Marketing in Recessionary Times: a Dialogue Based on Four Themes
Our firm conducted research over the past 5 months via an on-line survey and a moderated roundtable with industry experts with a focus on the topic marketing in a recession; what does it take to win. Over the next few weeks I will share each of the four themes that we uncovered as input to CMA's Marketing Blog with the hope of stimulating more dialogue on this topic.
The four marketing themes are: (1) Trust & Community Building; (2) Marketing Innovation; (3) Canada’s Emergence as a Marketing Leader and (4) Need for Integrated Marketing Communications.
1. Trust & Community Building
As a result of the US banking failure and collapse of storied companies like GM and Nortel, a shift has occurred in today’s marketing landscape. Consumers are becoming increasingly skeptical of traditional ‘push’ marketing and as such, brands are increasingly focusing on fostering a sense of trust with consumer through ‘community building’.
There has been a value shift in the eyes of the consumer; consumers are placing additional value in brands they trust in response to increased anxiety and fear caused by recent financial collapses. Looking at drivers of demand amongst financial institution consumers, there has been a shift to ‘trust’ from ‘confidence and convenience’. Traditional media will not address this shift in consumer need, where as having more direct conversations/interactions will.
Trust can be built multiple ways. The more traditional method used is to maximize share of voice (SOV) using mass media: this visibility confirms brand strength and makes consumers more accustomed to your brand. However, brands are now beginning to incorporate ‘community building’ into their marketing communications to give consumers (who are passionate about the brand/cause) the emotional brand connection and experience of community. This tactic will reach a more targeted consumer base and could include current customers, prospects, and influencers. The need for integrated marketing communications will be examined in further detail later in this Blog series.
Community building can foster trust through the following strategies/tactics:
1. Allowing consumers to connect directly through branded programs.
For example, The Running Room invites customers to participate in company-led runs. This allows running enthusiasts (a core customer target) to connect directly and develop a sense of community – anchored by the brand. Dove’s ‘Real beauty campaign’ fostered a sense of community at all levels, while benefiting from the fame attached to the brand.
2. Being transparent allowing two-way communications.
For example, the Globe and Mail has recently added a two-way dialogue feature to its online offering allowing readers to interact directly with editorial writers. In another example, the CEO of a wireless company calls disengaged customers to understand the reasons for their dissatisfaction.
3. Consumer co-creation. A few best practices from industry experts:
• It is easier for strong passion brands (Lululemon, Starbucks, charities, etc.) to get consumer involvement (these are truly passionate customers) and the opportunity to contribute to a brand they love in a community of like-minded individuals is generally incentive enough to participate.
• When launching a new community, the optimal strategy is usually integrate the new community into established communities (for example, Facebook). This leverages existing communities and experts agree this results in higher consumer trust/participation that building a separate community.
What has your experience been in terms of the increasing popular strategy of Community Building and what Tactics have you found most sincere and successful?
