Marketing through the credit crunch

Just as governments seem uncertain how to stop the descent into a global recession, so does the retail sector seem to be resorting to some strange marketing tactics. A ‘20% off ‘ sale a month before Christmas seems a desperate measure with the underlying suggestion that margins must have been more substantial than might have been previously inferred. The most curious promotion this week was a double whammy offer on Christmas Tree lights. Signage suggested that there were savings of up to 50% while the actual product was marked with far smaller cash savings. We picked up a box priced at around 10 pounds also marked with a previous price of a couple pound more. As it is still November one wonders when they were on sale at the higher price anyway. But stuck on each box was also a label for insurance. Although I thought it odd to advertise insurance on a ten pound box of lights, I was really surprised when a member of staff sidled up and pointed out what a great deal this was. For just 3 pounds we could insure the lights and get free replacement in event of later failure. My wife pointed out that she expected them to work and so did consumer laws. So the actual cost of purchase with insurance would have been more than the promised savings on previously displayed price. Marketing should be based on firmer foundations not flimsy gimmicks, but then hindsight is showing that the three great drivers of the British economy – retail, finance and housing – have all been based on overvalued propositions.