I like to shop and own nice things, but being a minimalist, I don’t own much and tend to avoid spur-of-the-moment purchases with ease.
One friend, taking in a fancy to a relatively expensive new pair of shoes I had purchased, recently asked me: ‘How the hell can you afford to buy things like that?’
My secret is no secret at all: I can afford to buy nice things because I don’t make low-value purchases. A low-value purchase is anything that is of low intrinsic value or even just totally unnecessary for me, personally.
So how does one avoid making low-value purchases? Every time you are in the position to make a purchase, you are up against billions of advertising dollars wielded by people much smarter than any of us who are determined to convince you to buy that t-shirt. Or those earrings. Or that snow cone. Or those Beanie Babies.
Not only that, but every single moment of every day is a potential consumer experience. You can just as easily buy a new digital camcorder from your recliner as from the local Best Buy, and if you really need to get your fix for the day, why not use your iPhone to One-Click purchase a new pair of running shoes from the bathroom? How easy is that?
So that’s the consumer environment we’re living in, and I deal with the same temptations as everyone else. How do I dodge the marketing missiles, unravel the urge to acquire and pulverize the passive payment predisposition?
I learn as much as I can about marketing.
Consider this: I do marketing consultation for my clients, and though a lot of what I’ve learned has been ‘in the field,’ the first several marketing classes I took taught me all I needed to know in order to identify the marketing tactics being used against me by everyone from Apple to organized religions to the Big Brothers Big Sisters children’s charity. Becoming aware of these tactics was a huge eye-opener, and to this day I can look at just about any kind of marketing push, see it for what it is, and more easily come to rational conclusions regarding the products, services or ideas they’re pushing.
Being able to see past the brand to the innate value proposition has greatly reduced the amount of ’stuff’ I accumulate.
Here are a few quick tips and things to look out for to get you started:
- Market segmentation: When a new company is being started, one of the first things the owners have to do is identify their audience. In some cases it can be as simple as ‘people who drink coffee in the surrounding area,’ but in most cases it’s more along the lines of ‘late-teen to early 30-something hipsters and hipster wannabes who consider the location, aesthetics and terminology used in relationships to their coffee- and coffee-related-beverage drinking experience just as important as the beverage itself; household income $35k-125k/year; mainly caucasian and mixed-race; mainly young professionals and entrepreneurs; laptop owners; well-dressed and style-conscious….’ and on and on and on.Let it be known: every time you walk into a store you are either confirming or denying their market segmentation research, and certain stores cater toward one group or another. Gap owns Old Navy and Banana Republic in addition to its main Gap stores, but Old Navy is meant to be cheaper and for a lower economic-class audience (with its cheaper quality clothing, sizes that run larger and ‘late to the party’ styles), while Banana Republic is aimed at a wealthier audience with different priorities (which is why they offer in-store tailoring, more business suits than swim suits, and preppier sweaters and khakis)I hate knowing that I’ve been labeled and filed under a category by these marketing folk. On the other hand, I’ve always preferred Banana Republic and couldn’t figure out why I could never find anything that I liked or that fit me at Gap or Old Navy. As much as it riles me up, knowing about market segmentation has helped me not waste money and time at places that aren’t catering to my specific needs.
- Branding: The dirty little secret of branding is that most brands, especially the really well-known ones, are of basically the same quality as their lower-priced competitors. Why the cost difference? You’re paying for the brand…the idea…the story that comes with that pair of shoes or piece of furniture. The largest and most profitable companies don’t make products, they build brands.Take Nike, for instance. Nike stopped making shoes a long time ago. These days their dollars go toward building up their storyline by hiring the right athletes to wear their logo, creating advertising spots that have the right atmosphere, and engaging youth by sponsoring the right tournaments and basketball courts.The shoes? They come from the same factories that make Adidas, Pumas, New Balance, and Wal-Mart’s in-house brand. These are shoes that cost $2 to make that are being bought up and sold for well over $100 because of the logo (while shoes with the same level of quality are being sold at Wal-Mart for $30). Being aware of the price you pay for the company’s branding can help you save a LOT of money. In some cases buying a particular branded item over another unbranded one can make sense, but it’s rare.
- Product integration: Every time you turn on the TV or take a glance at any other media outlet, you see product integration (whether you consciously register it or not). Product integration involves taking a product (Pepsi, for example) and putting it somewhere that will attract a lot of eyeballs (in the hand of the protagonist in a movie, for example). Marketers are getting clever and not blatantly parading the product around anymore, but the subtle integration actually works better, as most movie audiences will still notice that, yes, Brad Pitt is holding a Pepsi (as opposed to having him mention it in his character’s dialogue, for example). They didn’t go overboard announcing it, so that’s probably what he asked for. Must be his drink of choice. Hmmmm….These thoughts are usually subconscious on the part of the audience, and that’s just what the marketers want. A subconscious association between Pepsi and Brad Pitt has been made, and now when you think of Pepsi, you think sexy, virile, Angelina Jolie, Fight Club, cool. All positive associations. In a way, these marketers are borrowing Brad Pitt’s image and applying it to their brand, hoping that when it’s removed (i.e., the scene is over), that some of that image will have rubbed off on their soft drink.Being aware of this has allowed me to filter out a lot of the subliminal advertising that goes on around me, and my barricades are even stronger when that knowledge is combined with number 4…
- Advertising tactics: In addition to product integration, there are many, MANY other tactics that marketers use to get you to buy their product. There’s no way I could possibly list them all here, but a sampling includes pairing products together in order to create the illusion of increased value for both, special sales (in order to get consumers hooked so that they’ll keep coming back when the sale is over), on-location informational kiosks, billboards, etc (also called ‘point-of-purchase’ advertising) which allow marketers to get information to customers as they’re going through the Consumer Decision-Making Process (this is a big focus for many marketers), and taking advantage of the appeal that comes with exclusivity (which makes the customer feel as if they are part of a select group).There are valid arguments as to why these tactics can actually be handy for consumers, as well, especially in regards to making information available when the consumer is figuring out whether or not they want to make the purchase. It should be noted, however, that this information is innately skewed in favor of the product, so you will not see any negatives, only positives. Online retailers are a bit better because many allows customer comments on products, but trust me as someone who builds e-commerce websites: they can and DO screen, alter and remove reviews that don’t suit their bottom line.
Keeping these things in mind will help you be more aware of the marketing buzz in the air around you, but I highly encourage everyone to read a few books on the issue, take an online course, or anything that will give you a basic knowledge of the marketing process and how it impacts consumer purchasing decisions.
Being aware allows me to have fewer, nicer things while still saving enough money to be location independent, and it can do the same for you. So buy now! I mean, uh, have a nice day!
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Point #1 is very interesting. So, do you mean that if I find out which companies are marketing to which market segments, I should figure out which segment I'm in and then buy from businesses which aim at me? I can see how that may actually save time.
It all boils down to sending out the message: ‘You are not enough… unless you buy this thing… and when the good feeling wares off… just buy more stuff’.
Awesome post Colin!
I totally agree, its all about brainwashing. Take Coca Cola, I think they have done the biggest advertising capaign on earth, everyone knows about it!
I used to care about having the latest cell phone, new gadgets, a really expensive sports car, but now I care less and less about it. Ill buy a HD camera soon because I need it for projects im going to do, and Ill buy a new shirt because I think it looks cool, but for the rest I dont really want more stuff, I want fun, adventure, experience,freedom.
Have an awesome day guys!
Diggy
Colin, when I saw that you had a guest post on WSR I got pretty freakin' excited. And I'm happy to say that you did not disappoint
Awesome post man. I really understand what you mean about your knowledge of marketing causing you to pick apart every advertisement or marketing tactic that is thrown at you.
And I can really appreciate your strategy of not making low-value purchases. I've been doing this for the last month or so. By eliminating the little stuff, I can afford to get better "nice" stuff. I just recently began working on becoming more of a minimalist. 2/3 of my clothing is now in storage, where I can't get to it. I don't have much, but the stuff I have is really nice. It's kind of neat.
Cool post!
A lot of good, basic information in there. Most people know all this on some level, but it is usually ignored or pushed out of their minds as being too controversially painful.
His fears and insecurities are more powerful than his logical thoughts, and he goes ahead and buys yet another fancy brand-name item in hopes there is some truth to the message that the girls will now find him more attractive.
The sheep huddle together and the bleating increases.
Really interesting post. While making my way through university I worked in market research and saw a small segment of what goes on behind the scenes. It's truly fascinating, often depressing and sometimes even a little disturbing. I'm curious though Colin, why you went with the more expensive shoes if they're all made in the same factory? : )
@Gordie: Yeah, I figure if they are doing it anyway, you may as well benefit from it. Buying from places that are not targeting you specifically will only leave you with products that are aimed at someone else, and likely you won't be as happy with the product/service/idea you got from it.
@NomadicNeil: Yup, you hit the nail on the head. It's a self-sustaining cycle and the full impact of the system didn't hit me until I became part of it!
@Diggy: Thanks Diggy! Yeah, there's no reason not to get things that you enjoy, but deciding on what those things that – what makes you happy at a core level, rather than the surface level that most advertisers work on – is the tricky part. Once you figure that out, though, it becomes a whole lot easier to buy less and get more value from what you DO buy. (PS: I have a Canon HF 1000 digital HD camcorder and it's been fantastic and I think just dropped in price!).
@Nate: Thanks a lot Nate
Sounds like you've got it pretty well figured out. It's funny how taking the bulk out of your possessions enables you to get into a sort of scarcity mentality, where you don't need much, but you feel like what you do have should be pretty darn good. It's addictive, really, and I don't think I can ever go back to just having stuff to have it.
@James: Thanks! I struggled over what basics to address, since there is SO much to this topic, so I'm glad I managed to pick a few that are simple enough that people recognize them, but not so easy to think about because of, as you said, the controversy that surrounds them. There is a very sheeplike mentality to the whole marketing thing, and it's a really powerful force. For some reason the ease with which we can buy things, and the lack of thought required to do so, makes the entire process incredibly palatable. I'm hoping more awareness will slowly pull back the curtains a bit so that more people will begin to make purchasing decisions for themselves, instead of going into autopilot.
Fantastic post, Colin. All this knowledge has turned you into quite the marketer yourself, Colin. Instead of simply writing a "marketing primer" post, like many people would have been tempted to do, you turned it into something beneficial to the reader and related to J.D.'s blog. Bravo!
Colin, I love this blog and your post is a great addition, thank you. I, too, am a minimalist and when I buy look for quality over quantity. And I, now, recognize all of the marketing tricks. What's amazing is that they've been used over and over forever, probably, and they still work! It'a amazing what Beanie Babies was able to do with the perception of limited availability which was never really true. Relevant to this is a short film by Tim Sales titled What The Wealthy Buy on Payday. It's access only so contact me if you want to view it. Long story short is that lower demographics buy stuff, middle buy liabilities (fancy cars, etc on credit) whle wealthy buy investments and then buy the expensive stuff with the residuals. Also, you may find this movie interesting http://www.storyofstuff.com/. It went viral awhile ago which is a great sign for those of us who care about this topic. Thanks again for really good reminders.
Colin,
This post made me chuckle to think back on my I-buy-my-clothes-at-Target-so-my-closet-is-always-overflowing days. That first marketing class really opened my eyes up to seeing how I was being targeted (that pun was not intended but I'm leaving it anyway). I've come to appreciate the value in researching what I really want before I say, "Oh, I can just get that at Target!" Because there are better options out there, and usually for deals that only take a little looking, and I don't walk out the store with carts of stuff I never intended/needed to buy.
Thanks for the great reminder that being able to fit a few really awesome perfect fit sorts of things in a bag and get up and go is way more fun than drowning in my closet trying to decide what slightly misfitted item I'll adorn today.
You've put together and "packaged" everything I've stumbled on bass ackwards in the last few years. Awesome tips for staying minimal, and most importantly, spending less money on needless image only items!
I would only comment to keep an eye out for those companies that actually are of higher quality. I can only speak to computer parts as it's my trade, but I know there's just more quality in certain seemingly identical products. The skill of balancing what "brand" name and what "no name" to buy is key! My guess is it's something like 10/90 in favor of no name though so it shouldn't be hard. Example: Buy Seagate hard drives, they are of higher quality.
I really enjoyed this post. I think that the advertising and marketing is only half the issue. The other half is the fact that we've designed ourselves such an instant gratification society. When what I really want takes 12 months of saving and what satisfies my desire for instant gratification is readily available in my wallet, well, that's an easy choice to make without a real understanding of my goals.
Then again, dishonest marketing and advertising have gone a long way to develop this kind of thinking with things like planned and perceived obsolescence, so perhaps I stand corrected.
Either way, the only way out of such a cage is with the key, and your key is different from anyone else's and your the only one that has it. So set yourself free.
There are plenty of honest marketers and advertisers out there doing great work to actually connect you with the things you really want and need in life, but, just like any other industry, there will always be more underhanded ones, trying to sweep their underhanded tactics under the rug. Buyer beware.
Hi Colin,
I have to say I totally agree. I completed a diploma in marketing a few years ago and I think the biggest lesson I took away from it was how much our subconscious's are being manipulated into making us desire things we really don't need.
Though it is yet to lead me into a job in marketing, am pretty sure studying the topic has saved me thousands in purchases that I didn't make simply because I was aware of how I was being targeted.