Inside Asian Gaming

December 2008 | INSIDE ASIAN GAMING 25 Marketing The spillover from the subprime mortgage crisis has weakened both consumer confidence and consumer spending—much of it on credit—that had buoyed the US economy. In their marketing plans for 2009, companies should: 1. Research the customer. Instead of cutting the market research budget, you needtoknowmorethaneverhowconsumers are redefining value and responding to the recession. Price elasticity curves are changing. Consumers take more time searching for durable goods and negotiate harder at the point of sale. They are more willing to postpone purchases, trade down, or buy less. Must-have features of yesterday are today’s can-live-withouts. Trusted brands are especially valued and they can still launch new products successfully, but interest in new brands and new categories fades. Conspicuous consumption becomes less prevalent. 2. Focus on family values. When economic hard times loom, we tend to retreat to our village. Look for cozy hearth- and-home family scenes in advertising to replace images of extreme sports, adventure, and rugged individualism. Zany humor and appeals on the basis of fear are out. Greeting card sales, telephone use, and discretionary spending on home furnishings and home entertainment will hold up well, as uncertainty prompts us to stay at home but also stay connected with family and friends. Marketing Your Way Through a Recession John Quelch of Harvard Business School lists eight factors companies should bear in mind when making their marketing plans for the coming year