Consumer Series I: Marketing to Women

Do men and women really shop differently? Is there truly a better way to market to women? Is the sky blue?

Ask any couple, married or not, and they'll say you don't need to be a marketing guru to know that men and women communicate very differently. They also react very differently to various forms of communication.

So, how do you target advertising, marketing messages, and displays to women? We asked the experts to explain some of the differences to help you get a handle on marketing to a population that comprises more than half of your customer base.

While the information relayed here won't apply to every woman — women of different generations and social groups have different needs, there is a basic outline you can look toward to help you understand women (although many men would tell you this is an impossible task).

Women: The Demographic
Women earn about 76 percent of what men earn, based on U.S. Census Bureau information — or about $30,724 versus $40,668 as a median income. However, women control three-quarters of family finances. Overall, according to the International Dairy • Deli • Bakery Association's (IDDBA) What's in Store 2005 Report, women are responsible for $2 trillion in spending annually, and they are putting themselves in the position of earning more.

"The U.S. Bureau of Labor Statistics reports that in 2004, 72 percent of recent female high school graduates entered college, while only 61 percent of recent male high school graduates entered college," the report states. "Additionally, in 2004, half of all management, professional, and related occupations were held by women."

The IDDBA report also illustrates the influence women have on the grocery industry with sales of food and beverages made for women increasing 80 percent annually between 2000 and 2004, totaling $4.6 billion by 2004.

Women & the Home
Purchases of houseware and kitchen-related products are still influenced the most by women. That's because women's historical gender role as "homemakers" makes the fairer sex the primary decision makers in today's retail housewares environment.

The fall 2005 issue of Housewares MarketWatch published by the International Housewares Association featured an article written by Peter Greene, vice president of NPD Houseworld, that illustrated the role gender plays in consumer shopping preferences in the housewares industry.

"Compared to what we see in other areas of retail, the role that men play in home-related industries, including what they buy and where they go to buy it, has not changed much over the years," he wrote. "Women still dominate the small appliance category, while men still dominate home-improvement buying, the one segment of the marketplace in which marketing machismo has a strong influence on retail. Still, this is preaching to the choir since men have traditionally dominated that category anyway."

Men are becoming more involved in bridal registries. According to an NPD Houseworld report, roughly six in 10 brides surveyed said their grooms-to-be were very or somewhat involved in the registry process. Although it's too soon to say how this impacts business, some manufacturers are taking note.

"For the most part, women are making the purchases as often today as they have in the past," wrote Greene, "debunking the idea that men are encroaching on women's shopping primacy as it relates to the home goods market. With home improvement being the sole exception, the greatest influence on the aforementioned industries continues to come from women, a trend that shows little evidence of changing."

Hunters vs. Gatherers
Now that we've established that women remain the primary consumers in our market, we have to examine how to best meet their needs.

To understand the effect gender has on shopping preferences, we can begin in the Stone Age. Honestly. Men are still the hunters, while women tend to be gatherers. Many marketers we spoke with said that men tend to be more likely to make impulse purchases. Women, on the other hand, like to be sure they have completed their research and understand what it is they are purchasing. In other words, men are more likely to run across some game, claim it, bag it, and take it home. For women, it's not so simple.

"Women will deliberate more about the decision. They take more care in shopping and want to make wise decisions," said Sharon Franke, director food appliances at Good Housekeeping Magazine and a Consumer Trends Forum board member. "Retailers need to explain the features and benefits of a product because women are more likely to walk out of the store without purchasing something if they aren't sure they have found what they want, or if the product is right for them. Packaging information and point-of-purchase signage has to explain what's better about the product or what it can do for them."

Franke said women are more "problem and solution" oriented than men. When shopping for a particular product, they want to be sure it will solve an issue for them or make their lives easier.

In their study, the IDDBA related that during a supermarket survey, female responses differed significantly from those of their male counterparts for the following questions:
• Personal safety outside the store (59% of women said it was "very important" vs. only 31% of men)
• Items on sale or money-saving specials (64% vs. 43%)
• Store layout that makes it easy to shop (54% vs. 35%)
• Use before/sell by date marked (69% vs. 52%)

For the most part, these responses transcend the grocery store format, giving retailers a basic outline for the physical store operation desired by women as one that is safe and easy to shop. Also, sales are important to women.

Customer Service
Customer service and special promotions/sales tend to be the major attractors for women. Mass merchants continue to have a stronghold on the small appliance category with lower pricing and large volumes of product. Both men and women continue to heavily shop mass merchants for small appliances, making this the leading channel independent of gender. NPD Houseworld consumer data reveal that mass merchants comprise half of men's total small appliance purchases. The figure for women is 55 percent. When they pass up mass merchants, men tend to frequent home/hardware centers, wholesale clubs, and national chains for small appliance purchases, more so than women, a consistent trend over the years.

Wal-Mart is the big winner in the category with the appeal of pricing and convenience attracting women to the store.

"Part of the appeal is being able to get everything in one place. We know from our readers that time management and clutter are the two things that come up over and over as problems," Franke said.

Independent retailers can compete with mass merchants by offering better educational programs, personal customer service, and special services.

"There is a lot to be said for relationships. Anything independent retailers can do to emphasize service will help them attract women to their stores," Franke began. "By shopping in a smaller store, women can get the information they need to make the right decision. They want to be smart about what they are buying but they may not get that at Wal-Mart. When store personnel develop a personal relationship with their customers, that customer will become loyal. They begin to think of the people in the store as friends, people they want to see. It becomes a personal shopping experience. Another benefit is that the person in the store comes to know their customers — they can channel them to the exact products they want, cutting through the clutter and saving time."

Another way Franke said retailers can create a personal bond with their female customers is to provide special order services.

She explained, "Women hate it when they want something and they can't get it. Women really want the one that they have identified and the one they believe will solve their problems. That's something that's frustrating about online shopping. When you finally narrow down your research to the exact product you want only to discover it's back ordered, many women won't continue the purchase process. An independent store can help make you feel confident that you will get the product and get it on time."

Online Appeal
The Internet is a great tool for women to research and shop for all categories of goods from groceries to blenders to tabletop. The Internet answers another need of women — saving time. A December 2004 ACNielsen/NetRating study found that the average Internet-savvy consumer spent 51.5 hours per month online, at home, or at work. For working mothers, it is the convenience and time-saving measure of shopping at work or late at night after the kids are in bed that makes this form of shopping so essential.

"As broadband access picks up at home, women will be shopping more online at home. The slowness of dial-up was an impediment. And now the convenience of broadband is becoming overwhelming," Franke said. "Without a doubt, it is the working woman who will gravitate to online shopping where they can shop in the middle of the night or at work. It is the stay-at-home mom or the older woman who will be shopping during the day or going store to store."

More people are enjoying the ready access and conveniences afforded by high-speed Internet connections. A study released by the Federal Communications Commission states that 99 percent of Americans can now subscribe to broadband services, and 37.9 million already do. ACNielsen/NetRatings reports that the average broadband viewer in November 2004 spent 34 percent more dollars than their narrowband counterpart on average, and converted from shopper to buyer 26 percent of the time, versus a narrowband rate of 21 percent.

"Certainly within the last five years, working women have really embraced online shopping. It's been a fabulous tool for them to do shopping and still manage their time," Franke continued. "Working moms, in particular, love the convenience of online shopping — it's something that can't be underestimated or overlooked in any way."

If you worry that online shopping will pull customers from your store, relax. For existing customers, your online channel simply provides them another opportunity to shop your store more frequently. And research continues to show that online customers transition to in-store customers. ACNielsen reports that online Internet surfers become offline preferred customers, especially the registered segment, which spends 35 percent more than casual web site visitors.

Targeting women through online media campaigns and special web-based promotions is another opportunity for specialty retailers. As you build your online relationship, these customers will also be secure in the knowledge they can visit or call your store for additional services or information.

So however you plan on reaching them — through online campaigns, in-store promotions, or traditional advertising, catering to your female customers with in-depth product knowledge, special order services, convenient hours, and special pricing promotions will help you get them over the threshold. Once inside, it's up to you to build those personal relationships that keep women returning back for more.