Brand preference hard to say

“I bought it because was cheap and I really like the brand”. Says a friend of mine regarding a sun cream. So I asked, why do you really like the brand? First thing was, “I don’t know”. Then trying to extend his arguments came more rational attributes to justify the brand choice. The product smell or parfum experience was great and could even make the bathroom have an aroma in the air. Then also the competitive pricing and some comparisons with other brands, as well as the creamy side of Dove’s line of products. Funny to see how rational attributes come to justify a brand choice when there’s a bunch of emotional attributes behind that. The first glimpse of my friend’s answer was that he actually didn’t know what to answer. People take it hard to understand, market researchers harder.

: : :

Managing the downturn, 3 points on marketing

After reading an interesting article within the FMCG industry, I have gathered key ideas and crossed together my perspective to highlight three short facts vs actions on managing the current downturn in this industry.

Fact 1:

Difficult and unstable economic conditions have driven consumers to re-evaluate old shopping habits and brand loyalties.

Action: develop new and constant updated insights on your market and assess clearly the dynamic of the new conditions – anticipate and actively engage in change to meet the new perspective and needs of your market. Develop highly targeted marketing and focus on key drivers which directly and effectively meet the demand.

Fact 2:

High price sensitivity and lower demand for high priced goods are contrasting with an increased demand for lower priced goods – mainly, the middle class shifts and swings from top-middle to bottom-middle offerings (Walmart or MacDonald’s are having increased revenues in this period).

Action: Carefully consider changing your pricing tactics or increase your value. Featuring temporary price reductions through multi-pack offerings, re-sizing or bundles, promotions, etc – promote affordability. If not, increase your value by revise key assessments on the consumer value dimensions and developing anticipated, targeted and valuable offerings taking in consideration again the new market dynamics.

Fact 3:

Impulse shopping and discretionary purchases are changing, sliding down as consumer is limiting expenses.

Action: Cross functional activities such as promotion and marketing on POS can provide a bigger incentive for impulse shopping. Highly targeted messages have to be clearly focused on value for money.

: : :

Why we shop? (part2)

Continuing the search for the understanding of the reasons that lead people to shop, and following the previous post on this matter with the insights of Jim Pooler, a great deal of whats behind of why we shop is the emotional rewards we take from shopping.

Shopping is a way through  which people make decisions, and that puts them in control of having to make their own way. When taking such responsibility and somewhat complex decisions, the ego travels up into the feeling of power and independence, to take a choice based solely on our ability to think and decide what we want for us. In this way, shopping is empowering, so much as being able to be the best, biggest or the newest.

Sociology says we belong to groups within our society, and the feeling of belonging to something or someone is constantly present in our life’s. The constant path to follow trends and determined social group features is an human deep need and want that shopping allows to fulfill at its best. Buying certain kind of clothes to specific dress codes, acquiring well designed furniture and exclusive cars, joining determined clubs or entering communities, are all instruments we use to complete our sense of belongingness.

Is this expensive? so people buy it.. certain brands come as perfect for people to differentiate themselves from others and to stand-out from crowds. Overpriced items and well implemented brands are attractive, they bring along bragging rights that difficultly other material good can proportionate. Building a solid brand became extremely important for companies because people are willing to pay what they can to complete themselves socially, and be able to feel good bragging about how they position themselves in society. As Jim Pooler puts it, ”The primary use of such products, is to serve the emotional needs of their users.”

: : :

Why we shop?

Taking the credits from Jim Pooler’s book on the understanding of shopping behaviour and its emotional rewards vs retail strategies, I write about one of the most interesting themes (for me) surrounding marketing and consumer behaviour.

The reasons why we shop are yet to continue a subject of study, but in Pooler’s book and others such as Paco Underhill “Why we buy”, good conclusions arise on the understanding of the dimensions of shopping at a conscious and unconscious level.

 

So, what could be the main reasons that lead us to shop and shop?

1. To define ourselves

People build their image and shape their personalities through shopping. Things they wear, objects they use, activities they do, etc.. Shopping can include a whole amount of things people do daily. If you pay close attention, people shop and buy all kinds of products and services which will shape the image we have from them. Everything people do nowadays includes shopping, even when purchasing a ticket for a art exhibition or a tour package to the Caribbean. Shopping helps people define who they are and position themselves in a well structured society. People express themselves through their new hair style, driving their new car, having that new perfume, playing that sport or even shop at specific places.

 

2. To reward ourselves

Life gets tough, work load and everyday pressure on whatever issues leads people not feeling rewarded for what they do or achieve, mainly work. Therefore, a great reason people shop is to feel better and reward themselves from whatever reasons lead to unhappiness. An extra product when grocery shopping such as an Haagen Dazs is an example of a reward. Unneeded items, specially highly superfluous goods consist of additional rewards people take for themselves, and which make the bulk to improve their self-esteem.

 

3. For self-recognition

Being recognized as part of a group in the society is something that unconsciously happens all the time in the mindset of a teenager or adult. People want to be part of something they feel identified with, and which lead them to achieve a determined status within society. Together with the self definition, the clothes they wear, places they go, social behaviours they have, helps them to define themselves and keep on the struggle to be identified in one certain level, group and status.. being recognised for it. All the shopping habits lead a way for self recognition.

 

4. It satisfies the ego

Linked with written above, when people’s ego gets satisfied mission is completed. We shop to feed the ego, and as people do it right to build their definition of themselves, and be recognised for doing so, the ego is satisfied and the shopping cycle begins again with other concerns to feed more needs and wants, that are dynamic and tremendous evolutive. Women feed their ego anxiously shopping their clothes after breaking up a relationship.. men do so with another things such as cars or even video games for example.

 

5. To compete with one another

Shopping habits and rewards turned people to be highly competitive with each other on latest models, biggest cars, better houses, new designs, recognised brands, whatever.. People also shop as a form of competition with their friends, neighbors, coworkers and relatives. Showing off to others the latest purchases is rewarding, and it serves as a measure of the acomplishments done by the things people shop.

: : :