I am amazed at how many marketing professionals still seem unable to accept the fact that the main point of consumer engagement is and will always be at retail. The hierarchy is clear and should conclusively show that Shopper Marketing is not a fad, buzz word or flavor of the month, but in fact a defined, invaluable and measurable arena.

Ogilvy Action released a great study last week that stated 70% of all buying decisions are made at retail. Despite the undeniable effect of eCommerce, the study showed that 50% of retailers chose in-store activity as the best way to deliver a ROI. The study was based in 10 regional markets, across 13 cpg categories, 6 retail channels and almost 7000 shoppers were surveyed. http://economictimes.indiatimes.com/Features/Brand_Equity_/70_of_purchasing_decisions_are_made_in-store/articleshow/3816087.cms

Still think that Shopper Marketing is just a phase we’re going through and even less meaningful during this economic meltdown? “So little is known about what goes on in shopper marketing, despite the evidence showing how crucial it is, particularly in a recession ,” says Andrew Aylett, planning director at OgilvyAction. There is irrefutable proof that the volume of all things that comprise Shopper Marketing is growing and extremely important as the economy becomes more tenuous. This statement by Steve Harding, chief executive, Europe, at OgilvyAction, sums up the study succinctly who says that point-of-sale is “the ultimate moment of truth for brands today”  and that it is crucial that they understand exactly what drives shopper decisions.

The study goes on to describe how one campaign for a category leading brand actually drove sales for a competitor because the competitor had an in-store POS presence and the leading brand spent all their money on media, but nothing in-store.

So what makes up Shopper Marketing? According to Deloitte, Shopper Marketing is the employment of any marketing stimuli that has been developed based on a deep understanding of shopper behavior, and which is designed to build brand equity, engage the shopper and lead him/her to make a purchase. It can range from on?pack promotion to price promotions, placement, point-of-sales activity or sampling. And it goes much further into defining the term. All the relevant support (collateral), motivating factors (discount coupons, sweepstakes) and out-of-home contributions also are a part of the Shopper Marketing equation…

One out of every three shoppers referred to either a product demo or some other form of stimuli when making a brand decision. Yet many brands still religiously believe that just putting their products out there is enough. I truly believe that the more challenging the economy gets, the more the retail landscape will increase beyond the 70% mark as the as the most important consumer point of decision. Send me an email and I will email the report!

JOEL KIRSTEIN is a Creative Director who has been in the Ad Agency trenches for 25 years and my feelings about this study can be summed up in one word: VINDICATED!

Article Tags: 70% of all buying decisions are made at retail. | many marketing professionals still seem unable to accept the fact that the main point of consumer engagement is and will always be at retail. | SHOPPER MARKETING
Filed under: Creative, EXPERIENTIAL MARKETING, Mobile Advertising, OUT-OF-HOME, POP/POS/Displays, SHOPPER MARKETING, Trade & Collateral, advertising, branding