Conference unearths marketing magic

Innovative marketing strategies give retailers a competitive edge, not big-budget advertising campaigns, an industry expert has revealed. Speaking at the annual IBM National Retailers Association Business Conference earlier late last month, IdeaWorks director Jon Bird said the key to successful retailing is in embracing new communication concepts.
"In whatever way you execute yourself in retail, there needs to be some theatre, there needs to be some interactivity with the customer. It's not all about advertising, it is about events, about stunts, about what you can do to your store as a vehicle."
Identifying American retail giant Target as an example of good marketing, Bird said businesses should define whether they were a value or specialist end service and tailor their publicity accordingly.
"A lot of customers want one of two things: either low-cost basic goods with low emotional investment or goods with a greater emotional value. What they don't want is middle of the road. Ask yourself honestly are you a value retailer or are you specialist retailer? And really sharply define what you do. If there's a grey area in the middle, then a customer is going to get that and you're not going to do business the way you should."
Bird also stressed the importance of emotional branding and understanding the needs and wants of consumers.
"Know who you are, know who you cater to, know where you stand. In a world that is increasingly homogenised and increasingly over-retailed, it's really important to have your own tone of voice.
"Best Buy [American specialty retailer] is a great example there; they've segmented their customers into five customer types and answered that with different store formats and different styles of advertising."
Suggesting that smaller businesses begin by using packaging and shopping bags as promotional devices, Bird also recommended retailers marry traditional advertising methods with emerging retail trends.
"A big trend we're seeing around the world is using your store as a promotional vehicle. We see temporary stores, or what are termed pop-up shops popping up everywhere. Retailers stock their new range in high traffic locations then three weeks or so down the track move on or shut the shop and do something else. So they're able to make a short, sharp statement. It's a different way to think about the media and advertising."