Loyalization decreases in a moment of crisis and consumers become more open to experiment with new products. In such moments main motivation is not the desire or curiosity for new products but the better value-for-money proposition of other brands. It is therefore typical that consumers switch in this moment to second-pier brands. As a marketer you will have to make sure the added value provided by your brand is clearly communicated and perceived.
Another common phenomenon is the so called “compensation effect”. As the psychological anxiety rises, consumers are disposed to buy the brands being “premium” for the segment. This functions as a “consolation”, to get satisfaction that before went to purchases that are not accessible anymore (for example cutting on leisure expenses and entertainments).
This two-way-phenomenon (buying cheaper and more premium brands) that I have described is also something that is being watched in the last years in most mature markets, independently of the crisis. Consumers tend to “trading-up or trading down”, depending on the relevance of the category. The logic behind is rationalizing expenditure: less but better of the “good stuff” and cost saving on the “commoditized” or irrelevant products.
This is the kind of context where it is important to have solid brands with solid propositions, and to invest in brand building, differentiation and loyalization. As Kevin Roberts puts it, it’s about, building “lovemarks”, it’s about gaining high respect (quality and functional benefits), but also high love (through emotional benefits).
In this sense, brand building should:
a) help build both high Respect and high Love brands
b) tell a Story that Connects and Engages
c) create strong Icons and Images
d) communicate a “Big Idea” in a consist way over time
No comments:
Post a Comment