Integer's Craig Elston, SVP Insight & Strategy, spoke this week at the Shopper Marketing Expo at Navy Pier in Chicago. Craig presented The Tenets of Shopper Marketing, six tenets, supported by case studies and proprietary data, that help shift mindsets about the possibilities of shopper marketing and what it can do for manufacturers and retailers alike. The presentation is available for download here.

1. 1
TENETS
OF
SHOPPER
MARKETING
OCTOBER
6TH,
2010
Craig
Elston
SVP,
Insight
&
Strategy
The
Integer
Group®
©
2010
The
Integer
Group®

2. 2
www.shopperculture.com
@shopperculture
#ismiexpo
©
2010
The
Integer
Group®

3. 3
SHOPPER
MARKETING
©
2010
The
Integer
Group®

4. 4
Starts
with
a
deep
understanding
of
current
shopper
shopper
behavior,
then
employs
any
markeWng
approach
that
appropriately
engages
shoppers
to
lead
him/her
to
markeWng
purchase
-­‐
on
an
on-­‐going
basis
-­‐
while
building
brand
equity
and
driving
business
growth
for
both
brands
and
retailers.
Source:
The
Integer
Group®,
2010
©
2010
The
Integer
Group®

5. 5
Image courtesy of New Line Cinema
©
2010
The
Integer
Group®

6. 6
Our
Studies
©
2010
The
Integer
Group®

7. 7
1,200
per
month
©
2010
The
Integer
Group®

8. 8
OTHER
HABITS ARE PEOPLE’S WE’RE ALL
IMPORTANT BELIEFS RISK-AVERSE
MATTER
THE ROLE OF PEOPLE NEED
WE’RE BAD AT
SCHEMATIC TO DO THE
COMPUTATION
NAVIGATION RIGHT THING
©
2010
The
Integer
Group®

9. 9
Cogni=ve
laws:
informaWon
processing
Social
laws:
interacWon
Psychological
laws:
thought
&
feeling
©
2010
The
Integer
Group®

10. 10
©
2010
The
Integer
Group®

11. 11
©
2010
The
Integer
Group®
Photo: The Integer Group®

12. 12
OTHER
HABITS ARE PEOPLE’S WE’RE ALL
IMPORTANT BELIEFS RISK-AVERSE
MATTER
THE ROLE OF PEOPLE NEED
WE’RE BAD AT
SCHEMATIC TO DO THE
COMPUTATION
NAVIGATION RIGHT THING
©
2010
The
Integer
Group®

13. 13
Shoppers
have
a
bias
for
the
status
quo,
so
habits
change
slowly
over
Wme.
©
2010
The
Integer
Group®

14. 14
CONCERNS
ABOUT
VALUE
+12%
+5%
Source: The Integer Group and M/A/R/C Research, 2007 - 2010
©
2010
The
Integer
Group®

15. 15
LOCATION
IS
A
(slowly)
DECLINING
MEANING
51%
43%
Source: The Integer Group and M/A/R/C Research, 2007 - 2010
©
2010
The
Integer
Group®

16. 16
HABITUATION
Photo: The Integer Group®
©
2010
The
Integer
Group®

17. 17
OTHER
HABITS ARE PEOPLE’S WE’RE ALL
IMPORTANT BELIEFS RISK-AVERSE
MATTER
THE ROLE OF PEOPLE NEED
WE’RE BAD AT
SCHEMATIC TO DO THE
COMPUTATION
NAVIGATION RIGHT THING
©
2010
The
Integer
Group®

18. 18
WE LOOK TO WHAT OTHERS DO
TO GUIDE OUR OWN BEHAVIOR
Photo: AP
©
2010
The
Integer
Group®

19. 19
INFLUENCED
BY
OTHERS
A
LOT
15%
14%
13%
12%
11%
MAY
06
-­‐
JAN
07
-­‐
JUL
07
-­‐
APR
08
-­‐
NOV
08
-­‐
DEC
06
JUN
07
MAR
08
OCT
08
JUN
09
Source: Simmons NCS/NHCS: Adult Full Year Studies ©
2010
The
Integer
Group®

20. 20
ALL
ALONG
THE
PATH
TO
PURCHASE
THE
SHOPPER
CONTINUUM™
Entering a store or
Pre-Tail™ Web site
Research,
word
of
mouth,
trial
Browsing,
Retail
comparing,
researching
and
selecWng
items
Post-Tail™ Using
the
product
Purchase
moment
= points of action, behaviors
©
2010
The
Integer
Group®

21. 21
©
2010
The
Integer
Group®

22. 22
Photo: The Integer Group®
©
2010
The
Integer
Group®

23. 23
Shoppers
belief’s
must
be
understood
before
you
can
start
to
influence
them.
©
2010
The
Integer
Group®

24. 24
OTHER
HABITS ARE PEOPLE’S WE’RE ALL
IMPORTANT BELEIFS RISK-AVERSE
MATTER
THE ROLE OF PEOPLE NEED TO
WE’RE BAD AT
SCHEMATIC DO THE RIGHT
COMPUTATION
NAVIGATION THING
©
2010
The
Integer
Group®

25. 25
Shoppers
tend
to
prioriWze
avoiding
the
potenWal
for
loss,
over
pursuing
the
potenWal
for
gain.
©
2010
The
Integer
Group®

26. 26
WHY
SHOPPERS
LEAVE
AISLES
EMPTY-­‐HANDED
The
price
was
more
than
I
wanted
to
pay
60%
I
couldn’t
find
the
exact
item,
product
or
56%
size
I
was
looking
for
I
couldn’t
find
the
specific
brand
I
was
34%
looking
for
The
aisle
was
too
crowded/too
many
16%
people
in
the
aisle
The
aisle
was
confusing/disorganized
14%
I
always
purchase
what
I
go
to
the
store
12%
looking
for
The
aisle/store
was
dirty
7%
0%
20%
40%
60%
80%
N = 1,215
Source: The Checkout 2010; The Integer Group & M/A/R/C Research; December 2009
©
2010
The
Integer
Group®

27. 27
OVERCOMING
LOSS
AVERSION
Photo: In-store Marketing Institute
©
2010
The
Integer
Group®

28. 28
INCIDENCE
OF
LIST
PREPARATION
Never
7%
Always
43%
SomeWmes
50%
N = 1,203
Source: The Checkout 2010; The Integer Group & M/A/R/C Research; February 2010
©
2010
The
Integer
Group®

29. 29
29
COUPONS
JUSTIFY
BRAND
SELECTION
86% !
Coupon Influence on Brand
14%
feel that coupons are at least
28% somewhat influential in choosing
a brand.!
70%!
44%
Extremely influential
Very influential
Somewhat influential
Not very influential
11%
3%
Not influential at all use coupons to justify purchasing
their pre-selected brand of choice.!
N = 1,091
Source: The Checkout 2010; The Integer Group & M/A/R/C Research; February 2010
©
2010
The
Integer
Group®

30. 30
We
have
to
understand
risk-­‐aversion
in
order
to
know
how
to
help
the
shopper
overcome
their
perceived
barriers.
©
2010
The
Integer
Group®

31. 31
OTHER
HABITS ARE PEOPLE’S WE’RE ALL
IMPORTANT BELEIFS RISK-AVERSE
MATTER
THE ROLE OF PEOPLE NEED TO
WE’RE BAD AT
SCHEMATIC DO THE RIGHT
COMPUTATION
NAVIGATION THING
©
2010
The
Integer
Group®

32. 32
SCHEMATIC
NAVIGATION
©
2010
The
Integer
Group®

33. 33
Aisle
shot
of
toothpaste
Photo: The Integer Group®
©
2010
The
Integer
Group®

34. Photo: The Integer Group®

35. 35
NaWonal
Print
Ad
Entering
a
store
or
Pre-­‐Tail™
Web
site
PromoWonal
Packaging
Retail
CRM
Segmented
Email
Post-­‐Tail™
Using
the
Purchase
product
©
2010
The
Integer
Group®

36. 36
OTHER
HABITS ARE PEOPLE’S WE’RE ALL
IMPORTANT BELEIFS RISK-AVERSE
MATTER
THE ROLE OF PEOPLE NEED
WE’RE BAD AT
SCHEMATIC TO DO THE
COMPUTATION
NAVIGATION RIGHT THING
©
2010
The
Integer
Group®

37. 37
TODAY
Saving
money
FOUR
YEARS
AGO
Local
Sustainability
Save
before
you
spend
Organic
MORE SELF-SERVING
Green
yet
Spend,
spend,
spend
CONSIDERED
MORE ALTURISTIC
yet
CONSPICUOUS
©
2010
The
Integer
Group®

38. 38
SAVING
TRUMPS
GREEN
WOULD
PAY
MORE
FOR
ENVIRONMENTALLY
FRIENDLY
PRODUCTS?
14%
12%
10%
8%
6%
4%
2%
0%
Spring
Fall
Winter
Spring
Fall
Winter
2008
2008
2009
2009
2009
2010
Source: Simmons NCS/NHCS: Adult Full Year Studies ©
2010
The
Integer
Group®

39. 39
©
2010
The
Integer
Group®

40. 40
Photo: In-store Marketing Institute
©
2010
The
Integer
Group®

41. 41
In
the
context
of
their
lives,
you
have
to
understand
what
‘doing
the
right
thing’
means
to
shoppers.
©
2010
The
Integer
Group®

42. 42
OTHER
HABITS ARE PEOPLE’S WE’RE ALL
IMPORTANT BELEIFS RISK-AVERSE
MATTER
THE ROLE OF PEOPLE NEED
WE’RE BAD AT
SCHEMATIC TO DO THE
COMPUTATION
NAVIGATION RIGHT THING
©
2010
The
Integer
Group®

43. 43
We
all
suffer
from
availability
bias,
a
lack
of
mental
availability
that
makes
us
bad
at
computaWon.
©
2010
The
Integer
Group®

44. 44
AVAILABILITY
BIAS
Aspirin
Salt
Jelly
bean
©
2010
The
Integer
Group®

45. 45
WE
WANT
OUR
DEALS
SIMPLE
Instant
discount,
on
one
item
75%
Buy
one,
get
same
one
free
72%
Buy
one,
get
different
item
free
24%
Instant
discount
off
mulWple
items
16%
Discount
off
next
purchase
14%
0%
10%
20%
30%
40%
50%
60%
70%
80%
They
are
convenient
They
take
too
much
&
useful
effort
to
use
AcWvely
search
for
Use
coupons
when
I
coupons
run
into
them
Decide
brand
first,
Find
coupon
first,
then
then
find
coupon
decide
brand
N = 1,091
Source: The Checkout 2010; The Integer Group & M/A/R/C Research; February 2010
©
2010
The
Integer
Group®

46. 46
MENTAL
AVAILABILITY
©
2010
The
Integer
Group®

47. 47
THE
SHOPPER
CONTINUUM™
Entering a store or
Pre-Tail™ Web site
Research,
word
of
mouth,
trial
Browsing,
Retail
comparing,
researching
and
selecWng
items
Post-Tail™ Using
the
product
Purchase
moment
= points of action, behaviors
©
2010
The
Integer
Group®

48. 48
SIX
TENETS
COGNITIVE FORCES Habits are important.
The role of schematic navigation.
PSYCHOLOGICAL FORCES We’re all risk-averse.
We’re bad at computation.
SOCIAL FORCES Other people’s beliefs matter.
People need to do the right thing.
©
2010
The
Integer
Group®

49. 49
QUESTIONS?
Craig
Elston
SVP,
Insight
&
Strategy
The
Integer
Group®
+1.303.393.3474
celston@integer.com
Download or subscribe to The Integer Group’s white papers,
presentations and editions of The Checkout at
www.shopperculture.com
©
2010
The
Integer
Group®