| Executive Summary | | | | For many brands, this is a chance of a lifetime to grab |
| Much has been both said and written about the decline | | | | market share - media is cheap and minds are open. In |
| in consumer spending during the recession; much less | | | | order to ensure that you are part of this new "brand |
| is said about the opportunity that lies in a highly | | | | bonding," market research is needed to understand |
| disrupted marketplace. While it's true that customers | | | | precisely how the new consumer mindsets affect |
| are more knowledgeable (and often skeptical) than | | | | your brand and your category specifically, and the new |
| ever, this recession has done what generations of | | | | communications strategy you'll need to reach them. |
| marketers have tried and failed to accomplish - | | | | While price is important, it doesn't -and can't -define |
| opening consumers' minds to new brands and new | | | | most brands over the long term. |
| options. | | | | Relevant Studies to Consider |
| | | | While the best use of research and correct |
| The State of the Consumer Market | | | | methodology is highly individualized for each brand, a |
| As the markets crash, people panic. We believe that | | | | few studies every marketer should consider:o Key |
| panic creates an "inverse bubble" -one that has | | | | Assumptions and Mindset Test: Every brand works |
| precisely the opposite effect of the recent tech or real | | | | off key internal assumptions about your customer. |
| estate bubbles. Instead of artificially driving profits and | | | | Many of those no longer hold true. Are the attributes |
| prices up, the inverse bubble artificially pushes them | | | | you base your communications on still relevant? Is a |
| down. But as with any other bubble, it will "pop" -and | | | | different approach to similar services needed?o |
| how your brand is positioned when it bursts is vital. A | | | | Concept Tests: As more people consider your brand, |
| few questions every company needs to ask | | | | it's crucial to understand how new products and |
| themselves:o Did reactive pricing decisions damage the | | | | services could make your brand appealing to a |
| brand?o Will you have taken advantage of disrupted | | | | broader audience. What can be developed to grab as |
| purchase behaviors to win new customers?o Do you | | | | much new share as possible without alienating core |
| understand what changes are temporary, and which | | | | consumers?o Communications Testing: With people |
| are permanent?o How are customer mindsets | | | | paying more attention than ever to communications |
| continuing to evolve? | | | | and media available at discounted rates, now is the |
| The Opportunity: don't believe an opportunity exists | | | | time to test and then invest. Whether conducting ad or |
| during these dark economic times? A few data points | | | | communications testing, developing new stated claims |
| should convince you:o People Are Reconsidering: | | | | or other stats that can be pitched to the media, or |
| Nearly half (48%) of Americans report considering | | | | coming up with the precise positioning and words that |
| brands they haven't considered before.o People Are | | | | appeal to a wider audience, research is a fundamental |
| Noticing: 44% of Americans report paying more | | | | building block that ensures your media spend will be |
| attention to advertisements than they used to.o | | | | effective.o Ethnographies and Qualitative Deep Dives: |
| People's Mindsets Are Changing: While eventually the | | | | Mini ethnographies or qualitative deep dives are an |
| recession will end and purchase attitudes will settle, | | | | excellent way to move beyond the functional and |
| some attitudes may stay; 56% of Americans see the | | | | uncover emotional touchpoints that can set your brand |
| recession as an opportunity to start living a less | | | | apart. How do consumers talk about and think about |
| materialistic life. | | | | your brand? How has this changed? What needs are |
| Necessity of Market Research | | | | going unmet and how can your brand capitalize on |
| New "Brand Bonding" | | | | this? |