- Hardcover: 269 pages
- Publisher: Harvard Business Review Press (September 1, 2004)
- Language: English
- ISBN-10: 1591391962
- ISBN-13: 978-1591391968
- Product Dimensions: 6.5 x 1.2 x 9.5 inches
- Shipping Weight: 15.2 ounces (View shipping rates and policies)
- Average Customer Review: 9 customer reviews
- Amazon Best Sellers Rank: #3,088,521 in Books (See Top 100 in Books)
Other Sellers on Amazon
+ $3.99 shipping
+ $3.00 shipping
Mass Affluence: Seven New Rules of Marketing to Today's Consumer Hardcover – September 1, 2004
"...lots of advice that marketers can sort through and apply." -- The Globe & Mail, November 24, 2004
"It's hard to imagine a business where these insights wouldn't be relevant." -- The Washington Post, 10 October, 2004
"When it comes to targeting affluent consumers (i.e. upper-middle class and above), this books is Mass Marketing 101." -- Journal Gazette, 21 September, 2004
In this extremely well-researched and witty volume, Nunes and Johnson rewrite the rules for marketing to today's consumer. -- CHOICE, March, 2005
From the Inside Flap
"Today's companies believe that they can only make money by selling to the low-end or high end of the market, or by selling one-to-one . . . Nunes and Johnson convincingly show a fourth way, tapping into the mass affluent sector. Contrary to the doomsayers, mass marketing isn't deadif you use their seven rules to position, design, and reach the moneyed masses." Professor Philip Kotler, Distinguished Professor of International Marketing, Kellogg School of Management, Northwestern University
"A must read for today's brandbuilders. Great insight into how brands must be positioned and marketed for profitable growth in the next five years."
Will Kussell, Chief Operating Officer, Allied Domecq QSR
"Full of fresh and practical ideas, Mass Affluence integrates true understanding of today's consumer with new strategies for mass marketing. "
Nan Meehan, General Manager, Parker, Waterman, Sensa and Rotring, and Vice President, Sandford Corporation
Showing 1-5 of 9 reviews
There was a problem filtering reviews right now. Please try again later.
Nunes does a great job of breaking down how to approach the large demographic of relatively wealthy consumers into different functional areas and makes a chapter out of each. He explains how something, like billing, was typically done in the past and how it should be handled now. Beyond that, Nunes has found pertinent real-world examples of every concept he discusses and gets helpful input from the business people out using the strategies on a day-to-day basis.
The result of all Nunes work (I'm sure it would've been easier to write the book without running down real-world examples) is a highly practical guide to setting up or improving upon a business that caters to wealthy, but not mega-rich, customers.
Here are the 7 rules that the book discusses:
"1. Seize the unclaimed ground between luxury and mass-market positions.
2. Serve millions of diverse customers with (essentially) the same product.
3. Discover must-have products that serve a special purpose.
4. Introduce new ownership options that convert the unaffordable into the affordable.
5. Offer new products that perform like investment opportunities.
6. Change sales locations, formats and the mix of offerings to optimize affluent consumption.
7. Devise cost-effective promotions to attract and retain masses of well-heeled customers."
The whole crux of their argument is that Americans today are far more well off than they were in 1970, with "only 3.7% of the population (making) more than $100K/year in (roughly) today's dollars. By the year 2001, that percentage had grown to 13.8!" With Americans making more money, they want a little more luxurious items than what are being offered.
They cite numerous studies and there are many insights to be gained, particularly about the wealthy and spending money on their children, coupons, warranties, the importance of time well spent, advertising, promotions, and affluent are less interested in radio/TV ads and are interested in becoming more knowledgeable about a category, and, in effect, connoisseurs.
Indeed they do, and with discipline and eloquence. Their material is carefully organized within four Parts: The New Rules of Positioning, The New Rules of Designing Offerings, The New Rules of Customer Reach, and then a final section which responds to the question "What's Next?" Then in their Epilogue, Nunes and Johnson share their observations and suggestions with regard to "Reenvisioning an Industry" (i.e. the jewelry and watch business), applying to it the "seven new rules of mass marketing" previously introduced and discussed in the first chapter.
Long ago, Warren Buffett suggested that price is what we charge and value is what the buyer thinks it's worth. I was reminded of that as I read Part One in which Nunes and Johnson explain "The New Rules of Marketing." These are not their rules nor are they even rules per se. Rather, they are strategies which the competitive marketplace has already determined are more appropriate to new realties. For example:
Old Rule: Avoid middle-market positions between low-cost and premium.
New Rule: Seize the new-middle-ground position, above the rest of the conventional offerings and below the ultrapremium solutions. (Please see Figure 2-1 on page 33.)
Old Rule: Produce less-expensive versions of luxuries to sell to the masses.
New Rule: Introduce new models of ownership that make a wealthy lifestyle, and even real luxuries, affordable to the masses.
According to Nunes and Johnson, traditional mass marketers can "play by the new rules" (i.e. can capture the spending of the moneyed masses) without sacrificing the former core mass market. How? Give customers the chance to spend more by offering new premium versions, adding on product upgrades and differentiated service levels to existing offerings. Also, honor customers with the recognition they desire by creating status levels that richly reward willing-to-spend customers in all of the ways they wish to be recognized. Also, offer the right price to each customer by using effective pricing to achieve differential margins based on qualities that aren't intrinsic to the offering. Customers may not always be right but, ultimately, their perceptions ARE market realities. They are asking different kinds of questions now. For example, "What does this [watch, handbag, dress, set of golf clubs, etc.] say about me?" Moreover, they are less concerned about a luxury item's purchase price than they are about ROI which includes enhanced self-esteem in their own eyes as well as in others'. New realities do indeed require different (if not "new") strategies by which to respond to them. Nunes and Johnson offer several in this book, anchoring each within a context of relevant information and appropriate examples. Well-done!
Those who share my high regard for this book are urged to check out James H. Gilmore and B. Joseph Pine's Markets of One: Creating Customer-Unique Value through Mass Customization, the aforementioned Trading Up, James B. Twitchell's Living It Up: America's Love Affair with Luxury, Virginia Postrel's The Substance of Style: How the Rise of Aesthetic Value Is Remaking Commerce, Culture, and Consciousness, Gerald Zaltman's How Customers Think: Essential Insights into the Mind of the Market, Joseph Epstein's Snobbery: The American Version, and Bill Stinnett's Think Like Your Customer: A Winning Strategy to Maximize Sales By Understanding and Influencing How and Why Your Customers Buy.