Five Steps To Shopper Marketing That Works

Shopper marketing is most definitely a buzz. People talk about it all the time: and expenditure is increasing. And yet the understanding of what shopper marketing actually is appears to still be a little unclear. And one of the biggest areas of confusion is around whether shopper marketing is the same as in-store marketing? Wikipedia’s definition of shopper marketing begins with “understanding how one’s target consumers behave as shoppers, in different channels and formats…”. Without getting into the debate around consumers and shoppers not being the same (Mike has explored this extensively here), this definition implies that shopping happens in a store. The Wikipedia page goes on to quote Chris Hoyt saying “shopper marketing is brand marketing in a retail environment”. Well – we disagree. Shopper marketing is marketing to shoppers, wherever they may be.  

Shoppers exist in a world between a consumer who has a need and a retailer who has product. The decision to eat a particular product for breakfast is clearly a consumption decision: picking up a product off a shelf is a shopping decision, but what about the space in between? How about the decision of where to go shopping? Where does that take place? Outside the store, surely. One could hardly call that a consumption decision – it’s a shopping decision, and therefore falls into the shopper marketing remit.

We see shopper marketing as a series of activities that build on each other toward the desired outcome: affecting a positive change in shopper behavior which drives consumption of a brand. Shopper marketers need to understand all of the dots that connect a consumption occasion to a purchase, and influence shoppers along that path. Shopper marketing needs to recognize shopping as discrete from consumption, and yet it needs to “fit” – to integrate – with our consumer marketing goals and strategies.

We developed a 5-Step Total Marketing Model which understands that shoppers need to first be considered as shoppers in and of themselves, but that marketing to shoppers works best when integrated into a marketing model which reflects the integrated world of consumers, shoppers and retailers.  This model and approach has proven successful for consumer goods companies and their marketers.

1. Understand your consumer. Who is the key consumer? What is their current behavior? What opportunities exist to encourage them to consume more?
2. Understand the shopper. Don’t assume the person who buys your product is the same one who uses it. Use an understanding of the consumption opportunities to define the target shopper and then understand how you can influence their behavior. Target the ones that can help you drive consumption, and understand their behavior, rather than the behavior of some generic ‘shopper’ or agency archetype.
3. Prioritize channels. The most important outlets are the ones used by the target shoppers, so as a next step you should determine the retail outlets that are going to be their stores of choice. NOT necessarily the stores where your current shoppers go. Evaluate your retail channels to determine those where you can influence the shoppers you’re seeking. Large corporations, like Tesco and WalMart, are appealing because of their sheer numbers, but don’t assume that a large number of shoppers equates to a high level of influence. Do your research and prioritize the channels accordingly.
4. Build a marketing mix. A marketing mix is required – in addition to the consumer marketing mix – to guide and influence shoppers along their path to purchase. This mix is a blend of: availability (what product is made available, how, and where), communication (the messages and media we use to communicate with shoppers), and offer (the blend of price and promotions designed to close the deal).
5. Invest. With the complete picture of what needs to happen all the way from the consumer to the store, investment can be planned holistically; including retail investment. This can be done in the full knowledge of the returns (changes in purchase AND consumption) and the total costs (consumer, shopper and trade investment) which ensures that the full return on investment can be assessed.

The model is simple, and at engage, we’ve demonstrated that it works – every time. To learn more about shopper marketing, Total Marketing, and how you could apply this to your job, career or company, check out our upcoming book, The Shopper Marketing Revolution.