Keynoter Paul Higham says retailers and manufacturers have opposite views of retail marketing. Higham, retired CMO for Wal-Mart Stores and now principal of consultancy hFactor, outlined both perspectives in his presentation to over 500 attendees:
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Manufacturers see their businesses as cradle to grave, with the store as only one part of that. Retailers, on the other hand, are location-centric: “The store is the story.”
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Manufacturers talk about demographically tight user groups; retailers serve a broad audience. “Brand managers ask, ‘Who is Wal-Mart’s average customer?’” Higham says. “To most retailers, that’s an irrelevant question. Everyone shops their store.”
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Manufacturers go by year-over-year sales reports. Retailers, on the other hand, are relationship dependent. “[Wal-Mart founder] Sam Walton said, ‘The secret is getting customers to come to the store.’ It’s about people, not the sales numbers.”
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Manufacturers tend to depend on short-term promotions to push sales. These days, retailers are more likely to do long-term branding.
For retailers and manufacturers, “Working together is very hard,” he concludes. “But that’s no excuse not to do it — and do it well.”
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