Insights Blog

The recent global financial crisis has affected many of us as business people and consumers. Some of the questions that come to mind are: 1) Exactly what are the changes in customer and consumer behavior that effect our business? and 2) How long will those changes last? Although many changes have not been identified or understood, I think most companies will discover long-lasting changes that will impact their marketing strategy.

The world seems to have suddenly discovered risk. It is natural in times of upheaval for people to question the continuity and predictability of the current state. During times of war or natural calamities, people come face-to-face with the fragility of their life assumptions. The fact that the current upheaval is the economic storm ripping through people’s lives across the world today makes it a disruption of unusual dimensions with uncertain effects.

Rapid Response in a Challenging Economy. Segmentation may not seem to you like a short term tool for rapid response to changing market conditions. But it can be. You should review your current consumer segmentation and refresh it or re-draw it right now.

Segmentation may not seem to you like a short term tool for rapid response to changing market conditions. But it can be. You should review your current consumer segmentation and refresh it or re-draw it right now.

The economy is in a recession, the financial markets are all over the place, and customers are hunkering down and pulling back on their spending. With the notable exception of Wal-Mart, Taco Bell and McDonald's, companies nationwide are struggling with sales. Decision making across the board is frozen because of the unpredictability of the market.

Be sure to take a look at our complimentary video and audio webinar featuring Jacqueline Woods, Chief Segmentation Leader for GE. It includes a presentation from GE as well as a Q&A session on segmentation.

Quick paced changes in media consumption, marketing technology and trends make it very tempting to scrap historical marketing models. However, you may be throwing the baby out with the bathwater when you abandon the rigor of proven marketing practices for the use of new tools.

I was struck by a recent article in the Wall Street Journal that discussed price setting in the consumer packaged goods industry. The article highlighted the professed confidence that P&G, Clorox, Nestle and others have about their higher prices sticking with consumers. It talked about the downward pricing pressure in everyday-use categories such as laundry detergents and toilet paper. This got me thinking about the extent to which pricing is perceived to influence a brand’s fortunes in today’s market.

The real issue is not price, but value. Or, to be more specific, perceived value. Consumers will generally down-trade only if they do not perceive the incremental value in premium brands. This raises significant questions for a number of premium and luxury brands. Are mere “feel-good” emotional benefits going to be adequate in selling a me-too product at a substantial premium? Marketers could perhaps get away with that in a booming economy when consumers, pockets lined with cash and hearts bursting with optimism, were buying into the hopes and aspirations of a better life and badge brands. In today’s world however, consumers are far more skeptical and discerning about the value they are receiving.

Profit growth of 42% in the US construction industry in the year 2008.