Goodbye Seduction, Hello Coupons

New York Times, November 10, 2008 — As the economy rapidly deteriorates from flourishing to floundering, marketers are scrambling to remake their advertising so products seem affordable and sensible rather than indulgent and fabulous. For many big marketers, including automakers, retailers, consumer product companies and even financial services, a major shift in consumer psychology spells an end to the aspirational advertising that has dominated their campaigns for the last decade.

How to Market During a Downturn†

CMO Roundtable: Execs on Maintaining Budgets, Changing Marketing Mixes and the Challenges of 2009

Advertising Age, October 27, 2008 — Just days before the Dow suffered its largest single-day point drop ever Sept. 29, Ad Age Editor Jonah Bloom sat down with three top CMOs to talk about marketing in a recession. On hand were Ranjana Clark, senior exec VP-CMO of Wachovia Corp.; Tom O'Toole, CMO and chief information officer of Global Hyatt Corp.; and Mark Chmiel, exec VP-chief marketing and innovation officer at Denny's Corp.

An Old Buzzword Is Back: Bargains

New York Times, October 24, 2008 — As the year began, consumers started to see a trickle of advertisements that played up brand value rather than attributes like status or prestige. As the economy worsened in the spring and summer, the trickle became a torrent.

Now, as the crisis in finance continues, a veritable tidal wave of ads devoted to saving money is washing over the country.

Marketing textbooks suggest, however, that a focus in the short term on pinching pennies could in the long run have a deleterious effect on the images of brands or products by cheapening them.

Nestlé Sales Buoyed by Price Increases†

Wall Street Journal, October 24, 2008 — The world's largest food company, Nestlé SA, raised its revenue outlook for the year as its strategy of increasing product prices continues to pay off.

By adding features and promoting its brands, Nestlé has been able to persuade consumers to pay more for its products. Following that strategy, it is introducing a new line of baby food, NaturNes, that boasts that it cooks the ingredients separately, an appeal to parents worried about sterilization.

"People go for value. It is not always a question of price," Chief Executive Paul Bulcke said in an interview.