Mass Affluence

About the Author

Paul Nunes is an executive research fellow at Accenture's Institute for High Performance Business in Wellesley, Massachusetts. He is known for his extensive research and expertise in customer management and marketing strategies. Brian Johnson is a senior research analyst at Sanford C. Bernstein & Co., an investment research and management firm in New York City. Together, they bring a wealth of knowledge and practical experience to the subject of modern marketing, blending deep theoretical insights with real-world applications.

Main Idea

The central thesis of Mass Affluence: Seven New Rules of Marketing to Today's Consumer is that we are experiencing a shift in marketing from personalized, one-to-one strategies back to mass marketing. However, this new form of mass marketing targets a different consumer base: the affluent yet cautious "moneyed masses." These consumers are wealthier than the middle class of the post-World War II era and demand products that fit a middle ground between luxury and mass-market offerings. Nunes and Johnson identify seven new rules to effectively market to this demographic, emphasizing the need to capture the latent value in this powerful and largely untapped market.

Table of Contents

1. The New Mass Market
2. Seize the New Middle Ground
3. Treat Some Customers More Equal Than Others
4. Find an Occasional Use
5. Introduce a New Math of Ownership
6. Grow the Return on Consumption
7. Think Global, Retail Local
8. Become Apropos of Everyone

The New Mass Market

Nunes and Johnson begin by highlighting the shift in consumer demographics and spending patterns. Today's consumers are more affluent but also more cautious with their spending. Companies like Procter & Gamble have capitalized on this shift by developing products with mass appeal that do not rely on intimate knowledge of individual buyers. For instance, P&G's Crest Whitestrips and Swiffer mop have revolutionized their respective markets by addressing widely held needs.

“These products and services are based on the interpretation of widely held needs and are not particularly concerned with their buyers' specific characteristics.” - Paul Nunes and Brian Johnson

This new mass market is characterized by three major changes in spending:

• Consumers are more affluent than their predecessors.
• Spending patterns have changed, with a reduction in per-dollar-of-income spending in affluent households.
• Consumers demand more options beyond traditional luxury offerings.

Companies must adapt their strategies to serve this new mass market by recognizing these changes and responding with innovative products that meet the diverse needs of affluent consumers.

Seize the New Middle Ground

The second rule focuses on the opportunity to capture the middle ground between low-cost and premium offerings. This new middle ground is where consumers are willing to pay more for better quality but not for pure luxury. An example of this is seen in the golf ball industry, where certain brands have successfully positioned their products between the cheapest and the most luxurious options, appealing to golfers who want better quality without the extravagance.

“Neither existing luxury nor mass-market offerings alone satisfy both the needs and the budget of the moneyed masses.” - Paul Nunes and Brian Johnson

To seize this new middle ground, companies can adopt three generalized strategies: