Marcom Objective Setting and Budgeting

1
On- and Off-Premise Signage and Point-of-Purchase
Communications
2
Out-of-Home (Outdoor) Advertising

• 7.2 billion annually in the US
• Regarded as supplementary
• e.g., billboard(major), bus shelters, giant
  inflatables, shopping-mall displays, airports,
  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.

3
Billboard Advertising

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

4
Billboard Advertising
Poster Panels
Painted Bulletins

• Alongside highway and heavily traveled locale
• Silk-screened or lithographed and pasted in
  sheets
• Sold on a monthly basis
• Clear Channel Outdoor, CBS Outdoor, Lamar Advtg.

• Hand painted directly on the billboard, or
  computer generated vinyl images
• Purchased for 1-3 year period
• To achieve a consistent and relatively permanent
  presence

5
Digital Billboards

• Huge flat screen TV that rotates messages every
  so often
• Potential for increased revenue for the billboard
  owner
• Expensive to install (250,000 each) represent
  visual pollution and distracts drivers
• Offer flexibility to advertisers (messages can be
  changed frequently)

6
Buying Out-of-Home Advertising

• Purchased through companies that own billboards,
  called plants e.g. Clear Channel Outdoor Viacom
  Outdoor
• Plants sell space in terms of showings
• Showings are percent of population exposed
• 25 25 of population exposed
• Recently, GRPs (gross rating points) are used -
  of population in a market reached at least once.

7
Outdoor Advertisings

• Broad reach and high frequency
• Geographic flexibility
• Low cost per thousand (0.85 1.78 as opposed
  to 9.62 for a full page color magazine ad)
• Prominent brand identification
• Opportune purchase reminder

• Demographic Non-selectivity
• Short exposure time
• Environmental concerns

8
Measuring OOH Audience Size and Characteristics

• The size of the audience to be reached when using
  these media Traffic Audit Bureau How many
  people pass by a billboard site.
• Audience characteristics not measurable
• Nielsen Media Research Npods (Nielsen Personal
  Outdoor Devices) GPS systems

9
A Case Study of Billboard Effectiveness
10
Study Findings

• Adams Outdoor and Cognetix Advtg.
• Charleston area achieved 75 showing at a four
  week cots of 25,000.
• By week 3
• 67 indicated awareness
• 77 had neutral to favorable attitudes
• 85 indicated positive purchase intentions

11
(No Transcript)
12
(No Transcript)
13
(No Transcript)
14
(No Transcript)
15
On-Premise Business Signage

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

16
Types of Signs Free-Standing
17
Types of Signs Free Standing
18
Types of Signs Building-Mounted
19
Types of Signs Building-Mounted
20
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.
21
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
• Shoppers are explorers. They are on a safari,
  hunting for bargains, new products and different
  items to add excitement to their everyday lives

22
The Spectrum of P-O-P Materials
displays intended for six months or more

• Permanent displays

Temporary and Semipermanent displays
In-Store Media
23
Illustration of a Floor Advertisement
24
Point-of-Purchase Displays

• Illustration of an Award-Winning Permanent
  Display

25
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
26
Point-of-Purchase Displays

• Illustration of an award-winning semipermanent
  display

27
Point-of-Purchase Displays

• Illustration of an award-winning temporary display

28
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
29
P-O-Ps Influence on Consumer Behavior

• Informing
• Motion displays vs. static displays
• S.B. Thomas English muffin
• Reminding
• Encoding specificity principle recall is
  enhanced when context during recall is the same
  or similar to the context when the message was
  encoded.
• Encouraging

30
POPAI consumer buying habits study

• Confirms that in-store media, signage and
  displays heavily influence consumer buying
  decisions
• 4200 consumers interviewed at Bradlees, Target,
  Walmart and Kmart in 14 major US markets
• Entry and exit interviews

31
Results from the POPAI Consumer Buying Habits
Study
32
Product Categories With the 5 Highest and 5
Lowest In-store Decision Rates Supermarket
33
Product Categories With the 5 Highest and 5
Lowest In-store Decision Rates Mass Merchandise
34
Factors affecting in-store decision making

• Unplanned purchasing is higher when
• Major shopping trip
• Larger household size
• Deal-prone
• Retailers want consumers to stay in stores longer
• Frequently bought items like milk, eggs, etc. at
  the back of the store

35
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.
• Increase in in-store purchase decisions when a
  POP is present vs. when it is not.

36
Supermarket and Mass Merchandise Product
Categories with Highest Average Brand Lifts from
Displays
37
Display Information for POPAI/Kmart/PG Study

• POPAI, PG and Kmart
• 6 product categories paper towels, shampoo,
  toothpaste, deodorant, coffee and fabric softener
• PG brands sold at regular price for 4 weeks
• Three groups of 25 Kmart stores each
• Control brands in their normal shelf position
  no display or other advertising
• Test group 1 advertised brands on display
• Test group 2 different display and/or in a
  different location in store

38
Display Information for POPAI/Kmart/PG Study
39
The POPAI/Warner-Lambert Benylin Study

• Drugstores in Canada Toronto, Montreal and
  Vancouver
• Benylin cough syrup and Listerine mouthwash
• Four groups of stores one control and 3
  experimental
• Experiment over 2 weeks

40
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
41
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
42
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.

43
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