Saturday, September 24, 9707
Tuesday, October 21, 2008
How To Talk To Consumers In The Post Bailout Economy
By Kevin McIntosh
In How To Woo Consumers In The Middle Of An Economic Firestorm-Part 1, I discussed the changes to expect in consumer behavior over the next several months, and perhaps over the next several years.
Consumers will be spending less, and their purchases will be driven more by necessity than by desire.
So competition is about to get more heated in terms of going after the consumer's dollars. That's because there will be fewer consumer dollars out there.
As consumers get smarter than ever about spending money, marketers will have to get smarter than ever about getting consumers to spend money on their brands. That means knowing how to talk today’s changing consumer.
Appeal Less To The Ego, And More To The Wallet
The smart marketers will quickly adapt to the shifts in consumer behavior. Communications need to focus on value and cost-savings opportunities.
In fact, a new study by Omnicon Group-owned media agency OMD tested consumer feelings about advertising. 81% of the respondents said that advertisers need to continue to communicate about their products during a recession, adding that they'll be more receptive to cost-savings messages and products that are positioned as investments.
From AMC's Mad Men: Copywriter Peggy Olson summarizes the marketing sentiment that's prevailed for decades.
It's No Longer Feel Good About What You're Buying, But Feel Good About What You're Saving
Right now, consumers feel a lot of things. Confidence isn't one of them. The cars and houses that that they bought didn't make them better people. They just made them more in debt.
Having said that, it is still possible to speak to the egos of consumers while promoting value. After two decades of fairly self-centered purchase habits, the connection between feeling good about oneself and purchase isn’t likely to vanish all together.
It’s just that what made people feel good about themselves when there were seemingly endless lines of credit will be different for the Post-Bailout Economy consumer. Feeling good will be less about outright indulgence and more about responsibility, especially responsibility in regard to saving.
Link Brands To The Emotional Benefits Of Saving Money
When it comes to personal finance, emotions run deep. So while more and more purchases will be made on the rational decision of price, the emotional benefits of saving money will still be a strong benefit around which promotions and other marketing efforts can be built.
A very relevant theme for marketers in the Post-Bailout Economy is to connect saving to the idea of “Doing what's best for your family and your own future.” Saving and shopping for value is a step in taking responsibility for the future. It’s very similar to the sentiment expressed in the marketing for brands in the green category.
In the past, green marketers have encouraged consumers to think about their carbon footprint. Now marketers should also ask consumers to consider their financial footprint.
After all, carbon footprints are fairly abstract concepts. No consumer really knows exactly how much damage he has caused the environment. But the financial legacy that a consumer leaves for his offspring can be calculated down to the penny. It's much more personal than green marketing, because the consumer can't escape the accountability.
Reality Check
Marketers have enjoyed a consumer spending spree that has lasted nearly two decades. Now the spending is slowing down. To get the consumer's dollar, more marketers will have to focus on linking their brands to responsible spending.
Marketers encouraging consumers to spend responsibly. It's a dramatic shift in thought. But consumers are going through a dramatic shift in behavior.
I originally intended this to be a single article. However, the more I dig into it, I'm starting realize there are many more angles to explore. So I'll have more articles on How To Talk To Consumers In The Post-Bailout Economy in the weeks ahead. If you'd like to get email updates, just fill out the box below. Thanks for reading.
Kevin McIntosh is a freelance copywriter in the Nashville market. His work can be seen at www.KevinMcIntosh.com
By Kevin McIntosh
In How To Woo Consumers In The Middle Of An Economic Firestorm-Part 1, I discussed the changes to expect in consumer behavior over the next several months, and perhaps over the next several years.
Consumers will be spending less, and their purchases will be driven more by necessity than by desire.
So competition is about to get more heated in terms of going after the consumer's dollars. That's because there will be fewer consumer dollars out there.
As consumers get smarter than ever about spending money, marketers will have to get smarter than ever about getting consumers to spend money on their brands. That means knowing how to talk today’s changing consumer.
Appeal Less To The Ego, And More To The Wallet
The smart marketers will quickly adapt to the shifts in consumer behavior. Communications need to focus on value and cost-savings opportunities.
In fact, a new study by Omnicon Group-owned media agency OMD tested consumer feelings about advertising. 81% of the respondents said that advertisers need to continue to communicate about their products during a recession, adding that they'll be more receptive to cost-savings messages and products that are positioned as investments.
From AMC's Mad Men: Copywriter Peggy Olson summarizes the marketing sentiment that's prevailed for decades.
It's No Longer Feel Good About What You're Buying, But Feel Good About What You're Saving
Right now, consumers feel a lot of things. Confidence isn't one of them. The cars and houses that that they bought didn't make them better people. They just made them more in debt.
Having said that, it is still possible to speak to the egos of consumers while promoting value. After two decades of fairly self-centered purchase habits, the connection between feeling good about oneself and purchase isn’t likely to vanish all together.
It’s just that what made people feel good about themselves when there were seemingly endless lines of credit will be different for the Post-Bailout Economy consumer. Feeling good will be less about outright indulgence and more about responsibility, especially responsibility in regard to saving.
Link Brands To The Emotional Benefits Of Saving Money
When it comes to personal finance, emotions run deep. So while more and more purchases will be made on the rational decision of price, the emotional benefits of saving money will still be a strong benefit around which promotions and other marketing efforts can be built.
A very relevant theme for marketers in the Post-Bailout Economy is to connect saving to the idea of “Doing what's best for your family and your own future.” Saving and shopping for value is a step in taking responsibility for the future. It’s very similar to the sentiment expressed in the marketing for brands in the green category.
In the past, green marketers have encouraged consumers to think about their carbon footprint. Now marketers should also ask consumers to consider their financial footprint.
After all, carbon footprints are fairly abstract concepts. No consumer really knows exactly how much damage he has caused the environment. But the financial legacy that a consumer leaves for his offspring can be calculated down to the penny. It's much more personal than green marketing, because the consumer can't escape the accountability.
Reality Check
Marketers have enjoyed a consumer spending spree that has lasted nearly two decades. Now the spending is slowing down. To get the consumer's dollar, more marketers will have to focus on linking their brands to responsible spending.
Marketers encouraging consumers to spend responsibly. It's a dramatic shift in thought. But consumers are going through a dramatic shift in behavior.
I originally intended this to be a single article. However, the more I dig into it, I'm starting realize there are many more angles to explore. So I'll have more articles on How To Talk To Consumers In The Post-Bailout Economy in the weeks ahead. If you'd like to get email updates, just fill out the box below. Thanks for reading.
Kevin McIntosh is a freelance copywriter in the Nashville market. His work can be seen at www.KevinMcIntosh.com
Wednesday, October 15, 2008
Wednesday, October 8, 2008
How To Woo Consumers In The Middle Of An Economic Firestorm
This article exceeds my standard blog length considerably. So, here's the 15-second version: The economy is a mess (big surprise). Consumers are changing how they buy and what they buy. To win, ad agencies and marketers must know how to appeal to consumers in this new economy. That means appealing less to the ego, and more to the wallet. So if you'll allow me to go into my Wall Street Journal meets Faith Popcorn tone of voice, here's my full report:
The "I'm In Debt Up To My Eyeballs" spot for Lending Tree parodies the plight of consumers.
The Post-Bailout Economy. The New Deal Part 2. The Great Depression 2.0. Whatever you want to call life after September of 2008, the U.S. and other countries are about to go through some serious changes. We have witnessed the financial crisis, but we are just beginning to see its effects on the economy.
Like trying to get off of an addictive drug, U.S. consumers and others in the world will struggle to kick the habit of spending more than they make. But with increasing job losses, record foreclosures and a tighter credit market, change will happen. There will be no choice for millions but to drastically cut back on their spending.
Perhaps the scariest thing to think about is the ripple effect the cutbacks in consumer spending will have. After all, the economy is dependent on consumer spending for two-thirds of its input.
As marketers scramble to compete for the consumer dollar, understanding the new changes in consumer behavior will be critical.
Dramatic Shifts In Consumer Spending Ahead
Credit card balances are up more than $125 billion over just 3 years ago, according to Consumer Reports. Personal consumption in the U.S. has soared since 1990 from around $5 trillion to over $8 trillion. Americans have over $2.6 trillion in personal debt.
Consumers are visibly shaken. A survey by Reuters/University of Michigan Surveys of Consumers released on October 10th reports that 57 percent of U.S. consumers surveyed reported having lower confidence now in the Fed than five years ago, including 29 percent who said they had "a lot less" confidence.
The survey director said that the loss in confidence will cause consumers to accelerate their spending cutbacks and those reductions are likely to persist through most of 2009. It's anticipated the cutbacks will be the greatest in three decades.
In fact, the results of a new online poll of 507 consumers by WPP Group-owned Lightspeed Research for Advertising Age found that nearly 80% of respondents have already changed their buying behavior in the past few weeks.
Before the financial crisis, the spending of millions was only limited by their overly generous credit lines. But soon, their spending will be limited to what they have in their checking accounts, as the credit pipeline will be drastically curtailed. And due to poor saving habits, many consumers will not have any savings to tap into.
In the past, consumer spending usually bounced back with the recession. Given the deepness of this recession, it's likely that it will be much longer before consumer spending levels return to where they've been.
Necessity Will Drive Purchases More Than Desire
More and more purchases will be made based on necessity rather than desire. Price will outweigh sleek design. In fact, price may start to outweigh other product and service benefits.
For example, in the effort to make household budgets go further, many Target brand shoppers may now become Wal-Mart brand shoppers, though Target’s average prices fall within 1-2% of Wal-Mart prices. Nashville-based Dollar General stores should also see an increase in new customers.
While some consumers will retain strong incomes, there will be less discretionary income due to inflation and the resulting rising prices for necessities like food and fuel.
As necessity begins to drive spending habits, impulse spending will be less likely. The main impulse will be to not spend.
Luxury spending such as jewelry spending will see a huge drop-off.
Entertainment spending on things such as sports events and dining will decrease significantly as well. In a recent survey of nearly 1,000 households by Booz and Co., 43% of respondents said they are eating at home more and 25% said they were cutting spending on hobbies and sports activities. In both cases, most said they'd continue doing so even when the economy improves.
Of course, marketers of big-ticket items such as appliances, luxury electronics and autos will face big challenges. Now, many consumers will have trouble getting the credit to purchase these goods.
As discretionary income gets smaller, it will be interesting to note what changes in media habits we’ll see, because consumers will have to decide between necessity and luxury.
In times past, if finances got tight, people would cut cable TV services and newspaper delivery. Now, what will they cut? The Internet? Texting? Or even basic mobile phone services?
Buying Used Goods
More consumers may be forced to shop for used cars and perhaps even used furniture and appliances. Of course, that may only come after all repair options have been exhausted. For those who hang on to their Internet service, Craigslist could become a key brand for finding great deals on used goods.
Consignment shops and Goodwill stores could also see an increase in business, as more shoppers seek to save money on clothing purchases.
Fewer Trips To The Grocery, More Trips To The Garden
Another Nashville-based brand which could see new opportunities is Tractor Supply Company. The rising cost of food is driving more people to participate in community gardens. In Portland and Boston, there are already waiting lists with hundreds of people to get plots at community gardens.
While the trend may not yet seem substantial, we may see more community gardens and more home gardening springing up nationwide as consumers seek to save on food prices. Especially if marketers such as Tractor Supply begin to promote the idea that you don't have to be a farmer to grow your own food.
Delaying Health Care Spending
In a survey by the National Association of Insurance Commissioners in August, 22 percent of 686 consumers said that economy-related woes were causing them to go to the doctor less often. About 11 percent said they have scaled back on prescription drugs to save money.
The soaring costs in health care and the fact that over 46 million Americans are already living without health care coverage only makes matters worse. Plus it’s all but certain that the ranks of the uninsured will continue to grow, especially as unemployment rises due to the recession.
Lower Levels Of Spending, But Higher Levels Of Consciousness
Albert Einstein wrote, “The significant problems we face cannot be solved at the same level of thinking we were at when we created them.”
To solve their personal finance problems, many consumers will seek a higher level of thinking through a higher level of consciousness.
For some, the higher level of consciousness about personal finances will likely lead them to consume more information from personal finance books and trusted personal finance experts on the Internet, TV and radio.
Some may start to seek deeper spiritual fulfillment as they are forced to find contentment in a life without shopping bags filled with expensive new goodies. In fact, they may quickly reach a point where they seek a higher power to save their marriages from falling apart under the weight of the financial stress they will face.
We could see a mini Great Awakening movement. Much like the Great Awakening of colonial America, this movement will stem from an awareness of mistakes made and will fuel a desire to live differently in the future, especially in regards to stewardship of personal finances.
The combination of consumers seeking personal finance advice and seeking spiritual advice could create a whole new group of followers for Nasville-based Dave Ramsey and his Financial Peace University. Ramsey is the host of a nationally broadcast daily talk show, where as Ramsey says, "Debt is dumb, cash is king and the paid-off mortgage has taken the place of the BMW."
Ramsey is never shy to explain that his program is based on Biblical principles. His program is promoted and taught in churches throughout the U.S. and abroad.
Simple Indulgences May Still Attract Consumers
While big purchases may see a decline, consumers may still seek the simpler indulgences. As we saw after 9/11, consumers may turn to snack foods and other comfort foods to ease the pain. Rather than a trip to the day spa, consumers may decide to treat themselves with home beauty products and other less expensive alternatives.
Survival Strategy For Ad Agencies And Clients:
Competition is about to get more heated in terms of going after the consumer's dollars. That's because there will be fewer consumer dollars out there.
Consumers are going to get smarter than ever about spending money. So marketers will have to get smarter than ever about winning consumers.
Appeal Less To The Ego, And More To The Wallet
The smart marketers will quickly adapt to these shifts in consumer behavior. They will need to focus on creating value opportunities because that is what consumers will be looking for.
In fact, a new study by Omnicon Group-owned media agency OMD tested consumer feelings about advertising. 81% of the respondents said advertisers need to continue to communicate about their products during a recession, adding that they'll be more receptive to cost-savings messages and products that are positioned as investments.
Promotions and coupons will be bigger than ever.
Product Innovations Should Focus On Value
Tough times lead to innovation. Marketers should seek to develop innovative offerings of established products and services that will save the consumer money.
Hardee's Thickburger--now in the economy size.
Hardee's new quarter pound Thickburger product, called The Little Thickburger, is an example of a value-priced product extension based on their pricier Thickburger. The tagline for the product is simple: "It's a Thickburger, but little." The price starts at $1.99.
Proctor and Gamble has just released 2 new products that leverage brand equity while offering a unique value proposition. Tide Total Care and Downy Total Care claim to cut down on dry cleaning bills by helping clothes look new for a longer time.
Innovations that save consumers money. That's what consumers will be wanting.
Determine How Low You Can Price Without Discounting Your Brand Forever
Retail brands that have typically resisted heavy discounting may be left with no option. Zales and Pottery Barn had even slashed prices as much as 75% in early September. And discounts at mall-based stores were already 10% deeper than the prior year.
Of course, the longer that retailers lower their prices, the more accustomed consumers will get to discounts. So even after a recovery, it may be hard for retailers to raise prices again.
Promote Financial Stewardship
As consumers seek more financial advice, marketers should try to determine how they can link their products and services to prudent financial stewardship. For some brands and brand categories, that will be a challenge.
For larger brands that can afford celebrity endorsements, recruiting high-profile personal finance experts such as Dave Ramsey to endorse their brands could help increase awareness and build consumer trust.
When it comes to personal finance, emotions run deep. So while more and more purchases will be made on the rational decision of price, the emotional benefits of saving money will still be a strong benefit around which promotions and other marketing efforts can be built.
Marketers can connect saving to the idea of doing what's best for your family and your own future. The idea of taking responsibility for your future starts right here, right now is a very relevant thought. You may recognize it's the same sentiment expressed in much of the marketing for brands in the green category.
Relieve Consumer Stress With Some Humor
Consumers are stressed out. One of the best reliefs for stress if humor. For marketers of packaged goods such as snack foods or services like dining, humor is always a welcome relief. Marketers should just try and tie it back to what's relevant to the consumer today--the economy and saving money.
A new TV spot from Denny's restaurant chain broke the second week of October promoting their own economic bailout package. The spot, echoes the sentiments of millions of frustrated consumers as the announcer points out that the government is offering bailouts but then asks who will bail out the consumer? He reveals the answer is Denny's, with its new economic bailout menu specials.
The humor accepts the problem of the current times but then presents its own solution. Which is what good advertising does.
Reality Check:
Change Is Good
More responsible spending. Fewer credit purchases. More innovative product offerings.
Could it be that the possible changes brought about from the economic mess the U.S. now faces might actually be good?
Perhaps the road consumers and marketers alike are about to go down is going to be rough. But for the marketers who learn to speak to the consumer who is changing the way he or she thinks about spending money, the road can be a lot smoother.
--Kevin McIntosh
Kevin McIntosh is a freelance copywriter in the Nashville market. See his work at: www.KevinMcIntosh.com
The "I'm In Debt Up To My Eyeballs" spot for Lending Tree parodies the plight of consumers.
The Post-Bailout Economy. The New Deal Part 2. The Great Depression 2.0. Whatever you want to call life after September of 2008, the U.S. and other countries are about to go through some serious changes. We have witnessed the financial crisis, but we are just beginning to see its effects on the economy.
Like trying to get off of an addictive drug, U.S. consumers and others in the world will struggle to kick the habit of spending more than they make. But with increasing job losses, record foreclosures and a tighter credit market, change will happen. There will be no choice for millions but to drastically cut back on their spending.
Perhaps the scariest thing to think about is the ripple effect the cutbacks in consumer spending will have. After all, the economy is dependent on consumer spending for two-thirds of its input.
As marketers scramble to compete for the consumer dollar, understanding the new changes in consumer behavior will be critical.
Dramatic Shifts In Consumer Spending Ahead
Credit card balances are up more than $125 billion over just 3 years ago, according to Consumer Reports. Personal consumption in the U.S. has soared since 1990 from around $5 trillion to over $8 trillion. Americans have over $2.6 trillion in personal debt.
Consumers are visibly shaken. A survey by Reuters/University of Michigan Surveys of Consumers released on October 10th reports that 57 percent of U.S. consumers surveyed reported having lower confidence now in the Fed than five years ago, including 29 percent who said they had "a lot less" confidence.
The survey director said that the loss in confidence will cause consumers to accelerate their spending cutbacks and those reductions are likely to persist through most of 2009. It's anticipated the cutbacks will be the greatest in three decades.
In fact, the results of a new online poll of 507 consumers by WPP Group-owned Lightspeed Research for Advertising Age found that nearly 80% of respondents have already changed their buying behavior in the past few weeks.
Before the financial crisis, the spending of millions was only limited by their overly generous credit lines. But soon, their spending will be limited to what they have in their checking accounts, as the credit pipeline will be drastically curtailed. And due to poor saving habits, many consumers will not have any savings to tap into.
In the past, consumer spending usually bounced back with the recession. Given the deepness of this recession, it's likely that it will be much longer before consumer spending levels return to where they've been.
Necessity Will Drive Purchases More Than Desire
More and more purchases will be made based on necessity rather than desire. Price will outweigh sleek design. In fact, price may start to outweigh other product and service benefits.
For example, in the effort to make household budgets go further, many Target brand shoppers may now become Wal-Mart brand shoppers, though Target’s average prices fall within 1-2% of Wal-Mart prices. Nashville-based Dollar General stores should also see an increase in new customers.
While some consumers will retain strong incomes, there will be less discretionary income due to inflation and the resulting rising prices for necessities like food and fuel.
As necessity begins to drive spending habits, impulse spending will be less likely. The main impulse will be to not spend.
Luxury spending such as jewelry spending will see a huge drop-off.
Entertainment spending on things such as sports events and dining will decrease significantly as well. In a recent survey of nearly 1,000 households by Booz and Co., 43% of respondents said they are eating at home more and 25% said they were cutting spending on hobbies and sports activities. In both cases, most said they'd continue doing so even when the economy improves.
Of course, marketers of big-ticket items such as appliances, luxury electronics and autos will face big challenges. Now, many consumers will have trouble getting the credit to purchase these goods.
As discretionary income gets smaller, it will be interesting to note what changes in media habits we’ll see, because consumers will have to decide between necessity and luxury.
In times past, if finances got tight, people would cut cable TV services and newspaper delivery. Now, what will they cut? The Internet? Texting? Or even basic mobile phone services?
Buying Used Goods
More consumers may be forced to shop for used cars and perhaps even used furniture and appliances. Of course, that may only come after all repair options have been exhausted. For those who hang on to their Internet service, Craigslist could become a key brand for finding great deals on used goods.
Consignment shops and Goodwill stores could also see an increase in business, as more shoppers seek to save money on clothing purchases.
Fewer Trips To The Grocery, More Trips To The Garden
Another Nashville-based brand which could see new opportunities is Tractor Supply Company. The rising cost of food is driving more people to participate in community gardens. In Portland and Boston, there are already waiting lists with hundreds of people to get plots at community gardens.
While the trend may not yet seem substantial, we may see more community gardens and more home gardening springing up nationwide as consumers seek to save on food prices. Especially if marketers such as Tractor Supply begin to promote the idea that you don't have to be a farmer to grow your own food.
Delaying Health Care Spending
In a survey by the National Association of Insurance Commissioners in August, 22 percent of 686 consumers said that economy-related woes were causing them to go to the doctor less often. About 11 percent said they have scaled back on prescription drugs to save money.
The soaring costs in health care and the fact that over 46 million Americans are already living without health care coverage only makes matters worse. Plus it’s all but certain that the ranks of the uninsured will continue to grow, especially as unemployment rises due to the recession.
Lower Levels Of Spending, But Higher Levels Of Consciousness
Albert Einstein wrote, “The significant problems we face cannot be solved at the same level of thinking we were at when we created them.”
To solve their personal finance problems, many consumers will seek a higher level of thinking through a higher level of consciousness.
For some, the higher level of consciousness about personal finances will likely lead them to consume more information from personal finance books and trusted personal finance experts on the Internet, TV and radio.
Some may start to seek deeper spiritual fulfillment as they are forced to find contentment in a life without shopping bags filled with expensive new goodies. In fact, they may quickly reach a point where they seek a higher power to save their marriages from falling apart under the weight of the financial stress they will face.
We could see a mini Great Awakening movement. Much like the Great Awakening of colonial America, this movement will stem from an awareness of mistakes made and will fuel a desire to live differently in the future, especially in regards to stewardship of personal finances.
The combination of consumers seeking personal finance advice and seeking spiritual advice could create a whole new group of followers for Nasville-based Dave Ramsey and his Financial Peace University. Ramsey is the host of a nationally broadcast daily talk show, where as Ramsey says, "Debt is dumb, cash is king and the paid-off mortgage has taken the place of the BMW."
Ramsey is never shy to explain that his program is based on Biblical principles. His program is promoted and taught in churches throughout the U.S. and abroad.
Simple Indulgences May Still Attract Consumers
While big purchases may see a decline, consumers may still seek the simpler indulgences. As we saw after 9/11, consumers may turn to snack foods and other comfort foods to ease the pain. Rather than a trip to the day spa, consumers may decide to treat themselves with home beauty products and other less expensive alternatives.
Survival Strategy For Ad Agencies And Clients:
Competition is about to get more heated in terms of going after the consumer's dollars. That's because there will be fewer consumer dollars out there.
Consumers are going to get smarter than ever about spending money. So marketers will have to get smarter than ever about winning consumers.
Appeal Less To The Ego, And More To The Wallet
The smart marketers will quickly adapt to these shifts in consumer behavior. They will need to focus on creating value opportunities because that is what consumers will be looking for.
In fact, a new study by Omnicon Group-owned media agency OMD tested consumer feelings about advertising. 81% of the respondents said advertisers need to continue to communicate about their products during a recession, adding that they'll be more receptive to cost-savings messages and products that are positioned as investments.
Promotions and coupons will be bigger than ever.
Product Innovations Should Focus On Value
Tough times lead to innovation. Marketers should seek to develop innovative offerings of established products and services that will save the consumer money.
Hardee's Thickburger--now in the economy size.
Hardee's new quarter pound Thickburger product, called The Little Thickburger, is an example of a value-priced product extension based on their pricier Thickburger. The tagline for the product is simple: "It's a Thickburger, but little." The price starts at $1.99.
Proctor and Gamble has just released 2 new products that leverage brand equity while offering a unique value proposition. Tide Total Care and Downy Total Care claim to cut down on dry cleaning bills by helping clothes look new for a longer time.
Innovations that save consumers money. That's what consumers will be wanting.
Determine How Low You Can Price Without Discounting Your Brand Forever
Retail brands that have typically resisted heavy discounting may be left with no option. Zales and Pottery Barn had even slashed prices as much as 75% in early September. And discounts at mall-based stores were already 10% deeper than the prior year.
Of course, the longer that retailers lower their prices, the more accustomed consumers will get to discounts. So even after a recovery, it may be hard for retailers to raise prices again.
Promote Financial Stewardship
As consumers seek more financial advice, marketers should try to determine how they can link their products and services to prudent financial stewardship. For some brands and brand categories, that will be a challenge.
For larger brands that can afford celebrity endorsements, recruiting high-profile personal finance experts such as Dave Ramsey to endorse their brands could help increase awareness and build consumer trust.
When it comes to personal finance, emotions run deep. So while more and more purchases will be made on the rational decision of price, the emotional benefits of saving money will still be a strong benefit around which promotions and other marketing efforts can be built.
Marketers can connect saving to the idea of doing what's best for your family and your own future. The idea of taking responsibility for your future starts right here, right now is a very relevant thought. You may recognize it's the same sentiment expressed in much of the marketing for brands in the green category.
Relieve Consumer Stress With Some Humor
Consumers are stressed out. One of the best reliefs for stress if humor. For marketers of packaged goods such as snack foods or services like dining, humor is always a welcome relief. Marketers should just try and tie it back to what's relevant to the consumer today--the economy and saving money.
A new TV spot from Denny's restaurant chain broke the second week of October promoting their own economic bailout package. The spot, echoes the sentiments of millions of frustrated consumers as the announcer points out that the government is offering bailouts but then asks who will bail out the consumer? He reveals the answer is Denny's, with its new economic bailout menu specials.
The humor accepts the problem of the current times but then presents its own solution. Which is what good advertising does.
Reality Check:
Change Is Good
More responsible spending. Fewer credit purchases. More innovative product offerings.
Could it be that the possible changes brought about from the economic mess the U.S. now faces might actually be good?
Perhaps the road consumers and marketers alike are about to go down is going to be rough. But for the marketers who learn to speak to the consumer who is changing the way he or she thinks about spending money, the road can be a lot smoother.
--Kevin McIntosh
Kevin McIntosh is a freelance copywriter in the Nashville market. See his work at: www.KevinMcIntosh.com
Subscribe to:
Posts (Atom)
