Marketing Communications - Chapter 20 docx

Appreciate the importance of measuring audience size and demographic characteristics for out-of-home as well as in-store advertising messages.. size and demographic characteristics for o

Signage and Point-of- Purchase Communications

Signage and Point-of- Purchase Communications

CHAPTER 20

CHAPTER 20

1 Appreciate the role and importance of on-premise

6 Review evidence of P-O-P’s role in influencing

consumers’ in-store decision making

7 Examine empirical evidence revealing the

effectiveness of P-O-P displays

8 Appreciate the importance of measuring audience

size and demographic characteristics for out-of-home

as well as in-store advertising messages

consumers’ in-store decision making

effectiveness of P-O-P displays

size and demographic characteristics for out-of-home

as well as in-store advertising messages

Chapter Objectives (cont’d)

After reading this chapter you should be able to:

Chapter Objectives (cont’d)

After reading this chapter you should be able to:

On-Premise

Business Signage

Out-of-Home Advertisements

Point-of-Purchase (P-O-P) Messages

Signage and Point-of-Purchase

Marcom

On-Premise Business Signage

• On-premise Business Signs

 Provide new customers with their first knowledge of the company and first impression of the company

 Considered the most cost-effective and efficient form

of communication available to retail businesses

• Importance of Signage

 Legible, conspicuously placed signage, easily

discernable and understood by the public is essential

to the survival of many businesses

Types of On-Premise Signs

Illustration of

Free-Standing Sign

Figure 20.1

Illustration of

Building-Mounted

Sign

Figure 20.2

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.

Out-of-Home (Off-Premise) Advertising

• Out-of-Home (OOH) Advertising

 Is the oldest form of advertising

 Is seen by consumers while they in transit to a

destination or away from home

 Is regarded as of major importance but

supplementary to other forms of advertising

 Has many delivery modes:

 Billboards, bus shelters, street furniture, mall displays, transit vehicles, skywriting, blimps

shopping-Forms of Billboard Ads

Poster Panels

Digital (Electronic) Billboards Painted Bulletins

Specialty Boards

Major Forms of Billboard Advertising

Forms of Billboard Ads (cont’d)

Electronic

(Digital)

Billboards

form of visual pollution

Specialty

Billboards

advertising messages in an especially engaging and creative way

Neiman Marcus Interactive Media Wall

Figure 20.3

Specialty Billboard for a Fitness Center

Figure 20.4

Buying Billboard Advertising

• Plants

 Are companies that own the billboards on which

outdoor advertising space is purchased

• Showing

 Is the percentage of the population exposed to an

advertiser’s messages quoted in increments of 25:

 #25 = 25% of population exposed

• Gross Rating Points (GRPs)

 Represent the percentage and frequency of an

audience an advertising vehicle is reaching

Billboard Advertising’s Strengths and Limitations

 Environmental concerns

Humans Playing

Soccer on a

Japanese Billboard

Figure 20.5

Measuring Billboard Audience Size and

Characteristics

• Typical Media Buying Decision Factors

 The size of the audience reached and the average

OTS frequency of the media

 The demographic characteristics of audiences

reached by the chosen media vehicles

• OOH Measurement Problem

 Developing ways to determine the characteristics of outdoor audiences

 Nielsen Personal Outdoor Devices (Npods) may

provide better information about audiences

A Transit Advertisement for SmartWater

Figure 20.7

A Transit Advertisement for Kodak Digital Cameras

Figure 20.8

A Cause-related OOH Advertisement

Figure 20.9

Point-of-Purchase Advertising

• The Point-of-Purchase Environment

 Is the time and place at which all elements of the sale (consumer, money and product) come together

 Is the final opportunity for an IMC program to

influence consumer behaviors related to product and brand choices

• Spectrum of P-O-P Materials

 Permanent displays (in use six months or more)

 Temporary displays (in use less than two months)

Illustration of a

Permanent Display

Figure 20.10

Illustration of a

Semi-Permanent

Display

Figure 20.11

Illustration of a

Temporary Display

Figure 20.12

Illustration of Floor Advertisements

Figure 20.13

What Does P-O-P Accomplish?

Service to

Retailers

• Attracts consumers’ attention which increases shopping interest and extends the time they spend in the store

• Maximizes space for various products displayed in the same unit

• Enables better organization of shelf and floor space to improve inventory control and stock turnover

Accomplishments

for Manufacturers

• Keeps the firm’s name and the brand name before the consumer

• Reinforces a previously established brand image

• Calls 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 items

• Informs consumers of new products and brands

P-O-P’s Influence on Consumer Behavior

Informing Reminding Encouraging

Uses of P-O-P to Influence Consumers

P-O-P’s Uses: Informing

• Factors in the Effectiveness of Motion Displays

1. Motion displays attract attention

2. Motion displays direct attention to salient product

features (e.g., recognition of the brand’s name)

3. Brand name information activates consumers’

memories pertaining to brand attributes previously processed from media advertising

4. Information on brand attributes, when recalled,

supplies a reason for the consumer to purchase the displayed brand

P-O-P’s Uses: Reminding

• Encoding

 The placing of informational items into memory

• Encoding Specificity Principle

 Information 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 information

 Explains the difficulty that consumers have in

recalling specific brand yet can remember details

of a specific advertisement for the brand

P-O-P’s: Encouraging

• Effective P-O-P materials

 Influence product and brand choices at the point of

purchase

 Encourage unplanned purchasing and even impulse buying

• Evidence of In-Store Decision Making

 Unplanned purchasing is a high proportion of all

Results from the Point-of-Purchase Advertising International (POPAI) Consumer Buying Habits Study

Table 20.1

Product Categories with the Five Highest and Five Lowest In-Store Decision Rates: Supermarket Purchases

Table 20.2

Product Categories with the Five Highest and Five Lowest In-Store Decision Rates: Mass Merchandise Purchases

Table 20.3

Supermarket and Mass Merchandise Product Categories with 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

Display Information for POPAI/Kmart/P&G Study

Table 20.5

The POPAI/Warner-Lambert Studies

• Benylin Study Findings

 Normal shelf position + feature price = 29% sales increase

 Endcap + feature price = 98% sales increase

 In-aisle floorstand + feature price = 139% sales increase

• Listerine Study Findings

 Normal shelf position + feature price = 11% sales increase

 Rear endcap + feature price = 141% sales increase

 Front endcap + feature price = 162% sales increase

The Nonuse of P-O-P Materials

• Reasons Why P-O-P Materials Go Unused

 No incentive for the retailer because the materials are poorly designed and don’t 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

Encouraging the Use of P-O-P Materials

• P-O-P materials must be:

 The right size and format

 Fit the store décor

 User friendly

 Sent to stores when they are needed

 Properly coordinated with other marketing

communications program

 Attractive, convenient, and useful for consumers

Measuring In-Store Advertising’s Audience

• Pioneering Research for an In-Store Metric

(PRISM)

 Is the result of a POPAI initiative

 Is a procedure for acquiring standard diagnostics

(e.g., reach, frequency, and gross ratings) for

measuring in-store media performance

 Will allow brand marketers to plan and evaluate

in-store advertising in much the same way as they do

for print and broadcast media