General Articles

Discretionary Spending? Alive & Well...

The suggestion by some leading Australian retailers that consumers are "cocooning" is, perhaps, understandable but misplaced.

All consumer groups are alive, well and consuming. However, their needs, wants, demands and buying patterns have changed, substantially, and possibly permanently.

It would be wrong at this time for businesses to significantly cut back, to differing measures, and to become inert, in the belief that existing, prospective and past buyers have done similar. 

Some will contend that it is the "discretionary purchase" market segment that has been the most affected and is the worst performing. Well, that is true in part. 

What has happened is that the "excess" component of consumer expenditures has been eliminated from most segments of the overall marketplace. 

Evidence of the persistence of the discretionary outlays is apparent in the increased memberships of AFL, NRL and ARU football clubs. Similar strong demand is apparent with membership with and attendances at the games of the elite cricket teams and entities. 

Record crowds continue to flock to mass venues for performances by superstar status entertainers. Likewise, patronage is up for theme events which feature television celebrities, such as chefs and emerging entertainers. 

The elimination of "excess" from the purchase decision making process has tempered the influence and size of impulse and spontaneous purchases in the total marketplace equation. All consumers are now more contemplative, selective and sensitive to the innate advantage of genuine and sustaining value. Therefore, the current marketplace is closer to the norm than were "the boom years". 

Thus, aggressive, price centred discount advertising, regardless of which media conveys the message, is deemed to be inappropriate and ineffective. 

Given that reality, it is timely to reflect on the waste that is conspicuous in each and all media at this time. It could reasonably be considered to be and tagged as a "wasteland". 

The word and concept of leverage comes to mind. Unquestionably, the best returns for efforts expended have a strong element of "personal". 

Now is the time to invest in people, skills and relationships. That might be correctly referred to as below-the-line marketing. Most reassuring is that it has also the greatest impact on the bottom line. 


For more information and insights, do make contact.
Barry Urquhart
Marketing Focus, Perth
Internationally recognised keynote speaker, business analyst and author.|

Marketing Focus
Mobile: 041 983 5555
Tel: (08) 9257 1777
Email:   This e-mail address is being protected from spambots. You need JavaScript enabled to view it.  
Web:   www.marketingfocus.net.au 

Photo credit: Dreamstime

• < Prev
• Next >