Friday, January 15, 2010

Attention CPG marketers

These days, there is a lot of interest in shopper marketing -- that is, marketing aimed at influencing consumers as they are actually in the process of selecting and buying products, whether they are making a shopping list at home or downloading coupons or standing at the shelf. CPG companies are investing a ton of money in it. For example, P&G says it spends over $500 million annually on shopper marketing.

There are good reasons for this. Shopper marketing is a great way to engage consumers all along the path to purchase. It can be used to create more collaborative and successful trade relationships. And, it can drive sales -- no small feat in recessionary times.

But there is also a lot of confusion around shopper marketing. Few companies have figured out how to align it with the rest of their marketing processes and spend. And no one has really figured out how to measure its effectiveness -- either as a standalone investment or in relation to other spending.

I got a great education in all of these issues a couple of months ago, when I worked with Booz & Company partners Matt Egol and Ed Landry to write up the findings of a major shopper marketing study which they co-led with the Grocery Manufacturers Association and, a leading online consumer community. Whether you are looking for a primer on the subject or some cutting edge insights, it's worth a read. You can download it for free here...