An area of the consumer economy in which we will continue to see an increase in growth is that of the higher end or affluent market. This market segment has been less affected by the recent economic downturn and has even seen an increase in spending in certain product categories. This specific market segment can deliver valuable information to businesses and marketers who are seeking to penetrate its ranks and effectively engage with potential customers in this upscale demographic. The advertising mechanisms that were heavily emphasized in the past may continue to see change as the numbers of individuals who fall into this category tend to respond better to more technologically emphasized channels. For example, a decade ago the affluent market was not exposed to any form of social media marketing or the high level of Internet marketing that we see being utilized today. The aim of Affluent marketing is to assist companies and brands in reaching this niche area of high-end luxury goods and services. Affluent marketing is a strategy that can take on many different approaches however, its foundation is the analysis and understanding of how and what these individuals spend their money on.
As global markets and developing economies continue to fluctuate, this segment of the economy will continue to grow as many emerging and developing economies such as China and Brazil increase their affluent membership demographics. Many of the goods and services thought to be higher-end luxury emanate from Western culture and hence it is important for marketers in the United States to understand the importance of affluent marketing when trying to reach that specific niche clientele. Research studies conducted in the United States have determined that the affluent marketplace is merely comprised of individuals who are careful spenders and aggressive savers. There is also data the supports the alternative. This research aside, we continue to see many luxury and high end brands being more increasingly sought after year-over-year.
Surprisingly enough, the luxury market or higher end good market and the affluent market differ in several key areas. The general understanding of these two market segments is that they equate to one another. This is not necessarily the case as luxury lends itself as a term that cannot be explicitly described in financial or marketing terms. To an extent the word luxury is a subjective term that can be manipulated in the eye of the beholder. By definition, affluence is a term that can be defined and quantified more easily. To do so, individuals and marketers can conclude to a certain dollar amount that members of certain income brackets are affluent. For example, households in the United States that earn over $100,000 per year are considered affluent. From an affluent marketing standpoint it is important for marketers to comprehend that this growing demographic is increasingly being filled with Millennials and Gen Y entrepreneurs. As such, the appropriate marketing channels to target these age demographics must be highly specific and fully understood by any organization or company engaging in affluent marketing. The market continues to change and with this change we will continue to see a growth trend in the number of younger more affluent consumers.
Every business owner wants to target consumers who have money. So, in a down economy like we just went through, why not invest your marketing funds to promote your goods in services in front of those who have the money to buy?
About Alan Moore: Alan is an Internet Marketing Consultant with ReachLocal Baltimore. His mission is to help you increase your revenues and decrease unproductive advertising expenses through proven, online marketing strategies. He manages over $2,400,000 in yearly marketing budgets and has worked with local businesses, agencies and the US government. Give him a call at (877)655-3438 to schedule a Free Online Marketing Consultation.
To read more of the article that inspired this blog, please visit: http://www.mashable.com/2012/04/07/luxury-brands-millennials/