Signage and Pointof Purchase Communications.ppt

2010 South-Western,a part of Cengage LearningAll rights reserved.,Signage and Point-of-Purchase Communications,CHAPTER 20,INTEGRATED MARKETING COMMUNICATIONS IN ADVERTISING AND PROMOTION,Appreciate the role and importance of on-premise business signage.Review the various forms and functions of on-premise signage.Appreciate the role and importance of out-of-home,or off-premise,advertising.Understand billboard advertisings strengths and limitations.Appreciate the role and importance of point-of-purchase advertising.,Chapter ObjectivesAfter reading this chapter you should be able to:,2010 South-Western,a part of Cengage Learning.All rights reserved.,202,Review evidence of P-O-Ps role in influencing consumers in-store decision making.Examine empirical evidence revealing the effectiveness of P-O-P displays.Appreciate the importance of measuring audience size and demographic characteristics for out-of-home as well as in-store advertising messages.,Chapter Objectives(contd)After reading this chapter you should be able to:,2010 South-Western,a part of Cengage Learning.All rights reserved.,203,2010 South-Western,a part of Cengage Learning.All rights reserved.,204,Introduction,2010 South-Western,a part of Cengage Learning.All rights reserved.,205,On-Premise Business Signage,On-premise Business SignsProvide new customers with their first knowledge of the company and first impression of the companyConsidered the most cost-effective and efficient form of communication available to retail businessesImportance of SignageLegible,conspicuously placed signage,easily discernable and understood by the public is essential to the survival of many businesses,2010 South-Western,a part of Cengage Learning.All rights reserved.,206,Types of On-Premise Signs,Free-Standing(Unattached)SignsMonument signsPole signsA-frame(sandwich-board)signsPortable signsInflatable signs,Building-Mounted(Attached)SignsProjecting signsWall signsRoof signsBannersMuralsCanopy and awning signs,2010 South-Western,a part of Cengage Learning.All rights reserved.,207,Illustration of Free-Standing Sign,Figure 20.1,2010 South-Western,a part of Cengage Learning.All rights reserved.,208,Illustration of Building-Mounted Sign,Figure 20.2,2010 South-Western,a part of Cengage Learning.All rights reserved.,209,The ABCs of On-Premise Signs,B,Brand the retail site in consumers minds,A,Attract new customers,C,Create impulse buying decisions,Conspicuity,Signage characteristics that enable walkers or drivers and their passengers to distinguish a sign from its surrounding environment.,2010 South-Western,a part of Cengage Learning.All rights reserved.,2010,Out-of-Home(Off-Premise)Advertising,Out-of-Home(OOH)AdvertisingIs the oldest form of advertisingIs seen by consumers while they in transit to a destination or away from homeIs regarded as of major importance but supplementary to other forms of advertisingHas many delivery modes:Billboards,bus shelters,street furniture,shopping-mall displays,transit vehicles,skywriting,blimps,2010 South-Western,a part of Cengage Learning.All rights reserved.,2011,Forms of Billboard Ads,2010 South-Western,a part of Cengage Learning.All rights reserved.,2012,Forms of Billboard Ads(contd),2010 South-Western,a part of Cengage Learning.All rights reserved.,2013,Neiman Marcus Interactive Media Wall,Figure 20.3,2010 South-Western,a part of Cengage Learning.All rights reserved.,2014,Specialty Billboard for a Fitness Center,Figure 20.4,2010 South-Western,a part of Cengage Learning.All rights reserved.,2015,Buying Billboard Advertising,PlantsAre companies that own the billboards on which outdoor advertising space is purchasedShowingIs the percentage of the population exposed to an advertisers messages quoted in increments of 25:#25=25%of population exposedGross Rating Points(GRPs)Represent the percentage and frequency of an audience an advertising vehicle is reachingOne outdoor GRP=1%of the population,2010 South-Western,a part of Cengage Learning.All rights reserved.,2016,Billboard Advertisings Strengths and Limitations,StrengthsBoard reach and high frequencyGeographic flexibilityLow cost per thousandSubstantial brand identificationOpportune purchase reminder,LimitationsNonselectivityShort exposure timeDifficult to measure audience size and characteristicsEnvironmental concerns,2010 South-Western,a part of Cengage Learning.All rights reserved.,2017,Humans Playing Soccer on aJapanese Billboard,Figure 20.5,2010 South-Western,a part of Cengage Learning.All rights reserved.,2018,Measuring Billboard Audience Size andCharacteristics,Typical Media Buying Decision FactorsThe size of the audience reached and the average OTS frequency of the media The demographic characteristics of audiences reached by the chosen media vehiclesOOH Measurement ProblemDeveloping ways to determine the characteristics of outdoor audiencesNielsen Personal Outdoor Devices(Npods)may provide better information about audiences,2010 South-Western,a part of Cengage Learning.All rights reserved.,2019,Illustrations from the Outhouse Springs BillboardCampaign,Figure 20.6,2010 South-Western,a part of Cengage Learning.All rights reserved.,2020,A Transit Advertisement for SmartWater,Figure 20.7,2010 South-Western,a part of Cengage Learning.All rights reserved.,2021,A Transit Advertisement for Kodak Digital Cameras,Figure 20.8,2010 South-Western,a part of Cengage Learning.All rights reserved.,2022,A Cause-related OOH Advertisement,Figure 20.9,2010 South-Western,a part of Cengage Learning.All rights reserved.,2023,Point-of-Purchase Advertising,The Point-of-Purchase EnvironmentIs the time and place at which all elements of the sale(consumer,money and product)come togetherIs the final opportunity for an IMC program to influence consumer behaviors related to product and brand choicesSpectrum of P-O-P MaterialsPermanent displays(in use six months or more)Temporary displays(in use less than two months)In-store media(use determined by third party),2010 South-Western,a part of Cengage Learning.All rights reserved.,2024,Illustration of a Permanent Display,Figure 20.10,2010 South-Western,a part of Cengage Learning.All rights reserved.,2025,Illustration of a Semi-Permanent Display,Figure 20.11,2010 South-Western,a part of Cengage Learning.All rights reserved.,2026,Illustration of a Temporary Display,Figure 20.12,2010 South-Western,a part of Cengage Learning.All rights reserved.,2027,Illustration of Floor Advertisements,Figure 20.13,2010 South-Western,a part of Cengage Learning.All rights reserved.,2028,What Does P-O-P Accomplish?,Service to Retailers,Attracts consumers attention which increases shopping interest and extends the time they spend in the storeMaximizes space for various products displayed in the same unitEnables better organization of shelf and floor space to improve inventory control and stock turnover,Accomplishments for Manufacturers,Keeps the firms name and the brand name before the consumerReinforces a previously established brand imageCalls attention to sales promotions and stimulates impulse purchasing,Value to Consumers,Simplifies consumers shopping and selection processes by delivering useful information that sets particular brands apart from similar itemsInforms consumers of new products and brands.,2010 South-Western,a part of Cengage Learning.All rights reserved.,2029,P-O-Ps Influence on Consumer Behavior,2010 South-Western,a part of Cengage Learning.All rights reserved.,2030,P-O-Ps Uses:Informing,Factors in the Effectiveness of Motion DisplaysMotion displays attract attentionMotion displays direct attention to salient product features(e.g.,recognition of the brands name)Brand name information activates consumers memories pertaining to brand attributes previously processed from media advertisingInformation on brand attributes,when recalled,supplies a reason for the consumer to purchase the displayed brand,2010 South-Western,a part of Cengage Learning.All rights reserved.,2031,P-O-Ps Uses:Reminding,EncodingThe placing of informational items into memoryEncoding Specificity PrincipleInformation recall is enhanced when the context in which people attempt to retrieve information is the same as or similar to the context in which they originally encoded the informationExplains the difficulty that consumers have in recalling specific brand yet can remember details of a specific advertisement for the brand,2010 South-Western,a part of Cengage Learning.All rights reserved.,2032,P-O-Ps:Encouraging,Effective P-O-P materialsInfluence product and brand choices at the point of purchaseEncourage unplanned purchasing and even impulse buying.Evidence of In-Store Decision MakingUnplanned purchasing is a high proportion of all purchasesMany product and brand choice decisions are made while the consumer is in the storePoint-of-purchase materials increase sales volume,2010 South-Western,a part of Cengage Learning.All rights reserved.,2033,Results from the Point-of-Purchase Advertising International(POPAI)Consumer Buying Habits Study,Table 20.1,2010 South-Western,a part of Cengage Learning.All rights reserved.,2034,Product Categories with the Five Highest and Five LowestIn-Store Decision Rates:Supermarket Purchases,Table 20.2,2010 South-Western,a part of Cengage Learning.All rights reserved.,2035,Product Categories with the Five Highest and Five LowestIn-Store Decision Rates:Mass Merchandise Purchases,Table 20.3,2010 South-Western,a part of Cengage Learning.All rights reserved.,2036,Supermarket and Mass Merchandise Product Categorieswith Highest Average Brand Lifts from Displays,Table 20.4,The Brand Lift Index:Indicates how the presence of P-O-P materials affects the likelihood that customers will buy a product they had not specifically planned to buy.,2010 South-Western,a part of Cengage Learning.All rights reserved.,2037,Display Information for POPAI/Kmart/P&G Study,Table 20.5,2010 South-Western,a part of Cengage Learning.All rights reserved.,2038,The POPAI/Warner-Lambert Studies,Benylin Study FindingsNormal shelf position+feature price=29%sales increaseEndcap+feature price=98%sales increaseIn-aisle floorstand+feature price=139%sales increaseListerine Study FindingsNormal shelf position+feature price=11%sales increaseRear endcap+feature price=141%sales increaseFront endcap+feature price=162%sales increase,2010 South-Western,a part of Cengage Learning.All rights reserved.,2039,The Nonuse of P-O-P Materials,Reasons Why P-O-P Materials Go UnusedNo incentive for the retailer because the materials are poorly designed and dont meet their needs Displays take up too much space for the amount of sales generated Materials are too unwieldy,difficult to set up,or flimsy They lack eye appeal Sales may transfer from one brand to another but not increase retailers overall sales and profits,2010 South-Western,a part of Cengage Learning.All rights reserved.,2040,Encouraging the Use of P-O-P Materials,P-O-P materials must be:The right size and formatFit the store dcorUser friendlySent to stores when they are neededProperly coordinated with other marketing communications programAttractive,convenient,and useful for consumers,2010 South-Western,a part of Cengage Learning.All rights reserved.,2041,Measuring In-Store Advertisings Audience,Pioneering Research for an In-Store Metric(PRISM)Is the result of a POPAI initiativeIs a procedure for acquiring standard diagnostics(e.g.,reach,frequency,and gross ratings)for measuring in-store media performanceWill allow brand marketers to plan and evaluate in-store advertising in much the same way as they do for print and broadcast media,