The key dominant and advancing trends are:
- A demand for simplicity
Even before the recession many people were feeling overwhelmed by the proliferation of choices (see the article More Jam Anyone? in this blog) coupled with 24/7 connectivity and were starting to simplify. The recession is accelerating this trend.
The authors say, "Consider the rise of edited retailing (consumers are offered limited collections of coordinated product choices), a growing demand for trusted brands and value, an increasing desire for advisors - ranging from social networks to product ranking web sites - that can simplify choice making, and enthusiasm for less complicated, more user-friendly technologies." - A focus on the boardroom
Like the simplicity trend, this issue has been building for years, spurred by major governance failures such as Enron and WorldCom. Misbehaviour in the boardroom is no longer acceptable. The huge tax payer bail-outs of badly managed businesses will accelerate this trend. This also builds on people's well established reflex to punish companies for unethical labour or customer practices, as Nike and Nestlé have learned the hard way. - Discretionary thrift
A desire to be more wholesome and less wasteful is prevalent, with people recycling more and buying more used goods. "People are imbuing their children with traditional values - behaviours that dovetail with the growing demand for simplicity and a solid, though currently slowing, interest in green consumerism." Many post recession purchases will be less extravagant versions of pre-recession ones. - Mercurial consumption
Buyers are more agile and more fickle due to technology and social networking. They are more likely to shop around and shift allegiances.
1) Focus on how to help people realise the true value of your offering. It amazing what great and simple ideas can come out of doing this
2) Be honest. In a world of mistrust, 'spinning' your messages is turning people off fast.
3) Don't start by focusing on price! Price is relative and it's a bad place to start any sales and marketing efforts. Get your customers talking about what really matters to them and then you can reframe the whole 'price' discussion.
4) Network. As buyers are shopping around and using technology and networking as part of their decision-making process, then you need to be part of it. Linked In, Twitter, Blogs are proving to be powerful influencers. If you're not tweeting, then you need to start!
In what ways are you changing your sales and marketing efforts for this economy? What's working for you?
(1) Understanding the Post Recession Consumer, P Flatters and M Willmott, Harvard Business Review July-August 2009, pp 106-112
I think this is wishful thinking Cindy. We may want simplicity, but there is nothing simple about a Primark Store, a RyanAIr website, or Dominos Pizza menu ( to name 3 brands currently doing well). THey may simplify the process one way, only to bombard you with offers and extra's the nearer you get to finishing the transaction.
ReplyDeleteBoard rooms have not learned = GOldman Sachs are already handing out huge bonuses, and the idea that any non-execs are going to reign their Boards in, when they all sit on each others Boards is a non starter - look at reactions to the mild Walker proposals today.
And children are not interested in green or recycled when it comes to Ipods, play stations, Wiis or any other of their play technology - they are only interested in paid for by parents, free, borrowed or, in desparation, shared. ( I have 3 teenagers of my own). See the market report from McKinsey about teenagers attitudes to paying for anything that they could find free on the web ( however illegal). They pay for the brands they really want in terms of clothes/ trainers/ phones but not a lot else.
I do agree with the last point - buyers are more fickle than ever.
I agree with all your 4 points, where first 3 have always been existing. The difference is the 4th point, Technology. But along with your work, managing this is a big task. As most of the people in this world are either about quantity and no substance or are of substance but passive viewers. So getting quality is a big challenge and herculean task, especially for non general product or services.
ReplyDeleteRahul
In my view, whatever route the global markets take (and don't forget that this recession is largely a Western one), the one key and critical aspect to focus on is that of value. Forgive the pun but value doesn't devalue over time. It inherently drives focus and simplicity, enables agility and is often itself enabled by technology.
ReplyDeleteI would say that although last 15 years were good for Developed nations but the coming 15-20 years would belong to developing nations especially to China, India, Brazil and Russia.
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