Prospering in a Down Economy, Part 1
Posted on March 6, 2009 | Permalink
By Lane Casteix
One of my favorite web sites is Stealing Share, where you can find all manner of ideas and thoughts about marketing and growing your business. In a recent article called The Comprehensive Model For Persuasive Human Communication they do a marvelous job of modeling consumer behavior in a down economy as we are experiencing now. The article is well written and, even though the subject is a bit complicated, it is presented in an easy to understand format. At SPAR we are actively applying the marketing principles taught in the article.
It should come as no surprise that consumers behave differently in a bad economy. They still buy products and services, just not as much as during more prosperous times and they become more cautious with their dollars. It is important to understand the motivators behind consumer purchases and how they can be tapped into to drive sales even in tough economic times. If you can do this, there is a good chance you can sustain your business and even grow share.
Basically, consumers are looking for comfort, assurance and value while becoming risk averse. They tend to gravitate towards the familiar (and safe) and avoid the new (and risky). Understanding this, the savvy marketer or advertiser can tune messages to address these new drivers. I urge you to read the linked article and consider applying the techniques they suggest.
This article on selling retro packaging fits right into some or the principles mentioned in the Stealing Share study. And Tropicana dumping its new package may also be related to their consumer's need for safety and comfort in a bad economy.
After you have read the linked study go read Stealing Share's predictions of marketing winners and losers based on the principles mentioned in the study and see if you agree.