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photo: NBC/EVERETT COLLECTION (THE OFFICE, MELORA HARDIN AND STEVE CARELL)
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They Just Don’t Get It
By MICHAEL J. SILVERSTEIN Women buy goods and services differently from men. They have more experience as shoppers, feel more passion about what they buy and bear the lion’s share of responsibility for purchasing household items. Research by the Boston Consulting Group shows that women make over 70% of the purchases of discretionary consumer goods each year and constitute the fastest-growing global market, even bigger and faster-growing than the consumer economies of China and India combined.
And yet women are not pleased with the offerings in many categories, particularly health care, financial services and durable goods. The majority of businesses are managed by men, most of whom don’t understand female consumers or realize just what a fundamental role they play in the economy. The BCG research shows that there are 10 errors men commonly make when creating and marketing products that are most often purchased by women. Men typically: 1. Ignore the importance of emotional appeal Senior male executives often rise to their leadership positions through manufacturing, finance, marketing or product development. They are rewarded and recognized for their ability to identify technical and functional benefits, but they often fail to realize that women buy goods for emotional benefits: How does this purchase make them feel, during the purchase experience and after? Do they feel wise, savvy, intelligent, cared for? Men, by contrast, develop habitual purchasing routines and buy most goods for replacement. 2. Cut price to build sales When business slows, male executives will typically cut prices or create promotions to make up for a drop in sales, but this often has the opposite effect than the one desired. Women think of lower-priced goods and services as second-rate and assume that the offerer has compromised on quality. Women are in the market every day and are more aware than men are of changes in offerings and shifts in pricing. 3. Don’t change offerings from year to year Executives will skimp on product development, making incremental improvements that are intended to bring short-term payback, rather than an increase in market share over the long haul. Women are far more interested than men in what’s new, better and novel, and want to be delighted by innovation. 4. Make it pink Male executives who have success with a product aimed at men, and are uncertain of what women really want, will offer a female version of their male-focused product, by making minor changes in size, shape, packaging, color or marketing strategy. But, because the product is not genuinely created to meet women’s needs and challenges, female consumers immediately see through it and reject it. 5. Fail to differentiate Unless they research and refine, companies find themselves blind to women’s needs and dissatisfactions. They offer “me too” goods and wonder why they sit on the shelves. 6. Communicate clumsily Marketing is often based on stereotypes rather than insight into the real problems women face. Sales and/or service delivery frequently fails to directly target segments of women and meet their needs exactly, finely, prescriptively. 7. Overlook the need for time-saving solutions According to the BCG research, women identify their main challenge as how to manage time and create balance in their lives. Although men are gradually taking more responsibility at home, women still shoulder the majority of household and child-care tasks. They have, in effect, a job at work and a job at home, so they are constantly making choices and trade-offs and look for product and service solutions that help them make the most of their precious time. Although many products are marketed with the claims that they are designed to save time, bundle tasks and make life easier, few of them actually deliver on those promises. 8. Ignore the importance of community A sense of community and empathy is missing from most male-developed products and services. Personal connection and credibility are critically important to key service categories. One satisfied female customer will bring in another nine or 10. 9. Forget design aesthetics Women love color, but men tend to use a black-and-white palette. Women see every product purchase as a chance for adventure, learning and a way to bring excitement and flair into their lives. In most categories, men are focused on functionality, durability and price. 10. Underestimate the importance of love Next to time, women place love as the most important aspect of their lives. Married women with children especially have the least time to express their love and, as a result, seek goods and services that let them say “I love you” with care, specificity Male executives can no longer afford to ignore the female economy. It is the biggest force for global growth on the horizon. The winning companies will be the ones that recognize this phenomenon before their competitors. The companies that will best serve, and most benefit from, the female economy are the ones that are willing to roll up their sleeves and learn about their female customers hopes, dreams and wishes. Michael J. Silverstein is co-author, with Kate Sayre, of “Women Want More: How to Capture Your Share of the World’s Largest, Fastest-Growing Market.”
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