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NEW YORK -- The Promotion Marketing Association (PMA) reported nuanced collaboration is essential to building successful retail and manufacturing marketing initiatives.
Presented during a panel discussion during PMA's Shopper Marketing Conference, "Making Shopper Marketing Work for You -- a 360 Degree View," the reports findings are based on the proprietary research commissioned by the PMA Shopper Marketing Center of Excellence with Nielsen Business Media, CSNews Online's parent company.
"The PMA Survey on Managing and Measuring Shopper Marketing reveals breakthrough insights into shopper marketing," PMA President Bonnie Carlson said in a released statement.
In March, a comprehensive online survey underwritten by Convenience Store News, Brandweek and Progressive Grocer polled manufacturers and retailers as well as the agencies and marketing service organizations working with them. The study highlights the latest practices and trends in shopper marketing.
The survey found that more than 60 percent of respondents currently practice shopper marketing, while 94 percent of retailers perceive that all or some of their competitors are already practicing shopper marketing.
Carlson explained that the PMA shopper marketing must include three essential elements: grounded in an actionable understanding of the shopper; involves reaching/connecting with consumers when they're in the shopping mindset, whether within or outside of the retail environment itself; and a joint effort between manufacturers and retailers.
Key findings of "The PMA Survey on Managing and Measuring Shopper Marketing" are:
-- Retailer: two-thirds have seen increases in sales and improvements in profitability.
-- Manufacturer: two-thirds have also realized enhanced profitability. All reported increased sales, enhanced brand equity, stronger retailer relationships/greater cooperation and stronger consumer relationships.
-- Two out of three manufacturers report that they are conducting primary quantitative and qualitative research to better understand shoppers, and their shopper insights could be stronger.
-- Only one-third of both retailers and manufacturers report that they agree on the metrics for evaluating programs even "most of the time."
-- Nearly two-thirds of manufacturers said they only "occasionally" or "never" reach agreement with retailers on how to measure programs, while no retailers reported that they agree regularly with their vendors.
-- Some 44 percent of retailers responded that they are more likely to support shopper marketing programs than standard initiatives, and none indicated that they receive a lesser level of support.
-- Nearly six in 10 manufacturers report that retailers are giving more support to shopper marketing than they did just one year ago, although just one-third of retailers said they are seeing more support from manufacturers over this same period.