A.W. Tozer addresses the confusion surrounding materialism in his sermon 'Do Things Possess Us?' He emphasizes that materialism arises when individuals, created in God's image, view physical matter as the ultimate reality. Tozer clarifies that the fight against materialism is not a literal battle but a call to recognize God's Creation and understand that material things are not the ultimate end. He encourages believers to see beyond the physical and to acknowledge the divine purpose behind creation.