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Marketing value

Interesting read from USA Today on marketing “value” – the new imperative for every marketer during the current “economic challenge”.

  • In an October survey, BIGresearch found 47% of consumers have become more budget-conscious in the past six months.
  • When it comes to buying apparel and electronics, shoppers are most interested in hearing from their peers about products, retailers and past shopping experiences. In a recent survey, conducted for the Retail Advertising and Marketing Association by BIGresearch, consumers say that word of mouth is still the number one influencer in their apparel (34.3%) and electronics (44.4%) purchases.In addition to first-hand knowledge, product reviews (36.8%) and retail advertising inserts (29.2%) – or circulars – will also resonate with consumers in their electronics purchases this holiday season.
  • The ad message of choice: value. “Value is the magic word,” says Kash Shaikh, spokesman for Procter & Gamble’s (PG) fabric-care lines. “In these economic times, people are doing the math in their heads, and they’re being much more thoughtful before making purchases. … Now, we’re going to be even more focused on helping consumers see value.”
  • That’s particularly hard on name-brand marketers, who are more vulnerable in this economy to shoppers trading down to cheaper private-label goods. Even before this crisis, in a June survey by Consumer Reports publication ShopSmart, 29% of women said they were buying more generic or store brands than they were a year earlier. In the year ended Oct. 5, unit sales for private-label liquid laundry detergent were up 14%, according to tracker Information Resources.
  • As the economy continues its bumpy path, more brand wars are sure to come, says marketing consultant Jack Trout. “Without a doubt, marketers are focused more on taking business from their competitors,” he says. “We’re seeing the return of hard-hitting advertising. … You could say, ‘When the going gets tough, the tough get aggressive.’ “

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