Increasing focus on the obesity epidemic

Observation:  A story from Marketing Daily this week explains how the Disney companies plan to limit junk food marketing in media assets that serve youth audiences; the announcement was made in Washington with First Lady Michelle Obama on hand (click here to see that story).  And last week, a firestorm debate started with New York City’s mayor Michael Bloomberg suggested restricting the sale of super-sized softdrinks (click here to see one of the stories published by the New York Times on that issue).

Implications:  There seems to be growing momentum behind the idea of healthy living.  Does your company offer a product or service that fits into this strengthening trend?  Should you consider adding one, or altering your current menu in a way that the consumers you serve are given more healthful options?

Mike Anderson, for the Elm Street Economics consumer trends blog. A service of The Center for Sales Strategy, Inc.

Gulf seafood regains “comfort food” status

Observation:   Gulf of Mexico seafood producers were among the hardest hit by the effects of the BP oil spill of 2010.  But a story from Supermarket News suggests that many consumers are once again comfortable with eating goods from the waters of the Gulf coast.  Click here to see the story.

Implications:   If you run a restaurant or a grocery store, this story might lead you to add more Gulf products to your menu… or if you’ve already done that, it might lead you to bring more attention to those offerings.

If you run any other kind of business, it should serve as a reminder that trust lost is not easily regained; the BP oil spill happened almost two years ago, and there has been little bad news on that front since the well was successfully capped.  It has taken all of that time—with little or no bad news coming from the Gulf—before some categories could finally show a comeback.

Mike Anderson, for the Elm Street Economics consumer trends blog. A service of The Center for Sales Strategy, Inc.

Cause marketing meets common sense

Observation:   Today’s Springwise newsletter includes an overview of a project called “Cause.It.”  The effort is basically an app that brings a fresh approach to Cause Marketing.  Instead of (or in addition to) simply making donations to various charities, Cause.It is an app that allows the business to reward volunteers with discounts.  In doing so, giving is potentially more personal and fulfilling for the volunteer, and cause marketing dollars become more measurable for the sponsor.

Implications:   The app is very smart, but the principle is even smarter.  Instead of (or in addition to) giving money, free product, or other in-kind donations to an organization, this article suggests that you reward the people who fuel accomplishment.  What’s not to love?

The next time your approached by a worthwhile non-profit organization, you might ask whether—instead of or in addition to giving to the group—it might make sense to create a similar plan.  If you’re offering special discounts to folks who help clean up a park, walk or run in a charitable race, or volunteer to read aloud at an area school or library…  consider the goodwill that might be generated with this focused group of consumers.

This is the kind of smart marketing that stands a chance of building a bond with a new group of constituents.  It suggests that your company respects and appreciates the effort involved with volunteerism… and respects a cause that is close to the consumer’s heart. 

Mike Anderson, for the Elm Street Economics consumer trends blog. A service of The Center for Sales Strategy, Inc.

Generational Economics: The Age of Increased Equity

Marketing Observation:  Draw an arbitrary line around that segment of the population that begins at around age 45 and runs up to around age 59.  This is the Age of Increased Equity.  Why do I make that assertion?

In this life stage, there is a very good chance that the careers in a household are very well established.  People in this age group are often earning at a higher level than at any other time in their lives.  (Of course, some households have had to adjust that relative income due to recession-related job loss.)  Still, many people in this life stage are working in professional occupations (doctor, lawyer, engineer), as upper managers and executives, or have been in a blue-collar job long enough that they could be called, “Blue Chip Blues.”   

Meanwhile, this pinnacle income is happening just as the fixed expenses in their lives are beginning to fall.  Think about this combination of events:  By now you have a solid career, lots of experience, and you’re probably earning more money than ever… and it’s happening just about the time you’ve pared-down your consumer debt, kids are leaving home, and you may even be close to paying off your mortgage. 

True, there is probably college tuition to worry about, and helping young adult children get their feet on the ground… and a lot of folks in this life stage are starting to realize they have some catching-up to do with their investments and retirement savings.  But each of these expenditures is nonetheless, “discretionary.”  That’s the best way to describe the Age of Increased Equity.

Marketing Implications:  Life for many people age 45-59 looks a bit different today that it did just five or six years ago.  Their post-recession realities have them revisiting how much equity they have in their home and other hard-earned investments.  (A lot of us have some catching-up to do!)  They’re helping adult children get on their feet under economic circumstances that seem more difficult than when they themselves were that age.  (I don’t mean to speak for all Baby Boomers, but when I reminisce, I’m more inclined to think of things like the moon landing and rock & roll, rather than the oil embargo of the mid-seventies and the stagflation of the late 70s and other woes.) 

Few people age 45-59 were born into technology… they’ve had to adapt.  They’re competing with a younger labor force that has never known a world without the personal computer.  They’re likely to plan on working longer to compensate for shrunken investments and the fear that social security won’t survive their full lifetime.

In spite of all the challenges they face, the Age of Increased Equity has earned the right to indulge.  Nicer cars.  Nicer homes.  And not just travel… but experiences.

Is this a group you are (or should be) selling to?  Have you stopped to think about—or better yet, talk to them about—what their preferences and priorities are?

Mike Anderson, for The Marketing Mind consumer trends blog, service of The Center for Sales Strategy.  

Small Business Saturday is November 26

Observation:  The founders of “Small Business Saturday” offer tips to help local companies excel this holiday season, in this recent story from Inc. magazine (click here to link).

Implications:   For the moment, many people are most closely scrutinizing the behavior of big business, and perhaps showing a tendency to sympathize with small, locally-owned companies.  If you’re among the latter, it might be a great time to showcase the number of local employees you have, as well as the local causes your company supports either through volunteerism, cash donations, or in-kind contributions.  Of course, your advertising should focus on a wise strategy (why people should buy from your business) along with effective tactics (why people should buy NOW).  But consider whether a part of your strategy should be to leverage your local nature in your marketing messages!

Favorable winds are only so if you put your ship in the water and sail.

Mike Anderson, for the Elm Street Economics consumer trends blog. A service of The Center for Sales Strategy, Inc.

Trend site recognizes increasing tendency to trade-in and trade-up

Trendwatching.com is a consistently reliable source for trends across a wide scope of business categories.  And the October Trendwatching newsletter holds a series of stories having to do with our desire to trade-in.  Click here to see it.

Implications:   Re-commerce is nothing new; you’ve probably traded-in a car to buy a new one, or sold one house to buy another.  But this story does a good job of pointing-out how consumers are more inclined, lately, to trade-in where a variety of new categories are concerned, and using a variety of tools.  Many local pawn shops are well stocked, Craig’s List is quite populated with goods for sale, and companies advertising that they’d like to buy your unwanted gold and silver are plentiful.  

Is there a way that folks are trading-in as a means of trading-up to your product or service?  How might you facilitate that move?  And besides discounting the price of a new purchase, what other benefits does the consumer receive by trading in?  (Are you messaging about those benefits?)

At our house, I recently enrolled in a class I wanted to take.  But before I did it (it has to do with a hobby of mine), I decided to sell some power tools and sports equipment I hadn’t been using.  It wasn’t just that I didn’t want to take the tuition out of our household budget; I built the goal of de-cluttering into the process… not wanting to go further with one interest until I off-loaded some of the things that had to do with other activities.

Also, respect that this isn't just about consumers who want to turn their possessions into cash; they simply recognize that their property now has a value... if not to them, then perhaps someone else.  I've recently seen furniture store ads asking people to trade-in their mattress, which is then donated to a shelter for the homeless.  And I've seen a department store campaign that invites shoppers to trade in their winter coats; their old coat goes to charity, and the consumer receives the reward of a discount toward their new jacket purchase.  Again... can you apply this principle in your company, and do good as you do well?

Mike Anderson, for the Elm Street Economics consumer trends blog. A service of The Center for Sales Strategy, Inc.

Social Responsibility: Making money is an important priority to most programs and all businesses

An interesting story in today’s New York Times reminds us that without making a profit and staying in business, few companies can win with their social responsibility initiatives.  That’s a difficult premise to argue with, isn’t it?  Click here to see the story.

Implications:    Do good for the people around you.  But do well, too, so that you can survive and thrive tomorrow, to do good again.

Profit is the responsible thing to do.

Mike Anderson, for the Elm Street Economics consumer trends blog. A service of The Center for Sales Strategy, Inc.

Another measure by which to judge (vehicles, and more)

We’ve long been able to compare prices and gas mileage.  But now, consumers can look at the emissions a car puts out, as well as the gas they’ll put in.  Here’s a story from the New York Times that explains (click to link).

Implications:  Watch for many industries and categories to be judged in ever more sophisticated ways by the consumer and your critics.  Paper or plastic?  Lots of people used to favor paper because it was thought to be more bio-degradable.  But depending on manufacturing techniques, paper bags can be just as—or more—harmful than plastic.*

When consumers think “environmentally friendly” or “sustainable,” chances are they won’t be thinking of a single issue (like consumption of fossil fuels).  As people become more educated about the many moving parts involved with manufacturing, consumption and disposal, they are likely to scrutinize a purchase in a variety of ways.

When you consider the life cycle of the product or service you sell… does it compare well to competitive alternatives?  What can you do to improve that product or service, and thus make it more appealing to the consumer’s growing sense (and sophistication) of social responsibility?

Mike Anderson, for the Elm Street Economics consumer trends blog. A service of The Center for Sales Strategy, Inc.

Devastating storms continue to strain the south

Work-related projects had me spending most of last week in Atlanta, Georgia, not too far from some of the areas that were hit by the violent tornadoes that swept across the south.  From my vantage point, the coverage was more local than national… and I found myself checking-in on the story almost constantly.   

This morning, a story in the Wall Street Journal explores the path ahead for survivors, in terms of both the challenges they are facing and what the process of rebuilding might look like.  Click here to see the story.   

Implications:   For dozens of communities and thousands of families, recovering from last week’s tragic storms will be a years-long process.  If appropriate for your company, product or service, consider this an opportunity to do something really great, whether through a financial donation, an in-kind contribution, or other means of support.  (If you don’t know where to start, consider contacting the American Red Cross.)

Please note:  The genuine need for help is likely to far outlive the national headlines granted to this story.  (Just this morning, another major global news event has bumped the topic from the front page of many national news websites.)  Don’t focus simply on the ideas you can execute quickly or which are in the public eye; consider the long haul.  The secret to a well-received cause marketing effort is not to do it just because it's fashionable or hip... but because it heartfelt and it actually helps.

Mike Anderson, for the Elm Street Economics consumer trends blog. A service of The Center for Sales Strategy, Inc.

UPDATE: Making it easy to be green.

Last week, I offered a posting about the importance of making an environmentally-friendly product or service easy to understand.  [See:  Earth Day, 4/22/11.]  

In today’s Marketing Daily, there was a story about a Whole Foods initiative to evaluate—and communicate—the extent to which various cleaning products are, in fact, green.  (Click here to see that story.)

Mike Anderson, for the Elm Street Economics consumer trends blog. A service of The Center for Sales Strategy, Inc.

UPDATE: The green gap

To follow-up on the Earth Day posting from earlier this morning (immediately below), I’ll share this article from Marketing Daily, which suggests that “the green gap” is widening (click to link).    The story is based on a report called Mainstream Green from Ogilvy, which you can read by clicking here.  The green gap generally refers to the distance between people’s belief or opinion about environmental issues, and their willingness to act on those beliefs.

Implications:   Perhaps your green marketing message should focus less on getting people to believe, and more on the ways you make it easy to act.

Mike Anderson, for the Elm Street Economics consumer trends blog. A service of The Center for Sales Strategy, Inc.

Happy Earth Day: How are your customers celebrating?

Consumers love an environmentally-friendly offer.  But with a nasty recession very fresh in their memories (and with gasoline at roughly $4 per gallon), the cost of going “green” is making consumers feel conflicted.  That’s the essence of this story from today’s New York Times (click to link).

Implications:   Some interesting points are made by this story.  One of them, which I wish could have been explored further:  Companies (like Proctor and Gamble) who simply layered-on an additional “green” product offering (like Green Works) were not having as much success as those niche players whose product line is “green.”  Could that be because—just like consumers—corporations cut back during the recession, spending less to market their environmental upstarts than they did on their more mature, core product line?  While that was happening, could it be that those companies who have only an environmental story tend to stay true to course, and tell that story better?

But that wasn’t the only take-away from the NY Times article.

As an avid, hands-on conservationist, I love it when companies employ sustainable practices or launch eco-friendly products.  But passion, alone, is not enough; while any of us would love to save the planet, we would also like to make ends meet until the next paycheck comes in.  Sometimes, needs that are urgent displace matters of importance. 

It can be hard for the consumer to justify paying a premium when the product rationale can seem more ethereal than tangible.  A high-mileage car is saving the planet because it uses less gas, but it also saves the consumer money on their commute; they can see, feel and understand the environmental benefit.  For the typical consumer, connecting the dots on a specially formulated cleaning product might not be so easy. 

The bar has been raised since the first Earth Day was celebrated.  For as long as household economies are feeling strained, green products will have to provide more than the “novelty” of being environmentally friendly.  They will also have to be competitive in terms of dollar-for-dollar value delivered, and their environmental benefit must be made easier for the consumer to understand and appreciate.

Mike Anderson, for the Elm Street Economics consumer trends blog. A service of The Center for Sales Strategy, Inc.

On being Green

A couple of stories from Marketing Daily this week have me thinking about how much opportunity there is—or isn’t—for companies who focus on the space of environmentally-friendly products and services.  Certainly, a lot of consumers and companies will be reflecting on this issue, too, as Earth Day approaches.

Today's Marketing Daily shares research indicating 68% of consumers feel that it’s worthwhile to spend more for environmentally-friendly products.  Click here to see that posting.

Another recent story comes from Research Brief, and provides Gallup polling data about the environmental issues that consumers worry about most.  Click here to see that posting.  The findings hint that people see environmental protection as one casualty of government cost-cutting.  But it also suggests that people worry less about some issues than they did ten years ago.

Implications:   Like any other trend (and this one is significant), this one must be considered in context.  People have suffered through some pretty big financial traumas over the past few years; could that have consumers less pre-occupied with being green? With the price of gas putting additional pressure on the family budget, could it be harder to rationalize spending more for green products/services?

I believe, firmly, that a lot of folks are concerned about matters environmental.  Does your company, product or service do anything to help consumers act on those concerns, without having it be too difficult?  Are you already providing options that might resonate as a “green,” but overlooking the chance to maximize them as such?  

Mike Anderson, for the Elm Street Economics consumer trends blog. A service of The Center for Sales Strategy, Inc.

Causes and marketers must balance their objectives

A story published by Marketing Daily shares data pointing to slides in charitable contributions as a result of cause marketing campaigns involving the charity. Click here to see the story.

Implications: At first, one might think that this issue is particularly harmful to the non-profit organization that partners with a cause marketer. I believe the marketer is just as open to risk, if not more so; if consumers get the impression that the business was giving lip-service to a charity as a means of padding their own profit line, there could be a severe public relations backlash.

How will the charity benefit, exactly? What kind of dollar amount do you expect to raise? Do you have a contingency plan to make a corporate contribution if sales/donation projections fall short? Does your company have a history with the charity, or are you just joining forces because they are currently popular? (Should you be taking steps to build a meaningful history with the charity—or charities—of your choice?)

All of this does not mean your company should avoid getting behind a non-profit organization or cause. Just make sure that while you’re doing well… the charity is, too.

We’ve offered a number of articles here on the matter of transparency [see the “Social Responsibility” set by clicking here].

Mike Anderson, for the Elm Street Economics consumer trends blog. A service of The Center for Sales Strategy, Inc.

If you want to be green, you had better be authentic

A recent story from Marketing Daily serves as a reminder… that an environmentally-friendly campaign is not enough; the consumer expects truthfulness and transparency when companies lay claim to being green. Click here to see the story.

[By the way, a similar story ran last week on the Supermarket Guru blog, but focusing on cause marketing rather than green initiatives. Click here to see that story.]

Implications: I enjoyed the way this story clarified consumer sentiment toward “green” marketing. Few consumers expect any company to have a spotless track record, with regard to environmental issues. But they expect companies to be honest. The consumer can forgive a mistake… but they are less likely to forgive a cover-up or a false claim.

Mike Anderson, for the Elm Street Economics consumer trends blog. A service of The Center for Sales Strategy, Inc.

A new chapter in return policies?

Amazon.com has launched a new return policy: When you’re done reading the book, they’ll buy it back. Early returns justified a wider application of the program, according to today’s newsletter from Springwise. Click here to read the full story.

It seems to me that this idea fits nicely into the consumer’s stronger sense of post-recession frugality, as well as the desire to be socially responsible (this is a form of recycling).

In another example of "own to rent," Target stores are offering credit toward used-up mobile phones, according to this recent story from Marketing Daily (click to link).

Implications: Auto dealers and tuxedo shops have been doing this for years… why not bookstores? I’m thinking about some retailers who sell rarely-used power tools (although many also offer a rental department), or other situations where single-use items are sold.

For more ideas, browse CraigsList a bit. There, you will find that consumers have plenty of ideas about items they have used but do not need to own, outright.

Any opportunities here for your company here (do you sell anything that is a one-time or rarely-used product)?

Mike Anderson

Volunteering: It's increasingly tough to find the time

Charitable giving was one casualty of the recession: When times were tough, it was tough to write a check as big as when incomes were stable and the economy was robust. But according to a story in today’s USA Today, it isn’t just charitable giving that has taken a hit, charitable actions have also fallen on tough times as families are busy tending to their own needs.

See the complete story in today’s USA Today by clicking here.

Implications: It’s not that people don’t want to give of their money, time or other resources. It’s that many consumers continue to have all of their resources stretched. That might lead to great Cause Marketing opportunities in the coming year… if you can think of ways for people to affordably do something nice for a charity that concerns your company and your target consumers.

Think of experiential philanthropy: Are there causes you can tie into that help consumers multi-task (i.e., satisfying a need they have, and supporting a cause they believe in)?

Mike Anderson

The ageless generation starts reaching 65

The most documented generation in history has received even more press this week, as the leading edge of the Baby Boom Generation cross the 65 year threshold. As one example of the coverage, here’s the way it appeared in the New York Times (click to link).

Implications: If one of your target or sub-target groups includes Boomers, it might be important to revisit how needs, preferences and priorities have changed for this demographic group as they roll through life. A smart piece was offered yesterday by Media Post in their “Engage: Boomers” publication. Click here to review that story…

And here’s to a booming 2011!

Mike Anderson

Will these global trends impact your local market?

McKinsey’s newsletter is one of the best I subscribe to, and this week it contained an invitation to consider five global trends that are likely to impact business and society for the foreseeable future. The list includes

1) The rise of emerging markets

2) The pressure on developed markets to increase productivity

3) Expanding global networks

4) The friction between increased consumption and the need for sustainability

5) The greater role of governments as a business regulator and partner

You are invited to consider these trends in the form of a video from McKinsey (watch it by clicking on the video box below), or, you can read the commentary by downloading a PDF draft (click here). To visit the site where I found these links, just click here.

Implications: The value of trend watching is simple. Awareness of a trend can help you profit from it; lack of awareness can make you a victim of it. The sand is always shifting, and it would be impossible to tune-in to every grain of it… but I enjoy sharing these kinds of overviews, as they can help you notice when the dunes, themselves, are beginning to move.

Mike Anderson

What do you mean by "sustainable," exactly?

This morning, a story from Marketing Daily cites Mintel online research to explain that many people haven’t the foggiest idea what some eco-friendly advertising claims mean, much less why they are relevant. Click here to read the story.

Implications: It is easy for marketing folks to get caught-up in the fashionable language of the day… not realizing that they’ve been exposed to a lot of environmentally-friendly nomenclature for much longer than most consumers. While there is a vocal minority who understand what you’re talking about when you say, “fair trade,” a majority of consumers might appreciate having you explain specifically what you mean by that, and why it’s important.

Mike Anderson