Marketing Mind Blog

Trend Observation: An article in today’s Marketing Daily explains that as digitally savvy as the Millennial consumer might be, they still have a variety of stores they consider favorites… and enjoy stepping into for some hands-on shopping. Click here to see the list, as well as some of the group’s shopping motivations.

Marketing Implications: Multi-channel experiences seem to best feed the Millennial shopping experience. But more than that, this story seems to reinforce the idea that understanding the benefits sought by your customer when buying a product or service is critical. From social experiences—whether in-store or online—to a sense of community, value, and being able to reach the provider through multiple means (traditional web, mobile, physical location), if Millennials are one of your target consumer groups, it’s important to create the kind of experience they’re after.

Mike Anderson

Trend Observation: According to Gallup research summarized in today’s Washington Post, more than 20% of Americans have relocated within the past five years. Click here to see the story.

Marketing Implications: What do people buy when they move into a new place? You’re probably thinking of a long list that includes furniture, wall decorations and other accessories, home improvements, and more. But think out of the box, too: If you recently moved, you’re also no longer near the bank branch you used to use, the dry cleaner, grocery story, auto service shop, etc.  A lot of consumer activity is driven by Term of Residency issues.  When you move from one neighborhood to another, many of your consumer habits are reset.

Does it make sense for your business to market to that group of consumers who’ve recently arrived in your market area? They hold fewer preconceptions about your business, and represent the chance to cultivate new relationships… provided you satisfy the benefits they seek and can reach them effectively.

Mike Anderson

Trend Observation: A recent article found on Businesswire confirms that Americans’ spending is up 9 percent since 2009. Some of the categories that have increased significantly include:  Healthcare, gasoline and gift giving/charitable donations. As a side note – men spend approximately $600-700 more per month then women (especially when it comes to alcohol, entertainment, and eating out.) Click here for the article.

Marketing Implications: No doubt, a lot has changed since 2009. Today, Americans are finally spending more but they are also prioritizing and spending cautiously. How has your messaging evolved since 2009? Is your category on this list of ones that have significantly grown? If not, how can you make your category a priority?

Brittany Ainslie

Trend Observation: A blog posting from the Dallas Morning News (DallasNews.com) explains how JC Penney is building on their apology of a couple weeks ago… by telling its customers “thanks for coming back.” Further, they’ve brought back the penny-specific pricing it was once known for, before former CEO Ron Johnson banished the odd prices in favor of rounded numbers. Click here to see the posting.

Marketing Implications: Are JCP customers indeed returning? We’ll need to see a few quarterly reports to see if the damage has been undone. But this approach—transparency, and doing what made JCP successful in the first place—might have a good chance of working.

Has there ever been a better argument for listening to your customer, and figuring out why they buy the products and services you sell? How much grief could this company have saved itself had they done that in the first place!?

Mike Anderson

Trend Observation: A story in today’s New York Times explains that younger Americans have trended toward walking-distance urban living and using more mass transit, resulting in the less frequent need to drive. Click here to see the story.

Marketing Implications: If offering only anecdotal proof, movies like “American Graffiti” did a great job of illustrating how Baby Boomers shifted driving and automobile ownership into an entirely new gear. The car you owned was part of your persona… like a fashion accessory that helped define who you are.

It appears that many Millennials will not as ardently follow that mindset.

If you sell cars or automotive service, how are you succeeding at pulling young adults into your showroom? Are your manufacturers helping sell the freedom of owning ones’ own transportation alternative?

Mike Anderson

Trend Observation: In response to the recent tragedy involving a building collapse at a clothing factory in Bangladesh, a number of U.S. companies have committed to investing in safer factories and working conditions there. You can see coverage of the plan in today’s New York Times.

Marketing Implications: The fair trade movement took a bit of a hit beginning in late 2006 and 2007, as the U.S. was sliding into recession and many consumers began to more consistently focus on price. We haven’t seen or heard much in the way of fair trade marketing, lately, but perhaps this incident will ignite more conversation on the topic (apparently, major retailers are preparing for greater scrutiny, to say the least).

Fair trade is simple. Do workers arrive to safe working conditions for each shift, and do they earn something close to a living wage? Are animals treated humanely during the production of a product? Is the environment harmed by the manufacturing—or disposal—of the item? In other words, does the wealth created by a product or service come at the expense of another person, place, or thing?

An opinion piece published today by Marketing Daily suggests that the majority of consumers don’t really care where something is made. According to the piece, only slightly more than half of recent survey respondents said they think buying American-made products is important; among younger adults, 83% said price was more important than product origin. But I’m wondering whether more people will begin to focus on how things are made, now that coverage of the Bangladesh tragedy has survived the 24 news cycle of CNN and Fox News.

Reflect on your own supply chain. Where do your products and services come from, really? Is it that people don’t care… or is it that companies have failed to explain why product origin is relevant, in the scheme of things. Would people really want to own am unbelievably cheap [insert product here], if they knew it could cost a factory worker their life? I don’t think so. How can you present your products and services as a great value, both to the consumer, and to the people who have a hand in serving your customer?  Is this an aspect of your operation that could fit nicely into the benefits that shoppers are seeking, among those customers who would like to think of themselves as responsible consumers?

Going into the recession, many people were focused on price. Exiting the period (we’ve been in recovery for 46 months and 14 days, as of today), many of us have a new appreciation for how hard we work to keep our family finances flowing… and renewed respect for others trying to do the same.

Mike Anderson

Trend Observation: A recent story from the New York Times explains how student debt is delaying the purchase of cars, homes, and many of the other items typically associated with launching their adult lives. Click here to see the story.

Marketing Implications: Think of everything you did not own at age 18 that you had purchased by the time you were 34; your first “place of your own,” the furniture and appliances to fill that space, new cars, and more. For college students (not all of them graduates) who might be burdened with considerable education debt, some of these purchases may be happening later in life.

So what does that mean to you? First, don’t assume that someone in their early thirties might be an experience car buyer; it could be that this is the first time they’re buying a new vehicle, and these delayed “acquirers” might appreciate any product knowledge you can share. If you sell to customers in their twenties, note that they might be having a difficult time deciding between a new piece of furniture or replacing an appliance, because they can’t do both right now. Often, student loan obligations are competing for the same piece of paycheck that you’re hoping young folks will spend with you. How can you make sure they understand and appreciate the value you provide for every dollar they spend on your product or service?

Even in cases where no student debt exists, the recession of 12/1/2007-6/30/2010 left in its wake a more careful, pragmatic consumer. Communicating value is simply a smart idea, all the way around. And that value is determined by your target customer... so make sure you’re giving them plenty of ways to provide feedback.

For more information about Generational Economics, click here to download the free white paper from CSS.

Mike Anderson

Trend Observation: Yesterday’s Research Brief (Media Post) explores the multitude of ways that small business owners are staying connected with the office, even when they’re not in it. Click here to see the story.

Marketing Implications: Once upon a time, laptops and Blackberry-like devices were introduced as a way of enabling the owner to leave the office anytime they wanted… and still have access to vital information and communication.

Over the years, a change has taken place. Now, owning a smartphone means you can NEVER leave the office… it is always as close as your pocket or purse. The lifeline has become a leash.

If you sell to SMBs, how could your B2B marketing strategy be enhanced by effectively using the mobile space? Have you succeeded in getting yourself (and your company) included in your clients’ Outlook or other contacts-management platform? Are you relevant enough that your customers have asked you (or have you asked them) to connect on LinkedIn?

Business owners, managers and marketers are not just “using” mobile devices. They are often relying on that device to perform as the remote control for their lives (and businesses). And if you are relevant enough to have a presence on the device they can’t live without, you stand a better chance of making sure they can’t live without you.

Mike Anderson

Trend Observation: A recent story in Forbes focused on the impending launch of Apple’s iPhone 7, and used the occasion to reflect on a variety of products that have gone essentially extinct… replaced by more advanced alternatives. Click here to read the story.

Marketing Implications: Like many people, this piece made me reflect on the way I do business and the role I serve in the lives of my customers. Is it time for the way I serve customers to get an upgrade?

From banking to travel agents to music to the way we buy cars… so many products and services (and the way those services are delivered) have been disrupted by new technology, and by consumers whose tastes and preferences are continually evolving. If you’re a successful business operator, you have clearly done a good job of satisfying today’s (and yesterday’s) customer.

But is that good enough for tomorrow?

The customers you serve and the world around you is changing. If you are not intentionally tuning-in to those changes and innovating to meet them, you are, in effect, designing obsolescence. There is never a bad time to talk with your target customer, explore the benefits they seek when they buy your product or service, or even brainstorm ways of making your customers happy that they hadn’t even thought of yet.

Mike Anderson

Trend Observation: This story has received wide coverage across the country, but I happen to be working in St. Louis today, so I’ll share the STLtoday.com version of a report that the federal government has published an analysis of just how widely prices can vary from one hospital to the next. Click here to see the St. Louis version of the story.

Marketing Implications: Whether they are paying out-of-pocket for their healthcare, or simply paying a steep deductible to an insurance company and concerned about how unfair pricing could impact future premiums… this story is likely to have more than a few consumers wondering what’s wrong with the system.

Like any category, some of these cost variations could be justified (one generally pays more for a base-model Cadillac than they do for a base-model Chevrolet). But it will be incumbent on the healthcare provider to explain WHY their services deviate from competitors across town, and it might also fall on the industry to give patients a more transparent understanding of costs before a procedure is performed.

This isn’t just a pricing issue. It’s a communication issue. So one might ask, if you work in healthcare marketing, how this issue might impact your messaging.

Mike Anderson