January
A New Year - Time to Capitalize on Your Marketing Messaging
2010 at 02:37 pm Posted by Sherri Sharp
Happy New Year! It's a brand-new day—especially when it comes to the American consumer. And that may be good or bad news for marketers, depending on the products they sell and the marketing strategies they deploy.
New research released late last year by McKinsey & Company suggests that the downturn may have "fundamentally altered the behavior of numerous US consumers, who are now learning to live without expensive products." Among their findings, from an article at the McKinsey Quarterly website:
• In any given category, an average of 18 percent of packaged-goods consumers bought lower-priced brands in the past two years. • Of the consumers who switched to cheaper products, 46 percent said those products performed better than expected, and the large majority said the performance of such products was much better than expected. • 34 percent of the switchers said they no longer preferred higher-priced products, and an additional 41 percent said that while they preferred the premium brand, it was not worth the money.
McKinsey is quick to point out, however, that consumers' choices of cheaper brands vary by the products involved. For example:
• Only 12 percent of beer buyers switched to cheaper brands. • More than 20 percent of buyers of cold-and-allergy medicines tried a lower-priced option.
Overall, McKinsey advises caution. "Many companies with strong premium brands are anticipating a rapid rebound in consumer behavior—a return to normality, as after previous recessions," the company reports. "They are likely to be disappointed," it concludes.
The message to marketers - Tell them what's in it for them. Regardless of the product or service you offer, it's important to stress value and dependability in your marketing messages of 2010—to reassure the new breed of cautious consumer.
Posted in: Marketing Musings
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