Recently on the EMF posts, there has been a lot of reference to a change in consumer buying habits as a result of the economic conditions in recent times.  One such article referenced from Comscore suggests consumers are trading down in price and becoming less loyal to National brands.  Just last week, another EMF post referenced an article from the Globe & Mail suggesting consumers consider short-term reward more strongly than the long-term gains. Thus consumers are irrational, and it has been argued that this emotional context needs to be overlaid to more rational economic models.

These two articles provided impetus to share with the EMF membership what we at IMI International have learned about changes to consumer buying habits from a proprietary study we fielded called “Building Your Brand in Turbulent Times”.  We asked some questions that could be benchmarked versus more “normal” times in 2007, fielded during the ‘dark days’ of  January 2009 and followed up again in early 2010 to see which of these changes have a lasting effect.

First, our study agreed with both the articles referenced above:  

i)        Consumers are indeed trading down to the lowest price more often now than in 2007 (for details, please see the June 2010 EMF/IMI research article in the members section on the EMF site or on IMI International’s Downloads page). 

ii)       What is interesting, however, is the consideration of “short-term reward” in this environment.  Consumers have also increased their consideration for the “best quality”—while this seems inconsistent, consider that there has also been a consistent increase in the attitude that it is “worth spending more time to be a smart shopper”.  

iii)     Another finding reflects a return to the importance of Brand Name products versus price considerations, after a dip in 2009.  

Some other category studies we have done at IMI International (from snack food to autos) lead us to conclude that some of the switching to low priced alternatives may not have turned out so well, and the consumer has learned from this experience.  For bigger purchases, you’ll know this as “buyer’s remorse”. 

One of the key pieces that was missing for me from the previous articles was a big “Now What” – as a marketer or a person working at an agency, what can I do about it?  This thinking is precisely why we added other questions around value, brand benefits and price (essentially, inputs into the value equation) into our Turbulent Times study.  The conclusions we make provide some clear actions steps for EMF members, as price and value are intricately linked.

To summarize action steps for this audience, we would suggest the following: 

i)                    Do your homework to determine your brand’s unique value proposition.  That is – which brand in my portfolio represents high value, which benefits can I highlight to illustrate added value versus my competition (i.e. ‘washes more dishes’ versus ‘soft on hands’…) and,

ii)                   How can I best showcase these benefits to overcome potential purchase barriers? 

While price discounting is a tactic that can be used, and is always a consideration, it tends to erode brand equity (and ROI/margins) over the long term.  Our consistent learning for over 15 years has illustrated the power of Experiential Marketing as an excellent method to convey new benefits or activate new learning areas, whether it is to overcome a shared barrier or perception, showcasing new value benefits or illustrating new ‘reasons to believe’.   

So, it’s time to act. Consumers are still buying. Our shared challenge is to break through the spending concerns that this economic environment has brought to consumers and make them feel good again, as “smart shoppers”.

For more information on the EMF, visit http://www.experientialforum.com/ where you can join to receive regular updates on the latest experiential news, research and insights.  The EMF / IMI International research articles are also available for viewing on IMI International’s Downloads page.

Dan knows from extensive experience that shopper marketing is a compelling, integrated approach to meeting consumer wants and needs and instilling a sense of confidence from the moment a brand first starts interacting with consumers. 

During his presentation, Dan will deliver consumer-validated insights, case studies and best practices in order to make your shopper marketing program succeed in a measureable way.

To review a summary of Dan’s presentation, please click here to go to the Downloads page and find the presentation under the “Conferences” section.

The panel topic, “What Will Appeal to Tomorrow’s Shopper: Learn from Representatives Across All Sectors of the Shopper Marketing Industry” is sure to create an active discussion regarding the future of shopper marketing.  

It will be interesting to hear what the panelists have to say, given their varied experience and backgrounds in the experiential, consulting, snack food and research spaces. 

IMI International has extensive experience with shopper marketing and views shopper marketing as the management of the full path-to-purchase cycle.  When done correctly, shopper marketing is a compelling, integrated approach to meeting consumer wants and needs and instilling a sense of confidence from the moment a brand first starts interacting with consumers. 

To learn more about Shopper Marketing and how IMI International can help your brand or agency meet its goals, please contact Dan Hunter at 416-440-0310 ext. 233 or email at dhunter@consultIMI.com.

If there was one overarching lesson from the 2009 WOMMA (Word-of-Mouth Marketing Association) Summit in Las Vegas, it was said that to succeed in WOM, you first have to listen.  Before delving into a WOM campaign, you must first invest in a listening campaign. Once you are in touch with the consumer, the conversation can begin. Social media is an excellent tool to develop the two-way conversation. 

The measurement of any activation program is not complete until the impact of Word-of-Mouth is included.  That was a key focus of IMI International’s presentation on November 18 where IMI International co-presented alongside their beverage client and Escalate on the “Effectiveness & Efficiency of WOM on a Beverage Experiential Trial Program”.  Laura Bernshausen, Senior Brand Activation Manager; Stuart Sheldon, Division President at Escalate and Dan Hunter, Partner at IMI International, lead the conversation with a full house of attendees.

As conference participants learned, using WOM to accelerate an experiential marketing campaign is both effective and efficient at driving brand love, purchase and adoption over time.  Leveraging IMI International’s Word-of-Mouth ROI measurement approach, this beverage client measures the impact and cost effectiveness of WOM in combination with other marketing tactics in order to understand more holistic returns as a result of the campaign.

Also from the WOMMA Word conference blog recap, Steve Knox of Proctor & Gamble mentions correctly that “consumers talk for many reasons. It might be simply because there was a lull in a conversation or that a consumer wants to exude the image of a product. But you will never learn why consumers talk about your product specifically if you don’t listen. Once a solid amount of data is gathered, test your programs, continue listening and work from there. No campaign will be perfect out of the gate, but it will be doomed if you don’t listen.”

This two-day seminar was a must-attend course for managers involved in sponsorship marketing as part of their integrated marketing communications programs. Attendees were exposed to an expert team of leading Canadian sponsorship marketing practitioners.

Jo-Ann McArthur, President of fisheye, spearheaded the two-day session and Dan Hunter, Partner of IMI International, lead a measurement fundamentals seminar entitled “Defining Success:  Measuring Returns of Sponsorship Programs”.  

The course covered the latest sponsorship measurement best practices within an interactive group session including detailed coverage of what needs to be done before, during and after the program to measure ROSMO (Return on Sponsorship Marketing Objectives) and ROI.  Specifically, the main topics covered were:

• IMI International’s Sponsorship Valuation Process
• Delivering Engaged Target Consumers
• Optimizing Sponsorship Impact Via Activation
• Sponsorship Evaluation Methodologies
• IMI International Case Studies:  Event Metrics & Continuity
• Sample Scorecards:  Impact, ROSMO & ROI
• Summary – What To Do Tomorrow 

SMCC is a leader in providing education program for the Canadian sponsorship marketing industry. IMI International is a leading consulting and measurement expert on brand activation, with over 25 years of experience in sponsorship marketing.

Entitled, Maximize Your Sponsorship ROI in These Tough Economic Conditions, Dan’s presentation highlighted that in a tough economy, consumers don’t stop spending. They just spend differently.

Leveraging the latest 2009 research, Dan outlined how the economic slowdown has impacted consumers’ habits and their approach to the marketplace. Most importantly, he discussed how sponsors and properties can use that insight to leverage maximum value from their partnerships.

Now more than ever, it is imperative to give consumers a compelling reason to engage with brands and properties and the best way to do this, based on IMI International’s latest Consumer Economic Impact Study – Turbulent Times II, is to leverage sponsorships to Activate, Demonstrate and Engage consumers to focus on your brand’s inherent value proposition.

Over 4,000 curious shopper marketing industry experts packed the 2009 In-Store Marketing Expo from October 6 to 8 at Navy Pier in downtown Chicago.  To complement the large in-store trade component of the conference, IMI International was once again asked to lead a focused learning session on the very latest insights on Shopper Marketing from a consumer perspective.  

The conference topic was focused on the “The Last Three Feet” retail environment:  Its aim was to educate brands, retailers and suppliers on the importance of in-store marketing activations.  Dan Hunter, Partner at IMI International, provided recent consumer insights for session attendees based on a broader perspective focused on driving shoppers “From their Living Rooms to Store Center Aisles”.  

Leveraging IMI International’s marketing database of initiatives and the IMI International Consumer Track™ shopper insights learning module, the session provided a holistic view of the purchase cycle.  From online search and product browsing to influence to in-store purchases, Dan led an hour-long presentation that outlined the areas where shoppers were looking to be intercepted with branded messaging that would later drive in-store purchase.  

Most importantly, Dan provided insights on driving maximum impact ‘cost effectively’ thus maximizing customer lifetime value of shoppers.   

Attendees also discovered: 

• The change to focus messaging on a brand’s “inherent value proposition” due to the economic downturn
• The best ways to engage consumers outside of the retail environment by product category,
• The perspective on “how” customers shop, not just “why” they buy.
• Non-traditional shopping insights including online, retail activations, digital signage, experiential interaction and mobile marketing, plus
• How to drive ongoing loyalty touch-points, including, web, mobile and CRM/loyalty programs and Word-of-Mouth. 

To learn more insights from the presentation, please visit IMI International’s Downloads page.

Speaking to one of the largest groups to recently assemble for the bi-monthly meetings, Dan led the session to showcase how Canadian consumers have changed in these turbulent times. 

Of note, Dan highlighted the changes in consumers’ receptiveness of brand activation tactics and of sponsorship & events in particular to show how marketers can still influence shoppers to open their hearts and wallets.  Consumers are not going out and spending as much as in the past, and this trend may impact sponsorship events into the near term future. 

Now more than ever, it is imperative to give consumers a compelling reason to engage with brands and properties and the best way to do this, based on IMI International’s latest Consumer Economic Impact Study – Turbulent Times II, is to leverage sponsorships to Activate, Demonstrate and Engage consumers to focus on your brand’s inherent value proposition.

To learn more insights from the presentation, please visit IMI International’s Downloads page.