Marcom Objective Setting and Budgeting

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Chapter Eight
On- and Off-Premise Signage and Point-of-Purchase
Communications
? 2007 Thomson South-Western
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Chapter Eight Objectives

• 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 on-premise
  business signage.
• Review the various forms and functions of
  on-premise signage.
• Appreciate the role and importance of point of
  purchase advertising.

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Chapter Eight Objectives

• Examine the tasks that P-O-P advertising
  accomplishes.
• 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.

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Out-of-Home (Outdoor) Advertising

• Greater than 5 billion annually
• Regarded as supplementary
• e.g., billboard(major), bus shelters, giant
  inflatables, shopping-mall displays, etc.
• Americans report traveling an average of slightly
  over 300 miles in a vehicle in a typical week
  with an average round-trip commute totaling about
  55 minutes.

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Billboard Advertising

• 400,000 billboards in the US
• Designed with name recognition as the primary
  objective
• Two major forms
• (1) Poster Panels and
• (2) Painted Bulletins

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Billboard Advertising
Poster Panels
Painted Bulletins

• Alongside highway and heavily traveled locale
• Silk-screened or lithographed
• Sold on a monthly basis

• Hand painted directly on the billboard
• Purchased for 1-3 year period
• To achieve a consistent and relatively permanent
  presence

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Buying Out-of-Home Advertising

• Purchased through companies that own billboards,
  called plants
• Plants sell space in terms of showings
• Showings are percent exposed
• 25 25 of population exposed
• Recently, GRPs (gross rating points) are used

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Outdoor Advertisings

• Board reach and high frequency
• Geographic flexibility
• Low cost per thousand
• Prominent brand identification
• Opportune purchase reminder

• Nonselectivity
• Short exposure time
• Difficult to measure audience size and
  characteristics
• Environmental concerns

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Measuring OOH Audience Size and Characteristics

• The size of the audience to be reached when using
  these media.
• The demographic characteristics of audiences
  reached by media vehicles such as individual
  magazines or television programs.
• Nielsen Media Research is making great strides
  toward developing ways to determine the
  characteristics of outdoor audiences.

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A Case Study of Billboard Effectiveness
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On-Premise Business Signage

• Considered the most cost-effective and efficient
  form of communication available to retail
  businesses.

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Types of Signs Free-Standing
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Types of Signs Free Standing
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Types of Signs Building-Mounted
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Types of Signs Building-Mounted
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ABCs of On-Premise Signs
A

• ttract New Customers
• rand the retail site in consumers minds
• reate impulse purchases

B
C
Conspicuity the ability of a sign to capture
attention.
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Point-of-Purchase Advertising

• Point-of-purchasestore environment
• A final opportunity to affect consumer behavior
• Many product-and-brand choice decisions are made
  at this time
• It is the time and place at which all elements of
  the sale (consumer, money and product) come
  together

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The Spectrum of P-O-P Materials
displays intended for six months or more

• Permanent displays

Temporary and Semipermanent displays
In-Store Media
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Illustration of a Floor Advertisement
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Point-of-Purchase Displays

• Illustration of an Award-Winning Permanent
  Display

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Point-of-Purchase Materials
displays intended for six months or more

• Permanent P-O-P

displays intended for fewer than six months
Temporary and Semipermanent P-O-P
In-Store Media
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Point-of-Purchase Displays

• Illustration of an award-winning semipermanent
  display

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Point-of-Purchase Displays

• Illustration of an award-winning temporary display

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Point-of-Purchase Materials
displays intended for six months or more

• Permanent P-O-P

displays intended for fewer than six months
Temporary and Semipermanent P-O-P
executed by a third party (P-O-P radio, shopping
cart ads, shelf talkers, coupon dispensers, etc..)
In-Store Media
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What Does P-O-P Accomplish?

• Accomplishments for Manufacturers
• Service to Retailers
• Value to Consumers

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P-O-Ps Influence on Consumer Behavior

• Informing
• Reminding
• Encouraging

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Results from the POPAI Consumer Buying Habits
Study
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Product Categories With the 5 Highest and 5
Lowest In-store Decision Rates Supermarket
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Product Categories With the 5 Highest and 5
Lowest In-store Decision Rates Mass Merchandise
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The Brand Lift Index

• Indicates how P-O-P materials affect the
  likelihood that customers will buy a product they
  had not specifically planned to buy.

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Supermarket and Mass Merchandise Product
Categories with Highest Average Brand Lifts from
Displays
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Display Information for POPAI/Kmart/PG Study
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The POPAI/Warner-Lambert Benylin Study

• Regular Price Benylin Normal Shelf Space

Normal Shelf Position-Feature Price
29 Sales Increase
Feature Price on Endcap Display
98 Sales Increase
In-aisle floorstand displays of Benylin at a
feature price
139 Sales Increase
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The POPAI/Warner-Lambert Listerine Study

• Regular Price Listerine Normal Shelf Space

Normal Shelf Position-Feature Price
11 Sales Increase
Feature Price on Rear Endcap Display
141 Sales Increase
Front Endcap displays of Listerine at a feature
price
162 Sales Increase
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Reasons Why P-O-P Materials Go Unused

• There is no incentive for the retailer because
  the materials are poorly designed and dont meet
  their needs.
• Some displays take up too much space for the
  amount of sales generated.
• Some 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.

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Persuading Retailers to UseP-O-P Materials

• P-O-P must satisfy the retailers need and the
  needs of the consumer
• 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