Marketing Home Products

As marketers, we’re faced with a new consumer reality. We’re seeing a more pragmatic approach to spending, an adaptation of a “less is more” sensibility and a return to the belief that happiness (not things) is the ultimate luxury.

When the economic downturn hit the once-immune segment of luxury goods (Unity Marketing, a firm that tracks luxury spending, says luxury has “likely reached its peak.”), there was a collective sigh in marketing departments across the country. There’s a steady drumbeat that’s building across all segments of consumers now and if we don’t acknowledge it, we’ll miss a tremendous opportunity.

The new consumer mantra: It’s Nifty to be Thrifty
So what’s the implication for us as marketers? To answer that we need to get into the mindset of consumers and not just understand, but empathize, with their changes in behavior.

Consumers are not just cocooning, they’re having “staycations.”

They’re returning to the basics – classic design and all things organic.

They’re nesting, investing in products that will maintain the value of their greatest assets.

The good news is they’re staying home. And that means we get the opportunity to improve their lives where they’re most comfortable – and in the last place they curb discretionary spending. But be clear on one thing: if you’re not talking value, people aren’t listening.

Three strategies for approaching this new consumer reality:

1. Show empathy towards your consumers. Spend time enhancing your relationships and act on what they’re saying and feeling.
2. Offer a real value (not “price”) proposition. It minimizes the buyer’s perception of risk.  Hyundai’s new Assurance Program is a brilliant example of this.
3. Respect the intelligence of your audience. Make sure you’re communicating a benefit that’s real and meaningful.

There are plenty of opportunities to gain traction in this down economy. And there are hardworking marketing tactics that can help pave the way for brands to make consumer connections that will last long beyond the current financial crisis.

Map out a communications strategy for your company that employs one or several of the following:

• Consider a social media strategy. 92 percent of people cite word-of-mouth as the best source for brand information.
• Focus on earned media to build brand trust. When 76 percent of people rely on what others say for information, according to Mediaedge, editorial is perceived to be more believable than advertising.
• Use a laser-like focus to reach consumers. Niche marketing is more cost efficient.
• Take the time to form opportunistic partnerships. Harness the power of resources with like-minded brands and build programs that pique consumer interest and drive sales.

Today’s marketplace is flooded with news of companies trying to stay afloat and sustain market share. Then there are the billion-dollar companies like General Motors, Chrysler, CitiBank, Fannie Mae and Freddie Mac and AIG being rescued by government bailout plans using precious taxpayer dollars.

Customers are now more hesitant than ever to put their faith in brands. It begs the question: how can customers trust brands when the relationship is one-sided? The answer is: they can’t. As such, authentic brands have emerged as the envy of corporate leaders worldwide.

Authentic brands are viewed by consumers as those that don’t just talk the talk, but walk the walk.

If your company’s claim is being environmentally friendly, for example, in order to stand out as an authentic brand, you can’t simply talk about being “green.” You need to actually live it, breathe it and truly believe in it.

Think about Apple and its commitment to innovation or Whole Foods for its dedication to organic food alternatives and its offering steps for customers to live healthier. Both of these companies have corporate mission statements that reflect their commitment to the brand’s mantra, and they take every opportunity to support the focus in all aspects of their business from the way they support their employees all the way through to the customer.

As a business leader, you want your company to have a face and a voice in a crowded marketplace. Authentic branding gives you that because it shows integrity and clear intentions. It attracts repeat customers and the best talent to employee ranks.

Walking the Walk for Authenticity:

• As company executives and marketing professionals, take every opportunity to communicate commitment to your customers and to your staff.
• Provide them with clear and direct messages about what your brand stands for and how you stand behind that mission.
• Be direct and transparent to boost trust, loyalty and brand advocacy.
• Take social responsibility seriously. Your customers do.
• Be an integrity leader. Both current and potential customers will respect you for it.
• Be passionate about your brand and what you stand for and your customers will be more passionate about it too.

What are your company’s core beliefs and values? What do you stand for?

In an earlier blog, I touched briefly on the “new consumerism,” stating that the current recession has led to vast changes in consumption attitudes and increasingly discerning consumers that also impacts marketing home products. Seemingly, our consumption-frenzied nation has now adopted the mantra of it’s “nifty to be thrifty” – continuously seeking cost-effective product and service options, and frequently switching to different brands and product categories.

For those who market home products, this presents both changes and challenges in the way we conduct business and appeal to our target audiences. What’s now more important than ever is to portray value and empathy in your marketing messages and to resonate your brand authenticity.

On the other hand, as both a marketer and small business owner, I can’t help but wonder how long this new consumer attitude will last. Take a look at this video in relation to the future of consumerism.

Will consumers, having adapted to a “less is more” mentality, stay the course? Or, when the black cloud of the recession lifts, will consumers return to their former purchasing habits? What do you think?