ISMI Expo Tenets of Shopper Marketing

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Integer's Craig Elston, SVP Insight & Strategy, spoke this week at the Shopper Marketing Expo at Navy Pier in Chicago. Craig presented The Tenets of Shopper Marketing, six tenets, supported by case studies and proprietary data, that help shift mindsets about the possibilities of shopper marketing and what it can do for manufacturers and retailers alike. The presentation is available for download here.

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ISMI Expo Tenets of Shopper Marketing

  1. 1. 1   TENETS  OF  SHOPPER  MARKETING   OCTOBER  6TH,  2010   Craig  Elston   SVP,  Insight  &  Strategy   The  Integer  Group®   ©  2010  The  Integer  Group®  
  2. 2. 2   www.shopperculture.com   @shopperculture   #ismiexpo   ©  2010  The  Integer  Group®  
  3. 3. 3   SHOPPER  MARKETING   ©  2010  The  Integer  Group®  
  4. 4. 4   Starts  with  a  deep  understanding  of  current  shopper   shopper   behavior,  then  employs  any  markeWng  approach  that   appropriately  engages  shoppers  to  lead  him/her  to   markeWng   purchase  -­‐  on  an  on-­‐going  basis  -­‐  while  building  brand   equity  and  driving  business  growth  for  both  brands  and   retailers.   Source:  The  Integer  Group®,  2010   ©  2010  The  Integer  Group®  
  5. 5. 5   Image courtesy of New Line Cinema ©  2010  The  Integer  Group®  
  6. 6. 6   Our  Studies   ©  2010  The  Integer  Group®  
  7. 7. 7   1,200  per  month   ©  2010  The  Integer  Group®  
  8. 8. 8   OTHER HABITS ARE PEOPLE’S WE’RE ALL IMPORTANT BELIEFS RISK-AVERSE MATTER THE ROLE OF PEOPLE NEED WE’RE BAD AT SCHEMATIC TO DO THE COMPUTATION NAVIGATION RIGHT THING ©  2010  The  Integer  Group®  
  9. 9. 9   Cogni=ve  laws:  informaWon  processing   Social  laws:  interacWon   Psychological  laws:  thought  &  feeling   ©  2010  The  Integer  Group®  
  10. 10. 10   ©  2010  The  Integer  Group®  
  11. 11. 11   ©  2010  The  Integer  Group®   Photo: The Integer Group®
  12. 12. 12   OTHER HABITS ARE PEOPLE’S WE’RE ALL IMPORTANT BELIEFS RISK-AVERSE MATTER THE ROLE OF PEOPLE NEED WE’RE BAD AT SCHEMATIC TO DO THE COMPUTATION NAVIGATION RIGHT THING ©  2010  The  Integer  Group®  
  13. 13. 13   Shoppers  have  a  bias  for  the   status  quo,  so  habits  change   slowly  over  Wme.   ©  2010  The  Integer  Group®  
  14. 14. 14   CONCERNS  ABOUT  VALUE   +12%   +5%   Source: The Integer Group and M/A/R/C Research, 2007 - 2010 ©  2010  The  Integer  Group®  
  15. 15. 15   LOCATION  IS  A  (slowly)  DECLINING  MEANING   51%   43%   Source: The Integer Group and M/A/R/C Research, 2007 - 2010 ©  2010  The  Integer  Group®  
  16. 16. 16   HABITUATION   Photo: The Integer Group® ©  2010  The  Integer  Group®  
  17. 17. 17   OTHER HABITS ARE PEOPLE’S WE’RE ALL IMPORTANT BELIEFS RISK-AVERSE MATTER THE ROLE OF PEOPLE NEED WE’RE BAD AT SCHEMATIC TO DO THE COMPUTATION NAVIGATION RIGHT THING ©  2010  The  Integer  Group®  
  18. 18. 18   WE LOOK TO WHAT OTHERS DO TO GUIDE OUR OWN BEHAVIOR Photo: AP ©  2010  The  Integer  Group®  
  19. 19. 19   INFLUENCED  BY  OTHERS  A  LOT   15%   14%   13%   12%   11%   MAY  06  -­‐                                  JAN  07  -­‐                                   JUL  07  -­‐                           APR  08  -­‐                             NOV  08  -­‐                                 DEC  06   JUN  07   MAR  08   OCT  08   JUN  09   Source: Simmons NCS/NHCS: Adult Full Year Studies ©  2010  The  Integer  Group®  
  20. 20. 20   ALL  ALONG  THE  PATH  TO  PURCHASE     THE  SHOPPER  CONTINUUM™   Entering a store or Pre-Tail™ Web site Research,  word  of   mouth,  trial   Browsing,   Retail   comparing,   researching   and  selecWng   items   Post-Tail™ Using  the   product   Purchase moment = points of action, behaviors ©  2010  The  Integer  Group®  
  21. 21. 21   ©  2010  The  Integer  Group®  
  22. 22. 22   Photo: The Integer Group® ©  2010  The  Integer  Group®  
  23. 23. 23   Shoppers  belief’s  must  be  understood   before  you  can  start  to  influence  them.   ©  2010  The  Integer  Group®  
  24. 24. 24   OTHER HABITS ARE PEOPLE’S WE’RE ALL IMPORTANT BELEIFS RISK-AVERSE MATTER THE ROLE OF PEOPLE NEED TO WE’RE BAD AT SCHEMATIC DO THE RIGHT COMPUTATION NAVIGATION THING ©  2010  The  Integer  Group®  
  25. 25. 25   Shoppers  tend  to  prioriWze  avoiding   the  potenWal  for  loss,  over  pursuing   the  potenWal  for  gain.   ©  2010  The  Integer  Group®  
  26. 26. 26   WHY  SHOPPERS  LEAVE  AISLES  EMPTY-­‐HANDED   The  price  was  more  than  I  wanted  to  pay   60%   I  couldn’t  find  the  exact  item,  product  or   56%   size  I  was  looking  for   I  couldn’t  find  the  specific  brand  I  was   34%   looking  for   The  aisle  was  too  crowded/too  many   16%   people  in  the  aisle   The  aisle  was  confusing/disorganized   14%   I  always  purchase  what  I  go  to  the  store   12%   looking  for   The  aisle/store  was  dirty   7%   0%   20%   40%   60%   80%   N = 1,215 Source: The Checkout 2010; The Integer Group & M/A/R/C Research; December 2009 ©  2010  The  Integer  Group®  
  27. 27. 27   OVERCOMING     LOSS  AVERSION   Photo: In-store Marketing Institute ©  2010  The  Integer  Group®  
  28. 28. 28   INCIDENCE  OF  LIST  PREPARATION   Never   7%   Always   43%   SomeWmes   50%   N = 1,203 Source: The Checkout 2010; The Integer Group & M/A/R/C Research; February 2010 ©  2010  The  Integer  Group®  
  29. 29. 29 29   COUPONS  JUSTIFY  BRAND  SELECTION   86% ! Coupon Influence on Brand 14% feel that coupons are at least 28% somewhat influential in choosing a brand.! 70%! 44% Extremely influential Very influential Somewhat influential Not very influential 11% 3% Not influential at all use coupons to justify purchasing their pre-selected brand of choice.! N = 1,091 Source: The Checkout 2010; The Integer Group & M/A/R/C Research; February 2010 ©  2010  The  Integer  Group®  
  30. 30. 30   We  have  to  understand  risk-­‐aversion  in   order  to  know  how  to  help  the  shopper   overcome  their  perceived  barriers.   ©  2010  The  Integer  Group®  
  31. 31. 31   OTHER HABITS ARE PEOPLE’S WE’RE ALL IMPORTANT BELEIFS RISK-AVERSE MATTER THE ROLE OF PEOPLE NEED TO WE’RE BAD AT SCHEMATIC DO THE RIGHT COMPUTATION NAVIGATION THING ©  2010  The  Integer  Group®  
  32. 32. 32   SCHEMATIC  NAVIGATION   ©  2010  The  Integer  Group®  
  33. 33. 33   Aisle  shot  of  toothpaste   Photo: The Integer Group® ©  2010  The  Integer  Group®  
  34. 34. Photo: The Integer Group®
  35. 35. 35   NaWonal  Print  Ad   Entering  a  store  or   Pre-­‐Tail™   Web  site   PromoWonal   Packaging   Retail   CRM  Segmented   Email   Post-­‐Tail™   Using  the   Purchase   product     ©  2010  The  Integer  Group®  
  36. 36. 36   OTHER HABITS ARE PEOPLE’S WE’RE ALL IMPORTANT BELEIFS RISK-AVERSE MATTER THE ROLE OF PEOPLE NEED WE’RE BAD AT SCHEMATIC TO DO THE COMPUTATION NAVIGATION RIGHT THING ©  2010  The  Integer  Group®  
  37. 37. 37   TODAY   Saving  money   FOUR  YEARS  AGO   Local   Sustainability   Save  before  you  spend   Organic   MORE SELF-SERVING Green   yet Spend,  spend,  spend   CONSIDERED MORE ALTURISTIC yet CONSPICUOUS ©  2010  The  Integer  Group®  
  38. 38. 38   SAVING  TRUMPS  GREEN   WOULD  PAY  MORE  FOR  ENVIRONMENTALLY  FRIENDLY  PRODUCTS?   14%   12%   10%   8%   6%   4%   2%   0%   Spring   Fall                       Winter   Spring   Fall                 Winter   2008   2008   2009     2009   2009   2010   Source: Simmons NCS/NHCS: Adult Full Year Studies ©  2010  The  Integer  Group®  
  39. 39. 39   ©  2010  The  Integer  Group®  
  40. 40. 40   Photo: In-store Marketing Institute ©  2010  The  Integer  Group®  
  41. 41. 41   In  the  context  of  their  lives,  you  have   to  understand  what  ‘doing  the  right   thing’  means  to  shoppers.   ©  2010  The  Integer  Group®  
  42. 42. 42   OTHER HABITS ARE PEOPLE’S WE’RE ALL IMPORTANT BELEIFS RISK-AVERSE MATTER THE ROLE OF PEOPLE NEED WE’RE BAD AT SCHEMATIC TO DO THE COMPUTATION NAVIGATION RIGHT THING ©  2010  The  Integer  Group®  
  43. 43. 43   We  all  suffer  from  availability  bias,   a  lack  of  mental  availability  that   makes  us  bad  at  computaWon.   ©  2010  The  Integer  Group®  
  44. 44. 44   AVAILABILITY  BIAS   Aspirin   Salt   Jelly  bean   ©  2010  The  Integer  Group®  
  45. 45. 45   WE  WANT  OUR  DEALS  SIMPLE   Instant  discount,  on  one  item   75%   Buy  one,  get  same  one  free   72%   Buy  one,  get  different  item  free   24%   Instant  discount  off  mulWple  items   16%   Discount  off  next  purchase   14%   0%   10%  20%  30%  40%  50%  60%  70%  80%   They  are  convenient   They  take  too  much   &  useful   effort  to  use   AcWvely  search  for   Use  coupons  when  I   coupons   run  into  them   Decide  brand  first,   Find  coupon  first,  then   then  find  coupon   decide  brand   N = 1,091 Source: The Checkout 2010; The Integer Group & M/A/R/C Research; February 2010 ©  2010  The  Integer  Group®  
  46. 46. 46   MENTAL  AVAILABILITY   ©  2010  The  Integer  Group®  
  47. 47. 47   THE  SHOPPER  CONTINUUM™   Entering a store or Pre-Tail™ Web site Research,  word  of   mouth,  trial   Browsing,   Retail   comparing,   researching   and  selecWng   items   Post-Tail™ Using  the   product   Purchase moment = points of action, behaviors ©  2010  The  Integer  Group®  
  48. 48. 48   SIX  TENETS   COGNITIVE FORCES Habits are important. The role of schematic navigation. PSYCHOLOGICAL FORCES We’re all risk-averse. We’re bad at computation. SOCIAL FORCES Other people’s beliefs matter. People need to do the right thing. ©  2010  The  Integer  Group®  
  49. 49. 49   QUESTIONS?   Craig  Elston   SVP,  Insight  &  Strategy   The  Integer  Group®   +1.303.393.3474   celston@integer.com   Download or subscribe to The Integer Group’s white papers, presentations and editions of The Checkout at www.shopperculture.com ©  2010  The  Integer  Group®  

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