Who would have thought it just two years ago that the US economy would be in near freefall. Seems like just yesterday people were buying houses they couldn’t afford, unconcerned about the thousands of dollars in debt rolling over on their credit cards and freely purchasing the next latest gadget on a near daily basis.
Yet here we sit in a time of recession with the news of the day filled with which major companies had layoffs and which banks are on the verge of failing. With unemployment at 8% and growing, consumers have finally woken up to the reality that spending has consequences and money doesn’t grow on trees. People have tightened their belts and are delaying gratification even when the word sale is applied. And even more significantly, they feel good about themselves for doing it.
We’ve entered an age of austerity.
So what’s a marketer to do? Sell austerity itself.
Well, maybe not literally, that would be tough. But you can sell that feeling people get when they make smart choices. It’s about saving money in the long run with products that last longer or save on the need for other products. Light bulbs are the perfect example: buy the more expensive eco-blub and save long term while saving the planet.
People without money aren’t going to buy no matter what. But people with incomes still need products, and now more than ever they need/want a reason to buy. If feeling good about ourselves comes from NOT opening the purse strings, we need to make a compelling reason that it will feel better if we do. Now I’m not saying this will work for a Tiffany bracelet or Juicy jeans, but detergent, clothing, cleaning products, etc. have a chance.
Advertising has always been about giving the people what they want. For the last several years what they wanted was bragging rights about having the new/latest toy. Today, bragging rights are about getting the best/smartest deal. Selling isn’t impossible as long as we recognize that the drivers have changed drastically and people are still looking for a reason to feel good about their purchase.
I agree with the general principle of embracing austerity, but this only works if the product(s) you're trying to market fit organically within that message.
ReplyDeleteRemember when it seemed like every single product - even auto tires - were marketed using babies. It didn't matter if the connection was far-fetched, babies were the "it" thing to have.
I'm afraid that "austerity" may become the 2009 version of babies. If Tiffany, Juicy and other high-end brands market their products as the right things to buy because you'll be smarter/better off in the long run, then the overall cultural message will be diluted and these brands run the risk of being seen as disingenous or pandering.