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 …

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