Conscious Consumption – All About Value

November 11, 2008      Admin

Here are two exceptional articles exploring how commercial advertisers are responding to the challenging task of selling during a severe economic downturn.

As they see it, given today’s consumer psychology, every offer must emphasize — in a word — value.

From the LA Times:

"’We’re moving toward an era of conscious consumption — just because I can afford to buy something doesn’t mean I’m going to buy it,’ said Mike Sheldon, president of ad agency Deutsch LA. ‘People are questioning their need to spend.’

Shoppers also respond well to ads about the environment, Sheldon said. Surveys that his agency conducted around the country found that people were trending from living in the moment to saving for the future, from ostentation to conservation, from quantity to quality. Consumers don’t want to buy things that they’ll have to throw out in a year or two, he said. They want things that will last, both to save money and to save the environment."

From the NY Times:

"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."

Both observations strike me as on target. And both underscore two big challenges for nonprofit marketers.

First, how does a nonprofit formulate a value proposition? Sure charities and causes are all about values. But here we’re talking about why my charity, working on issue X, is a "better buy" than yours, working on the same issue. Which offers the donor more value for their contribution. Tough times raise the ugly head of competition, even for nonprofits!

Second, aspirational messages are at the heart of nonprofit fundraising. In a new era of frugality, can (or should) nonprofits abandon "aspirational" messages? Personally, I don’t think that "aspirational" and "sensible" need to conflict. Donors will always be driven by the emotional impulse to improve or better the world, whether they see themselves as saving the planet or one person. That’s the aspirational side. But, referring back to the previous point, now perhaps they will be more "sensible" in evaluating competing strategies and track records for furthering their aspirational impulse.

Effective fundraising appeals are still there waiting to be crafted … but "crafted" is the operative word. In these times, slapping together "same old, same old" messages won’t get the job done.

Tom

3 responses to “Conscious Consumption – All About Value”

  1. Nancy Schwartz says:
    November 11, 2008 at 9:37 am

    Hi Tom,

    I had the same thought, on reading the NYT article, that aspirational and sensible don’t have to conflict. After all, hope and change — Obama’s central point of connection with voters — is aspirational, but engages (and may well serve as a overall framework for the administration) because its ultimately sensible.

    As humans, we’re driven internally by sensible needs but also by hopes and dreams. Put these drivers together and there’s something really powerful.

    Best,
    Nancy

  2. Pamela Hawley says:
    November 11, 2008 at 11:14 pm

    Tom, a good point, I think for any business — one should always stay on one’s toes, accurately stating one’s values in new and different ways!

    One of the ways we are tackling this Holiday Season is with our Gift Packages. People are still going to give.. but the question is what? Instead of buying that $100 shirt, why not give $50 as a gift to feed a family in Sudan? Or $25 to buy eyeglasses for a child in Tanzania? It’s about giving a meaningful gift.

    Regardless of the times, we have to keep our services fresh, meaningful and relevant. Regardless of the situation of our world economy, we’ve seen a movement of people wanting more meaning. And that’s what we’re gearing towards… Meaningful Giving.

    All my best and thank you for a great article!

    Sincerely, Pamela
    Founder and CEO
    UniversalGiving
    http://www.universalgiving.org
    phawley@universalgiving.org

  3. Cheryl Mahoney says:
    November 13, 2008 at 7:35 pm

    Hi Tom,

    What a great discussion on aspirational vs. sensible…and I agree that there’s no need for them to be in conflict! Why not be sensible about how you achieve your aspirations?

    I was also struck by the comments on the rising desire for value. If consumers are looking for quality in the products they buy, it follows that they want quality in the non-profits they give to. With that in mind, I think UniversalGiving could be an excellent resource for your readers. I see that Pamela Hawley, our founder and CEO, has already mentioned our Holiday Gift Packages. I’d just like to chime in a second thought to mention how UniversalGiving ensures quality for a donation. We use a rigorous Quality Model™ which all of our partner nonprofits must pass through to appear on our site, ensuring that all donations to charities are going to good charities. As it said in the LA Times, “from quantity to quality.” Throwing quantities of money at a problem is one thing, but making sure that money is achieving quality results is ultimately far more effective.

    Thank you so much for provoking such a thoughtful and interesting discussion!

    Best,
    Cheryl Mahoney
    http://www.universalgiving.org
    cmahoney@universalgiving.org

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