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WHY LOCATION MATTERSLocation Based Marketing and the New Retail Economy
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Location 1.0the rise of the social shopping experience
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“Mass localization”the rise of the
“DAILY DEAL”mobility gets socialized through the
“CHECK-IN”
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Tactical
Unsustainable
One-time Opportunities
“Incentived” Intent
Limited relevance for National Brands
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Location-based marketing is
NOT just
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Location is Mobility
ACCESSDISCOVERYEFFICACY
Mobility is about the SHOPPER’S JOURNEY,
capturing behaviors and intent across time, space, and place.
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Mobility is redefining the Path to Purchase
Consumption of Media, Messages, and Ideas is now an “on-the-go” proposition
Technology is reshaping how consumers shop (i.e. rise in the “social shopper”
Marketing becomes more about building relevant relationships through targeted meaningful engagements
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Which becomes the next person’s ZMOT
A New Decision-making Model
Traditional Advertising
First Moment of Truth
Second Moment of
Truth
At shelf ExperiencePre-shoppingStimulus
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Categories of influence
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StimulusZMOT
FMOT
76%84%
77%
ZMOT: the new influence driver
Sources Used – SubgroupsSearched online, used search engine
Talked with friends & family
Comparison shopped products online
Sought information from a brand website
Read product reviews online
Sought information from a store website
Read an article online
Became a friend/follower/”liked” a brand
Base: N=5,003
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Mobility delivers new opportunities to Engage and Connect
Tech Innovation must keep both the retailer and the consumer in mind
Location becomes a critical component of the communication strategy
Audience-based engagement enable marketers to better navigate the new shopper experience.
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Welcome to Location 2.0locating the intent to buy
INTENTION EXECUTION
VIRTUAL AND PHYSICAL PRE-SHOPPING ACTIVITY
WHAT I WANT
WHERE I PLAN TO DO IT
HOW
WHEN
WHERE
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Power of PROXIMITY
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10 Yards
14 Miles AwayProfile and target the 80% of your customers live within a 14 mile trade radius of your store
10 YardsWrap the store in media to drive top of mind awareness immediately prior to purchase
3 feet & In-StoreUnderstand shopper decisions to engage & continue conversations
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Consumer behavior illustrates that last 3 feet of retail is driven by the need for real-
time, relevant information.
For marketers, how you serve this
information back to your customers is
key.
In-Store Shopping Activities of Internet Users December 2009
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Opportunities become DATA ENABLED
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Technology companies
Media / Entertainment companies
Distribution platforms
Data companies
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Technology companies that also create content
Data Companies
Old line media companies do both content and distribution
Distribution platforms
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Lead with the Customer!
lifestyle
preferences
values online
Local Responsiveness
Local ReceptivityLocal Reach
Utility within the Shopper’s Journey
PreferencesAttitudes
Intent to Purchase
MEDIA CUSTOMER
framework to direct media strategy and the
integration of technology and creative.
DATA TELLS A STORY.
In-store
frequency
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Saliency becomes CRITICAL
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Is Privacy truly a Barrier?
the privacy
VALUE EXCHANGE
CONTENT
Marketer
CONVENIENCE
Consumer
Opera Research © 2011
60% of adults under 34 are willing to share their location for more relevant content (JiWire, Q2 2011)
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PepsiCo and Foursquare align location and behavioral relevance
• Behavior-Driven Offers
• Time of Day, Habits, Locality
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When Opportunity meets Preparation
• Convergence of mobile and online search• Leveraging location and mobility as The Bridge• Celebrating “The Experience” across the
engagement funnel
Capturing the sale, whether online, on mobile, or in-store.
Time of Day Geo-location
Proximity to Store
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1. Location (strategy) technology is not just reserved for mobile media but ALL media
2. Engagement means being present in the conversation based on your customers needs, not yours.
3. Driving POS activity starts with understanding behaviors across locations, times-of-day, and general intent to purchase.
4. Information and technology can no longer be silo’ed. Your data tells an intricate story about your customer across, time, space, and place.
5. Privacy Trade Off: Consumers want convenience, relevancy, AND simplicity
What the next chapter tells us
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The “pay-off” of the Experience
ENGAGEMENT
CONVENIENCE
SOLIDARITY
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