middle class many times by different people of the society, from politicians and owners Business It is used up to street people. It is also included in different discussions, from important political events such as elections to people exchanging information with each other in taxis and subways. We have mentioned in this article what exactly this phrase means and which people are in this category. Also about consumerism, which is the biggest attribute given to this category; We have collected important points. The most important point that can be mentioned is that the majority of the income of various businesses comes from this large segment of the society due to the existence of this attribute.
What is a tithe and how is it classified?
In general, each household is divided according to its income from number one to ten. The weak class is the 1st and 2nd deciles of the society. The lower middle class is in the 3rd to 5th decile, and the upper middle class is in the 5th to 7th decile. The 7th to the 10th decile is classified in the rich class of the society.
weak class
The weak class of the society in the lower deciles is so stressed in providing the basic needs that it practically does not have the time, capacity to think and the ability to plan for growth and investment.
middle class
The most important feature of this class of society is that each of them has demands like their higher numbered decile, but they are not like them in terms of income. Also, after the occurrence of any price fluctuations and the emergence of any inflation, the middle class is hit the hardest and affects their lifestyle.
rich class
This class of society does not see itself at the level of other classes and has a very limited role in society. The rich class ignores the events and challenges that prevail in the society, and socially, they are only in contact with their fellow class members.
What is consumerism?
The middle class of the society in each decile tries to behave like its higher decile. shop like them and show yourself equal to them. This effort, due to the lower income limit, causes consumerism in them.
Some examples of the disadvantages of consumerism
A person can buy a watch with a brand in the middle class, but original. But instead, he prefers a watch with a brand in the luxury category, but fake. We can give another example. A person can afford to buy an average mobile phone. But to buy a higher model mobile phone through borrowing, borrowing or other methods, he puts himself to a lot of trouble beyond his ability.
Important points about the middle class and the phenomenon of consumerism
Before any explanation, it should be mentioned that the most important economic class of any country is the middle class of society. Also, consumerism in Iran is not only for this group. Any household in any decile can be consumer oriented.
Most of the income of companies and brands comes from the middle class of society, because most of the population of every country is in this class. In a country where the middle class has more purchasing power, the economy is better. If the purchasing power and financial power of this section of the society decreases, the economy of that country will weaken. The need, ability and hope of this class are very influential in the fruition of strategic plans of various businesses.
What is middle class marketing like?
As we mentioned, the majority of the country’s population is in the middle class. For this reason, we cannot target this group Marketing. Do not place many businesses. In these days when price fluctuations are very high and according to the target market of each business, products and services can be in the shopping basket of households that can identify the needs of their target market while maintaining their quality and implement the correct and perfect marketing strategy.
If we want to make a prediction about the future and somehow draw the atmosphere of the coming days, no matter how much the future prediction is deviated from what is happening and suffers from all kinds of cognitive errors, it is necessary that it should focus more on this area and the needs of this class and be able to create a vision for the middle class.
How to start marketing?
Analysts’ predictions further state that products and services that are more effective in pricing can appear in the markets and continue their presence. Also, in the economic conditions of stagnant inflation, analysts always emphasize conservatism and maintaining income streams.
The minimum price strategy and a conservative approach make the continuation of the activity close by a hair. This high risk may even lead to the destruction of the business and this strategy exists to some extent for different businesses. But if the service sector does not make reforms at the right time, it will be removed faster and the middle class will distance themselves from their services even at the cost of reducing their level of well-being.
The method proposed by Gelavize
Gelavizh has a better offer for you. We suggest things like financial discipline and budgeting in a realistic framework. Be sure to consider a share for innovation, research and development in the budgeting. This share of the company’s budget provides an important role to be present in the competitive market. The more competitive the market and the more the price war, by the way, it is necessary for the activists to invest more rationally in innovation. Also, offering products or services at a competitive price or having better sales conditions, which the middle class can buy even in recession. Moving away from research and development and not using modern technologies Website and Social networks, will increase the risk of losing business.
Luxury and semi-luxury brands
Many of the brands that we know as luxury still focus on people in the middle class. Examples we can give are the sale of iPhone mobile installments in America, or the various sales plans of famous car manufacturers such as Mercedes-Benz all over the world! How luxury brands operate is different. They sell their products individually, cash and at a very high price. (such as Bugatti, Verto, etc.)
There is another type of brand activity. This method is mostly used in Chinese brands. These brands try to sell their products and services by copying and modeling from top companies. The strategy of these brands is to influence the middle class. It also increases consumerism in the middle class. But in terms of quality, where is this and where is that?!
Summary
The middle class, as the most important economic stratum of any society, has the greatest impact on the market and economy. This class, with limited income, tends to behave similarly to the upper classes, which leads to consumerism; A phenomenon that can have wide financial and social consequences. In order to survive in the market, businesses must know the needs of this segment, design targeted marketing strategies, and focus on research, development, and smart pricing.
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Frequently asked questions
1. To whom exactly does the middle class of society refer?
The middle class includes households that are in the 3rd to 7th deciles of the society in terms of income. These people are neither among the poor deciles nor are they in the rich class, but their desires and lifestyle often tend to the higher deciles, which pushes them towards consumerism.
2. What effect does consumerism in the middle class have on the economy?
Consumerism in the middle class increases the demand for goods and services and plays an important role in the financial circulation of the market. Since this class constitutes the largest population in many countries, their consumption patterns directly affect the sales, profitability and even the survival of brands and businesses.
3. Why is the middle class the most target of brand marketing?
The middle class is the biggest target market for brands, because on the one hand it includes a large population and on the other hand, it has a high desire to upgrade its lifestyle. This class is always trying to behave like the higher deciles, even if it is at the cost of borrowing or reducing necessary budgets.
4. What is the relationship between consumerism and economic fluctuations for the middle class?
In the conditions of inflation and economic fluctuations, the middle class suffers the most. The decrease in purchasing power causes people of this group to turn to unsustainable consumerism, which is often associated with increasing debt and financial pressure, in order to maintain their previous appearance or lifestyle.
5. How do luxury brands target the middle class?
Luxury brands instill a sense of belonging to the upper class to the middle class by creating installment plans or simpler versions of their products. These tactics increase the desire to buy luxury goods, even among people who don’t have enough funds, and intensify consumerism.
6. What is an effective marketing strategy to attract the middle class?
A successful marketing strategy for the middle class should include reasonable pricing, maintaining quality, attractive selling proposition and strong presence in digital channels. Brands that understand the needs and purchasing power of this segment and focus on innovation, technology and appropriate services have a greater chance of success.
7. What strategies are suggested to control consumerism in the middle class?
Strategies such as personal financial education, promoting a culture of responsible shopping, promoting quality over brand appearance, and rational budgeting can help reduce false consumerism in the middle class. Businesses also need to focus on creating real value, not just stirring up emotions to sell more.
8. Why is the decline in the purchasing power of the middle class a concern for the economy?
The middle class is the driving force of the economy. A decrease in the purchasing power of this group means a decrease in demand in the market, a decrease in the income of brands and a decrease in taxes received by the government. In the long run, the weakening of the middle class can lead to economic stagnation and increased social inequality.
