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Marketing 101 - Change in the Marketplace

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By Roy McClean, Principal
The Custom Fit Communications Group

Have your customer’s buying habits changed recently? It’s been a hot topic lately with our clients and associates. Many have noted that buyers are holding on to their money until the last minute before making major purchases. Now, this doesn’t mean people aren’t spending. It just appears that given more options, more resources, and the Internet, people have learned that they can wait until the last minute to buy - particularly for travel and retail. For example, visitors that travel to a ski resort like Whistler used to make their bookings several months in advance. Now travelers feel comfortable waiting until the last minute to make a travel purchase knowing there are deals to be had. And they are more educated on where to find last minute deals. If you have noticed this in your business then consider the following:

It’s a Learned Thing!

We’ve all heard and seen the ads. The automotive, electronic good and furniture retailers fill the major newspapers with full page ads, and in-your-face television and radio messages. There are constant sales, deals, and incentives! Don’t like the price of something... just wait for next week’s blow out. If you are looking for a car, a DVD player, or a matching living room suite somebody is going to have a sale on soon. Remember when a Boxing Day sale (for our Canadian readers) was a one day event. It’s now a 2 week sales extravaganza! I believe this has a real effect on the psyche of the consumer. We’ve learned that if the deal isn’t there today, it will be soon - as in the next 24 to 48 hours. No need to wait too long for what you want because what you want will be available at the price you want - at least that’s what we are being told.

The Double Edged Sword of the Internet

Many business see having a Web site as a vital component to doing business - it’s just a part of doing business. A small hotel property now has access to world via the Internet and many people were sold on the notion that this would level the playing field, that is, the little hotel would have equal access to customers that a large branded Hilton chain. Then came along Expedia, Travelocity, etc. and the ‘Find me the best trip’ options. These travel packagers have the marketing clout to develop a strong brand and the traffic for last minute travel buyers. The travel packagers have also become the small hotel operators friend and competitor at the same time. The fact that Expedia exists on-line actually breeds last minute behaviour. Just listen, watch or read their advertising. Once upon a time the small hotel property may have thought they could get bookings directly through their Web site. But with the big brands pushing their might the small hotel operator feels more compelled to join the fray - all the while giving a percentage ‘off the top’ to have these branded travel packagers find the business for them.

Catching Buyers at the Last Minute
What’s a small travel business or retailer to do with this trend? Here are a few ideas...

1. Know thyself. What is your brand - or your promise to your customers? If price isn’t the key factor for your business recognize this. Give your clients another good reason for doing business with you such as service, specialization, convenience, etc. If your business is price sensitive, recognize the forces at play at the current marketplace. Know your brand and make sure your advertising and promotions are consistent with your brand promise.
    
2. Recognize the marketplace. If price point and immediate sales are what your customers are looking for then give it to them. Recognize the type of advertising that your customers are being exposed to by your competition and the advertising industry as a whole e.g. the automotive, consumer electronics, and furniture industry. Does your front retail window or Web site front page show up-to-date specials or last minute deals? Is this information presented in a very clear manner targeted to your customers? Are these offers changed often? Do they have a strong call-to-action and a finish date for the offer?
    
3. Connect with the right media. To quote Marshall McLuhan, "the media is the message". Match the media you use to communicate with your clients. Any media that exudes immediacy matches the message. For example, radio, Web site, and email campaigns are all proven ways to communicate quick changing messages.

A final word of caution, appropriately reacting to changing market places works but before you change your business model reacting to the whims of an ever changing market place consider how your actions and tactics fit with your brand. If price and changing tactics fits your brand, or your promise to your market place, then go for it. If it doesn’t reconsider!

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We'll send you a FREE Estimate for Your Next Project. Fill out a Projects Estimate form and we will contact you within 48 hours. Roy McClean, FOCUS Business Intelligence; Vancouver & Whistler.