"The Mainstreaming of Affluence"—What it Means to Marketers

The median income is up and for the most part, the economy seems to be doing pretty well. Not to say that basic needs have been secured for everyone, but in this day and age, most people in the United States have it pretty good. And as our simple survival needs are being met; it’s opened the doors for all of our wants to take center stage. Today, it’s these intangible wants that are dominating the customer’s priorities and influencing how we market and sell.

These days, everyone at every income level has expectations of “luxury.” Even as middle-income households are under mounting financial pressures, they have all still come to believe that every car should be like a luxury vehicle, every hotel room should be a five-star experience, and every home should include designer touches. According to a specific chapter in the book: “Coming to Concurrence” by Smith, Clurman, and Wood—these concepts are defined as “the mainstreaming of affluence,” or the presumption that everyone should be able to enjoy the things that were once reserved for the rich. Wireless phones, gourmet coffee, sushi, and day spas—people want to live luxuriously every day and they’ve come to feel they deserve it.

Here are a few terms now used to convey luxury in our current marketplace:
Glasses: Eyewear
Curtains: Window treatments
Stove: Ranges and cook-tops
Lettuce: Field greens
Vitamins: Nutritional supplements
Soap: Cleanser/beauty bar
Prunes: Dried plums
Socks: Hosiery
Pants: Trousers
Used cars: Pre-owned vehicles
Old: Vintage

A 2002 article in the New York Times Magazine profiled seven families with a household income equal to the 2002 national median of $54,400. Each of these families had little savings and significant financial obligations. Each had also recently splurged on at least one nonessential luxury-item, i.e.: a boat, SUV, vintage car, second home, wide-screen TV, expensive vacation, or swimming pool.

A number of contributing factors can help explain why certain luxury goods are more attainable today, like rising excellence in production and design; advances in technology with declines in associated costs; the shift of manufacturing to cheaper labor markets; and unlimited consumer information and availability— particularly via the Internet. So with nothing to make luxury special, difficult to obtain, or costly—people have grown accustomed to it. No longer perceived as extras worth paying for, today things like performance and reliability are taken for granted. Now consumers don’t have to weigh cost over quality—they get both as fierce price competition overwhelms even the best attempts of positioning goods at a premium.

As wants replace needs as the new driving factor behind purchase behavior, marketers must adjust. The old model of advertising to consumers who don’t have enough, simply won’t work for today’s consumers who are already surrounded by too much. Now more than ever, the success of a brand is dependent on marketing. Rather than mere clutter and saturation, people want more from marketing. Today’s communications must measure up to those higher expectations.

Marketing by old rules can now be seen as intrusive, and diminish the entire consumer experience. On the other hand, when marketing is relevant and speaks directly to the new influences now dictating purchasing, it can enhance their total experience. When done right, marketing has the unique power to connect people to the new priorities that matter to them most—like saving time, enjoying hobbies, and focusing on family, community, and spirituality or personal growth.

A thoughtful strategy, impeccable timing, and reliance on established expertise is more important now than ever, and anything less can cost businesses more money and time, not to mention their reputation. Making a bad impression these days has far-reaching consequences that no business can afford. So how do you ensure your marketing is on-target and doing all it can to elevate brand-perception in the minds of today’s fickle and demanding customers? The surest way is with a marketing expert on your side. Bouchard Communications is one of the few agencies where clients get all the services of a marketing and design agency, plus the full capabilities of a public relations firm. Current on latest trends, consumer segments, and the attitudinal data that impacts marketing most—we can handle every aspect of your comprehensive campaign, or provide just the specialty services needed to supplement your efforts. For relevant messaging, efficient segmentation, and intelligent creative—count on the experts at Bouchard.