I'm an unabashed fan of shopping in stores. I enjoy the hunt, the thrill of seeing new wares presented in new ways, working with knowledgable and engaged sales consultants - whether a high-end clothing purveyor, the deli manager or the grocery checkout clerk - who enjoy helping me find what I need or just plain want. And I know that I'm not alone.
Stores play a pivotal role for shoppers and marketers. It's the playground where we meet one another, learn what common interests we may share, meet one another's needs and exchange things of equal value - my money and your product - and thereby each feel enriched.
Though study after study show that 70% of all purchase decisions (including unplanned purchases, generally but not specifically planned purchases, brand switching, SKU switching wihtin a brand and the like) are made in-store, this does not guaratee success for any given store, chain or channel.
Look no further than music retailing. How has Apple changed how music is sold? This infographic shows how the entertainment retailing industry has undergone a sea change. Gone are the Tower Records and Camelot Music stores that once dominated music retail, rolled up into the money-losing FYE chain. Once music could be distributed digitally and downloaded legally one-song-at-a-time, the need to buy "albums" in a store diminished. The same is happening with movies and games. Blockbuster was once king; it's no longer jack. I wouldn't buy stock in Gamestop today for the same reason: digital delivery will eventually rule there too. Even Coinstar's redbox juggernaut will eventually fall into decline.
But, until you can deliver Rice Krispies, angora sweaters and automobiles digitally, retail will remain crucial to the successful and cost-effective distribution and purchase of most consumer products. And Tusco Display will keep helping bring marketers and their shoppers together in the most persuasive and pervasive advertising medium ever invented: the retail store.
Tuesday, April 27, 2010
Wednesday, April 21, 2010
Ultimate Target Marketing
Does anyone remember One-to-One Marketing? Don Peppers and Martha Rogers pioneered the concept when they introduced their book, "The One-to-One Future," about 20 years ago. Great book - and an even better idea. The kernel of the book: technology allows us to replace mass marketing - one product for the many consumers - with personalized solutions for individual consumers.
This has come to pass, for instance, with Amazon recognizing you, knowing what you've purchased in the past, knowing what others who bought the same book have purchased and suggesting books (or music or whatever) that might appeal specifically to you. Mini Cooper will economically produce a car to your exact specifications. Nike will do the same with shoes. Michael Dell made a living - and a fortune - doing the same with PCs. Through my shopper loyalty card, my local Buehlers grocery store prints coupons based on my buying patterns. That's 1:1 marketing, enabled by cheap, ubiquitous technology.
Now, mobile marketing promises to deliver the same kind of individualized attention with coupons and other promotions that happen in-store or even right in front of a particular product. Pretty cool.
Even with all of this one-to-one attention, the shopper often still prefers to see, touch, smell and otherwise sense what they're buying. And it happens in a store where 93% of all consumer purchases still occur. Technology will make marketing better, more focused and more individualized with each passing year but, at the end of the day, turning shoppers into buyers is the name of the game. And the point-of-purchase is where it's played.
This has come to pass, for instance, with Amazon recognizing you, knowing what you've purchased in the past, knowing what others who bought the same book have purchased and suggesting books (or music or whatever) that might appeal specifically to you. Mini Cooper will economically produce a car to your exact specifications. Nike will do the same with shoes. Michael Dell made a living - and a fortune - doing the same with PCs. Through my shopper loyalty card, my local Buehlers grocery store prints coupons based on my buying patterns. That's 1:1 marketing, enabled by cheap, ubiquitous technology.
Now, mobile marketing promises to deliver the same kind of individualized attention with coupons and other promotions that happen in-store or even right in front of a particular product. Pretty cool.
Even with all of this one-to-one attention, the shopper often still prefers to see, touch, smell and otherwise sense what they're buying. And it happens in a store where 93% of all consumer purchases still occur. Technology will make marketing better, more focused and more individualized with each passing year but, at the end of the day, turning shoppers into buyers is the name of the game. And the point-of-purchase is where it's played.
Saturday, April 17, 2010
Store Back
Ad Age featured an article April 14 on the renewed focus that P&G places on what happens in-store and on-shelf. Global Brand-Building Officer Marc Pritchard - P&G has the coolest titles, don't they? - requires that all marketing ideas first prove that they will work on-shelf.
Why the at-retail focus? Because the point-of-purchase remains the most powerful advertising medium in the promotion of packaged goods. Really. The article cites a Nielsen study that found that "in-store marketing clearly beats TV as the leading medium creating awareness of new package goods in the U.S. and five other key developed markets." About 50% of survey respondents cited in-store as their source of awareness of new products vs only one-third who cited TV.
Packaging plays an essential role in product success but so does display and placement. You could have the greatest product since sliced bread but if it's not noticed in-store, it won't be purchased in-store. Getting it right in-store is make-or-break, kids. P&G knows that. Do you act like you do, too?
Why the at-retail focus? Because the point-of-purchase remains the most powerful advertising medium in the promotion of packaged goods. Really. The article cites a Nielsen study that found that "in-store marketing clearly beats TV as the leading medium creating awareness of new package goods in the U.S. and five other key developed markets." About 50% of survey respondents cited in-store as their source of awareness of new products vs only one-third who cited TV.
Packaging plays an essential role in product success but so does display and placement. You could have the greatest product since sliced bread but if it's not noticed in-store, it won't be purchased in-store. Getting it right in-store is make-or-break, kids. P&G knows that. Do you act like you do, too?
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