"We are convinced that Shopper Marketing is the way in which we will achieve our growth objectives in a depressed market. We are equally convinced that we will have to dramatically overhaul our business model to activate shopper marketing."
(CEO of a Fortune 500 consumer goods company)
Shopper marketing has been attracting more and more attention since its inception in the early 2000s.
It refers to the complex but coordinated combination of marketing and sales tools that supply chain partners -- such as consumer goods manufacturers (CPGs), sales intermediaries, advertising agencies, data companies, and retailers -- use to engage shoppers, build brand equity, and persuade shoppers when they are in the 'shopping mode.'
Shopper marketing understands how target consumers behave as shoppers and leverages this intelligence across the supply chain to benefit the company, brand, consumers, retailers, and shoppers.
"Shopper marketing is the hottest issue in retail and consumer package goods," said UT Shopper Market Forum organizer Dan Flint, UT's Proffitt's Inc. Associate Professor of Marketing.
Seventy-three percent of consumer product goods manufacturers and 86% of retailers rank shopper marketing as the number one activity that delivers meaningful return on investment. Over the next three years, 80% of manufacturers and retailers will increase their non-trade, in-store programs; 40% will increase their budgets more than 5%.
"Few other universities are paying serious attention to the shopper marketing opportunity -- so far," continues Flint, "The remark above, made at our inaugural Shopper Marketing Forum, underlines the promise and challenges that the new concept of shopper marketing presents to all supply chain partners."
The economic downturn, coupled with changes in shoppers' behavior and attitudes, has forced companies to rethink ways to entice customers to buy, particularly since 70% of the time, shoppers choose what to buy while they are shopping, 8% of buying decisions are unplanned, and only five percent of customers are loyal to the brand of one product group.
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