2007 Thomson South-Western

On- and Off-Premise Signage and Point-of-

Purchase Communications

Chapter Eight

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Chapter Eight Objectives

• Appreciate the role and importance of out-of-home or off-premise advertising.

• Understand billboard advertising’s 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-P’s 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

• Alongside highway and heavily traveled locale

• Silk-screened or lithographed

• Sold on a monthly basis

Poster Panels Painted Bulletins

• Hand painted directly on the billboard

• Purchased for 1-3 year period

• To achieve a consistent and relatively permanent presence

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Outdoor Advertising’s

• 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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ABC’s of On-Premise Signs

ttract New Customers

rand the retail site in consumers’ minds

reate impulse purchases

Conspicuity: the ability of a sign to capture attention.

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Point-of-Purchase Advertising

• Point-of-purchase;store 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

Permanent displays

Temporary and Semipermanent

displays

In-Store Media

displays intended for sixmonths or more

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Point-of-Purchase MaterialsPermanent P-O-P

Temporary and Semipermanent P-O-P

In-Store Media

displays intended for sixmonths or more

displays intended for fewer than six months

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Point-of-Purchase MaterialsPermanent P-O-P

Temporary and Semipermanent P-O-P

In-Store Media

displays intended for sixmonths or more

displays intended for fewer than six months

executed by a third party (P-O-P radio, shopping cart ads, shelf talkers,

coupon dispensers, etc..)

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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-P’s Influence on Consumer Behavior

• Informing

• Reminding

• Encouraging

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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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Reasons Why P-O-P Materials Go Unused

• There is no incentive for the retailer because the materials are poorly designed and don’t 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 retailer’s 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