CPG marketing stands for Consumer Packaged Goods marketing, which refers to the activities and campaigns used to generate awareness, brand affinity, and loyalty for a companys consumer packaged goods. Consumer packaged goods are products purchased by consumers that require regular replacement or repurchase, such as food, beverages, household cleaners, toiletries, and tobacco. CPG marketing can involve online or offline marketing tactics, such as display advertising for online marketing and billboard ads for offline marketing, in standalone campaigns, as well as “always on” programs. CPG marketing initiatives come in two varieties: paid and organic. Paid marketing examples include online advertising, paid search, billboard advertising, and paid social media marketing. Organic CPG marketing involves activities that do not cost money, such as content marketing, organic social media posts, and email marketing.
CPG marketing is important because consumers have near-unlimited choice and zero switching costs. CPG marketing is used to stay “top of mind” with consumers and to remind them of the benefits of a particular brand, as well as to differentiate a brand from its competitors. CPG marketing is also important for generating growth. Data-driven marketing at scale can deliver growth, and CPG companies can deliver 3 to 5 percent growth in net sales and improve marketing efficiency by 10 to 20 percent.
In order to succeed in CPG marketing, companies need to build a continuously updating, AI-powered consumer-intelligence engine that ingests enough signals and data points to not only identify demand but to predict it. Then, use advanced analytics and marketing technology to recommend high-value actions. CPG brands that team up with other brands for joint marketing campaigns can reach a greater number of people than they could on their own. Influencer marketing is also a popular strategy.
CPG marketing activities are classified into two types: paid and organic. The CPG marketer spends budget with one or more vendors or partners in a paid initiative, while organic CPG marketing involves activities that do not cost money.
