As Giant Retailers Reel, Marketers Gird for Worst
Whether the US is already in a recession or whether it's a few months away, retailers will see major changes in consumer behavior and should prepare for the worst. As Howard Schultz, the CEO of Starbucks, said recently "it doesn't
matter whether or not economists think the U.S. is in a recessionary
period. The consumer is in a recession."
Here are a few of the very many articles recently written on the subject:
Posted by Universal Ad
Here are a few of the very many articles recently written on the subject:
- As Giant Retailers Reel, Marketers Gird for Worst - Advertisers Will Have to Cut Costs to Keep Pace With Changing Consumer Priorities, but Can They Afford to Slash Ad Spend? "Marketers are doing the one thing that they should not be doing right now. They are out there trying to promote and discount their way to growth. When you
have a consumer-confidence issue, it's not about spending less money, it's about spending any money. Marketers
need to say 'Here's why you need these things.'"
- U.S. Consumers Shopping For Price, Value - Economic uncertainty is forcing U.S.
shoppers to consider low prices and bargains above all else for
the first time in a decade. That means retailers with the lowest prices will perform
relatively better than more upscale rivals over the next few
quarters."We know that people are going to be focused on absolute
price and value. We anticipate that means people will be
trading down to those formats that are positioned well in that
regard."
- Signs Of An Economic Downturn & How Consumers Are Responding - Food retailer Stew Leonard Jr. explained how he measured the
health of the economy. "I look for the mashed-potato effect. If customers are buying our freshly prepared mashed potatoes instead
of whole potatoes, then the economy is doing well. Lately, bulk potato
sales have been up, so there's a concern about where the economy is
going."
- Lower Income Households Making More Drastic Spending Reductions - Lower income households are clearly making more drastic spending reductions as a result of higher gas prices. Manufacturers and retailers need to take advantage of the fact these
households will be consuming more products at home or at work and align
in-store assortment and trade/consumer promotions accordingly.
- Consumers Seek Economic Relief Online - Looking to reach consumers who are
hard-pressed to buy your products? Get online and send them newsletters
and coupons, because that is where they are, researching products and
seeking ways to navigate the economic recession.
- Online Social Media Cheap Alternative In Face Of Recession - Faced with a looming recession, marketers should spend more on online social media as a cheap, efficient way to advertise during tougher economic times. The firm argues that advertisers can get more bang for their buck by
running campaigns on social-networking sites and online communities as
consumers become less receptive to traditional brand advertising.
- CPG Costs Changed Consumer Shopping Habits in 2007 - “With the acceleration of prices across the board, consumers responded
by refocusing on supercenters and seeking out lower-cost private label
alternatives to name brand items. While at the same time, product
innovation in several CPG categories played a healthy role in spurring
growth that we predict will be a key factor in 2008.”
- How Media Would Weather Recession - With recession talk in the air, marketers are scrutinizing their
spending. But old, reliable tricks such as counting on coupons to goose
sales might not work this time around. Luckily, cheaper options abound
in emerging media such as mobile, e-mail and search.
- More Shoppers Head to Discount Stores - The weaker the economy gets, it seems, the more some discounters
benefit and the bleaker the outlook for their higher-priced
competitors. That trend burst into view during the holiday season, when
Wal-Mart and some off-price retailers outperformed full-price stores.
- Coupon Clippers Spurred to New Efforts By Tough Economy - The treacherous economy, not to mention rising grocery prices, may
offer the perfect moment to win over more consumers -- either to a
particular online service or to the old-fashioned sorting through piles
of coupons like those in today's paper. In December, according to a
Nielsen Co. survey, 25% of consumers reported using coupons, a
surge from 21% in June.
- Recession-Proof Your Marketing - To understand how to modify online marketing to meet recessionary realities, it's necessary to assess how changes in the economy may affect customer buying. Three factors influencing behavior are purchase-focus changes, product trade-offs and increased time between initial research and purchase. The article lists seven ways to analyze marketing plans to meet the changes in buying behavior that are driven by hard times.
Posted by Universal Ad
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