More Shopper Marketing Funds to Move to Digital Channels

The Shopper Marketing 3.0 study released by the Grocery Manufacturers Association (GMA), SheSpeaks and Booz & Company notes a huge increase in the use of shopper marketing strategies such as in-​store video. Both manufacturers and retailers are attempting to influence the nearly 70% of product selection decisions which are made in stores by consumers.  But the rapid shift to new shopper marketing strategies employed by many consumer packaged goods (CPG) manufacturers has led to inefficiencies and ineffectiveness. The study calls attention to three broadly defined problems for marketers:

  • Their message is not consistently aligned across all marketing channels.
  • They lack the ability to convert information into  effective return on investment (ROI) measurements.
  • Retailers want more of manufacturer promotional funds to be used in different ways, especially for digital programs.

It is this third point that may lead to changes in the way manufacturers fund shopper marketing programs. Currently, digital shopper marketing programs benefit manufacturers and retailers in slightly different ways.

These programs allow manufacturers to:

  • Build relationship with shoppers directly
  • Improve trial outcomes via coupon program
  • Target communications with opt-​in permission
  • Use the on-​line community to increase advocacy

The programs allow retailers to:

  • Increase store traffic
  • Obtain more manufacturing funding for a wider format of retailer programs
  • Increase participation in loyalty programs
  • Increase connection with consumers through an additional channel

Previously, manufacturers have funded programs such as end-​cap displays, discount coupons and co-​op advertising to support retailers. But these days, retailers would like to use manufacturer funds to supplement their “ Web sites, in-​store video networks and database marketing programs.” As more consumers make the Internet an integral part of their daily lives and as technology makes it easier to track and analyze what consumers want and how they make decisions in store, manufacturers may be likely to help retailers improve shopper marketing programs. Ultimately, the goal is one-​to-​one marketing notes Emily York who writes  for Advertising Age.  If manufacturers and retailers cooperate instead of compete when develop shopper marketing programs, they may reap the rewards of higher sales and profits.

[Sources: York, Emily Bryson. Shopping Aisles at Cutting Edge of Consumer Research and Tech. Advertising Age. 15 Mar. 2010. Web. 22 Mar. 2010; Shopper Marketing 3.0. Grocery Manufacturers Association, Booz Allen, She Speaks. 2009. Web. 18 Mar 2010] 
Kathy Crosett
Kathy is the Vice President of Research for SalesFuel. She holds a Masters in Business Administration from the University of Vermont and oversees a staff of researchers, writers and content providers for SalesFuel. Previously, she was co-​owner of several small businesses in the health care services sector.