62% of shoppers search for deals digitally before at least half of their shopping trips but despite the continued growth of digital media, shopper marketing projects as the fastest-growing area of Marketing investment for the buyer of packaged products for the next three years. Let’s call shopper marketing for what it really is “in store promotions”. Why in store before digital ? Because most marketers see digital as a black hole that sucks up dollars and provides little ROI. They have little desire to understand digital marketing because it was not a course in their MBA programs.
In all, 83% of CPG executives responding to the Booz/GMA survey said they’re The companies plan to increase spending on shopper marketing over the next three years, and 55% said their companies plan to hike such spending 5% or more annually. None planned a decrease in shopper marketing spending. That compared to 76% who planned to increase digital spending, of which 36% planned to hike spending 5% or more annually. Only 3% planned to cut digital spending.
Social media and internet brand-advertising, among other digital areas, beat shopper marketing in terms of overall respondents — 93% and 86% — projecting increased spending by their companies. But Shopper Marketing beat them still in relation to the expected total spending increases based on how much the surveyed Executives said they expect spending to increase in the individual area.
So marketers are going to continue down a path of self lawyers, promotions, and fancy packages in hopes of swaying shoppers to their brands. In the process, they are gradually eroding brand equity and saying ” we can’t compete except on price”. Even P&G found out the hard way when they launched a basic version of Tide detergent only to have it take sales away from their premium Tide products. It went so badly for them they had to discontinue basic Tide.
MBA marketers prove once again that they are really good at taking the path of least resistance and doing more of what got them in this mess in the first place. They have lost touch with consumers in more ways than one. They just don’t understand that consumers like to save money because it’s style now but they also are willing to splurge on brands that solve their problems and make them feel good.
I thought marketers were supposed to adapt to changing consumers…oop’s, they are with lower prices. The problem is lower prices mean less profit and eventually the pie becomes too small to do anything new.