POINT OF PURCHASE OR POINT OF SALE ADVERTISING

Point-of-purchase advertising 

Definition: Marketing materials or advertising placed next to the merchandise it is promoting. These items are generally located at the checkout area or other location where the purchase decision is made.

Point-of-sale (POS) or also known as POP (Point-of-Purchase) advertising is category in Marketing communication specialized for sales promotion to attract shoppers.

This kind of advertising serves as a promoter-reminder for the loyal customers and also can be used for promotion of special events. The goal is to create short-term impact preserving the long-term brand name and short increase of selling products.

The POS communication attempts to influence customer buying decisions, and also presenting the products to new customers to convey primary brand benefits.

In today’s Advertising industry using the latest technology, creativity overcomes the standards.

Using this kind of promotion requires careful coordination with the marketer’s sales statistics. This research is must-do for every Advertising agency in order to deliver effective Point-of-sales brand promotion.

Most common noted results in POS promotion is to draw consumers attention to the brand that is presented. To remind and maintain purchase activity among loyal customers and attracting new ones. Also, to stimulate trial use for the promoting brand in target audience that uses competitive brands. The most important thing is to maintain the brand image that is developed already by advertising. The time frame for using POS advertising usually is predefined by the campaign and the story behind it.

Point-of-sale or Point-of-purchase strategy belongs to the category Direct Marketing.

Thus POP is Advertising that is built around impulse purchasing and that utilizes display designed to catch a shopper's eye particularly at the place where payment is made, such as a checkout counter.

There are various types of point-of-purchase displays, including window displays, counter displays, floor stands display bins, banners of any kind, and all types of open and closed display cases. Generally, these displays are created and prepared by the manufacturer for distribution to wholesalers or retailers who sell the manufacturer's merchandise. Often, a manufacturer will discount the cost of merchandise or in some other way compensate the retailer for using a point-of-purchase display.

 

MAJOR TYPES OF POP

Signs differ from displays in that the messages on them are more general. They may serve notice that a given brand is being promoted or simply direct shoppers to an area of the store where a product is on sale. Signs attached to a display may include price or other information about the product.

Shelf media, such as shelf-talkers and shelf strips, may be attached to existing fixtures, and they don't take up precious floor, wall, or counter space.

Windows Displays – are very popular methods used by chemists’ department stores showrooms. In fact the term “Window Shopping” has been used to describe “the pull” these attractive window-displays exert on every passes-by.

Window display contents are used by manufactures to promote retailers to display their products attractively. At present Wipro’s Baby Care product have grabbed window displays at chemists’ outlets.

Displays Cards - These are elaborate cut-out models that are placed outside the retail outlet or placed near the cash-counters.

Frooti, a tetra bricks pack soft drink used this medium effectively. Huge cut-outs of the model drinking Frooti were placed besides boxes filled with hay and foorti packs.This gave an impression that Foorti was as fresh as mangoes.

Wall Displays - Here the folders may be stringed placed across the wall

Merchandising of Racks and Cases - The manufactures may supply the display racks for their products. The round jar of Cadbury’s Eclairs placed besides the cash counters the racks to display Maggi Soups and the huge hamper with Maggi Noodles swinging at the doorway of the retail outlets are striking examples.

In store Commercials - This is the latest form of P.O.P advertising. The commercials are viewed by consumers within the store and act as sales people trying to effect a sale. Electronically operated display panels near cash counters or small screens near shelf-spaces can be used to exhibit the commercials. These are common in supermarkets.

Advantages of P.O.P Advertising

1. It is the last advertising opportunity before the purchase and therefore the manufactures has to hardsell.

2. The P.O.P material is generally similar to the press and TV advertisements and therefore acts as a reminder of mass advertising.

3. It provides information and identification of the brand its image.

4. the most important advantage is that it increases the sales turnover and makes their outlets attractive.

5. Retailers recognize the value of P.O.P as it increases the sales turnover and makes their outlets attractive.

6. Sales promotion contents can be successful by P.O.P material, for example: A retailer may display the latest Pepsi promotional campaign.

7. At times it can be economical and convenient for the retailer to use P.O.P material, for Example: A manufacturer may be willing to supply one with advertising for his brand, at a cost lower than a retailer would pay for one without advertising. In short P.O.P advertising acts as a dealer aid as well as stimulant for consumers.

8. Manufacturers need not depend upon retailers to push their brands as the P.O.P acts as a pull technique.

9. As organized retail such as Big Bazar increases, self service will become the order of the day. This increases the importance of P.O.P advertising

Limitations of P.O.P Advertising

1. With growing competition manufactures are fighting for limited retail spaces. This increases the clout of retailers.

2. P.O.P material is useful only when it is placed at a high level or in an attractive manner. This may not be always possible.

3. A clutter of too many P.O.P materials may confuse the consumer.

4. Retailers are not too bothered about installing the display and when one salesman installs the P.O.P materials, the next salesman from the next sales firm replaces the display with his own. This limits the life of the P.O.P materials.

5. Wall displays and signs may get damaged or may deteriorate.

6. Display racks may misused by stocking it with competitive merchandise

7. Retailers usually do not pay for P.O.P material and therefore may not use it correctly and effectively.

8. Large manufactures having a long term relationship with the retailers and financial clout may enjoy premium places for their displays to the disadvantage of smaller manufactures

Ref: Dr. H. Lakdawala's Media Planning & Buying Notes