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Marketing During an Economic Downturn: What Do You Say?
By: Jennifer Brinkmann | 10/16/2008
I like some television ads. Yes, I know most people avoid them. But the really good ones from major national brands tell us so much in such little time. These ads provide insightful peaks into a company's marketing strategy, giving people in our profession lots to ponder on and sometimes criticize. It's a sport of sorts.
Historically, sports are a necessary cultural refuge during tough times, but not this sport…not the sport of consumerism. As our current economic crisis plays out, I have to say the Tivo effect has finally taken effect in our house.
A note to advertisers: We don't need new cell phones. Ours work just fine. We are not planning any family vacations, no matter how good the deals. Our kids Halloween costumes from last year still fit, and we do not need any cutesy decorations for the house. We will not be making any major wardrobe investments this fall. We certainly are not going to buy a new car. And we will be pickier about where we eat out when we choose to splurge.
Not only does it seem irresponsible to spend frivolously, but the constant need from marketers to shout at us, to make us fall in love with things we don't need, and to encourage us to spend, just isn't fun anymore.
Obviously, our country's economic health requires all of us to spend. But how can our spending make a difference beyond increasing the share price of a few big companies? Are you thinking of spending differently in the future? How should marketers engage with consumers during this crisis? What can marketers say that people care to hear?
Posted in Branding and Positioning, Reputation Management, Brand Positioning, Reputation Management
comments
Jennifer says:
Wed, October 22, 2008 at 12:36:pm
This is an interesting read about how marketers are adapting to the economy: http://ap.google.com/article/ALeqM5jc4U4qwOOgmQDR-cDDamimSyGOIAD93SC4D80
Maria says:
Wed, October 22, 2008 at 2:35:pm
I am spending differently and much like Gretchen I’m increasingly concerned with value—quality at the right price. I think marketers are starting to recognize this and as the article points out, we’ll see this sentiment reflected in holiday retail marketing. But that’s not enough. Firms and brands need to meaningfully differentiate themselves to their consumers. Quality is not a meaningful differentiator—in this market, its expected.
Additionally, a hedgehog approach is more important than ever as consumers are increasingly discriminating how and where they spend their resources. Don’t try to be everything to everyone ... everyone isn’t buying everything! http://www.jimcollins.com/lab/hedgehog/
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Gretchen says:
Wed, October 22, 2008 at 9:07:am
Overall, yes, I’m spending differently. There are still purchases I need to make (my wardrobe is still sadly in need of reinforcements), but I’m certainly paying much more attention to discounts and quality - I might pay a little more for a sweater/iron/gloves if I’m confident of the quality and durability. The other thing I’ve noticed in my purchasing is that I’m paying a LOT more attention to what waste is created by my purchase. I pay attention to packaging - how much has to be discarded and how much can be recycled - and also to the item itself - my mop has a removable cloth that can be thrown into the washing machine rather than a removable cloth-like sheet that gets thrown in the trash.
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