Rather than just trading down, some consumers are saving money by opting out of certain categories altogether. For brands, this means the competitive set is getting broader: It’s no longer just brand vs. brand (e.g., Bally’s vs. New York Sports Club), it may also be category vs. category (Bally’s vs. cable TV).
Since brands may be competing for share of purse along with share of market, marketers have to sell the category as aggressively as the brand. Last week, Guy Murphy offered an example of this—a U.K. ferry operator promoting the travel category.
Microsoft’s latest campaign, “People Ready,” is another example: It sells the idea of software as a tool that can save businesses money. For instance, the TV spot here doesn’t tout specific Microsoft products but rather explains how technology can help businesses thrive, despite the “economic tsunami.”
Considering that Forrester Research forecasts that business and government purchases of IT goods and services will decrease by 3.1 percent in 2009 (compare that to a 7 percent rise in 2007), now is the time for Microsoft to promote not just itself but the benefits of investing in IT. This campaign does it right.
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