
The national economic picture, which might seem distant and academic if not for $4-a-gallon gas and rising food prices, is seeping into companies' marketing strategies. In this particular economic slump, the priority is getting on a shopper's ever-shrinking short list.
Fuel is a subliminal part of many messages. Consumers reluctant to spend gas on shopping trips have triggered a pullback, of sorts, by companies advertising on cable TV. Merchants are asking the staff at Comcast Spotlight in Pittsburgh to narrowly target zones within five to 10 miles of their businesses.
Merchants tell fewer stories these days about a customer driving two hours to get to a store, said Rebecca Lamperski, Tri-State senior director of sales for Comcast Spotlight's Pittsburgh office. "We just have a lot of clients right now re-evaluating what geography they are targeting," she said.
Jerry Anzahand, owner of Highway Appliance Co., in Dunlevy, cited figures that he's seen indicating consumers used to check out 3.6 stores before buying. Now, he's hearing the average is closer to 1.2 stores.
If people are going to climb into their vehicles, they want to be sure the trip is worth it.
Sometimes acknowledgement of that reality is obvious in an ad, sometimes it's more subtle. "With the high price of gas, we've got some great deals to help you save time and money," said an enthusiastic Steve Luncinski in a cable spot pitching his family's Pinnacle Auto Service, on Brownsville Road in Carrick.
The Morrow car dealership in Beaver Falls recently ran a spot noting it had "over 170 vehicles that get over 30 miles per gallon." Rusbosin furniture and flooring urged shoppers not to spend their economic stimulus checks on foreign-made products but to help the American economy by coming to its stores in Greensburg and Latrobe.
Nationally, Honda has an ad for its Accord that stars rows of gas pumps and promises, "You'll be spending less time in front of these." Summer costs less at Wal-Mart, according to that retailer's pitch. Subway is offered a $5 regular footlong sub sandwich promotion.
Before the July 4th holiday, Toys 'R' Us offered a $10 off coupon for "stay-cation shopping," targeting people staying home for the three-day weekend. Office Depot is featuring penny supplies -- erasers, protractors, folders and rulers.
There are 30 televisions at Sharky's Cafe in Latrobe and owner Johnathan Humme is well aware of what's going on in the news. Just last week, he rolled out Sharky's Economic Stimulus Plan, offering 10 percent discounts to lots of folks -- public servants such as firefighters and police, people who use the ATM in the lobby, return customers. Customers are eating it up, he said, along with inexpensive pizza and wing deals.
Meanwhile, he's looking forward to picking up some business from Steelers training camp crowds soon but he's not sure if an the crowds at an upcoming bikers events at the Westmoreland County Fairgrounds will be willing to drive the extra miles into Latrobe at current gas prices.
Businesses have to be creative at times like this, according to Dan Droz, chairman and chief executive officer of Droz and Associates, a Downtown ad agency. When fuel costs and limited budgets are the principal obstacle to buying something that people think they can no longer afford, merchants have no choice but to try to convince them that it's still OK to spend wisely.
That may mean placing items that people need front and center in ads -- whether on TV, online or in newspaper inserts -- rather than those that they just want. Once they get into the store, they might pick up a couple of extra things.
That was a strategy a cable advertising consultant recently identified as a growing national trend, said Ms. Lamperski. "It's a good marketing strategy right now," she said, although she expects local companies may be slower in trying that. "Local advertisers don't change their strategy as quickly as a national advertiser would."
Other tools to persuade consumers to drive to a particular store include liberal uses of the word "free" and BOGO deals, which either means buy one, get one free or sometimes buy one, get a second at half price.
Mr. Droz argued using a promotion that adds value to an item -- maybe free installation, free gift wrap or offering three items for the price of two -- can even be designed to address the guilt factor, if not the expense, of using fuel. He cited a promotion by outdoor retailer Recreational Equipment Inc., or REI, that promises to buy energy credits to offset carbon emissions of its trip packages.
Advertisers should use care in focusing on the economy, said Michele Fabrizi, president and chief executive officer of Station Square-based ad agency Marc USA.
"There's no question that value messages become more important whenever the economy is tough, but messages can't only be about value," she said. "Everyone will be talking price -- you must differentiate your brand." It's important to have something distinct that people want.
This is also not the moment to stop talking to consumers at all, said Mr. Anzahand, who claims three decades in the appliance business. When things slow down, he markets more aggressively as competitors cut back. "That gives me an opportunity to become top of mind in my market."