BrainTrust Query: Is it just me, or are contradictions running rampant in retail marketing?

By Bill Bittner, President, BWH Consulting

I fly a small plane. I have an instrument rating, so I occasionally find myself flying solely by reference to the instrument panel. The mantra I have learned for flying is "Crosscheck, Interpret, and React." In order to have back-up, there are multiple instruments that provide the same data, so the first step is to Crosscheck all the instruments to make sure they are saying the same thing. The next step is to Interpret the information, i.e., is your altitude or direction changing in the intended manner? The last step is to React in order to correct for any deviation. All these steps happen kind of simultaneously while your flying, but I have found them to be a good way to evaluate many other life situations.

There were many instances during the NRF conference this year when I found myself stuck at Crosscheck. I was not sure how to React to the messages I was receiving because they were inconsistent, therefore the Interpretation was ambiguous.

Here were some of the contradictions that struck me:

First, let's consider the theme. The focus for the NRF show was CRM and target marketing to support customer loyalty. Yet the largest retailer in the United States does not even have a frequent shopper card and prides itself on operating a no-frills distribution channel. So how significant are the mist screen digital displays and new targeted messaging solutions demonstrated at the show?

Many of the manufacturers present emphasized the importance of their brands and the development of an image. Yet all the recent surveys of merchandise sales have confirmed the increasing importance of private label sales.

One of the exhibitors was a sports underwear brand named Under Armour. They have seen phenomenal success with their underwear line and are now branching out into sporting footwear - all this in a country where obesity among young people has just been declared one of the top health problems.

The primary description of today's consumer is the time-starved individual who only wants to get their shopping done and then get on with their life. On the other hand, many of the retailers represented (and targeted) at NRF are "specialty retailers." Who has the time to visit these stores?

I think one of the reasons I enjoy flying is that it is pretty much black and white. It is rare that the instruments don't all say the same thing, so ambiguity is unusual (that's a good thing). Real life is not the same and that certainly goes for retail as we try to understand what motivates the individual consumer.

Discussion Questions: What do you think are some of the reasons behind retail contradictions? Are there more you have seen?

I remember an advertising course I took where the professor said the number one mistake people make in advertising is to apply their own beliefs to the general public. His example (this was a professor) was book reading. At the time, the average individual read one book a year. That was the average so you know there were a lot of people who did not read any. Anyone building an ad campaign that depended on people reading a book was making a mistake.

I think contradictions will only escalate as markets become more fragmented and individuals exercise their unique tastes. As more targeting occurs, niche markets will continue to survive because they are no longer forced to homogenize. The one common theme that will remain is value. The emphasis will be on quality and price. For manufacturing goods, this means a flexible supply chain that begins with quality producers and a message that emphasizes quality. For groceries and other FMCG retailers, it means wide assortments that meet the needs of many niches.