The Rise of Emotional Marketing
In the face of economic downturns and shifting consumer behaviors, businesses across various industries are increasingly tapping into the power of “emotional value” to engage customers. From products like “Good Luck Sprays” to concepts like “Dopamine Dressing,” young consumers are still willing to spend money on items that deliver an emotional boost, even in an era of cautious spending.Over the past few years, we’ve seen several market trends that aren’t necessarily new but have been revitalised by adding emotional value. Whether it’s the pet economy, camping economy, stress-relief economy, nostalgia economy, or self-care economy, these trends have all injected new life into mature markets by appealing to consumers’ emotions.
The Role of Emotional Marketing in 2024
As we move into 2024, emotional marketing is set to play a pivotal role in the evolution of social media marketing. Brands are beginning to realise that emotions drive consumer behaviour more than ever before. The way people interact with brands and the contexts in which these interactions occur are shifting, revealing new opportunities for businesses to connect with their audiences on a deeper level.
But what exactly is emotional marketing, and how can it be leveraged in the New Zealand market?
The Backdrop of Emotional Marketing’s Rise
Several socio-economic factors have contributed to the rise of emotional marketing:
- Slowing Retail Growth: The steady, but slowing growth in consumer goods retail, coupled with the end of urbanization dividends, has created a more competitive environment for businesses.
- Internet Saturation: With internet user growth reaching its peak and online time nearing saturation, brands need to find new ways to engage consumers.
- Consumer Uncertainty: Consumers are increasingly uncertain about the future, leading to more rational, needs-based purchases and a preference for budget-friendly alternatives.
- Shift to Online and Emotional Consumption: As social circles shrink and social interactions move online, there is a growing emphasis on purchasing products that offer emotional satisfaction, whether it’s for self-care, comforting a loved one, or simply enhancing one’s mood.
Emotional Value in Consumer Behavior
Emotional value has become a major driver of consumer spending, particularly among younger demographics. Here’s how emotional value is influencing consumption patterns:
- High-Ticket Items with Emotional Appeal: Products that deliver emotional satisfaction are often able to command higher price points, driving steady growth in these categories.
- Small Emotional Triggers: Younger consumers are increasingly making purchases based on small emotional triggers, such as the need for comfort, nostalgia, or self-expression.
- Emotional Consumption Categories: Categories like “Emotional Confession,” “Wake-Up and Sleep Aids,” “Breakup Comfort,” and “Mindfulness and Meditation” are becoming more popular, as they cater directly to consumers’ emotional needs.
Marketing Strategies for 2024
To succeed in 2024, businesses must adapt to the new norms of limited budgets but increased expectations. Here are some key strategies:
- Expand Your Market: Consider extending your market reach by targeting untapped segments within New Zealand or exploring international expansion. Depending on your brand’s growth stage, different strategies will be more effective.
- Reinvigorate Products: Introduce new products or highlight new emotional values associated with existing ones to breathe new life into your brand. This can increase both consumer interest and marketing ROI.
- Embrace AIGC (Artificial Intelligence-Generated Content): As AIGC continues to evolve, brands must stay ahead of the curve by integrating these technologies to improve efficiency and effectiveness in their marketing efforts.
- Leverage Social Channels: Explore the power of KOCs (Key Opinion Consumers) and weakly vertical markets to tap into emotional value. Building strong brand awareness and aligning sales efforts with emotional triggers will be crucial for success.
How to Apply Emotional Marketing in the New Zealand Market
New Zealand’s market, known for its unique blend of multicultural influences and consumer sophistication, offers fertile ground for emotional marketing. Here’s how businesses in New Zealand can apply these insights:
- Localise Emotional Appeals: New Zealand consumers are deeply connected to their local culture and environment. Brands should tap into local traditions, values, and experiences to create emotional connections. For example, leveraging the concept of “manaakitanga” (hospitality) can resonate deeply in campaigns focused on community and care.
- Focus on Sustainability: Emotional marketing can be highly effective when paired with sustainability efforts. New Zealanders are increasingly conscious of environmental issues, so positioning your products as both emotionally satisfying and environmentally responsible can create a powerful marketing message.
- Utilise Social Media Influencers: Partnering with local influencers who have genuine connections with their followers can amplify your emotional marketing efforts. These influencers can help convey your brand’s emotional value in an authentic and relatable way.
- Create Community-Centric Campaigns: New Zealand’s close-knit communities value brands that contribute positively to society. Campaigns that emphasize community support, local engagement, or social good can generate strong emotional responses and build brand loyalty.
Conclusion
As we enter the era of emotional marketing, understanding and leveraging emotional value will be key to standing out in a crowded market. By focusing on the emotional needs of consumers and adapting these strategies to the unique characteristics of the New Zealand market, brands can create deeper connections, drive higher engagement, and ultimately achieve greater success in 2024 and beyond.