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