FAQ

Common shopper marketing questions

There is a lot of confusion around shopper marketing, which is hampering organizations and people who wish to move forward. Here we answer some of the common questions we have found, plus give you an opportunity to ask us any other questions you may have:

• What is shopper marketing?
• Is it a sales thing or a marketing thing?
• We are considering introducing shopper marketing in our organization - where should we start?
• I’m convinced but my boss isn’t - how do I change his mind?
• Isn’t shopper marketing just happening in the US?
• I want a career in shopper marketing – what should I do to move this forward?
• Isn’t it just a modern trade thing – which only works for sophisticated key accounts?
• Where can I learn more?
• Isn’t it just a fad?
• Isn’t it just trade marketing?
• Is shopper marketing only for the P&Gs of the world?

What is shopper marketing?
Shopper marketing is “the systematic application of elements of a marketing mix to affect positive change in shopper behavior and drive consumption of a brand”. We believe that shopper marketing is much more than the introduction of new gizmo’s to entice shoppers to spend more: In the same way as advertising is only one aspect of the consumer marketing mix, so expenditure on ‘activation’ in-store is only one part of the shopper marketing mix. The implications of shopper marketing stretch much further than the provision of in-store activation, and will change the way brands are marketed and customer interactions are managed.

Is it a sales thing or a marketing thing?
It is neither. Shopper marketing is a discrete set of activities which connect the efforts of the consumer marketing team in terms of creating desire to use a brand, to the activities of the sales team to motivate customers to support those brands. The role of shopper marketing in this is to ensure that shoppers buy the brand, which fits alongside the activities of the other teams. As to who in the organization should take ownership of this, it depends on a number of factors, from the current expertize of both teams, the complexity of the trade environment and the brand portfolio, and the structures that may already be in place. Getting the organization right is one of the critical success factors for companies: for more on how engage helps companies organize for trade marketing, click here.

We are considering introducing shopper marketing in our organization - where should we start?
Firstly, congratulations! The mere fact that you are making a start puts you ahead of most companies globally, and this will drive results for you and your team in the future.

The first thing you will need is some insight into how shoppers behave. This doesn’t necessarily mean dashing off to do extensive shopper research. Analyzing the impact of previous activity, trawling through existing data and examining what works best in-store are all great places to start. This is the heart of our opportunity assessment product; which leads to quick wins, helps identify what the organization really needs to know and where to start focusing for the big wins.

In the longer term, changing an organization structure and bringing in new processes, tools, and ways of working is a significant decision. To help make this decision it is useful to understand what impact shopper marketing could have on the overall business performance, and what exactly is required to change in the organization to make this happen. This typically will include the creation of new insights, strategies, processes and capabilities. Understanding the value of shopper marketing activities makes it much easier to plan the development of shopper marketing, and hence know where to start. Our corporate solutions help organizations make these decisions.

I’m convinced but my boss isn’t - how do I change his mind?
The starting point is to consider what is important to your boss!
Managers who are heavily motivated by sales results may wish to know that companies who have integrated shopper marketing into their business operations have found sales grow way beyond the category run-rate. Deloittes have found that companies can grow up to 100% faster than the category.

If driving cost efficiency is important, consider this: We estimate that consumer goods companies spend 8% of their gross sales on ‘shopper marketing’. Translate this into the hard cash: for every $100 million of turnover, at least $8 million will be spent in stores. Much of this money will be spent on promotions, which often don’t pay back. Analysis of activity by engage suggests that up to 70% of these activities don’t pay back - in other words your company might be wasting nearly 6% of its turnover every single year. Shopper marketing can reduce this wastage significantly.

Every month the evidence to support the value that shopper marketing delivers grows – to keep on top of this – follow us on Twitter.

Isn’t shopper marketing just happening in the US?
Given the press you might be convinced that the US is the only place where shopper marketing is happening. This is not the case: shoppers are everywhere and companies market to them all the time. Every sign, display, gondola end or price off is shopper marketing. What differentiates some companies (many in the US) is that they have recognized the cost of poor shopper marketing and the opportunity that great shopper marketing offers.

In the US, companies that are yet to focus on shopper marketing may quickly find that they are behind the curve. Outside the US we see that companies adopting a more focused approach to shopper marketing are creating real competitive advantage as first movers.

For example in Asia, engage has implemented shopper marketing programs in Thailand, China, Indonesia and Singapore; in each case driving sales and improving return on investment for our clients.

I want a career in shopper marketing – what should I do to move this forward?
There are inevitably going to be more and more jobs in shopper marketing but the competition to become the shopper marketing managers or directors of the future will be fierce. We believe that there are a number of things that an aspiring shopper marketing leader can do to stay ahead of the game:

• Keep on top of current trends and opinions. engage articles and feeds give you all you need to know to understand what is happening in the world of shopper marketing. Subscribe here
• Spend time with experts – join us at events, courses and seminars – for details of our upcoming events click here.
• Read a book. Unfortunately there isn’t a definitive text on shopper marketing which we would recommend. We are developing “The Shopper Marketing revolution” to fill this gap in the market. To be notified when it is published, or to receive exerpts, register here. Whilst not strictly a shopper marketing book, we do recommend Paco Underhill’s “Why we buy” as an introduction to shoppers and shopping.

Isn’t it just a modern trade thing – which only works for sophisticated key accounts?

It is not. Shoppers visit a vast number of outlets for a huge variety of reasons and occasions. Everywhere a shopper visits represents an opportunity to influence their choices. Shopper marketing happens in CTNs, mom and pop stores, sari saris, convenience stores, supermarkets, hypermarkets, department stores and online. To limit your activities to just your key account customers risks missing many of the opportunities. To understand which outlet types might be important to your shopper marketing efforts click here.

Where can I learn more?

• Keep on top of current trends and opinions. engage articles and feeds give you all you need to know to understand what is happening in the world of shopper marketing. Subscribe here
• Spend time with experts – join us at events, courses and seminars – for details of events near you click here.
• Read a book. Unfortunately there isn’t a definitive text on shopper marketing which we would recommend. We are developing “The Shopper Marketing revolution” to fill this gap in the market. To be notified when it is published, or to receive exerpts, register here. Whilst not strictly a shopper marketing book, we do recommend Paco Underhill’s “Why we buy” as an introduction to shoppers and shopping.

Isn’t it just a fad?
Shopper marketing is not just a new buzz word nor is it an initiative to encourage ever increasing expenditure on in-store media tactics. With the consumer goods industry potentially wasting up to 6% of its total turnover on unproductive activities in retail outlets, the concept of shopper marketing is provoking a profound change in the way companies market their brands. We believe shopper marketing is the extension of marketing from its traditional consumer-focus to encompass influencing the behavior of shoppers.

With many household brands struggling to find growth it is clear that category management and trade marketing aren’t really working. Shoppers are now faced with more and more choice – more brands, more products and more places to buy them. This means that harnessing real insight into shoppers and using it to influence their behavior is a strategic imperative for both manufacturers and retailers. This is unlikely to change.

Isn’t it just trade marketing?
No, though answering this is a little tricky as there is little common understanding as to what trade marketing actually is. Many tasks that are currently carried out by trade marketing teams may well be shopper marketing related tasks – and one approach for adopting shopper marketing in an organization may be to move the focus of the trade marketing team towards shopper marketing.

Shopper marketing is what trade marketing never was – a clearly defined set of activities that integrate with and support the activities across the commercial team. To define what roles shopper marketing and trade marketing might play in your organization, contact us or go to the how to organize for shopper marketing section of the site!

Is shopper marketing only for the P&Gs of the world?
This is a bit like asking "is consumer marketing just for the biggest players?" If your business’ performance depends on the choices shoppers make, then shopper marketing is an imperative. Now is the time for action:

• Learn more about shopper marketing by attending a course or reading an article.
• Find out more about organizing for shopper marketing - contact us
• Find out more about applying shopper marketing – contact us

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