FILE: PBT MRD SMARTSHOP V1.0
VERSION: 1.0 PAGE 3 OF 43
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Many retailers, especially grocery stores, are improving the way they track customers' purchases -- and how they reward those customers. Forget the old club card you must present with each purchase. "You're going to see retailers, particularly the grocery companies, do more with the data they gather from customers," says Mr. Fox,[professor of marketing at Southern Methodist University]. "They're going to give you a special discount or give you more information about what you bought or what's on sale."
“Trends (A Special Report): Retail --- Upscale Experience, Downscale Prices”Wall Street Journal, November 21, 2005
“Google is basically out to make every ad a targeted ad," said Safa Rashtchy, an analyst for Piper Jaffray & Co."That started in search and that will go beyond search in display advertising and then offline.”
“Google explores radio ad sales; Search engine plans to buy dMarc of Newport Beach”San Francisco Chronicle, January 18, 2006
Deloitte believes there are four umbrella challenges in Trade & Consumer Management that are of highest priority to CPG manufacturers [including] Direct to Consumer Marketing: ‘How should we leverage information from retailer loyalty programs to jointly market to the consumer?’
“What is Trade Promotion?”Deloitte Consulting, August 5, 2004
The three quotes above exemplify anoverall trend in consumer marketing.Companies have worked to get closer tothe consumer in their marketing. Key tothis effort has been cycles of improvementin data gathering and technologies fordelivering content to individuals. For example, a major innovation for magazine publishers was the abilityto vary ads by subscribers’ locations, opening up channels for local advertisers. In recent years, Googlehas taken marketing to another level with its AdWords. These catch consumers’ self-identified interestsright at a moment in which they are highly receptive to a message. Google’s recent announcement of itsacquisition of dMarc highlights the Web giant’s view about other areas ripe for more targeted marketing.SmartShop is a product designed to take marketing even further along this spectrum, toward true
personalized marketing
. Grocers and other retailers have established loyalty programs with an eyetoward improving their information capture and fostering a relationship with customers. The reality is fewMerchants have captured even a quarter of the potential of these programs. Consumer packaged goodsmanufacturers (CPGs) are also keenly interested in developing better ways to market directly toindividuals. Currently, they havelittle ability to identify and reachindividuals most interested in theproducts.SmartShop will deliver a set ofoffers (i.e. discounts) based onconsumers’
actual
purchases. BothMerchants and CPGs will input theoffers they want to distribute.SmartShop will handle the targetingand distribution of these offers.Consumers will receive their offersin an easy to access and useprocess, completing the loop for truepersonalized marketing.
MassMarketingTargetedMarketingTargetedMarketingPersonalizedMarketing
A d F l y e r s N e t w o r k T V L o c a l R a d i o M a g a z i n e s G o o g l e A d W o r d s W e b s i t e s S m a r t S h o p D i r e c t M a i l G o o g l e A d S e n s e A m a z o n . c o m
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