Keating Magee
Consumer Insights and Messaging
While it is critical to market during a recession, marketers need to also think of the shifted mindset of consumers who are experiencing a decrease in spending power. John L. Jacobs, executive VP and CMO for Nasdaq states, “Most market research we’ve done shows that when a stock market says, ‘Don’t worry,’ people worry.” 10 Distressed consumers feel that they do not have control and have lost all power of choice in the marketplace. Offering educational opportunities and encouraging consumers to do product research helps restore balance and emphasizes that consumers have command over their marketing decisions. 11 For example, financial institutions could offer a daily blog on their website with tips on how to manage money and weather the recession.
Consumer habits are likely to shift during a recession, presenting great opportunities for innovative marketers. Through identifying new opportunities, marketers can create product or service innovations that are a result of the recession and pinpoint a new and untapped consumer need. 12 In addition, marketers that accentuate value, reliability and durability can alleviate consumers' negative concerns about products.
For the past six to eight months, banks and insurance companies have been running ads referencing the recession, but consumer goods are just now beginning to address it directly. The headline in a recent ad for Crate and Barrel cookware reads, “Oven-proof. Dishwasher-proof. 401(k) proof.” An ad for Denny’s Weekday Express Slam (a $4 version of its signature $5.99 Grand Slam breakfast) begins, “It’s one thing to bail out Wall Street. But who’s gonna bail you out?” Using borrowed interest, these ads emphasize value in light of the current economic situation. 13
However, marketers must evaluate how well borrowed interest works for the product and the brand. For example, Volkswagen has stated that they will not create ads focused on the recession because the emotional basis for their brand is optimism. 14 It is important to be cognizant of consumers' situations and be sensitive to messaging; for example, LG Electronics is currently backing off of its “Life’s Good” slogan to take a more sobering approach to the current economic state. 15 While LG phones used to primarily focus on style, they now promote durability and lasting value along with style.
10 “With Economy Volatile, Financial Firms Start to Stress Stability.” New York Times, Wednesday, September 19, 2007.
11 “How to market through recession jitters.” Advertising Age, March 24, 2008.
12 “Recession can be a marketer’s friend.” Advertising Age, March 24, 2008. and “Different approaches to recession advertising and marketing.” WARC.com. February 2008.
13 “Striving for Balance between Losses and Laughs.” New York Times. October 14, 2008.
14 Ibid.
15 “When the Going gets Tough, the Tough Don’t Skimp on Their Ad Budgets.” Knowledge.wharton.edu. 11.26.08
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