Marketing Forecast from Ad-ology

The NPD Group, Inc. company recently released the results of its annual survey of consumers’ holiday spending intentions. Thirty percent of consumers surveyed told NPD they ‘plan to spend less’ this holiday, which is a four point increase over last year’s results. What will motivate consumers to purchase this holiday? The survey results point to ‘value’ as a primary motivator this year. Sixty-two percent of survey respondents stated value plays a big role in determining what and where they buy. The survey results show some upward movement in consumer purchasing intentions for accessories, music, and fragrances. Electronics and apparel are another bright spot.

Working Moms – those who are employed full time and have one or more children in the household – are among the country’s highest spenders on cellular phone services, spending 21% more than the average cellular user on their wireless bills monthly, according to new research by Scarborough Research. Marketers of cellular products have a particularly important consumer target in the Working Mom. Not only is this group sizable accounting for nine percent of the U.S. adult population (21.6 million adults) and 11% of all cellular users – but they also are more likely to utilize certain cellular features such as texting and downloading. Further, Working Moms are 14% more likely than other cellular users to plan to switch wireless carriers during the next year, which suggests that providers need to further establish brand loyalty within this group.

Traditional retailers have plenty of reason to be nervous about renewing leases. There’s the slow but steady climb of e-commerce which continues to increase market share and is predicted to account for 8% of all retail sales by 2013. And then there’s the projected long-term leveling off U.S. consumer spending. All of these changes have experts looking for continued store closings through at least the first half of 2010.

In years past, one way to consumers’ hearts and wallets has been to appeal to their need for status through ownership of luxury homes, cars and apparel. But the ongoing concern about over-consumption and its effect on the environment is bringing about a new attitude. The last Edeman goodpurpose Consumer Study shows nearly 6 in 10 consumers have been persuaded to do business with companies that can prove support for good causes.

Retailers are looking for ways to boost revenue after last year’s disappointing holiday shopping season. This year parents again will look for bargains and toy manufacturers are responding with lower prices. The Toy Insider’s recently released “Hot 20″ list of toys all retail for under $100; half of the toys retail for $30 or less. Toys based on movie and television properties will be popular this holiday, as will toys that connect to virtual worlds on the Internet.

As consumers sharpen their pencils to cut down the size of their holiday gift lists, there’s one item retailers hope will fare better than last year: gift cards.For years, the gift card market has been growing quickly and is now valued at $24.9 billion. This year, Archstone Consulting predicts the industry will end the year somewhere between $23.67 and $24.9 billion or between a 5% drop to a flat outcome.