Marketing in crisis

One cannot turn a blind eye to the current crisis that has seeped into every facet of our lives. In fact, what once was thought to be an intramural political mudslinging has quickly turned into an event of consequence, plunging the teetering Philippine economy into the brink of a meltdown.

The business of living goes on, however. In a consumerist world such as ours, no political crisis, moral quandary nor mass uprising can subvert the law of supply and demand. Consequently, people will go out and buy things needed to feed their families and allow them to conduct their daily affairs.

It is, in fact, the pinnacle of a capitalist and democratic society, when a full range of goods is available to the consumer public, no matter if such spectrum of choices can sometimes seem starkly incongruous to the quality of life of the majority. An example would be the surprisingly expansive range of automobiles available on the local market. The frugal middle class can choose from models in the price range between P400,000 and P500,000. Members of the rarefied elite can satisfy their more discriminating tastes with models starting at around P10 million.

In the more egalitarian consumer markets – particularly food, vanity products and cell phone credits – the crisis seems to have little effect on spending. Big-time manufacturing companies like Procter and Gamble, Unilever, Colgate Palmolive, and Nestle may be feeling an overall diminution on their sales, but that may only be so because of the shrinking value of the peso, not on the desire of the Filipino to buy. In like manner, these companies, traditionally the source of major advertising budgets, may have trimmed their ad budgets only in relation to the shrinking peso, not because of their desire nor of a waning consumer demand.

Observe the overpowering quantity of TV ads that dominate primetime. Notice the preponderance of personal grooming products and cell phone services that sometimes can cause a nauseous effect on the viewer (an evening newscast that is interspersed with a slew of different shampoo and conditioner ads – it gives you the feeling that Filipinos are more concerned about their hair than about corruption in government). Rich or poor, we seem to derive satisfaction in buying things for ourselves. The rich may have their BMWs and Range Rovers; the poor have their Sunsilks and Pantenes.

What is clear, however, is the pressure these events have brought to bear upon the marketers whose job it is to maintain and improve sales revenues of the companies who hired them. More and more, the diminishing peso value and a more demanding consumer market, is creating a market environment where mediocre marketing strategies and so-so products are being weeded out. Again, the law of supply and demand is a powerful force that, ultimately, sifts the chaff from the grain. In this case, companies who don’t get their act together will experience the untimely demise of their beloved products, pronto.

The marketing professional finds that he has to tweak formula strategies in order to attain his objectives. Given the unique characteristics of the Filipino market (one which has a predilection for ukay-ukay clothing and converted right-hand drive vehicles, for instance), such fine-tuning requires the marketer (hmm, the word always brings to mind another, and probably more apropos, term for us, advertising professionals, product managers, marketing strategists, PR practitioners – jokesters all: Disney’s "mouseketeer") to remain sensitive to the needs of the consumer.

One marketing strategy that has worked for the local market, for instance, has been that of the tingi approach. From shampoo single-use packs to P15 Pasaload cell phone credits, sachet marketing (which is now expanded to a twin version) is a highly contested segment and one that guarantees access to the mass market. This is nothing new, of course, but it is made even more attractive by the times. The innovative use of sachet marketing in many product categories underscores its practical and sensible appeal to poor economies, such as ours. Thus, we have "sachet" versions of cellphone credits (consume within 24 hours), single-serve food packs, and even, one-piece sanitary napkins.

Another successful strategy has been to combine a multiple of products in one. We now have 3-in-1 coffee, mixing together coffee, sugar and cream in one pack; detergent, perfume and softener as one product; shampoo and conditioner combinations; and toothpaste and mouthwash in one tube. While paying a little bit more, the consumer benefits from the convenience, and less total cost if he were to purchase each of these products individually.

Yet another is the value-enhanced approach. Sauteed corned beef variants (ginisang karne norte), canned adobo-flavored tuna meat, menu-driven cellphone SIM cards, yogurt with live beneficial microorganisms, anti-bacterial dishwashing soap, etc. At the rate we’re seeing all these multi-functionalities in consumer products, it won’t be long before we’ll be eating a complete breakfast from one packet of an all-in-one breakfast sachet or getting a complete hair makeover with a shampoo that washes, conditions, straightens (or curls, depending on your hairy persuasion) and perms, all at the same time.

Communicating these new, value-laden products demands more sophisticated and highly focused advertising strategies as well. Years of product research and market testing culminate in the distillation of the brand message. This, in turn, is imparted to the consumer in 30-second snatches of TV and radio commercials, and in several square inches of print ads. In a sea of commercials, only the really good and effective ads (and the highest frequency, I might ad, which is why, even ads lacking in quality can still be effective by being omnipresent at every commercial break) will survive, along with the product it is promoting.

Thanks for the refresher course on Marketing 101, you might say. It doesn’t exactly guarantee marketing success at a time when people are either rallying against corruption or railing against the spiraling prices of gasoline and other basic commodities. Extracting the key concepts from these strategies, we may yet glimpse some insights which could be helpful for anyone who might have a need to communicate and to deliver a message, during times like these.

Reducing your message into bite-size or manageable portions is always better than one big lump of messy and complex set of messages. The common mistake is cramming so many different messages in one event. By doing so, you confuse your audience, and end up not convincing them at all.

Offer a simple solution to a complex situation. A "3-in-1" message, offering to provide for a number of needs with one solution, will be a hit. Instead, common practice presents to the audience a complicated range of solutions or messages. By not simplifying the message, or trying to impress them with technicalities and gibberish terminologies, you lose the audience.

Pack your message with value that would be useful to your audience. Don’t just say your message; craft it in such a way that it answers the needs of your audience. If you’re advocating for a change in a product or an organization, for instance, don’t just mouth off your strategy. Relate it to how it will make better for your target audience.

And finally, always keep your focus. A cluttered and multi-faceted set of messages will not sell. Then repeat that message until your face turns blue. Or red. Or fuchsia.

Marketing is, essentially, winning the hearts and minds of people. It may take some other name or some other form, but selling products and selling ideas are not dissimilar. They are, simply, different ways of influencing how people will react to stimuli. Private and public citizens of this country could learn a thing or two about selling their ideas from these insights.

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You may e-mail bongo@vasia.com or bongo@campaignsandgrey for comments, questions or suggestions.