It's about needs now for consumers not wants
Seven in 10
consumers (70%) say they are cutting back on how
much money they spend each week and 22% say they
worried yesterday that they spent too much money.
What is stunning about these results is that
older and upper-income Americans continue to
report cutting back on their spending and
worrying about spending too much. These segments
should be in their peak income earning years and
yet they are cutting back thus continuing to drag
down our economy.
It's all about
needs over wants now but there seem to be some
exceptions. Consumers, after working hard all
year and worrying about their jobs and homes,
want to get away from it all and thus spending on
vacations seem to be increasing. Consumers seem
also willing to treat themselves to a culinary
award from time to time in the form of decadent
chocolate or a night out at a restaurant that
offers specials. Electronics continue to do well
as well because most consumers see them as tools
to help them sort out their busy lives and
maintain control and contact with family and
friends who they trust a lot more than the
government and marketers messages.
Marketers need
to be keenly aware of consumers sentiment when it
comes to spending because it is redefining
branding and brand equity measurements. It's no
longer about prestige of a logo on a box or can,
it's now about the value or the difference
between your product and less expensive store
brands.
It's only a matter of time before someone
develops an app for a smart phone that allows
people to scan brands at their market and gives
them opinion from others via social media input.
Marketers will spend millions of dollars to
introduce new products but a few well placed
comments via Facebook or Twitter could negate a
lot of that money.
Solve consumers problems and give them a reason
to "need" you rather than "want" your brand.
Listen to them and take that marketing plan that
you developed and throw it in the trash because
as soon as it's printed it's outdated. Marketers
have to react with speed and continually optimize
their marketing message to their audiences or
else they are going to find themselves making
more cuts at a time when that means the end of a
marketing driven organization.
