Pink Parasols and a Kinky Princess How Marketing Managers are Missing Out on the Biggest New Market in History. A summary of why marketers are leaving countless millions of dollars on the table by failing to pursue the women's market as aggressively as they should.
Brandweek, May 1, 2000
Marti Barletta
Brandweek, May 1, 2000
Reprinted by permission of Brandweek
Back in the '50s when cars had tall tail fins, a car manufacturer tried to sell cars to women by offering one with pink floral upholstery and a matching parasol. It didn't work.
With the occasional exception, most marketers have concentrated on the same targets year after year, fighting for incremental share points that have to be wrestled from competitors. But the new century will see the acceleration of an economic force that began 40 years ago – women. Everyone knows the market of women consumers is increasing, but some of the numbers are astonishing: Women bring in half or more of the income in most US households. Of the net increase in the workforce between 1992 and 2005, 62% are projected to be women. Women-owned businesses employ more people in the US alone than the Fortune 500 companies employ worldwide. And, according to figures published by Conde Nast in 1996, women are projected to acquire over 85% of the $12 trillion growth in US private wealth between 1995 and 2010!
Of course, packaged goods and retail marketers have always known that women make 80% of household purchase decisions. But now marketers of cars, financial services, business travel, computers, small business products and services, and other big-ticket items are recognizing that their consumer base is shifting towards a somewhat older, definitely richer and very savvy female buyer. And their approach to this new market must be re-evaluated.
So where do marketing managers stand with this "market of the new millennium?" Remarkably, few seem inclined to pursue the opportunity, and fewer still have managed to field an effective program. It begs the question: Why not? Here are the most common reasons:
Bad Analysis
Many marketers are still unaware that the new market exists.
They look back at the past, instead of forward to the future. A situation analysis that finds "Our current customer base is 80% white males" is typically followed by the inference, "Therefore, it is obvious that white males are our best target." By ignoring the fact that most big-ticket companies have never gone after other markets, this becomes a self-fulfilling prophecy.
They fail to see beyond the averages. The "women’s market" is essentially bi-polar. One of the most dramatic changes of the 20th century was the entry of women into the workforce beginning in the ‘60s and ‘70s. Consequently, younger women’s incomes, attitudes and decision-making styles vary significantly from those of their pre-Baby Boom predecessors. Yet most marketers continue to look at averages for total women, which mislead them into overlooking a wealth of lucrative growth segments.
Philosophical Opposition
Some marketers don’t understand the idea that there is any need or benefit to marketing differently to women. Some even resist it.
After all, "A car is a car, a computer is a computer, right?" Wrong question. One of the first tenets of marketing is that persuasive communications should be driven by the prospect, not the product.
Some are adamant that men and women are the same, and conclude that their current marketing is equally effective with women as it is with men. It isn’t. Hundreds of studies have shown numerous gender-based differences in perceptions, attitudes, priorities, communication styles, etc. For example, men respond better to competitive or hierarchical ideas, such as "bigger," "newest," "highest return," etc. By contrast, women resonate with messages focused on similarities, affiliation, win-win mutuality, etc. These differences can be used in marketing to great advantage, or can be ignored – at the marketer’s peril.
Some recognize that men and women are different, but worry that tailoring their product or service to be meaningful to women could undermine their appeal to men. In fact, exactly the opposite is true. Companies as diverse as BMW, Wyndham Hotels and Merrill Lynch have found that marketing and service improvements designed to enhance brand appeal among women have resulted in greater customer satisfaction among men as well.
Faulty Assumptions
Occasionally, marketers erroneously assume marketing to women would require unacceptable compromises in positioning or budget strategies.
Some worry that marketing to women would undermine their carefully crafted brand equity by "painting the brand pink." In reality, the best initiatives targeted to women are not pink, but transparent. In virtually every category, overtly characterizing a marketing program as "for women only" will backfire with both genders. It not only makes women suspicious ("So let me guess: does this mean it will cost more, like alterations? Or will it be condescending, like a car salesman?"), it alienates men.
Some fear that adding women to their target definition would require them to double their budget or worse yet, split it in half. It does neither. The secret? In many respects, women want all the same things as men - and then some. Accordingly, when you meet the higher expectations of women, you are more than fulfilling the demands of men. Designing a marketing program oriented toward women will not only bring in an extra target audience, but will over-deliver against men as well. The same budget, directed to a dual audience instead of primarily to men, will yield significantly greater returns.
Uncertainty About What To Do
A few marketers would love to tap into the powerhouse women’s market, but don’t know how.
It’s not surprising. With three interactive dimensions to figure out – different internal influences, different responses to external marketing contacts and fundamentally different decision processes – women, like men, are complex creatures. The first step is to gain an understanding of the different gender cultures. Then these gender insights must be translated into intelligent marketing action.
Poor Execution
A notable few have tried to appeal to women, but done it wrong – often offending the very target they’re trying to woo.
Roughly fifty years after the parasols fiasco, another car manufacturer, recognizing that women now buy 65% of all new cars, tried to reach out to women. Cadillac Catera launched new advertising on the 1996 Super Bowl broadcast featuring Cindy Crawford in a leather get-up reminiscent of Xena, and copy that began, "Once upon a time, there was a princess..." Astonishingly, architects of the campaign asserted it was designed to appeal to women via its "fantasy empowerment" theme. Once again, it didn’t work.
Nine understandable reasons – and not one of them changes the fact that this is the largest, fastest growing new consumer segment in history. Tom Peters has been
saying since 1997 that "Women are Opportunity Number One for the foreseeable future." Futurist Faith Popcorn calls it "the dominant economic force in the country."
Companies challenge their marketing groups to develop something new,out of the box, breakthrough, innovative. It would seem to be a perfect match.
The irony is that taking this market seriously could give just the insight that translates to powerful positioning, breakthrough creative and meaningful marketing programs. Moreover, one can argue that marketing to women yields higher returns than marketing to men. First, it’s an enormous, virtually uncontested growth market – and, as every marketer knows, "first in, first win." Second, because women are more inclined to long-term brand relationships, enhanced loyalty means every marketing dollar invested in female customer acquisition results in a higher retention rate. And finally, because word-of-mouth is more prevalent among women, they are more likely to refer others to brands that impress them favorably – in essence, free marketing of the most powerful kind.
It’s only a matter of time. The situation is analogous to the remarkably rapid impact of the Internet over the past four years. In some categories, companies that took a wait and see attitude are already scrambling desperately to catch up – and it may be too late. They may find themselves left behind, with market share surrendered to newer or more savvy competitors. Similarly, companies that overlook the immensity of women’s rapidly growing buying clout will find themselves fast losing ground to competitors who recognize the new force in an old phrase: the power of the purse. |
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