Couponing

It's long been a big business but, according to the National Retail Federation BIGblog, coupons are once again "hot." Mobile apps, billion-dollar babies like Groupon and even the TV show "Extreme Couponing" have made it so.

Coupons primarily influence trial and forward-buying. They are a great tactical tool. And, according to the NRF, they do impact sales.

But not like the point-of-purchase where two-out-of-three purchase decisions are made. If you want to make a lasting impact on purchase decisions, invest where most purchase decisions are made: in-store.

In-store Cacophony

I recently visited Las Vegas on business. It struck me that the town mirrors the at-retail marketing universe.

The hotels and casinos epitomize the cacophonous nature of in-store marketing. We both make noise. Just as surely as ringing bells, clicking wheels, flashing lights and pulsing music wash over a visitor walking across a casino lobby, our industry vies for attention, bombarding a visitor to a store, seeking to draw a gaze, to interrupt a determined pace across a store floor.

There are clear winners and losers in our respective games, too. Get noticed, get purchased and you win in-store. Put your money in the right place at the right time and go home a bit richer from the casino. Put your money in the wrong slot, bet on the wrong horse and you lose in either venue.

The biggest difference between Vegas and in-store marketing? Smart in-store marketing is a sure bet while gaming is just, well, gambling.

Innovation

According to a recent Harvard Business Review, Procter & Gamble is developing a "new-growth factory" to combine the best features of Edison's labs and Ford's assembly lines to deliver fast, far-reaching breakthroughs. That's helped the company's innovations hit their profit-and-revenue targets 50% of the time, up from a 15% a decade ago, and executives say they expect innovation-driven revenue to double again in coming years. "We know from our history that while promotions may win quarters, innovation wins decades," says P&G chairman and CEO Bob McDonald.

The custom display world understands innovation: it's what we do every day. Finding effective ways to cost-effectively attract the attention of shoppers that leads to purchase requires new thinking, new materials, new techniques and new insights on every project. As marketing-at-retail professionals, we embody innovation - or we are out of business.

Extreme Couponer: Friend or Foe?

Today's Ad Age includes a special report about the rise of extreme couponing and posits that those who coupon the most - so-called Enthusiasts - are a marketer's "worst nightmare." REALLY? I don't think so.

According to the excellent statistical presentation in the report, 13% of couponers accounted for 70% of all 2010 coupon redemptions. These folks are tactical masters but far from a nightmare.

If anything, marketers are their OWN worst nightmare. Coupons can be effective tools for generating trial purchases. If the brand lives up to consumers' expectations, couponing can lead to brand switching and eventual loyalty just as surely as sampling does. Brands and retailers that continually rely on coupons to goose their numbers, however, are simply sacrificing margin for top line results as they teach shoppers to only buy "on deal."

Coupons can work when properly executed. Coupons can also work against the interests of the brand and the retailer when abused. Don't blame the crafty shopper; blame the lazy marketer.

Territorial

People exhibit territorial behavior when they take seats in public places, limiting themselves to small areas so they don't have to "renegotiate" seating arrangements with other people, researchers say. In one study by Marco Costa of the University of Bologna in Italy, university students showed strong attachments to specific areas of a lecture hall; on average, each student made use of just 2.4% to 2.7% of the seating area. (Source: Territorial Behavior in Public Settings)

Likewise, shoppers tend to prefer certain areas and pathways of stores they shop often. Think about it: the average grocery store has over 30,000 different items and covers over 40,000 square feet. Some malls cover over one million square feet. That could be overwhelming and anxiety-producing. Shoppers who are anxious are less likely to buy or return to buy again.

Still, stores want shoppers to consider products beyond what they usually buy and try to entice them to visit areas off their normal paths. So, it’s a balancing act between keeping the shopper comfortable and encouraging shoppers to move beyond their personal comfort zone.

Companies like Tusco Display understand these dynamics and help both brands and retailers strike a balance that meets the needs of product producer, retailer and shopper.