I was asked to address this question not long ago: A large part of our business is in consumer packaged goods sold through mass-channel outlets such as Wal-Mart. We’d like some insights into how we can use analytics to help us understand the marketing-driven revenue on the retail end. Is there a way we can link POS revenue back to our digital marketing efforts?
Response: Expert Exchange with Greg Bonsib
THE BIG IDEAS
- Capitalize on in-store promotional events
- What drives digital sales likely drives retails sales too
- Hire a lead agency that is strong strategically and analytically
CAPITALIZE ON IN-STORE PROMOTIONAL EVENTS
Coordinate the digital marketing with in-store promotional events. Provide end caps or other kinds of displays with a certain product, which will have its unique SKU. You can use the SKU to isolate the point of sale and the sales for the product.
- You need to establish the base line for sales when there are no special promotions or marketing in the mix.
- Discount for sales lift due to approaching holidays, when sales would increase anyhow.
- You can assume that anything you see in sales above the base line is because of marketing.
WHAT DRIVES DIGITAL SALES LIKELY DRIVES RETAIL SALES TOO
You can use analytics on the online sales to help you understand which of your marketing tactics are working better than others. That is, which are driving sales at particular online retailers, such as walmart.com. Most likely, the tactics that work best for online sales will also work best for the retail outlets too.
- You can look at the halo effect that occurred with the rest of the product line that wasn’t being promoted. Did sales increase for the other products? The more halo effect, the better.
- Planograms are useful tools when you have a history of sales over many different sales channels for similar products. You can compare and contrast the sales at the different retailers. Planograms can help you analyze whether a promotional event in one sales channel increased sales in others, or whether an impact at one retailer echoes an impact at a competitive retailer.
- Use heat mapping to understand the impact of regionality and other variables.
HIRE A LEAD AGENCY THAT IS STRONG STRATEGICALLY AND ANALYTICALLY
Most big companies use many agencies, each with a specific focus, which means that you receive masses of data that is in different forms that is difficult to use.
- Use a lead agency into which every other agency feeds its tracking, analytics, and other data. Icreon Tech is highly recommended.
- This agency aggregates the data. It manages the data wrangling, normalization, and warehousing.
- As a central repository you can dictate how the data is organized. For example, we’ve created three buckets: commerce (revenue), behavior (what people do on the sites), and engagement (click-through rates, and so on).
How can you build on these ideas? Let me know!
Tag Archives: Promotion
The 4 P’s of Marketing Aren’t Enough Anymore!
Everyone knows the 4 P’s of marketing…
But Gino Biondi, vice president of sales & marketing at Zenith Products, has suggested that the 4 P’s of marketing aren’t enough anymore. Instead, he believes it takes a baker’s dozen of P’s to represent the many facets of product, channel and brand marketing.
Gino’s 13 P’s of marketing are…
- Public Relations
P #1: Performance
No marketing plan is worth its weight without specific and measurable metrics and goals.
Performance should be the first P. It lets you know how the brand is performing and allows you to set performance goals.
P #2: Positioning
This P establishes the brand road map.
- Relevant and meaningful consumer Insights
- Functional benefits
- Emotional benefits
- Brand essence
- Brand character
- Brand tone
P #3: People
The idea that there are multiple targets to consider is the basis of this P.
- Primary bull’s-eye consumer – demographic, psychographic, attitudinal, & behavioral
- Secondary target purchasers or influencers – moms, kids, teachers, doctors, etc.
- Stakeholder customers/retailers/resellers – If they don’t carry it you can’t sell it.
- Sales professionals, installers, service people – sales people like to sell it, the installer prefers to hook it up and Customer Service likes to take the calls.
- Internal employees – passion and word of mouth gets generated internally first.
Product is the foundation of the Brand.
- Tied to the Positioning key attributes
- Differentiated key benefits
- Cost base versus your competitor
- Meeting/exceeding quality expectations
Packaging can be the most impactful marketing tool.
- Form is a key communicator and provides key benefits – an upside down bottle of ketchup changed the industry and mustard, mayo, shampoo…
- “Green” packaging or wasteful materials impacts attitudes.
- Quality has an emotional response – sloppy fit and finish or crooked labels says a lot about the brand
- Graphics need to be compelling – authentic, modern, innovative, nostalgic, youthful, serious, fun
- Services too – trucks, vehicles and uniforms. Think Molly Maid, Geek Squad, UPS, Even name tags on a store clerk
P #6: Proliferation
How far should the brand extend is the thought behind this P.
- Product proliferation can be key to distribution, shelf expansion or consumer needs
- Flavors, varieties, colors, fragrances
- Promotions, seasonal
- Proliferation can be bad!
- It creates operational complexity and increase the risk of underperforming SKU’s
- What is the supply chain tolerance level in your company?
- Non-value added features add cost that may not be recovered
- Customer exclusivity may require SKU proliferation as well.
P #7: Promotion
This famous P should get a narrower view.
- All brands need promotion strategies for both consumers and customers
- Relatively short-term or loyalty building vehicles
- To prevent switching to another competitor
- To induce switching from a competitor
- Promotion can be used to create excitement around seasonal opportunities.
- Halloween, Spring cleaning, Back-to-School, Tax time
- Create brand excitement and pull-through
- Sweepstakes, contests, themed events
P #8: Projection
Brand Communications is the theme of this P.
- Translating positioning into compelling creative and copy
- Integrated Marketing is at the core of Projection
- Every medium is different and how you use it should be treated uniquely
- Mass media
- TV, print, radio
- Social media platforms (like Facebook, Twitter, Pinterest, YouTube)
- Blog posts
- Internet, web site, viral, e-commerce
- Direct, outdoor, mobile, event
- Sports marketing, sponsorships, entertainment
- Consider ethnic audiences as well
P #9: Public Relations
PR is the cherry on top of the cake. When fundamentals are in place PR creates a genre for the brand.
- Cause-related marketing (charities) – Breast Cancer, Victory Junction Gang, Habitat for Humanity
- Major relevant events – hurricanes, storms, earthquakes, anniversaries, milestones
- More realistic and relevant with real user or third-party endorsements.
P #10: Programming
This P tackles media choice.
- How much should be spent on media?
- How much should be allocated to the different mediums?
Be sure to measure the effectiveness of each medium.
P #11: Price
Price has multiple components and needs unique strategies and plans for each.
- List pricing
- Everyday Low Price (EDLP)
- High/Low pricing
- Hybrid EDLP with opportunistic promotions
Critical to the decision is your channel and customer strategy, competitive situation, portfolio mix and consumer pricing sensitivity.
P #12: Place
With this P you need to think broadly…from global, to region, to channel.
Global: International challenges require putting the previous P’s together to determine the merits and overall strategy of succeeding on a global basis.
Region: Regional differences do exist.
- Economic, climate, culture, population, etc.
Channel: Requires deep analysis to determine trade-offs and if presence is needed.
- Club, mass, home improvement, grocery, convenience, sporting, industrial, electronics, specialty, hardware, dollar, drug, distributors, office, etc..
P #13: Placement
Gino considers this to be a bonus P that considers the ideal place in the store where products and services should be located.
- How do you get it there?
- Front or back
- Which direction from the aisle?
- On the counter or checkout?
- Near adjacent categories?
- Near complimentary purchase categories?
- Which position on the shelf?
- Brand block
By thinking through Gino Biondi’s 13 P’s of marketing, you will thoughtfully consider your brands range of options and maximizing your marketing effectiveness.