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SHIFT TO MARKETING SEEN FOR RETAILERS

CHICAGO -- Supermarket retailers are no longer listening to the time-honored advice of brand marketers to help them deal with increased competition, said Donald Irion, president of RMS.The traditional advice of sales reps or brokers, he said, is, "Our brand increases customer counts and sales, so trust us. We know what's good for you. We'll even manage the category for you." Said Irion: "Our client's

CHICAGO -- Supermarket retailers are no longer listening to the time-honored advice of brand marketers to help them deal with increased competition, said Donald Irion, president of RMS.

The traditional advice of sales reps or brokers, he said, is, "Our brand increases customer counts and sales, so trust us. We know what's good for you. We'll even manage the category for you." Said Irion: "Our client's reaction is, 'That's not getting it done anymore.' "

Instead, supermarket retailers are shifting their focus from merchandising to marketing. Frequent shopper programs are the key to this change, said Irion, speaking here at an in-store marketing conference sponsored by the Grocery Manufacturers of America. The new strategy for retailers uses information to gain a strategic advantage, said Irion, whose company licenses data base marketing software to retailers. "The card is the linchpin," he said. Such a program and its accompanying data base marketing, he said, enable retailers to do a better job of meeting customer needs, differentiate themselves from competition and focus on profits rather than sales. Irion advised brand marketers to educate their sales forces about what this strategic change by retailers means. "Learn about retailers' capabilities -- commitment level, information and programs," he said.