Marketing from the other end of the funnel<br />MSI/NYU conference<br />Joel Rubinson<br />Chief Research Officer<br />The...
The way marketing used to be<br /><ul><li>The marketer’s focus was on creating a desired offering (right features, price, ...
This is marketing from the wide mouth of the funnel.
Awareness was assumed to be mostly spend driven
You timed your ad spend for when you achieved a critical level of retail distribution
The role of retail was to create availability
Purchases were thought to be premeditated…shoppers entered the store planning to buy that new product.</li></li></ul><li>A...
Human-centered marketing<br /><ul><li>In the new solar system, brands revolve around people, not the other way around
Brands must connect with people in the context of their lives and how they connect with each other
Open book exam world
Brands must understand what people look for as they actively decide while they shop</li></ul>B2<br />human<br />B1<br />B3...
I started to think about…<br />Marketing from the other end of the funnel<br />
At the other end of the funnel, the key words change<br />From “intentions” <br />To “how we decide”<br />
Procter and store back<br />Marc Pritchard Procter’s CMO calls for thinking “store back”, and told P&G agencies (not just ...
Is this how you test and evaluate?<br />
Marketing from the other end of the funnel—more than in-store marketing<br />It’s about thinking about the influencers and...
Five reasons to start at the other end of the funnel<br />Half or more of purchase decisions are made in-store<br />With m...
Half of purchase decisions are made in-store<br />Estimated in store brand decison rate(Average across categories)<br /><u...
Ogilvy Action, 2008 : 40%
Synovate,  2009 :  50%</li></ul>Source: Synovate 2010<br />
Half of purchase intentions do not translate into purchase<br /><ul><li>Flat screen TV marketer found that 25% planned to ...
Retail is the new Ed Sullivan Show<br />Because of media fragmentation, a big rating for a TV show today is 20 million vie...
…a targetable version of the Ed Sullivan Show<br />Shopper longitudinal data can be used for sophisticated targeting of ad...
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Marketing from the other end of funnel

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Marketing from the other end of the funnel is about STARTING with an understanding how your brand influences shopper choice at the point of purchase. It is similar to, but broader, than the P&G recently announced approach called "shelf back".

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Marketing from the other end of funnel

  1. 1. Marketing from the other end of the funnel<br />MSI/NYU conference<br />Joel Rubinson<br />Chief Research Officer<br />The ARF<br />June, 2010<br />Follow me on Twitter as www.twitter.com/joelrubinson<br />
  2. 2. The way marketing used to be<br /><ul><li>The marketer’s focus was on creating a desired offering (right features, price, etc.) and then using advertising to rev the engine of AIDA (Awareness, Interest, Desire, Action)
  3. 3. This is marketing from the wide mouth of the funnel.
  4. 4. Awareness was assumed to be mostly spend driven
  5. 5. You timed your ad spend for when you achieved a critical level of retail distribution
  6. 6. The role of retail was to create availability
  7. 7. Purchases were thought to be premeditated…shoppers entered the store planning to buy that new product.</li></li></ul><li>A brave new marketing world<br />
  8. 8. Human-centered marketing<br /><ul><li>In the new solar system, brands revolve around people, not the other way around
  9. 9. Brands must connect with people in the context of their lives and how they connect with each other
  10. 10. Open book exam world
  11. 11. Brands must understand what people look for as they actively decide while they shop</li></ul>B2<br />human<br />B1<br />B3<br />4<br />
  12. 12. I started to think about…<br />Marketing from the other end of the funnel<br />
  13. 13. At the other end of the funnel, the key words change<br />From “intentions” <br />To “how we decide”<br />
  14. 14. Procter and store back<br />Marc Pritchard Procter’s CMO calls for thinking “store back”, and told P&G agencies (not just the shopper marketing ones) that it means that marketers must ALWAYS have the store in mind when developing a new product, a new idea, a new statement: if it does not work at the store, it’s a miss”. <br />
  15. 15. Is this how you test and evaluate?<br />
  16. 16. Marketing from the other end of the funnel—more than in-store marketing<br />It’s about thinking about the influencers and triggers along the path to purchase that directly result in purchase decisions<br />It’s about aligning marketing resources to influencers rather than audiences<br />Source: IPSOS Marketing<br />
  17. 17. Five reasons to start at the other end of the funnel<br />Half or more of purchase decisions are made in-store<br />With media fragmentation, retail is the new Ed Sullivan show<br />Shopper marketing opportunities can equate to increasing your advertising budget by 50-100%<br />Shopper marketing offers tremendous targeting opportunities<br />Manufacturers need to get smarter about the shopper as retailers increase their emphasis on “own” brands and de-SKU<br />
  18. 18. Half of purchase decisions are made in-store<br />Estimated in store brand decison rate(Average across categories)<br /><ul><li>Meyers Research Center (on behalf of POPAI), 1995 : 70%
  19. 19. Ogilvy Action, 2008 : 40%
  20. 20. Synovate, 2009 : 50%</li></ul>Source: Synovate 2010<br />
  21. 21. Half of purchase intentions do not translate into purchase<br /><ul><li>Flat screen TV marketer found that 25% planned to buy their brand but only 13% did so.</li></ul>Source: GfK<br />
  22. 22. Retail is the new Ed Sullivan Show<br />Because of media fragmentation, a big rating for a TV show today is 20 million viewers<br />The Superbowl might get 150 million viewers<br />Walmart gets 150 million shoppers every week (Kroger gets 68 MM, Safeway 44 MM)<br />Source: Peter Hoyt, ARF Shopper Insights council meeting<br />
  23. 23. …a targetable version of the Ed Sullivan Show<br />Shopper longitudinal data can be used for sophisticated targeting of advertising and promotion offers.<br />Mobile will increasing play a role in shopper marketing<br />
  24. 24. McKinsey: The Consumer Decision Journey…so much more than eyeballs<br />Two-thirds of touchpoints during active consideration are consumer initiated<br />For autos, brands get added and subtracted to the consideration set as the shopper “pulls” information <br />The influence of individual touchpoints changes during the shopping journey<br />60% of buyers of facial cosmetics conduct online research AFTER making the purchase<br />Source: McKinsey Quarterly 2009 Number 3<br />
  25. 25. Online isn’t one thing<br />CPG:<br />The objectives that people have for visiting owned media are different from their objectives in going to social media sites for those brands<br />Owned media: 70% are looking to obtain information about the brand, obtain coupons, obtain recipes vs. half that level for reasons to go to FB page<br />Over 50% of people are motivated to share opinions and connect with other customers (the main reasons to go to the brand’s FB page) and these are higher levels vs. visiting owned media for that purpose<br />Source: IPSOS Marketing<br />
  26. 26. A brand I discovered while shopping<br />Flavored pistachios; figured it out pretty fast!<br />Since there is no advertising (other than packaging) the meaning of the brand is of my own making<br />Shopper marketing and social media can go together synergistically<br />I love the product, but I have no way to share my love as they have a minimal social graph<br />BTW, according to IRI, the brand has over 1MM users<br />
  27. 27. Shopper marketing as an advertising equivalent<br />The ARF, Wharton, and the Ehrenberg-Bass Institute conducted an initiative regarding empirical generalizations about advertising<br />One of the generalizations was that the elasticity for existing brands of sales to ad spend averages 0.10 (100% increase in ad spend generates a 10% increase in sales)<br />Can you envision a 5% increase in sales based on effective shopper marketing programs?<br />
  28. 28. Decision factors<br />Why don’t people always buy their preferred brand?<br />
  29. 29. Decision factors<br /><ul><li>Messaging
  30. 30. Categorization and association
  31. 31. Can occur spontaneously at point of purchase
  32. 32. Usually non-exclusive</li></ul>Shoppers are sense-makers in an environment where maybe 1% of SKUs are relevant to them<br />
  33. 33. Categorization effects are powerful sense makers<br />
  34. 34. What marketing from the other end of the funnel means to me<br />Learn how to guide sense-making at point of purchase<br />Packaging<br />Signage<br />Mobile<br />Thematic display<br />Samples<br />Shelf layout<br />Activate in meaningful ways along the path to purchase<br />Make your brand easy to find and recognize<br />Create “plus” choice factors<br />Understand shopper heuristics and align marketing strategy to how people (could) shop<br />Integrate into broader plan<br />The need for new research protocols<br /><ul><li>Messaging
  35. 35. Categorization and association
  36. 36. Can occur spontaneously at point of purchase
  37. 37. Usually non-exclusive</li></li></ul><li>Next steps<br /><ul><li>Different products will have different path to purchase profiles and should have different media strategies.
  38. 38. While it makes sense that path to purchase should be a powerful framework for business growth, this has yet to be validated
  39. 39. ARF shopper insights council has formed a “path to purchase” working committee
  40. 40. Provide the framework
  41. 41. Identify business issues
  42. 42. Enumerate appropriate research protocols
  43. 43. The industry needs to conduct experiments to PROVE the connection.</li>

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