Shopper marketing is a relatively new concept that is changing how consumer package goods companies and retailers market their goods. According to the UT Shopper Marketing Forum, available here, “shopper marketing refers to understanding consumers while they are in shopper mode, regardless of the brand, category, or channel and leveraging these insights to create better shopping experiences, superior brand equity, and more loyal shoppers.”

The catalyst for shopper marketing seems to be the need to spend marketing resources more efficiently and effectively. As a result, companies and retailers “are shifting millions of dollars within their marketing budgets from traditional media to shopper focused and specifically in-store initiatives”—yet another nail in traditional media’s coffin.

In addition to consumer goods companies and retailers, shopper marketing involves brokers, advertising agencies, data management companies, and consultants. It affects market research, segmentation models, collaboration programs, pricing structures, packaging, demonstrations, displays, store layout, and floor level execution.

According to IndustryWeek, 73% of consumer product goods manufacturers and 86% of retailers rank shopper marketing as the number one activity that delivers meaningful return on investment (“Shopper Marketing Is a Supply Chain Partner’s Next Marketing Frontier,” Marcel M. Zondag, January 18, 2010). They are embracing shopper marketing because the Internet and social media are creating a new type of customer who is more particular about shopping and because of its ability to reach more people. As the article notes, “whereas 35 million people watched the American Idol finale, 150 million people shop at Wal-Mart every week!”

Shopper marketing will require organizations to change how they operate. They will need new processes for identifying and segmenting shoppers, analyzing the sophisticated data available, and partnering with others in the supply chain. They will need a strategic plan for targeting shoppers and allocating resources. And they will need new expertise in an area where experts are still hard to find.

One resource to consider is Shopper Marketing, which publishes a monthly newsletter. In the most recent issue, a story about GPS merchandising at truck stops showed the power of shopper marketing (“Interactive GPS Merchandising Boosts Truck Stops,” Dawn Klingensmith, January 2010). DAS Inc., a consumer electronics distributor, partnered with two travel center chains and a merchandising firm to develop an approachable one-stop navigation destination in the chains’ stores. Within six months of deploying 500 displays, overall GPS sales increased 50%, accessory sales rose 75%, and a 100% incremental ROI was achieved.

Click here to visit the Shopper Marketing site.

Shopper marketing has become relevant because it provides broader solutions to immediate customer needs. How can it help your organization?

To read more about identifying what customers want, click on these articles:

• Bottom-Line Value of Customer Engagement
• KEYSTONE: Customer Knowledge
• 9 Ways to Get Closer to Customers
• Why Customer Loyalty Matters
• Dangerous Assumptions about Customers

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