DDi - March 2010 - (Page 41)

| 41 SHOPPER MARKETING A revolution in need of an objective entails. Various trade organizations have offered deﬁnitions of shopper marketing that, in the ﬁnal analysis, are really just descriptions of good marketing in general. Unlocking the value in shopper marketing demands a sharper focus. The real reason shopper marketing gained traction is more likely a straightforward one: refocusing to point-of-purchase marketing allo ws manufacturers to have a deeper, more committed relationship with retailers at a time when that inherently adversarial relationship has been tilting in the retailer’s favor—a very real threat to manufacturers’ sales and proﬁt margins. However, this attempt at “commercial camaraderie” is little more than a gloriﬁed sales tactic. The manufacturer’s goal is still to get more of its own product in and out of the retailer. In my book, that’s merchandising by another name. Shopper marketing needs a bigger goal. The shopper marketing revolution should be about manufacturer-retailer partnerships to build new businesses together, not just to sell more widgets. The only way manufacturers will be able to build their business tomorrow is through retailers, and both parties share a common interest: the consumer. The key to making such partnerships work is to make building the retailer’s business the primary goal, with manufacturers becoming willing to leverage their marketing and manufac- N ot since “global marketing” has a term inspired as much industry talk as “shopper marketing.” It seems everyone is doing it—or at least talking about doing it. All agree that shopper marketing is about marketing to consumers at the point of purchase. But, as is often the case with buzz phrases, a widely accepted deﬁnition of what exactly constitutes shopper marketing—and the best way to practice it—has been elusive. In a recent survey of retailers and manufacturers by HUB magazine, more than half said the biggest impediment to successful shopper marketing initiatives at their organizations was “insufﬁcient understanding across all departments” as to what, exactly, it is. Shopper marketing has been driven to prominence by two discrete events. The ﬁrst was former Procter & Gamble CEO A.G. Laﬂey’s coinage of the phrase “the ﬁrst moment of truth,” to describe the moment shoppers encounter a marketer’s product at the point of sale and have to choose between it and a competitor’s. The second was technology’s arrival at a point where retailers could ﬁnally mine the data they collected—and in a way that allowed them to predict highpotential, add-on purchases by buyers of “X, Y and Z,” as opposed to buyers of “D, E and F .” Everyone in the marketing community seems to instinctively sense the importance of this concept, even if they’re not entirely clear on what it turing expertise toward that end. Realizing the full potential of the shopper marketing revolution demands hard decisions and bold action, not just rehashed retail promotions with the same brands. We must ﬁnd new ways of doing business that deliver more to the consumer (innovation) at a better value (improved efﬁciency), while simultaneously growing the business of both retailer and manufacturer. To that end, consider the following: 1) Start at the top, CEO to CEO if possible, because retail and manufacturing are just two pieces of the same business. True alignment requires topdown commitment to long-term relationships. 2) Find common interests beyond money— not just shopper insights, but mutual interests shared by consumers, retailers and manufacturers. 3) Develop “mutual alignment platforms” to give partnerships “legs” and make them more strategic and impactful. 4) Develop exclusive products that fulﬁll retailers’ desires for destination brands. 5) Remember that brands are not the only assets. Marketing skills and manufacturing expertise are also value-adds. —Crosby Renwick is managing director, strategy & research at CBX, the New York-based strategic branding agency. www.ddimagazine.com | March 2010 http://www.ddimagazine.com

Table of Contents for the Digital Edition of DDi - March 2010

DDi - March 2010
Contents
From the Editor
Newsworthy
Greentailing
Editor’s Choice
Design Snapshot: H&M Home
Design Snapshot: The School of Life
American Eagle Outfitters
Juicy Couture
Channel Focus: Jewelry
Shopper Marketing Section
Selfridges 3rd Central
Schnucks Market
Right Light
Design Leaders 2010
In-Store Technology
Product Spotlight
GlobalShop Show Coverage
Classifieds
Advertisers
Calendar
Shopping with Paco

DDi - March 2010