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Since an estimated 70% of purchase decisions are made within the retail store itself, effective point-of-purchase displays can have a dramatic impact on sales for a particular product, especially when introducing a new product to existing customers.

One marketing technique, point-of-purchase (POP) advertising for consumers, can be a useful source of pre-purchase information for the existing customer, and the customer is more receptive to POP promotions when making a purchase. For example, apparel shoppers found that of eight product information sources, POP information was rated third most useful. POP is useful because it has the ability to reach potential buyers at the time and place of the potential purchase— displays are more productive than media advertising as they offer precise target marketing.

POP such as displays, signs, bins, floor stands, and devices that are promotional, are used to advertise and merchandise a service or product at a specific location. It can be 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.

POP advertising has a definite impact of in-store displays, with over a 500 percent average increase in unit sales of selected supermarket products. Also, end-of-aisle displays have a much greater impact on unit sales than did expanded shelf space, even when the product is not on sale.


MAJOR FUNCTIONS

POP can elevate the status or visibility of a product in-store through the use of large signs, banners and cut-out style displays. This is the most commonly used form of POP. By setting off a brand, age group, or even an entire product category, POP can be used to create a more effective selling environment. POP is often used to house and dispense a product, sometimes in areas of the store that are separate from the product’s category. Some elaborate displays provide automated sales demonstration, often with the use of videos. POP can guide shoppers to the location of a product, convey price or product information, and promote contests or other tie-ins.


STRATEGIC ISSUES

• Research… The best sources of information are the retailers themselves. Collect data from existing surveys and find out all you can about what your competition is doing. Survey retailers to obtain customer information on a store-by- store basis. Test your POP in sample retail environments that represent your market conditions.
• Establishing goals… The principle objectives should be set before any specific POP options are considered.
• Partnering with retailers… Critical to the success of any POP strategy is the cooperation you receive from the location they will be implemented. There can be tremendous competition for floor space, so if you are placing POP in a secondary location, obtain permission from local management.
• Maintaining POP… Do not neglect your POP. A poor looking display will surely drive away any potential consumer.
• Measuring results… It is very difficult to test the effectiveness of a POP campaign. To get an accurate test, barcoding and scanners make it possible to monitor sales of items purchased anywhere in the store. QR codes can also be used to validate interest.
• Term of campaign… The length of a POP campaign is based on your marketing objectives, the retail environment, and the extent of competitive activity. Establishing a timetable is critical, because this will determine everything from the type of POP to be created to materials and costs.
• Budget… POP budgets are usually calculated on a per-placement basis. For temporary POP, spend an amount equal to 5 percent of the merchandise displayed. In other words, if the display holds $100 worth of goods, you’d spend $5 per display. For permanent displays, the accepted range is 15 to 20 percent. Of course, many factors can push these percentages up or down.
• Distribution and setup… Once finished POP is produced, the next step is to assemble the various elements, get them to the stores, and set them up. That can be harder than it sounds. You need to decide the best way of ensuring that everything is done according t plan. Make it a point to educate at the point-of-purchase. Educational materials are essential for the success of the product or service being targeted at the the consumer.