Recession or no recession, one thing is certain: The current economic outlook isn't pretty.
This past week, the Fed said it would consider additional rate cuts [link], but post-holiday spending dropped significantly [link], which means consumers are spending less and evaluating their purchases more. This has several brands revisiting their sales forecasts and adjusting their marketing plans. However, few are taking advantage of the sensitive marketplace to build meaningful, sustainable relationships with their most influential consumers. In fact, a recent Ad Age article took a look at how various industries are responding to the slowed economy [link], but none of the advice provided by industry players stressed the importance of word of mouth during these trying times.
If there's any silver lining to the current economic landscape, it's that consumers will invest greater thought and consideration in their purchases. They will seek advice from influential friends to manage their buying confidence and will express that attitude with their wallets. It'll be interesting to see which brands consider a more targeted approach with more frugal marketing budgets. In the meantime, government stimulus packages aside, sound, sustainable word of mouth could provide the right kind of road map for today's timid consumers.
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This past week, the Fed said it would consider additional rate cuts [link], but post-holiday spending dropped significantly [link], which means consumers are spending less and evaluating their purchases more. This has several brands revisiting their sales forecasts and adjusting their marketing plans. However, few are taking advantage of the sensitive marketplace to build meaningful, sustainable relationships with their most influential consumers. In fact, a recent Ad Age article took a look at how various industries are responding to the slowed economy [link], but none of the advice provided by industry players stressed the importance of word of mouth during these trying times.
If there's any silver lining to the current economic landscape, it's that consumers will invest greater thought and consideration in their purchases. They will seek advice from influential friends to manage their buying confidence and will express that attitude with their wallets. It'll be interesting to see which brands consider a more targeted approach with more frugal marketing budgets. In the meantime, government stimulus packages aside, sound, sustainable word of mouth could provide the right kind of road map for today's timid consumers.
