Thursday, September 15, 2011

In-store marketing can influence consumers

FMCG marketers spend millions trying to influence consumers’ purchasing decisions at the point of sale. The investment is worth because it reaches consumers while they are in the store and ready to buy. The question many marketers fail to ask, however, is whether or not these efforts accomplish their objective — which is driving incremental purchases — and more importantly, contribute to profitable consumer response. To answer these questions, marketers should measure the sales response and return on investment (ROI) of their in-store marketing investment.

Marketers adopt several ways from discount stickers to in-store TV ads in order to influence consumers' decisions. Several different research methods can measure sales responsiveness and ROI of these in-store activities. For marketing events that occur frequently and are routinely tracked via marketing databases, statistical modelling is an effective and reliable measurement tool. Sales data are available for most retail channels and include detailed information about a product’s sales and price. When using them in conjunction with known in-store marketing activities, marketers can develop analytical models that quantify sales response associated with each in-store activity.

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