Strategies for Marketing Consumer Electronics at Retail

At computer superstores and mass merchandisers, technology marketers face tremendous challenges. Their products must break through clutter, differentiate from competitors and communicate clearly to experts and novices: All within the minute or two that people typically spend making a purchase decision. And as we know all too well, they certainly can't rely on informed salespeople to do the explaining or selling for them. With these challenges in mind, I'd like to share several insights gathered from our recent studies to help tech marketers communicate more effectively at retail: "Reassure" Customers, Rather Than Overwhelming Them At your local CompUSA or Target, you will find that most technology products are promoted in terms of features and benefits (such as processing speed, memory, etc.). Unfortunately, saying "everything" about a product (in the hopes of hitting each shopper's "hot button") is rarely effective. At retail, people simply don't have the time or ability to process all of this information, particularly when they are trying to compare multiple brands and products. In addition, we've repeatedly found that cluttered messaging (and "busy" packaging) can suggest a cheap or difficult-to-use product. Across categories, we've found that the most effective point-of-sale efforts are often the simplest. Specifically, they focus on providing reassurances regarding "universal" issues of concern to less-sophisticated technology buyers: Compatibility ("Will it work with my system?")Functionality ("Can I use it for the purpose that is important to me?") Expert Approval ("Has it been 'approved' by a publication I've heard of?") Send a Clear Branding Message ("Own" a Dimension) Of course, a strong, clear branding message is the most important "reassurance" that any point-of-sale effort can deliver. However, few brands send a clear message at retail, often for one of the following reasons: They fail to leverage the equity and visual imagery established in the brand's advertising. They emphasize sub-brands (Compaq Presario, HP Pavilion, etc.), at the expense of consistent identity. In our experience, we've found that few consumers have the time and energy to make sense of the different sub-brands: Most are looking for the simplicity and reassurance that a "master brand" provides, along with the message and image they've seen in the advertising for that brand. We've also found that the most powerful marketing programs are those that send a clear/singular branding message aimed at "owning" one key dimension ("We're the most advanced" or "We're the easiest to use."). Unfortunately, many marketers fall into the trap of trying to "be all things to all people" (via different sub-brands and products) and the result is often a muddled brand message. This encourages people to shop by product specifications, which is often a losing battle: If your product offers 750 "widgets', someone else will find a way to say that their product offers 800. Differentiate Products By Suggested UseTo distinguish their different products, many marketers attempt a "Good, Better, Best" strategy, which makes it nearly impossible to sell the older or "lower-end" models. We've found that a compelling approach is to segment different models by suggested use. For example, while two surge protector models may both be capable of protecting a computer, it may be more effective to present one as "the" model for home appliances and the other as "the" model for protecting your home PC. Unfortunately, we have found that product comparison charts or tables are usually ignored, due to their complexity. It's best to simply ensure that key specifications appear in the same location on each package, in order to facilitate comparisons. Don't Cut Corners on PackagingMost tech marketers take for granted that "live" product displays are critical. However, opinions tend to vary regarding the importance of packaging, given that hardware products are likely to be displayed. Across categories, we've consistently found that packaging does influence sales, even when products are on display. First of all, if the packaging is not in view at retail, some shoppers assume the product is out-of-stock and simply select another item. We've also found that packaging sends a critical message about product quality: A blurry product visual will undermine perceptions a cell phone's reception or a printer's output. In this vein, we've found that packaging must contain a clear and prominent product visual. For hardware products, this will minimize shoppers' tendency to leave behind open boxes that can't be sold. For software products, the "product shot" should convey either the function/benefit of the product (for productivity products) or its "fun" (for games and children's software). Start with the Customer Finally, as a researcher, I feel compelled to remind you that successful retail marketing programs begin with the shopper. Therefore, I'll conclude with two suggestions for speaking with your target customers: Be Sure to Speak with "Less-Sophisticated" ShoppersThese people are the most likely to be influenced by your retail marketing efforts -- and they are always the best "reality check" as to the clarity and relevance of your messages.Focus on Understanding Their "Hot Buttons' and "Visual Language" At retail, the key to communication is simplicity. To communicate clearly, you need to identify the two to three "hot buttons" that shoppers use to sort products in your category (speed, reliability, etc.) and to uncover (or develop) the "visual cues" to convey these points quickly and clearly. Since most purchase decisions are still made at the shelf, technology marketers that "do their homework" with shoppers are sure to be well rewarded. Scott Young is President of Perception Research Services (www.prsresearch.com), a company that conducts over 500 studies annually to guide packaging and point-of-sale marketing decisions.

Strategies for Marketing Consumer Electronics at Retail

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