Trending in 2011 – Part 3

07 December 2010

US brands will continue to increase marketing spend outside the US where growth potential is greatest versus the saturated and depressed US market. This week’s AdAge is well worth a read on this subject – with 95% of the world’s population outside the US, there’s a staggering shift of marketing spend by US brands looking to increase market share in countries like China, India and Brazil.  And my discussions with CMOs and CCOs also bear out an increased focus beyond the US border.

 At the same time, more non-US brands will look to tap into the lucrative US market.  Expect to see a lot of “new” brands competing with well-known and loved American brands, providing even more choice in a market where people are seeking greater simplification.  (According to a recent GfK Roper Reports® US study, across 13 categories measured, an average of 30% of consumers say the amount of choice is “too much,” ranging from 19% for music to 37% for beauty/skin-care products. 

As a result, US brand marketers will need to become more innovative in order to break through the clutter and stand out from new competitors who could appeal to American consumers on the sheer basis of novelty.

Marketers also will need to become more conversant in international trade and business. For example, they’ll need to understand where the biggest growth opportunities exist in non-US markets and determine how best to go to market given cultural differences and market landscapes.

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