UNDERSTAND TRENDS THAT IMPACT YOUR BOTTOM LINE by Kathleen Gage
Understanding consumer trends is essential to knowing how and what to
market. Far too often businesses go about developing products and
services without considering what is happening in the market place,
nor what might happen in the future.
In order to stay on top of changes, is important to determine market
trends. With applied strategy it is easier than most people think.
When groups of consumers move from one product to another, new
business opportunities can result. Market switches create demands for
new products and services. Understanding consumer trends is essential
to knowing how and what to market. Far too often, businesses go about
developing products and services without considering what is
happening in the market place, or what might happen in the future.
A good example is when it became more common for women to work out of
the home. Years ago, having a sit-down dinner with the family was the
norm. As women became busier, this trend became less frequent and
eating out became more common. Additionally, convenience foods became
more commonplace. Consumers are time-starved, convenience-oriented
and health conscious. More Americans than ever are looking for ways
to reduce stress and simplify their lives. The desire for efficiency
has fueled the growth of take-out foods and ready-made meals. How can
your product or service help in this area?
As a result of convenience foods and a new way of eating, what
surfaced was a trend of overweight people who began having health
challenges. The weight loss industry went from being almost
nonexistent to being a multi-billion dollar industry in a few short
years. Now there are very large groups of consumers who have an
interest in health and longevity and that has boosted the sales of
health products
Another example is with the travel industry. As the economy
flourished, families traveled all around the world. Now, however,
because of the world situation, families are choosing to vacation
closer to home. There are companies who had enough foresight to
position themselves within these limitations. The point for you to
realize, is that keeping an eye on the market changes will allow you
the opportunity to place yourself where your product will benefit the
most people.
Not many years ago, the desire for bigger, better, more took the
forefront for many. Additionally, ample choice in products was a
great selling point. Yes, choice can be great but too much can create
a backlash for consumers.
As recently as 1970 the number of choices a consumer had was
considerably less than how it is today. For example, there was no
such thing as email, voice mail, cell phones and the Internet.
Choices for communication have greatly increased. There is always a
choice to be made.
Although the economic situation of many Americans has improved in
recent decades, there are more expenses to consider today than in
years past. In most cases, two workers' salaries are required to
support a family. An increasing number of Americans, regardless of
sex, age, education, or lifestyle, feel life is becoming more hectic,
stressful, and complicated.
According to the Consumer Federation of America and the National
Consumer Law Center the average household credit card balance has
gone from $3,275 in 1992 to a whopping $8,940 in 2002. Not only are
people further in debt, for many it is difficult to see their way
clear of getting out of debt. Can your product or service assist in
this area?
In years past, loyalty to an organization was considered the norm.
Today, loyalty is to self and family and possibly a small circle of
friends. So how does this impact your customer base and your product
or service offerings?
With rising real estate costs and commute times and the inconsistency
of gasoline prices, more and more people are choosing to work from
home. This trend alone will increase the need for more delivery of
products, increased convenience in food intake, and services that
will make running a home-based business more efficient. Can your
product or service help this new business group?
The shift in religious and spiritual fulfillment has increased for
many. Millions of Americans practice yoga and martial arts. Due to
the increase in violence, more people are learning self-defense. They
are also praying more and increasing activities in their life that
encourage more fulfillment.
In 1999, American pet owners spent over $26 billion on their pets.
Changing demographics, new lifestyle trends, and a shift in attitude
towards pets have led to a significant increase in consumer
expenditures during the past five years. There are consumers who
actually take their dogs to pet sitters rather than leave them home
alone. Others prefer to have someone stop in to check on their pets.
Who would have guessed this would be part of the American lifestyle?
As you can see, things have changed considerably in the last 25 years
and there is no reason to think that change won't continue. Although
consumers want numerous choices and a lot of convenience, there is
also a shift back to desiring the "simpler days."
You cannot be all things to all people, but you can improve your
offerings based on market trends. As you continue to develop and
refine your products and services, keep your customers in mind and
what trends are affecting them. What are the changes they are
requiring and requesting? By understanding trends, your opportunity
increases to enhance and develop appropriate products and market more
efficiently.
To discover major changes in consumer buying habits you can read
marketing research reports and trade association research forecasts.
You will see current fads that could potentially turn into long-term
changes, and also new products that are growing in popularity. Also,
notice your own buying and spending habits. What are the things that
are influencing you personally?
When a new product hits the market, think of what some spin-off type
products or services would benefit consumers.
Ask yourself the following questions:
Ø Can I think of any market changes that have recently taken
place?
Ø Can I think of any market changes that may be occurring now?
Ø How can I take advantage of these changes in consumer buying
habits?
Ø Can I address a current market change by providing the major
product or service?
Ø Can I provide secondary products or services related to a new
major product?
Ø Have potential customers indicated a need for the
product/service?
With your focused attention on what is happening locally, regionally,
nationally and globally, you will survive and thrive in the coming
years.
About the Author
Kathleen Gage, President of Turning Point, Inc., is a marketing and
promotions advisor for small businesses and nonprofits. E-mail
kathleen@turningpointpresents.com. Receive a FREE report entitled A
Surefire Way to Increase Revenues when you subscribe to the Street
Smarts Marketing and PR Newsletter©. This FREE monthly online
newsletter contains powerful marketing concepts that you can use
right now! Informative articles written by a professional marketer
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