Nov 20 2008
Point/Counterpoint: Should We Go Frugal?
Every so often, Ben and Erin disagree on approaches to email marketing and need to put their respective thoughts down on paper. Who do you think has a more valid point?
Counterpoint: Despite the current economic crisis, marketers should not bombard their customers with more “doom-and-gloom” scenarios, especially high-end businesses that risk diluting their brand with lower-end offers.
Ben’s first point is exactly correct – everyone knows the challenges facing their consumers right now, and consumers are well aware of the need to save money, which is why, in my opinion, there is no need to add to the gloom by reminding them of tough times. In fact, relying on bad news to sell a product and identifying with the recession can significantly devalue a brand’s image and long-term revenue.
Don’t get me wrong – for the retailers who make deep discounting and penny saving a major focus of their typical marketing plan, by all means, carry-on! But for luxury brands, high-end retailers and thousands of other businesses who have based their entire messaging strategy around high standards of excellence and exclusive sales and specials, don’t compromise your entire communication plan for something as unstable as the current state of our economy.
Don’t Mention the R-Word, a great piece written by Tatyana Shumsky of BER Business Times last month, proved this point to a great extent by using one of Allstate’s ad campaigns as an example, concluding that, “Brands like Allstate are built around quality and prestige stand to damage their brand value with advertising that shifts their positioning closer to the discount products in the same category.”
Take De Beers for example. As a high-end retailer with an esteemed reputation to uphold, they’re doing exactly what’s best for their brand. The multi-channel diamond jeweler has more than doubled its U.S. consumer marketing budget for the holiday season in response to the credit crisis, according to Women’s Wear Daily and the National Jeweler Network.
“There will still be a Christmas,” said Claudia Rose, senior partner at the DPS. “Millions of men will still buy diamond jewelry…This is an unprecedented campaign for unprecedented times.”
I also commend food marketers such as Kellogg’s for keeping their advertising light and positive, with a clear goal in mind. Lately, Kellogg’s has focused on advertising for staple cereals such as Corn Flakes, while Campbell Soup Co. is launching a campaign for its condensed soups. The ads successfully communicate that the featured products are inexpensive without using negativity, fear, or the words “recession” and “economy.”
Lastly, we can’t forget about the value of escapism in adversiting. For example, look at travel campaigns such as Tourism Australia – which reminds consumers how unimportant the stresses of everyday life can be, and how the Australia experience can provide the “catalyst for rejuvination.” Marketers should follow in suit and shift focus towards what’s important in life – friends, family, and spiritual well-being.
As marketers, it’s our job to make the most of any situation and keep our messaging consistent. Everyone knows about the downturn our economy is experiencing; there is no need to remind them.
