Features and tRends

(February 2009)

The New Marketing Reality: It’s Nifty To Be Thrifty

By Steven Kleber, President and Founder of Kleber & Associates

After surviving a series of economic bubbles over the last couple of decades, we’ve finally come to a fork in the road. Depending on who you believe, we got here because of years of overproduction, our irresponsible lending, and our spending habits. Regardless of how the current financial crisis happened, we’re in for a prolonged recovery.

Beyond that, as marketers, we’ll be faced with a new consumer reality after the recovery. We won’t see the consumer-spending-of-old anytime soon. As my generation—Boomers—continues to hold the bulk of the spending power in the U.S. for the foreseeable future, we’ll see a more pragmatic approach to spending, an adaptation of a “less is more” sensibility, a return to the belief that happiness (not things) is the ultimate luxury (many of us came of age in the 60s, don’t forget!).

We’ve all been watching closely to see just how far the economic effects of the downturn will reach. When it recently hit the once-immune segment of luxury goods (Unity Marketing, a firm that tracks luxury spending, says luxury has “likely reached its peak.”), there was a collective sigh in marketing departments across the country. With lux is in flux, we know we’ve hit the proverbial marketing ground floor. There’s a steady drumbeat that’s building across all segments of consumers now… and if we don’t acknowledge and respect it, we’ll miss a tremendous opportunity in 2009.

The new consumer mantra? It’s Nifty to be Thrifty.

So what’s the implication for us as marketers? To answer that we need to get into the mindset of consumers and not just understand, but empathize, with their changes in behavior. Consumers are not just cocooning, they’re having “staycations.” They’re following their instincts—returning to the basics—to classic design and all things organic. They’re nesting, investing in products and projects that will maintain the value of their greatest assets. The good news is they’re staying home. And that means we get the opportunity to improve their lives where they’re most comfortable – and in the last place they curb discretionary spending. But let’s be clear on one thing: if you’re not talking value, people aren’t listening.

So how do you approach this new consumer reality? Here are three important strategies.

One: Show empathy towards your consumers. Invest time enhancing your relationships and act on what they’re saying and feeling. Two: Offer a real value (not just a “price”) proposition. It minimizes the buyer’s perception of risk. Hyundai’s new Assurance Program is a brilliant example of this. Three: Respect the intelligence of your audience. This is not the time for rhetoric. Make sure you’re communicating a benefit that’s real and that’s meaningful.

There are plenty of opportunities to gain traction in this down economy. And there are hardworking marketing tactics that can help pave the way for brands to make consumer connections that will last long beyond the current financial crisis.

Map out a communications strategy for your product or service that employs one or more of the following:

Consider a social media strategy: 92 percent of people cite word-of-mouth as the best source for brand information. Focus on earned media to build brand trust: When 76 percent of people rely on what other people say for information, according to Mediaedge, editorial is perceived to be more believable than advertising. Use a laser-like focus to reach consumers: Niche marketing is more cost efficient. And take the time to form opportunistic partnerships: Harness the power of resources with like-minded brands and build programs that pique consumer interest and drive sales.

So what’s your value proposition? K&A would like to help you maximize it in 2009. Contact me at skleber@kleberandassociates.com or 770.518.1000 x203 to find out more about how K&A can provide you with everyday marketing value and maximize your marketing roi.


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