I read in a brief from Ad-ology that nearly 35% of U.S. adults said they intend to buy a new or used car in the next 12 months. One explanation is pent up demand. This means consumers have been holding back on their spending like a corralled stallion and now they are finally going to let that stud burst out of its pen in a money-spending whirlwind of hooves and mane.
I am hopeful this is the reason that people will be buying cars this year. Pent up demand suggests that consumers who were once caution-filled about the economy are now optimistic enough to let go of their cash or comfortable enough to take on debt. This type of demand reflects consumer confidence.
Another explanation as to why consumers will purchase cars this year is simply because they have to. That is, they are neither confident nor do they have any greater belief they will remain employed long tern or have more disposable income; they must buy a car. Their current car is just too old and worn out and to get to work, or to the unemployment office, they need a car. This type of demand, a replacement demand, reflects consumer fear.
Now don’t get me wrong, regardless of the reason, people buying cars or any product or service will be good for our economy. Demand creates production, which creates jobs, which encourages spending which creates more demand. Wonderful!
The challenge for marketers will be determining the latent, emotional cause for their customer’s demand: do customers want to buy or do they have to buy? The marketing message you send to someone who is afraid should be much different than to someone buying eagerly. Helping our clients determine their audience and the message they should send them is part of our Soul Searching™ process here at Force 5 and we’d welcome the opportunity to talk with you about our methodology. Feel free to contact us.
So, will your customers be buying from you like an unleashed stallion this year, or like some other creature? We’d love to hear your thoughts.