Targeting Consumers with a Smaller Budget

by erica ~ November 26, 2008

I don’t know how much more I can hear about the economic crisis and the affect it’s having on consumers and marketers especially during the holiday season. What strikes me the most are the creative ways that marketers are reaching out to consumers without focusing too much on the “spending” factor. Both consumers and marketers are cutting costs this year and it’s interested to see the approach they take to make the most of what they have.

Sears has a plan, which is becoming popular for a number of other retailers. Instead of targeting new consumers, Sears will be focusing on maintaining a relationship with their existing customers by tying in promotions for purchases done online and offering discounts on items the retailer thinks they are most likely to purchase.

Marc Fleishhacker, managing director at WPP’s Ogilvy Consulting  tells the Wall Street Journal  that “acquiring a new customer costs about five to seven times as much as maintaining a profitable relationship with an existing customer.” WPP designed the campaign for Sears.

More and more retailers are targeting the online world simply because consumers actually prefer receiving information digitally. Even the major retailer, Gap, isn’t buying any TV commercials. They are depending more on online promotions and targeted emails.

Research firms are having a tough time predicting the spending numbers for November and December even though they think that it will be higher than last year. I’m no financial expert but, I have to disagree with these firms. Hopefully, the New Year will bring us some change!!

Erica Berkovich is an Associate Account Executive at Mediashop PR. She is currently pursuing a Masters degree in Corporate Communications at Baruch.