Premium Essay

Point of Purchase Promotions

In: Business and Management

Submitted By Invicta2731
Words 472
Pages 2
Point-of-purchase promotions, also known as POP promoting or marketing at retail is defined as using in-store displays and other last minute promotional ploys to influence the customer to choose a specific brand or to make an impulse buy. I’ll discuss the advantages and disadvantages of point-of-purchase marketing as well as some examples mentioned from an article in “The Chron”. Some of the advantages of point-of-purchase promoting take over when the customer is already in the store and ready to make a purchase. POP displays and marketing techniques draw attention to particular brands or special offers that create additional value or showcase the advantages of the product. This additional marketing has a large impact because it is in place at the very moment that the consumer is making a buying decision. An effective POP promoting campaign may minimize marketing messages by competitors.

The disadvantages of using point-of-purchasing promoting would be; having a limited reach meaning to have a place-based advertising that only reaches that small group of consumers walking past displays, waiting at the checkout counter, or carrying their bags to the car. Research show P-O-P marketing works best when geared toward younger, single, less affluent shoppers. Though often appropriate for improving product sales, place-based media inherently are limited in their ability to attract new customers, build traffic, and improve market awareness for retail advertisers. From a consumer’s point of view, most consumers report that in-store TV monitors, electronic signs, and in-store broadcasting have little impact on them as they shop. They also claim that these devices blend into the environment. And as for shoppers, only about 20% of supermarket shoppers browse the aisles in drugstores or discount stores. The rest completely miss promotions, displays, or special signage…...

Similar Documents

Premium Essay


...Consumer Promotions A focus on consumer promotions is highly critical to manufacturers who turn to new methods to reach their targets. Over time target markets and segments have become so fragmented which makes it increasingly hard to reach people with just traditional advertising methods. A consumer promotion is a "short-term incentive targeted directly at consumers and includes coupons, rebates, free offers, patronage rewards, and other incentives" (Raghubir, Inman, & Grande, 2004, par. 4). Consumer sales promotion employ pull strategies, which are designed to attract customers and increase the demand for products. Creatively these tactics help reach the consumer and draw their attention to a product or service. People today are cautious with their buying habits and are looking for good deals. Applying these tactics give companies an extra pull over customers and draw them into giving their products a try. All of the efforts of consumer promotions is to catch the attention of customers and when done correctly can have a major impact on brand loyalty and recognition. The first type of consumer promotion is point-of-purchase (P.O.P). Usually, when a customer walks into a store and they see a display built to advertise one particular product, which helps build traffic and contributes to impulse buying. This method works well with other forms of advertising. For example, if the product Oreo had a commercial advertising their product, then had a display set up......

Words: 1157 - Pages: 5

Premium Essay

Sales Promotion

...Objectives of Sales Promotion You have learnt that the main objective of sales promotion is to increase sales. i. To introduce new products ii. To attract new customers and retain the existing ones iii. To maintain sales of seasonal products iv.To meet the challenge of competition Let us learn about these objectives in details. (i) To introduce new products: Have you ever heard about distribution of free samples? Perhaps you know that many companies distribute free samples while introducing new products. The consumers after using these free samples may develop a taste for it and buy the products later for consumption. (ii) To attract new customers and retain the existing ones: Sales promotion measures help to attract or create new customers for the products. While moving in the market, customers are generally attracted towards the product that offers discount, gift, prize, etc on buying. These are some of the tools used to encourage the customers to buy the goods. Thus, it helps to retain the existing customers, and at the same time it also attracts some new customers to buy the product. (iii) To maintain sales of seasonal products: There are some products like air conditioner, fan, refrigerator, cooler, winter clothes, room heater, sunscreen lotion, glycerin soap etc., which are used only in particular seasons. To maintain the sale of these types of products normally the manufactures and dealers give off-season discount. For example, you can buy air......

Words: 8537 - Pages: 35

Premium Essay

Sale Promotion

...Sale promotion Techniques By one get one free, receive a free gift bag with this purchase, free samples to try, Voucher and coupons for extra discount, Prize draws or zero percent financing have you ever herd these words or read them in a news paper magazine or internet or maybe even seen it on TV or your local mall or even a bus ride to work or home, these are all examples of sales promotion. According to Dave Dolak (2010), Sales promotions are short-term incentives to encourage the purchase or sale of a product or service. But first sales promotion could be directed towards Trade or consumers and some times both trade is the retail store or the sales men and maybe the whole sale distributor that the company must work with to sell its product wile on the other hand consumers are people who are there to buy the product. Different companies or firms or even people use different techniques of sales promoting some of them are discount and deals, increasing industry visibility, price based consumer sales promotion and attention getting consumer sales promotion Moving on to the first technique, which is discount and deals this is done by giving a price break to seller or whole seller or some times even the sales men or by lowering the prices of the product. The Firm or company can do this by offering merchandizing allowance, according to MIMI.HU web site (2010) states “Merchandise allowance a manufacturer's agreement to pay resellers certain amounts of money for providing......

Words: 907 - Pages: 4

Premium Essay


...Sales Promotion Techniques Sales Promotion Techniques Merrick Morlan Axia College Online at University of Phoenix Abstract The example of Coca-Cola is used to readily to describe the following classifications of sales promotion techniques; discounts and deals, industry visibility, price-based consumer sales promotions, and attention-getting consumer sales promotions. Along with definitions of each type of sales promotions. The techniques are the same despite the change in voice and manner of delivery. Sales Promotion Technique Sales promotions are techniques that marketing departments use to build interest in the purchase of a good or service during a specified period of time. There are four main key sales promotion techniques including discounts and deals, increasing industry visibility, price-based consumer sales promotion, and attention-getting consumer sales promotion. The examples from the Coca-Cola Company are immense in marketing savvy and use, there also is an abundance of public information available in which to analyze and see clearly some of the methods in use. When using the process of discount and deal promotion, the manufacturing company offers the product at a discounted rate. The two types of discount and deal promotions are merchandising and case allowance. When Coca-Cola offers a merchandising allowance, they pay or give discounts to the store or other retailer for creating an off-shelf display of the products.......

Words: 867 - Pages: 4

Premium Essay

Sales Promotion

...Sales promotion From Wikipedia, the free encyclopedia Sales promotion is one of the seven aspects of the promotional mix. (The other six parts of the promotional mix are advertising, personal selling, direct marketing, publicity/public relations, corporate image and exhibitions.) Media and non-media marketing communication are employed for a pre-determined, limited time to increase consumer demand, stimulate market demand or improve product availability. Examples include contests, coupons,freebies, loss leaders, point of purchase displays, premiums, prizes, product samples, andrebates Sales promotions can be directed at either the customer, sales staff, or distribution channel members (such as retailers). Sales promotions targeted at the consumer are calledconsumer sales promotions. Sales promotions targeted at retailers and wholesale are called trade sales promotions. Some sale promotions, particularly ones with unusual methods, are considered gimmicks by many. Sales promotion includes several communications activities that attempt to provide added value or incentives to consumers, wholesalers, retailers, or other organizational customers to stimulate immediate sales. These efforts can attempt to stimulate product interest, trial, or purchase. Examples of devices used in sales promotion include coupons, samples, premiums, point-of-purchase (POP) displays, contests, rebates, and sweepstakes.[1] |Content| |s | |  [show| |]  ......

Words: 2464 - Pages: 10

Premium Essay

Mkt 315 Wk 8 Quiz 6 Chapters 12 & 13

...MKT 315 WK 8 QUIZ 6 CHAPTERS 12 & 13 To purchase this visit here: Contact us at: SUPPORT@ACTIVITYMODE.COM MKT 315 WK 8 QUIZ 6 CHAPTERS 12 & 13 MKT 315 WK 8 Quiz 6 Chapters 12,13 MULTIPLE CHOICE 1. One of the main issues Proctor & Gamble (P&G) Company had with its Max Factor is: a. Giant mass market U.S. retailers were not willing to give more shelf space to Max Factor products. b. P&G's marketing team had failed to gain sufficient brand recognition. c. Even though P&G threw millions of dollars in trade promotions, sales of the Max Factor brand continued to fall. d. Foreign sales of Max Factor products were falling. e. Offering big trade discounts to retailers simply did not work. 2. The effectiveness of the overall promotional strategy depends on how successful the manufacturer is in: a. Implementing its advertising, sales promotion, personal selling, and publicity. b. Securing cooperation from independent channel members in implementing the promotional strategy. c. Keeping its promotional budget in check. d. Developing creative promotional tactics. e. How its promotions compare to its competitors. 3. ___________ is a term used to refer to the use of several promotional tools in a coordinated effort to achieve maximum promotional impact. a. Exponential marketing b. Integrated marketing communication c. Expanded promotion d. Advertising materials e. Persuasive advertising 4...

Words: 1274 - Pages: 6

Premium Essay

Stategic Mkt Questions Ch. 17, 18, and 19 for brand equity. Consumers are more likely to recognize a package than to remember a brand name. In previous questions we discussed ways in which Sonic can use packaging and labeling to support its brand image. The idea is to grab the attention of the customer. The Sonic 1000’s features, customizations, performance quality, and reliability product differentiations will allow the consumer to recognize the brand outside the store. “Purchase intention is defined as the likelihood that a consumer will buy a product.” As discussed in previous questions, Sonic should provide consumers as well as businesses with product allowances on trade ins from previous devices when purchasing a Sonic 1000. Promotional offers will encourage consumers to buy Sonic’s new product by offering an incentive to upgrade from a previous PDA. Sonic on the initial campaign should set objectives in order to gain awareness from our preconceived target market. Sonic’s objectives need to focus on knowledge, liking, preference, conviction, and purchase. Right now Sonic needs to focus on getting the Sonic 1000 brand awareness and market share in the saturated PDA market. • How can Sonic use personal communications channels to influence its target audience? Answer: Personal communications channels will allow Sonic to communicate with its consumers through the phone, mail, or email. A person’s word of mouth can affect the buying attitude of two people and increases to eight through......

Words: 1410 - Pages: 6

Free Essay


...The S’No Risk Program Risk Analysis from point of view of Toro: For the particular year Toro first ran the program, they assumed little risk since they got such a good deal from the insurance company, American Home. On one hand, if there were little snowfall there would be little payout and would then increase their sales. Goodweather also quoted them 2.1% and this actually helped them save money by not paying out the 10% they normally would payout to dealers for their normal promotion (Bell, 1994). This gave Toro an increase of 7.9% in profit and for their dealers increased their total sales. Toro also benefited from this lower rate because after being quoted the 2.1%, after 2 years of marginal snowfall 1983 brought a much more severe winter that would have otherwise cost Toro hundreds of thousands of dollars more if they had been quoted a higher percentage. Risk analysis from the point of view of the insurance company: In this case, American Home assumed the most risk since they would be the ones to pay out in the event of significant snowfall for that winter. In this case, they did pay out a significant amount to Toro covering losses from the promotion. The total number of rebates for the promotion in 1983 was 19% (Bell, 1994). American Home assumed about 17% of these rebates and with it came a significant cost! In the event that American Home continued insuring Toro for the program they would need to significantly raise the insurance rate to try to gain back some of......

Words: 1490 - Pages: 6

Premium Essay


...Quiz #10 (Chapter 15)     Total Grade: 96   (of possible 100 points) Question 1 of 25     Score: 4   (of possible 4 points)               Promotion is communication by marketers that informs, persuades, and reminds potential buyers of a product in order to influence their opinion or elicit a response.  True     False   Answer Key: True Question 2 of 25     Score: 4   (of possible 4 points)               Black & Mild FT are the only cigars on the market made with “a skillful blend of premium pipe tobaccos and a filter tip for extra smoothness.” This feature creates a competitive advantage for the product.  True     False   Answer Key: True Question 3 of 25     Score: 4   (of possible 4 points)                A U.S. manager is working with some Indonesians who do not speak English. In attempting to exchange information, they are using symbols to assign meanings to the facts the manager hopes to convey. This is an example of communication.  True     False   Answer Key: True Question 4 of 25     Score: 4   (of possible 4 points) Nature Valley uses popular magazines, radio, and cable television to promote its brand of trail mix. Nature Valley uses mass communication.  True     False   Answer Key: True Question 5 of 25     Score: 4   (of possible 4 points) One way of conveying a message that the receiver will hear properly is to use abstract words and pictures.    True   False   Answer Key: False  Feedback   Concrete words and pictures should...

Words: 1215 - Pages: 5

Premium Essay

Marketing Adv

...advertising. They had to resort to guerilla marketing techniques to get the message across to the target audience. They had to try out various tactics to get word-of-mouth promotion going. Viral marketing came into being. When all this was happening, marketers decided to draw a line between different advertising mediums. One part was called “above the line” while the other was called “below the line.” In organizational business and marketing communications, Below the Line (BTL) is an advertising technique. It uses less conventional methods than the usual specific channels of advertising to promote products, services, etc. than Above the Line (ATL) strategies. These may include activities such as direct mail, public relations and sales promotions for which a fee is agreed upon and charged up front. Above the line is a type of advertising through media such as TV, cinema, radio, print, banners and search engines. Below the line advertising typically focuses on direct means of communication, most commonly direct mail and e-mail, often using highly targeted lists of names to maximize response rates. In addition, Above the Line is much more effective, when the target group is very large and difficult to define. But, if the target group is limited and specific, it is always advisable to use Below the line promotions for efficiency and cost-effectiveness. More recently, agencies and clients have switched to an 'Integrated Communication Approach.' BTL is a common technique used......

Words: 1888 - Pages: 8

Premium Essay

Sample of Theoritical Framework

...THE EFFECT OF PRICE PERCEPTION, PRODUCT QUALITY, PRODUCT DIFFERENTIATION, SERVICE QUALITY AND PROMOTION TOWARD CONSUMER PURCHASE DECISION Study on consumer of Larissa Aesthetic Center, Malang CHAPTER II LITERATURE REVIEW 2.1 THEORITICAL FRAMEWORK 2.1.1 Purchase Decision Purchase decision is one part of the consumer behavior refers to the buying behavior of final consumers who buy goods and services for personal consumption. Every day consumers determine the various purchase options. Most of the large companies investigate consumer purchase decisions are so detailed to discover what consumers buy, where they buy , how and how much they buy , when they buy and why they buy. Marketing people can learn to do the actual purchase of consumers, but to investigate the causes of their buying behavior is not easy. The answer is often stored deep in the heads of consumers ( Kotler and Armstrong , 2001:195 ). Studying consumer behavior will provide guidance for the development of new products, product features, pricing, channel marketing, advertising messages and other marketing mix elements . The starting point for understanding the buyer behavior is stimulus response. Marketing and environmental stimuli began to enter the consciousness of buyers. Characteristics of buyers and decision process poses a particular purchase decision. The task of the marketer is to understand what happens in buyers awareness ranging from the stimulation from the outside to the emergence of a......

Words: 1549 - Pages: 7

Premium Essay

Marketing Strategy

...2. Discuss how the effectiveness of the advertising will be measured. The effectiveness of advertising can be simple to measure. First, the purpose of advertising is to persuade potential buyers that they want and need what a company has to offer. Successful advertising creates and nurtures that sense of need, and then persuades people to get up and go get whatever companies are promoting (Nickerson, 2007). Angel Bee will measure its advertising effectiveness by testing customer awareness both before and after the advertising campaign, test customer awareness of brand recognition and perceived values, monitor the number of inquiries from an advertisement, as well ad, the number of inquiries converted into sales and how many repeat purchases. The company will compare current data with previous data quarterly to determine any changes in customer attitudes and sales results. Each of the company media outlets will have specific distinctions to help with monitoring its effectiveness. The television and informercials will have a specific toll-free number for those inquires and responses to be directly linked and monitored for that particular ad. The company will use direct mailing as a method of interaction with potential customers. Postcards for requesting additional information, price quote or sales calls will be used for this method. Each postcard will contain serial numbers or other identifying information that can be used by the marketing department as an indication......

Words: 7152 - Pages: 29

Premium Essay

Coffee Cafe Promotion

...Marketing Strategy Promotion We decide to plan for the Coffee Café to create seasonal promotion event for our customers. The promotion model represents a special form of advertising that attracts more and more customers. For example, Coffee Café provide “Buy 1 Free 1 Promotion” or offers discount of items when the customers purchased in promotion time. The items typically include foods and drinks; we also make different and new variety of foods and drinks in every season. The seasonal promotion event will hold in a day of every month as remembering the date of Coffee Café established. The main objective is getting to attract the customers’ attention from the promotion. It also assures them enjoying satisfaction and benefits in Coffee Café and able to help us share to others effectively. Besides, Coffee Café plans to choose Chopink, a cardless loyalty system developed by Werebits, to be integrated with its point-of-sale (POS) system. Chopink, it is a mobile phone app that will essentially replace Coffee Cafe’s paper-based loyalty chop cards as part of the brand’s customer engagement and retention efforts in driving business growth. Chopink’s cloud-based application provides us with a simple and innovative customer engagement solution to advance our business. With the increased use of mobile apps among consumers these days, the integration of Chopink will help the brand adapt quickly to this new consumer behaviour. With Chopink, Coffee Café will be able to identify, track......

Words: 298 - Pages: 2

Premium Essay

Product Display

...Justus-Liebig-University Track: Personal Selling and Sales Management Keywords: sales promotion, planned purchases, unplanned purchases, impulse purchases, POP-displays Abstract We report the findings of an exploratory study on the interaction between buying behavior style and product presentation. The results, which are compatible with findings from other studies, offer support for our approach that the effectiveness of display usage is moderated by the type of product under promotion. Using observational data we find that the impulsive power and therewith promotional efficiency depends on the type of underlying product specific buying behavior. As our findings show, displays are more effective in influencing purchase behavior when used with impulsively bought products. The question to which extend other categories should be considered for display promotion needs careful evaluation. With product categories bought routinely, other than display-based forms of promotion seem to be more promising strategies with regard to promotional efficiency. Introduction Sales promotions cover a wide spectrum of activities to influence consumers to make a purchase. Especially monetary promotions like price-offs, rebates or coupons, are heavily used in this context, and their effects have received considerable attention in research (Darke 2001; Tellis 1998, p. 218). Among non-monetary approaches to influencing purchase behavior at the POP, displays are frequently used (Rossiter & Percy......

Words: 3364 - Pages: 14

Premium Essay

Brand Equity

...RESEARCH METHODOLOGY MINI THESIS “INFLUENCE OF MIDNIGHT SALE TOWARDS WOMAN AT JAKARTA” By : Annysa Yuliaty 014201100130 IB 2 CHAPTER 1 INTRODUCTION 1.1 Introduction Midnight is the middle of the night, specifically 12 o'clock at night. Intense darkness or gloom. A period of darkness and gloom. In the daily cycle of time, midnight represents the deepest point of negativity, when ghosts, demons, and all uncanny beings are most active. It is prescribed for many magic rituals and divinations. In modern times it is mathematically defined, so one is told that such-and-such will happen ‘when the clock strikes twelve’; regarded thus, it derives much of its significance from its ambiguous status—does it belong to the day that has just ended or to that which is beginning? However, in earlier centuries the term was more loosely applied, to a period rather than a point of time; it is not clear how long this was considered to be, but all supernatural evil forces were supposed to vanish when the cocks first crowed. Confusingly, midnight is also a time for certain celebratory rites, such as first footing and seeing the New Year in. This is because by modern reckoning a day begins at midnight (not at sunset, as in ancient cultures), so the day which inaugurates a new cycle must be launched with joyful and luck-bringing rituals at the earliest opportunity. Midnight sale is executed in order to stimulate consumers to buy the old product. According Taftayani......

Words: 5088 - Pages: 21