Merchandising and Point of Sale CHAPTER 19 Merchandising and Point of Sale © 2011, PR Smith These resources accompany the publication of Marketing Communications, 5th edn, PR Smith and Ze Zook (2011), published by Kogan Page, London, www.koganpage.com

Learning Objectives Appreciate the impact of merchandising techniques Empathize with a retailer’s strategies and merchandising policies Discuss retail strategies and how they incorporate store image, store layout, merchandise ranges, colour blocking, POS and promotions and a range of miscellaneous items Ensure a culture of constant analysis and improvement is employed so that results can constantly be improved © 2011, PR Smith These resources accompany the publication of Marketing Communications, 5th edn, PR Smith and Ze Zook (2011), published by Kogan Page, London, www.koganpage.com

Merchandising and POS Introduction Merchandising tools Retail strategies  Measuring merchandising effectiveness  Advantages and disadvantages © 2011, PR Smith These resources accompany the publication of Marketing Communications, 5th edn, PR Smith and Ze Zook (2011), published by Kogan Page, London, www.koganpage.com

Introduction Point-of-sale (POS) Distributor empathy required Marketers must empathise with distributors (as well as customers) © 2011, PR Smith These resources accompany the publication of Marketing Communications, 5th edn, PR Smith and Ze Zook (2011), published by Kogan Page, London, www.koganpage.com

Merchandising Tools Leaflets and dispensers Stickers Posters Showcards and cardboard cut-outs Branded racks or display units Dump bins Three-dimensional: injection moulded characters holograms free-standing floor displays © 2011, PR Smith These resources accompany the publication of Marketing Communications, 5th edn, PR Smith and Ze Zook (2011), published by Kogan Page, London, www.koganpage.com

Merchandising Tools (cont...) Electronic gadgetry: spotlighting systems video walls plasma screens illuminated display systems with fibre optics lenticular technology magic mirrors interactive POS systems Shelf space (number of facings, colour blocking) Shelf positioning (premium locations, cross-merchandising, etc) In-store sampling Window displays Digital imaging and web-based merchandising analysis tools © 2011, PR Smith These resources accompany the publication of Marketing Communications, 5th edn, PR Smith and Ze Zook (2011), published by Kogan Page, London, www.koganpage.com

Retail Strategies Store image Store layout Merchandise ranges Colour blocking  Point-of-sale displays and retail sales promotions  Miscellaneous © 2011, PR Smith These resources accompany the publication of Marketing Communications, 5th edn, PR Smith and Ze Zook (2011), published by Kogan Page, London, www.koganpage.com

Measuring Merchandising Effectiveness Scanners at the checkout: record what is being sold instantaneously measure sales responses to new advertising campaigns and price changes Store-by-store around the country daily, weekly or even hourly basis provide operational stock control data to central warehouses © 2011, PR Smith These resources accompany the publication of Marketing Communications, 5th edn, PR Smith and Ze Zook (2011), published by Kogan Page, London, www.koganpage.com

Advantages Present at the point a customer makes a decision to buy Last opportunity to communicate with a customer before the decision is made The message can be controlled Messages can range from: ensuring customers are aware of the brand encouraging them to buy now Special offers and sales promotions can be highlighted © 2011, PR Smith These resources accompany the publication of Marketing Communications, 5th edn, PR Smith and Ze Zook (2011), published by Kogan Page, London, www.koganpage.com

Disadvantages Retail space is premium Brands compete to get this space Limited and expensive to secure this space Creation, delivery and installation of POS is expensive Reverse logistics can be incurred at the end of a promotion © 2011, PR Smith These resources accompany the publication of Marketing Communications, 5th edn, PR Smith and Ze Zook (2011), published by Kogan Page, London, www.koganpage.com

Key Points from Chapter 19 Merchandising techniques not only offer a last chance to communicate with the buyer, they can have major impact on the customer’s choice Manufacturers need to empathize with their distributors’ strategies and merchandising policies Retail strategies incorporate store image, store layout, merchandise ranges, colour blocking, POS and Promotions and a range of miscellaneous items Constant analysis and improvement boosts results © 2011, PR Smith These resources accompany the publication of Marketing Communications, 5th edn, PR Smith and Ze Zook (2011), published by Kogan Page, London, www.koganpage.com