HOTELS

Link This | Email this | Blog This | Comments (0)

Microtrends = Micro Marketing?
September 20, 2007

A few years ago author Malcolm Gladwell made the case that there was a “tipping point” at which the tiniest thing could bring about dramatic societal shifts. If anyone thinks he was wrong, just reflect on how many of us ask, or are asked, questions about how sub prime mortgages could have led to a liquidity crisis leaving us worried about a slow down, down turn, or even the “R” word—recession.

A recent book by Mark Penn, Hillary Clinton’s chief strategist, (and the man that helped Bill Clinton to his 1996 victory by the ultimate wooing of soccer mums) said Micro trends offers a compelling argument that “there are no longer a couple of mega forces sweeping us along, instead there are micro trends—small under-the-radar forces that can involve as little as 1% of the population, but which are powerfully shaping our society.”

Obviously, Penn had politics on his mind, however we in the lodging industry who are in the less glamorous business of making money for our stakeholders, should open our minds to the shifting sands of demographic and socio graphic changes, understand them, and aggressively and boldly market to them. We need to struggle for first mover advantage and not supinely repeat the mediocrity or simply allow ourselves a laissez-faire attitude and follow in the wake of the very few innovating marketers in our industry.

Let me give you a few of Penn’s tidbits to metaphorically munch on while you reach for your Starbucks (which size, which flavor, strength, type of milk, etc?).

• Mothers over 45 are now the fastest growing group of video game players.
• People are more likely to work past retirement age.
• Older fathers are an increasingly significant force.
• There is a new breed of extreme commuters who travel at least one and a half hours to work daily (because they cannot afford to live near their offices).
• The phenomena of LATs (couples who Live Apart Together) is growing rapidly. They are, for the most part, in a successful relationship (mostly married) and live apart largely because they work in different places and have separate homes.
• The growth of relationships born from the Internet is exponentially increasing with the resultant effect of partnerships that cross race and class divides.
• Computer geeks (once objects of derision for their loneliness) are now one of the most sociable groups around.
• Highly-paid workers are now more likely than low income ones to get a tattoo.
• The sale of fashion yarn increased by 56% between 2004 and 2005 as teens and 20-something knitters rushed to create something unique.

I have long argued that the year of customization is here and now in the lodging industry. We cannot ignore it. It is clear that automaker Ford’s one-size-fits-all approach to business and marketing is dead, and that the Starbucks economy theory of marketing and service exemplifies today’s guiding force.

Our industry is a capital driven one and investments in our lodging real estate are huge. I believe in the “we ain’t seen nothing yet” stage as far as capital costs and values are concerned. We have to be increasingly bold and target our customers deliberately and market to them with customized and tailored physical product, service offerings and marketing programs.

To the bold will come the spoils; to the “on-the-fences” will come mediocrity and mediocre returns.

So let us to the task and become a bold and leading edge industry. Let us rapidly evolve from a more-of-the-same in “one-size-fits-all” or “we are all things to all men” mentality that has ruled our industry for far too long. Let us finally build, target and market our products based on a true niche marketing attitude and an ability to customize our offerings.

Posted by Laurence Geller on September 20, 2007 | Comments (0)