Shopper Marketing

Finally, the marketers are learning something that retailers have always known. Sarah Mahoney writes at MediaPost and draws attention to the explosion in shopper marketing tactics. That is marketing aimed at the shopper (in the store) as opposed to other channels (traditional media).

Consider these stats:

·         About 70% of purchase decisions are made in grocery stores.

·         About 68% of purchases are made on impulse

·         Just 5% of shoppers are loyal to one brand.

·         Only 26% of shoppers are loyal to one store,

·         And 73% of consumers shop in five or more channels.

The major US Brands (Coke, P&G etc) are expecting to increase marketing budgets by about 2% per annum, but shopper marketing activities will increase by 21% over the next few years. Nike alone has reduced its marketing spend on TV by 55% and is currently only spending 33% of its budget on TV. (The growth is sponsoring small local events, web-based running forums etc.)

The drift towards internet-based advertising is also continuing unabated as Web 2.0 is providing manufacturers with opportunities to build meaningful relationships with real communities.

Bad news for the mainstream media and good news for retailers. Owning the ‘last yard’ of real estate is becoming more invaluable (not less) and good retailers will capitalise. The question is how you can ride the wave if you are not a major chain (with concomitant supplier bullying power)?

The answer is in the ‘long tail’…