Shopper ultimately is about how consumers behave as shoppers — why they shop, when and where they shop and how they decide which brands to bring into their homes. This type of understanding, based on research, is fundamentally Marketing expertise.
Identity. Shopper is designed to apply the power of brand identity and equity at the moment a Shopper is making a purchase decision. It is intended to drive that decision by triggering emotional connections that transcend price considerations alone. As such, Shopper initiatives are rooted in brand strategy.
Differentiation. As a long-term strategy premised on the alignment and integration of brand and retailer goals and objectives, Shopper demands strong insight into specific retailers. Helping those retailers establish a point-of-difference relative to their competitors is a key organizing principle of Shopper. This type of strategic insight and planning expertise resides within the Marketing department.
Touchpoints. Shopper’s success is not limited to activities within the store itself; it depends on connecting with Shoppers at every touchpoint along their journey to a transaction — not only while they are shopping but before and after, as well. This mandate is particularly crucial given the advent of digital media which has multiplied the opportunities to communicate, persuade and build Shopper loyalty — all of which depend on brand and communication strategy.
Budgets. When Shopper is organized as cross-functional and part of the Marketing department, budgets are more robust. This is simply because Marketing has significant latitude and control over monies that might fund Shopper initiatives, while Sales has virtually no financial power to support shopper-focused brand strategies.
Although Sales (i.e, trade promotion) budgets typically are very large, and are used to fund features, displays and price discounts, as much as half of these budgets go directly to the retailer’s bottom line, with no pass-through to shoppers. Marketing has no voice in how the dollars that are passed through to shoppers are spent.
