There is a lot of talk in the national press and media concerning the current economic climate at the moment. The emphasis is very much on consumers reducing their spending on luxury items and being conscious of their monthly expenditure. This is true, but consumers’ buying decisions are not always on price.
In times of economic change and uncertainty, shopping habits simply change. Recent reports have suggested that whilst people are certainly aware of their reduced spending budgets, not everyone is prepared to give up luxury items. Their shopping pattern has simply shifted. It is a given that consumers are looking for more for their money, searching for better value, quality and customer service. There is also a ‘green’ conscious consumer.
In the case of the weekly supermarket shop, many customers are choosing their food selections more carefully. Yes, price promotions are important, and on this basis alone, a recent article suggested that some consumers, to get through the month, were buying cheaper foods during week. However, they were still willing to splurge a little for that special treat at the weekend, instead of going out. Consumers are not willing to give up luxury items, just have them less frequently.
It is predicted the current uncertainty will last throughout 2008 and possibly into 2009. In a recent article in Direct Marketing Magazine, the use of Field Marketing towards CRM, suggested this was an important move towards brand development and relationship building. The use of Field Marketing techniques such as In-store Demonstrations, Compliance & Audits and Merchandising are more important than ever before. When combined, it not only makes that connection between brand and consumer, it allows important CRM data to be collected for future communication and a better understanding of their shopping habits; crucial during times of economic change where consumers will alter their buying patterns, in point in fact – ‘cutting their cloth’ to fits their financial needs.
After all, Marketing Managers and Brand Managers alike must understand consumers in order to develop products for future consumer purchase decisions.
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