The Recession Wolf Howls - Marketers Listen
This howling, of consumers in distress, is clearly heard by savvy marketers. Here are some examples:
- WalMart’s “Save money. Live better.” campaign is based on recession economics that WalMart knows well.
- Popular resorts, desperate for customers, are playing up value over fun.
- Large banks are trying to encourage savings, in some cases by offering reward programs, bucking the long standing trend of pushing customers to borrow more and more.
- Restaurants are advertising frugal options like cheap sandwiches/entres or smaller drinks
- Recruiters are emphasizing ‘recession-proof’ jobs
- New car dealers are emphasizing fuel economy over style and performance.
Such cost conscious ad campaigns have been present just before and during but downturns in the 80’s and 90’s as well as the last big downturn, the dotcom bust. Marketers know where the consumer attitude is heading even while economists dither about with their numbers which will only show the arrival and impact of the recession after the fact.
The fact is that consumer spending is declining. To deal with this in your small business you have to select price points where you can maintain your quality without loosing too much of your current customer base. You have to sell a good value for the consumer’s money to hold on to them during tough times.