F E ATURE                                                                 Bridging the                                    ...
F EATUR ELoyalty Framework: Reconciling the Two Brand                       Figure 2: Source of growth for a typical 10% s...
F E ATUREFigure 3: Mapping touchpoints to loyalty                               marketing approach that calls for building...
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Bridging the gap between consumer and shopper marketing


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This paper gives an integrated framework for marketers to create a truly integrated marketing program that covers the truths of consumer branding, shopper marketing, and social media.

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Bridging the gap between consumer and shopper marketing

  1. 1. F E ATURE Bridging the Gap between Consumer and Shopper Marketing Perspectives Joel RubinsonThe consumer insights/brand teams and the shopper insights/shopper marketingteams have conflicting perspectives on brands.The consumer insights team is likely to present a view of to purchase is critical. This worldview leads marketing tothe brand in which market share performance is viewed as realize the importance of shopper marketing and eventually,the result of consumer preference based on beliefs about when it is mature enough, mobile marketing that facilitatesvarious brands. Improve performance on driver attributes the shopping process.and share goes up. This relationship encourages the brand To think introspectively about the limits of brandteam to believe that the brass ring is to engender a strong engagement, keep a one-day brand-use diary. I did so andlevel of engagement with consumers, implying that engaged found the following:consumers account for the (great) majority of brand sales. In a social age, the marketing teams that follow this line 1. I used an astounding number of brands in a day (nearlyof thinking will try to move as much money as possible 100 by 2:00 p.m.).out of paid advertising, and place their priorities on socialmedia engagement. Such brand teams aspire to maximize 2. The great majority of these brands have little meaning fortheir Facebook fan base as well as their followers on Twitter me (e.g., the brand of countertop, the maker of the coffeeand now Pinterest. In this worldview, shopping is basically mug, the brand of slippers on my feet).regarded as the chore someone has to get through to acquirethe brands they prefer and therefore planned to buy. 3. Of those brands that are meaningful to me, most have acceptable substitutes.The shopper insights teams would temper this enthusiasm aboutengagement marketing. They know that the most preferred 4. Only a handful (10 per cent for me) are brands I carebrand is not automatically bought. about so much that I would have a sense of deprivation if I The facts: Estimates are that as high as 70 per cent of lost access to them (for me, the short list included Twitter,brand decisions are made in-store; my own research across 19 Facebook, a particular news channel, Dove, Pantene, Dietconsumer packaged goods categories showed an average of Coke, The New York Yankees).50 per cent of brand decisions made in-store. Even for loyalbuyers – for example, those buying a brand 50 per cent of If we focus exclusively on brand engagement marketing, wethe time or more – the retention of loyal buyers over time is will not create an effective marketing plan to address thesuspect. Half or more of those loyal to a brand in a given year 85 per cent of brand buyers who are not going to becomeare not loyal to the same brand one year later (this finding is extremely attached but who account for half of sales.consistent between my own brand equity research and analysis If we focus exclusively on shopper marketing, we run theof Catalina frequent shopper data). risk of not creating meaningful brand differences that can The implication is that consumers usually have acceptable generate engaged consumers who will be much more valuablealternatives to consider, so constant persuasion along the path to the brand and, ultimately, of fighting commoditization.20 vue November 2012
  2. 2. F EATUR ELoyalty Framework: Reconciling the Two Brand Figure 2: Source of growth for a typical 10% share brand growing to 15%Growth PerspectivesHow do marketers reconcile these perspectives, each with itsown truths, and bring them together into a holistic plan forbrand growth? I propose that we utilize a framework based on loyaltysegmentation of consumers, and I will show how thisframework brings together the two perspectives, consumer andshopper, around some surprising insights. The beta distribution is used to model the distributionof probabilities of purchase by individual consumers withrespect to a particular brand of interest. For a typical brandwith 10 per cent market share, the distribution of its shareof requirements (i.e., a brand’s share of purchases by a givenconsumer) might look like what is presented in figure 1. loyalty. While there is some upshifting, it is not so great, and sales still must increase from that segment.Figure 1: Share of requirement distribution for a typical 10%share brand; avg. category purchase cycle of 12x/year Pinpointing Media Strategies to Affect Loyalty Segments Now, the next question is whether or not all media touchpoints are effective against each of these segments. The answer is “Unlikely.” A recent analysis of Compete’s data regarding Facebook fan effects suggests that new Facebook fans of a brand are already predisposed to the brand, and therefore the updates or social impressions they see are disproportionately directed to those who are already loyal. In other words, Facebook appears to be a touchpoint that reinforces the brand beliefs of those in the two most favorable segments, but does little to influence the other segments. Returning to the discussion of shopper marketing at the start of this paper, about half of purchase decisions, on average (depending on the category and brand), are made in the store. However, it is likely that such shopping styles are characteristic About 15 per cent of “fringe” buyers will buy your of the two middle groups (“acceptables” and “preferreds”).brand at least once during the year (at a one-month category Hence, effective shopper marketing and promotional practicespurchase cycle). As such, surprising to many, half of a brand’s will disproportionately affect those in the middle of the curve,buyers come from this fringe segment, while less than 20 per an effect that is illustrated in figure 3.cent of buyers are engaged, that is, buy the brand 75 per cent By looking at a brand’s loyalty distribution, we can see howof the time (or greater) and account for less than half of the shopper and consumer marketing frameworks can dovetail.brand’s sales. If we add together the “preferred” and “engaged” Shopper marketing operates primarily to win the purchase atgroups, we see that those who prefer a brand still give about 25 retail against the middle of the curve, where consumers haveper cent of their purchases to other brands. more than one acceptable brand and where their preference for Now let us consider what happens to this distribution if the any given brand does not dominate the decision process.brand grows to a 15 per cent share. Figure 2 shows what that Consumer marketing’s role is primarily to move people intowould look like. more favorable loyalty segments, and retain them there, based While the engaged segment must grow the most (the double on brand beliefs.jeopardy effect), notice that share must increase from each of Consumer and shopper marketing share a responsibility thatthe loyalty segments, as opposed to an alternate hypothesis is central to branding and is in common across all segments:which states that the sales increase would come from engaged the need to give the brand a certain meaning. Brand meaningand perhaps preferred segments, and that the fringe segment gives shoppers an ability to anticipate, to predict if a potentialcontribution would actually go down as people upshift in their purchase will serve their needs. vue November 2012 21
  3. 3. F E ATUREFigure 3: Mapping touchpoints to loyalty marketing approach that calls for building brand engagement, placing a premium on social media strategies, is not wrong; but it is incomplete in light of the high level of active decision- making that occurs in-store. Marketers need to develop a fully integrated consumer and shopper media strategy that is mapped to address each of the brand loyalty segments. Use advertising and shopper marketing to build brand meaning that will shift less loyal consumers toward becoming more loyal. Use social and owned media to help build a relationship with consumers that will move their beliefs about a brand to exclusive meaning, leading to engagement. Use shopper marketing to win the 50 per cent of purchases at retail that are up for grabs. From a research point of view, it is important to track the four loyalty segments. Size the segments, understand what the key differentiating beliefs are between segments, and understand how touchpoints map to each of the segments. Set Brand meaning, if it is exclusive, can lead to moving goals for loyalty segment sizes and purchasing levels, towardconsumers into the preferred and engaged segments. In a brand your brand, such that they tie out to brand growth goals andequity study, this effect would be reflected by a respondent’s monitor progress. If one of the segments is falling behind itschecking off that a certain brand, and only that brand, stands for goals, it suggests that the part of the marketing plan whicha particular attribute. I call this exclusivity owning an attribute. maps to influencing that segment needs to be dialed up. For I have found that standing for an attribute versus owning that reason, the tracker needs to be timely, and the marketing/an attribute is the differentiator between someone’s preferring media plan needs to have the flexibility for adaptive coursea brand versus being engaged with it. However, even if not correction.exclusive (e.g., I think your salad dressing is high quality, butI think others are as well), brand meaning feeds the decision Referencesheuristics that shoppers use so the brand can raise share among Allan L. Baldinger & Joel Rubinson. “Brand Loyalty: The Linkthose who only occasionally buy that brand. Between Attitude and Behavior.” Journal of Advertising Research, 1996 (November/December): 22–34. Brand meaning also can lead to engagement. Brand meaningcan and should extend beyond the functional characteristics of Jack Neff. “This Upfront, P&G May Want to Boost Spend on Pigglythe product. For example, Dove’s Campaign for Real Beauty gave Wiggly.” Advertising Age, 2010 (May 3). Available at http://adage.com/the Dove brand meaning about beauty and female self-esteem, article/news/upfront-p-g-boost-spend-piggly-wiggly/143643/which reinforced the brand’s values within and beyond the Ooh-tv. “New POPAI Study Shows That 76% of All Purchaseproduct categories in which it had offerings. Any product with Decisions Are Taken In-Store.” Ooh-tv.com, 2012 (May 29). Availablethe Dove name would instantly convey a certain meaning, even at http://en.ooh-tv.com/2012/05/29/new-popai-study-shows-that-76- of-all-purchase-decisions-are-taken-in-store/if a shopper did not previously use or know about that product. How do you influence brand meaning? The obvious answer is David Raab. “CMO Council Study: Customer Loyalty Is Fleeting.”advertising, but there are other ways as well. For example, brand MPM Toolkit, 2009 (July 6). Available at http://mpmtoolkit.blogspot.meaning can be built and managed by retail activations where com/2009/07/cmo-council-study-customer-loyalty-is.htmlthe meaning becomes obvious (e.g., McCormick spices barbeque Joel Rubinson. “Surprising New Study on Facebook Marketingcenter, where there is a free-standing supermarket display of a Effectiveness for Brands.” Joel Rubinson on Marketing Research, 2012.variety of products and spices needed for a successful outdoor Available at http://blog.joelrubinson.net/2012/06/surprising-new-barbeque). In fact, in 2009, BASES (the leading marketing study-on-facebook-marketing-effectiveness-for-brands/research service for forecasting the sales potential of new Wikipedia. “Double Jeopardy.” Wikipedia, 2011 (June 5). Available atproducts) found that in-store exposure was the greatest source of http://en.wikipedia.org/wiki/Double_jeopardy_%28marketing%29brand awareness for new products. Joel Rubinson is president and founder of Rubinson PartnersSummary and Conclusions Inc., a marketing and research consultancy. He is also on theBy bringing together the perspectives from consumer and faculty of NYU Stern School of Business, where he teaches socialshopper insights into a loyalty framework, we see that the media strategy. Joel can be reached at JoelRubinson@gmail.com22 vue November 2012