EDWARD S. SUCHERMAN & ASSOCIATES LTD.

I think we can all agree that America has experienced huge changes in the past few years.  Here are just a few that will affect all phases of marketing, and all types of marketing (industrial, business to business, and retail, and business to consumer) as the economy improves and we move forward:

DEMOGRAPHIC CHANGE: If you have been reading my blog, you know that I feel this is the most important changes of all, and that it caused many of the other changes.  The key change – the upper edge of the 17-year baby boom passed 60 three years ago.  That means that the largest (70 million+), wealthiest, best educated, biggest spending demographic grouping in our nation has radically changed, forever.  These people are now spending their money on college, elderly parents, adult children, grandchildren, and retirement.  They own large homes that have lost value, they are moving to smaller “jewel box” homes, they are buying less furniture, less art (say goodbye to successful art fairs, which are geared to baby boomers), more energy efficient cars, etc.  They are earning less and many are unemployed.  They are eating out less as they have less money, but when they do eat out, they seek finer and healthier meals.  Healthcare and insurance are two of the most important and expensive things in their lives.  They are also at the top of their games – they are better at their careers and industries than anyone else, and they have the best work ethics of any group in the world, including the new key demographic groups, Generation X, Generation Y, and the Echo Boomers.

There is another major demographic change afoot: we are becoming a minority-majority country.  Very soon, there will be more non-white Americans than whites, and that number will only grow.  This is driving conservative, often southern and western populations to distraction, but for marketers, it is a call to action.  We have new markets with new values and new needs, and whoever wins these new populations will thrive.  Market shares are changing hands because markets themselves are changing.

CHANGES IN VALUES: Though at our hearts we are all rabid capitalists, we are beginning to appreciate other things, like health, family, relationships, etc.  Money remains king, but it has lost some of its power.  While not “tree huggers”, many of us would rather have a hybrid than a Mercedes.

CHANGES IN FEAR: In the past twenty years or so, Americans have experienced competition from abroad and threats from terrorists.  As a result, many Americans are turning inward.  Will Chevy gain market share against Honda and Toyota?  We need to wait and see.

CHANGING ENERGY: Because of climate change and pollution, we have no choice but to become more energy efficient.  This will change the world, plus our own foreign and domestic situations, and it is also our ticket back to the top of the socio-economic ladder.  Watch for innovation and an irresistible movement toward energy independence.

ECONOMIC CHANGES: We just dodged a bullet and there are more to come.  It appears that we are moving toward an economic recovery, but it will be painfully slow until the unemployment rate drastically improves.  Meanwhile, the commercial real estate crash is about to hit, so even as some segments improve, there will be hard times to come for years.  The good news is that our government and our people know it and are doing all we can to struggle back to better economic times.  Meanwhile, consumers and companies will be spending less and expecting better quality for years to come.  How to make your way out of this quagmire?  I believe the answer does not involve accountants or economists.  It involves simple service.  Service will be the difference between success and failure in the years to come.

COMPETITIVE CHANGES:  When the economy is stable, entry into various markets is difficult.  When it is in flux, as it is now, competitors can enter and gain competitive advantages – and reposition themselves more easily.  You marketing executives know what I am talking about: this is a window of opportunity.

GEOGRAPHIC CHANGES: Having experienced decades of constant growth, Florida’s economy is now based upon it.  But Florida lost 1% of its population this year, and as a direct result, its economy is crashing.  Ditto California, where enormous numbers of people are moving away from the fires and the winds and the housing expenses to Oregon, Washington, etc. 

PRODUCT CHANGES: With value changes come new wants, needs, and desires, and therefore, new products.  In general, people expect ever better quality products for ever less money.  And we need to deliver!

MEDIA/TECHNOLOGICAL CHANGES: How do we reach and influence people today?  Via the Internet, via cable TV, via traditional TV, radio, magazines, newspapers, billboards, and mailings…or a combination of these (the media mix).  Effectiveness and efficiencies have never been better, nor opportunities greater. 

CHANGES IN THE MARKETING MESSAGE: Here is where we need to look back, not just ahead.  Human nature has not changed.  People still buy emotionally and rationalize their choices with numbers.  This even applies to industrial buyers.  Your message remains the hub – everything else is simply a spoke.

SHARE OF VOICE CHANGES: How is one heard amongst all the clutter in both traditional media and the Internet in 2009?  This is a major challenge. 

SHARE OF MARKET CHANGES: As mentioned above in “COMPETITIVE CHANGES,” market share in virtually every industry is up for grabs.  When masses of people are experiencing financial challenges, many, if not most, are willing to try new products and change – if they feel you can seriously improve the quality and/or price they expect.  This is a serious opportunity to gain a larger share of the pie and own it as the recovery begins and overall volume improves.

PUBLIC PERCEPTION CHANGES: David Meerman Scott, the brilliant author of The New Rules of Marketing, says we should, “Forget everything you ever knew about marketing communications.”  While his book is excellent, this statement is completely wrong.  Yes, the new public perception, especially among IT wizards, is that the Internet has changed everything and nothing else matters anymore.  Yes, we can apply what we know to this new medium and get great results.  I even had a search engine optimization technician, who has no – zero – marketing background, experience, or education, tell me that she had nothing to learn from me, but I had everything to learn from her!  And because the Internet is relatively cheap, more and more people might agree with her.

Don’t believe it.  The message is still the single thread, and the Internet is just a new medium – albeit a vital one.

PUBLIC RELATIONS CHANGES: Blogging is the “new” public relations.  But don’t be fooled.  In 2009-10 and beyond, traditional PR, in print and broadcast media, is also effective, efficient, and important.

MASS MEDIA ADVERTISING CHANGES: More and more companies are simply ignoring paid media advertising in favor of less expensive Internet and PR efforts.  This is a mistake.  Use anything and everything available to sell your products.  Plenty of people with plenty of money still read magazines and newspapers and their mail. Also, the more people that use the Internet, the more clutter will accumulate, and the less and less effective it will become. 

EVENT CHANGES: Webinars are a great new way to give instant seminars, but they are very tricky.  If 100 people sign up, perhaps 20 might actually participate.  If you know what you are doing, face-to-face seminars plus webinars are wonderful tactics for the right products.

TALENT CHANGES: This may be the biggest change of all, and the biggest opportunity.  Some of the world’s great marketing talents have lost their jobs in the past couple of years and are available – for about the same price as kids out of school.  Is a computer-wizard the right person to create your company’s marketing plan and strategies?  Not unless that person has a marketing degree and some real life experience!  Hire Baby Boomers who are over 60 – they are available, they are great at what they do, they are loyal and hard working, and they will not disappoint you or your company.

More on the Single Thread webinar to come!

Ed Sucherman

The Marketing Machine

edsucherman@gmail.com

www.edsucherman.com

http://www.edsucherman.com/edsblog/

 

 

Tags: COMPETITIVE CHANGES, DEMOGRTAPHIC CHANGE, Events, Internet, Market Share, Marketing talent, Public Relations, SHARE OF VOICE, WEBINARS, marketing message //