Thursday, November 18, 2010

The New, New Frugality.

Once again, an opinion in an earlier blog entry was reinforced through research from Booz, Allen and Company. In this report, Booz suggests that the age of frugality in America is a permanent state, much like I suggested here. The reason I bring this up is because, frankly, I like to be right. I also bring it up because I am in the middle of a project for a client who has historically marketed their products on the promise of more for less.

Besides the suggestions I laid out in the earlier post on frugality among consumers, the latest Booz report reminds me that as more marketers get on the bandwagon of frugality, marketing messages and product development, even merchandising and certainly pricing strategy will again equivocate as all marketers take such positioning and make it so much table stakes. So for my client and others like them who applied a value message as a key brand value, it becomes less and less of an effective differentiator.

Note that the New Frugality doesn't mean that everyone is looking for the lowest price, or even the best value. What it does mean is that consumers - including businesses - are looking for reasons to defend the purchases they do make, whether to colleagues, bosses... or themselves.

As marketers, that's the job New Frugality requires of us. Defending our brand and its market positioning. Just like the good ol' days. Again.
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