Marketing Traps
Running head: Marketing Traps: MARKETING TRAPS: TRENDS IN CONSUMER DEBT
Marketing Traps – Trends in Consumer Debt
The Financial Effects of Deceiving Strategies Used in Today’s Competitive Market.
Gisele Rodrigues Lacerda
Salt Lake Community College
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Today’s competitive world market is more innovative than ever and information
technologies are paving a new road for consumer relations. With the economy still struggling,
businesses are taking a more aggressive approach to consumer persuasion by targeting specific
groups that are easily persuaded by the concept of saving money—now. Contract abiding, tie
down strategies are now used to compensate for lost customers and promotional advertising
suddenly exempts loyal customers who solely contributed to the expansion of the company in the
first place.
Previous methods of selling, researching, product planning, distribution and promotion
are faced with challenges never presented before as a result of new information technologies.
Consumers have also been faced with challenges that demand new, creative, financial strategies.
As a result, the market is making significant contributions towards advertising. Persuasive, direct
emphasis on the purchase decision process and product analysis geared towards the individual
consumer, both prove the undeniable power consumers have on today’s competitive market.
Consumers not only impact the market by consumption and sales profits but they are now
able to provide constant feedback in regards to products purchased online, giving marketers the
upper hand in promoting access to niche markets. The internet has also made it possible to have
goods delivered right to our door, from many different corners of the world. Convenience, real
time, customized product/service options make shopping online an appealing, consumercontrolled experience.
There are many factors that come into play in advertising. Consumers should take all
these factors into consideration when a particular product strikes motivation. Social class,
gender, age, religion, price, ethnicity, reference group, product, promotion, place, and the list
goes on and on. Effective marketing targets its main reference group by appealing to the
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consumer in a psychological state called involvement. Marketers target consumers based on
individual needs and values.
For these specific reasons alone, we as consumers should be a bit leery when purchasing
products we would not purchase otherwise. Marketers are well aware that advertising and
targeting specific groups is ultimately increasing market profits nationwide. One may think this
is actually helping the economy when in fact it is only increasing overall consumer debt. Our
nation has become depended on insufficient funds as a means of living and consequently, it is
dreadfully frightening to imagine what the future holds for generations to come.
Recent statistics from the federal reserve research department indicate first time home
buyers who received the federal income tax rebate, increased their overall monthly expenses by
over $200 a month for nine months following the purchase of their home. Those who used the
rebate to pay down debt immediately increased their spending habits shortly thereafter. It has
been proven time and time again that we are more likely to spend money knowing we have some
means of paying it back or simply by knowing the extra cushion is there if needed.
Surprisingly enough, our economy continues to take a dive as if no lessons were learned
from the hardships behind us. Credit cards also raise concern as a significant contribution to the
overall national debt, particularly among college students. Naturally increased debt will
ultimately decrease consumption which can eventually eliminate jobs and leave more and more
people dependent on unemployment, social security, and other means of unearned income such
as welfare services.
In directly targeting specific groups, marketers seemed to have overlooked an important
money making factor; building customer loyalty. Deceitful tactics previously seen in credit card
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marketing are now transitioning into the communications world. Cell phone and internet
companies are now using new customer promotions to lure consumers into contract abiding
penalties which ultimately create more debt. This not only eliminates returned customers but it
also demolishes the firm’s reputation, particularly by word of mouth.
In the meantime, marketing researchers and specialist are taking full advantage of the
opportunities granted as a result of our crashing economy. Not fully acknowledging they are only
hurting themselves by creating further financial hardships for future customers down the road.
Recent research from the Journal of Advertising indicates investments in advertising have not
only increased sales during the recession but it has also significantly increased sales for up to
three years following.
As consumers in a time of need, it is only apparent that we take the initiative to resist the
temptations provided in today’s strategic targeted market. Our contributions may very well make
someone rich while creating financial burdens for ourselves and our families. It is important to
put our own needs and the needs of our families first and foremost. By adapting new lifestyle
choices and effectively managing our finances we may be able to reshape the American dream
from having everything to having enough and being secure.
Financial stability is possible when we are able to separate the things we want from the
things we need. Let us reform a new age in marketing where customer demands are truly met to
our satisfaction without compromising our financial stability or integrity for that matter.
Recognizing targeted groups is key in identifying the target. Becoming familiar with these
strategies may not only provide financial stability but it may also provide new opportunities for
ourselves as consumers not to mention consumers for generations to come.
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Works Cited
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Journal of Marketing Research. (2011). RSF-funded Issue on Consumer Finance. Retrieved
November 20, 2011, from: http://www.russellsage.org/press-release-journal-marketing-researchreleases-rsf-
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Noel, H. (2009). Consumer Behavior. Switzerland: AVA Publishing SA.
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