and marketing activities, decreasing acquisitions, and halting investments in research and development. On the other hand, offensive companies focus on their strengths and opportunities, continue to invest in marketing and advertising, and keep acquiring and investing in research and development. During previous crises, it has been shown that defensive companies emerge weaker from crises, lose market position, or fail, while offensive companies prosper and emerge stronger from crises.

However, the best-performing companies are those that optimally combine defensive and offensive moves – these are progressive companies that have the greatest chances of successfully navigating through crisis times. At Degordian, we are preparing in the spirit of progressive companies and plan to combine offensive and defensive moves. This means we will be cautious about costs, focus sales and marketing activities, and continue to invest in the development of new services and, of course, people.