Point of purchase communications

Prof. Nenad Brki Ass. Denis Berberovi

Introduction The Importance of POP Communications Objectives and Tools of POP Communications Busines Insight Effectiveness of POP Communications Store Image Store Organisation Product Presentation Store Atmosphere Packaging

 A very powerful tool Significantly influences on consumers

Have to be particularly well integrated with sales promotions and distribution strategies

Besides altering purchase intentions, the store environment also signicantly inuences consumer behavior in the sense that about

of unplanned purchases can be attributed to the fact that the point-of-sales environment makes consumers recognize new needs while they are shopping.

It has been shown that, for instance, when advertising and POP communications are combined, as compared to using advertising only, sales increase by more than

Also, the combination of POP and a price cut appears to have enormous advantages over and above the use of POP or price cuts only.

Specifically planned purchase

Entry Exit interviews

Generally planned purchase

4 categories of purchase: Substitute product/brand purchase

Unplanned purchase

Point-of-purchase or POP advertising can be dened as any promotional material placed at the point of purchase, such as:

interior displays, printed material at shop counters or window displays.

However, it also includes:

in-store broadcasts, video screen demonstrations, shopping-trolley advertising, shelf talkers, coupon dispensers, wastepaper baskets and interactive kiosks.

POP communications Atract attention

Create image

Remind Inform

Persuade

The store image, store design, the scent and the music in the store, the way the products are placed on the shelves and the packaging of the products form an integral part of POP communications.

In short, POP communications involve all the aspects of the store and the store environment that can signal something to customers about the quality, price or product assortment, whether it is initiated by the retailer or by the manufacturer.

In-store Music: Background Noise or Sales Generator?

http://youtu.be/IUZGSYzEG2I

Attention and purchase motivation of different POP elements:

Manufacturers should not only focus on their own needs and prots but also on those of the retailers.
Collaborating with retailers to increase category sales instead of just the manufacturers own sales, differentiating the POP programme for different stores to give the retailer a unique programme, communicating and working with retailers

can raise goodwill enormously and lead to real partnership.

VS.
http://www.reuters.com/video/2006/09/22/window-shopping-goes-hi-tech?videoId=2024

 Strengths and weaknesses of certain POP communications forms Other POP aspects are: Store Image Packaging Store organisation Store atmosphere Product presentation

The choice of the type of music can be adapted to specific target groups that shop at different times of the day:
older consumers shop during the day (play their hits), at noon, mostly hurried and/or stressed people pop in (calm music is called for), after four oclock teenagers take over (a bit louder and modern), and during weekends it is mostly families who do their shopping. They want to shop efficiently and need fast music to create the illusion of a blitz visit. At the checkout they need slow music to create the perception of shorter queuing times.

Combining smell and music is even more effective. Fast music calls for citrus odours, Slow music connects with lavender,

Supermarkets creating the right atmosphere using music and smell have
seen their turnover increase by as much as 40%.

 An individuals cognitions and emotions that are inferred from perceptions or memory inputs that are attached to a particular store and which represent what that store signifies to an individual.

 While store image refers to a mental representation of all dimensions that are associated with a store, store personality is limited to dimensions that reect human traits.

Scale of personality: 1. Enthusiasm (welcoming, enthusiastic, lively, dynamic). 2. Sophistication (chic, high class, elegant, stylish). 3. Unpleasantness (annoying, irritating, loud, supercial). 4. Genuineness (honest, sincere, reliable, true). 5. Solidity (hardy, solid, reputable, thriving).

Store image

Externaly, the retailer should pay attention to the store front, the entrance, the placement of signs, the display window, etc. and make them attractive to the target consumers and conform to the store image the retailer wants to convey.

Internally, the layout of departments and trafc aisles, the arrangement of displays, the price level, the quality, the depth of the assortment, the service level, the personnel, the store atmospherics, the type of customers, etc. create a store image.

 Divided into space areas or departments it can have an enormous impact on stores profitability. Maximising the selling space and minimising the non-selling space; Space allocation; Grouping the merchandise on the right place.

 Store cards combined with scanning data are important sources of information.
Supermarkets know whether you drink beer or wine, whether or not you use condoms, whether or not you are a vegetarian, whether or not you have pets, whether you buy vegetables or fruit in their store, etc.

 Shelf menagement: the product assortment, the space allocated to each product and the shelf position.

Store atmosphere
Tactile dimension: softness, smoothness, temperature

Olfactori dimension: scent, freshness

Visual dimension: colour, brightness, size, shape

Aural dimension: volume, pitch

Store characteristics music, light, smell, colours, etc.

Emotions pleasure, arousal, dominance

Consumer behavior time spent in store, willingness to buy, etc.

 The packaging should try to attract and keep the consumers attention to be effective

It should possess an attentiongrabbing color, an unusual size or form, or be novel or complex

The positive influence of large pack

Sizes