Step 1: Maximized effectiveness from launch phase
So how can marketers become more strategic in their spending? To be able to prioritize high-ROI activities and cutting back on less effective tactics, marketers need to adopt channels and tools that provide measurable results and better targeting capabilities. Tools like marketing automation and data analytics can help optimize budget allocation by identifying the most effective channels and strategies.
Step 2: Keeping the focus on the consumer
As inflation affects consumer purchasing power, customers become more price-sensitive. That, however, is not where marketing strategies should place focus on.
While consumers work with limited budgets, they still expect value and quality. Marketers should emphasize the quality and value proposition of their products. In fact, 46% of respondents to a recent survey* said they typically prepare a shopping list in advance of shopping.
Marketers can make the most of that instinct and ensure their brand is on that shopping list through targeted messaging that highlights how their offerings meet customer needs at a fair price. Quality remains a key topic for consumers, with 91% considering it crucial in purchasing decisions. Also, consumers needs and inclinations are geared towards personalization, health and wellness, and sustainability. The right messaging can help the consumer connect the dots.
Step 3: The price on the shelf
Inflation calls for innovative pricing strategies. Marketers can explore offering smaller product sizes at lower price points or bundling products to provide perceived value. Promotions should focus on communicating the benefits that justify the price, aligning with the finding that two-thirds of businesses plan to highlight product benefits that consumers are willing to pay for.
Step 4: Using data to pave the way
Data plays a vital role in navigating inflationary pressures. Marketers should leverage data to understand consumer behavior and adjust strategies accordingly. Insights into price sensitivity and purchasing patterns can inform promotional strategies and help in setting competitive prices without eroding margins. Data-driven decisions are critical, with executives indicating that data insights are highly influential in pricing and promotional strategies.
Inflation presents a significant challenge, but with strategic adjustments, marketers can continue to unlock the true value of their marketing investments. By focusing on value, leveraging data, and adopting innovative pricing strategies, businesses can maintain their competitive edge and ensure their marketing efforts remain effective despite economic pressures.
*NIQ SpendZ report, 2024
Discover how NIQ’s advanced tools can help you navigate economic challenges and keep your brand top-of-mind for consumers.
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