PowerPoint Presentation by Charlie Cook The University of West Alabama Eighth Edition © 2010 South-Western, a part of Cengage Learning All rights reserved. Signage and Point-of- Purchase Communications CHAPTER 20 INTEGRATED MARKETING COMMUNICATIONS IN ADVERTISING AND PROMOTION

1.Appreciate the role and importance of on-premise business signage. 2.Review the various forms and functions of on-premise signage. 3.Appreciate the role and importance of out-of-home, or off-premise, advertising. 4.Understand billboard advertisings strengths and limitations. 5.Appreciate the role and importance of point-of- purchase advertising. 1.Appreciate the role and importance of on-premise business signage. 2.Review the various forms and functions of on-premise signage. 3.Appreciate the role and importance of out-of-home, or off-premise, advertising. 4.Understand billboard advertisings strengths and limitations. 5.Appreciate the role and importance of point-of- purchase advertising. Chapter Objectives After reading this chapter you should be able to: © 2010 South-Western, a part of Cengage Learning. All rights reserved.20–2

6.Review evidence of P-O-Ps role in influencing consumers in-store decision making. 7.Examine empirical evidence revealing the effectiveness of P-O-P displays. 8.Appreciate the importance of measuring audience size and demographic characteristics for out-of-home as well as in-store advertising messages. 6.Review evidence of P-O-Ps role in influencing consumers in-store decision making. 7.Examine empirical evidence revealing the effectiveness of P-O-P displays. 8.Appreciate the importance of measuring audience size and demographic characteristics for out-of-home as well as in-store advertising messages. Chapter Objectives (contd) After reading this chapter you should be able to: © 2010 South-Western, a part of Cengage Learning. All rights reserved.20–3

© 2010 South-Western, a part of Cengage Learning. All rights reserved.20–4 Introduction On-Premise Business Signage Out-of-Home Advertisements Point-of-Purchase (P-O-P) Messages Signage and Point-of-Purchase Marcom

© 2010 South-Western, a part of Cengage Learning. All rights reserved.20–5 On-Premise Business Signage On-premise Business SignsOn-premise Business Signs Provide new customers with their first knowledge of the company and first impression of the company Provide new customers with their first knowledge of the company and first impression of the company Considered the most cost-effective and efficient form of communication available to retail businesses Considered the most cost-effective and efficient form of communication available to retail businesses Importance of SignageImportance of Signage Legible, conspicuously placed signage, easily discernable and understood by the public is essential to the survival of many businesses Legible, conspicuously placed signage, easily discernable and understood by the public is essential to the survival of many businesses

© 2010 South-Western, a part of Cengage Learning. All rights reserved.20–6 Types of On-Premise Signs Free-Standing (Unattached) SignsFree-Standing (Unattached) Signs Monument signs Monument signs Pole signs Pole signs A-frame (sandwich-board) signs A-frame (sandwich-board) signs Portable signs Portable signs Inflatable signs Inflatable signs Building-Mounted (Attached) SignsBuilding-Mounted (Attached) Signs Projecting signs Projecting signs Wall signs Wall signs Roof signs Roof signs Banners Banners Murals Murals Canopy and awning signs Canopy and awning signs

© 2010 South-Western, a part of Cengage Learning. All rights reserved.20–7 Illustration of Free-Standing Sign Figure 20.1

© 2010 South-Western, a part of Cengage Learning. All rights reserved.20–8 Illustration of Building-Mounted Sign Figure 20.2

© 2010 South-Western, a part of Cengage Learning. All rights reserved.20–9 The ABCs of On-Premise Signs B Brand the retail site in consumers minds A Attract new customers C Create impulse buying decisions Conspicuity Signage characteristics that enable walkers or drivers and their passengers to distinguish a sign from its surrounding environment.

© 2010 South-Western, a part of Cengage Learning. All rights reserved.20–10 Out-of-Home (Off-Premise) Advertising Out-of-Home (OOH) AdvertisingOut-of-Home (OOH) Advertising Is the oldest form of advertising Is the oldest form of advertising Is seen by consumers while they in transit to a destination or away from home Is seen by consumers while they in transit to a destination or away from home Is regarded as of major importance but supplementary to other forms of advertising Is regarded as of major importance but supplementary to other forms of advertising Has many delivery modes: Has many delivery modes: Billboards, bus shelters, street furniture, shopping- mall displays, transit vehicles, skywriting, blimps Billboards, bus shelters, street furniture, shopping- mall displays, transit vehicles, skywriting, blimps

© 2010 South-Western, a part of Cengage Learning. All rights reserved.20–11 Forms of Billboard Ads Poster Panels Digital (Electronic) Billboards Painted Bulletins Specialty Boards Major Forms of Billboard Advertising

© 2010 South-Western, a part of Cengage Learning. All rights reserved.20–12 Forms of Billboard Ads (contd) Poster Panels Located alongside highways in heavily traveled localesLocated alongside highways in heavily traveled locales Silk-screened or lithographedSilk-screened or lithographed Sold on a monthly basisSold on a monthly basis Painted Bulletins Are hand painted directly on the billboardAre hand painted directly on the billboard Purchased for a 1-3 year periodPurchased for a 1-3 year period Achieve a consistent and relatively permanent presenceAchieve a consistent and relatively permanent presence Electronic (Digital) Billboards Capable of rotating ads frequentlyCapable of rotating ads frequently Can be integrated with ads in other mediaCan be integrated with ads in other media Outlawed in some areas as distracting to drivers and a form of visual pollutionOutlawed in some areas as distracting to drivers and a form of visual pollution Specialty Billboards Use different artistic and graphical techniques to present advertising messages in an especially engaging and creative wayUse different artistic and graphical techniques to present advertising messages in an especially engaging and creative way

© 2010 South-Western, a part of Cengage Learning. All rights reserved.20–13 Neiman Marcus Interactive Media Wall Figure 20.3

© 2010 South-Western, a part of Cengage Learning. All rights reserved.20–14 Specialty Billboard for a Fitness Center Figure 20.4

© 2010 South-Western, a part of Cengage Learning. All rights reserved.20–15 Buying Billboard Advertising PlantsPlants Are companies that own the billboards on which outdoor advertising space is purchased Are companies that own the billboards on which outdoor advertising space is purchased ShowingShowing Is the percentage of the population exposed to an advertisers messages quoted in increments of 25: Is the percentage of the population exposed to an advertisers messages quoted in increments of 25: #25 = 25% of population exposed #25 = 25% of population exposed Gross Rating Points (GRPs)Gross Rating Points (GRPs) Represent the percentage and frequency of an audience an advertising vehicle is reaching Represent the percentage and frequency of an audience an advertising vehicle is reaching One outdoor GRP = 1% of the population One outdoor GRP = 1% of the population

© 2010 South-Western, a part of Cengage Learning. All rights reserved.20–16 Billboard Advertisings Strengths and Limitations StrengthsStrengths Board reach and high frequency Board reach and high frequency Geographic flexibility Geographic flexibility Low cost per thousand Low cost per thousand Substantial brand identification Substantial brand identification Opportune purchase reminder Opportune purchase reminder LimitationsLimitations Nonselectivity Nonselectivity Short exposure time Short exposure time Difficult to measure audience size and characteristics Difficult to measure audience size and characteristics Environmental concerns Environmental concerns

© 2010 South-Western, a part of Cengage Learning. All rights reserved.20–17 Humans Playing Soccer on a Japanese Billboard Figure 20.5

© 2010 South-Western, a part of Cengage Learning. All rights reserved.20–18 Measuring Billboard Audience Size and Characteristics Typical Media Buying Decision FactorsTypical Media Buying Decision Factors The size of the audience reached and the average OTS frequency of the media The size of the audience reached and the average OTS frequency of the media The demographic characteristics of audiences reached by the chosen media vehicles The demographic characteristics of audiences reached by the chosen media vehicles OOH Measurement ProblemOOH Measurement Problem Developing ways to determine the characteristics of outdoor audiences Developing ways to determine the characteristics of outdoor audiences Nielsen Personal Outdoor Devices (Npods) may provide better information about audiences Nielsen Personal Outdoor Devices (Npods) may provide better information about audiences

© 2010 South-Western, a part of Cengage Learning. All rights reserved.20–19 Illustrations from the Outhouse Springs Billboard Campaign Figure 20.6

© 2010 South-Western, a part of Cengage Learning. All rights reserved.20–20 A Transit Advertisement for SmartWater Figure 20.7

© 2010 South-Western, a part of Cengage Learning. All rights reserved.20–21 A Transit Advertisement for Kodak Digital Cameras Figure 20.8

© 2010 South-Western, a part of Cengage Learning. All rights reserved.20–22 A Cause-related OOH Advertisement Figure 20.9

© 2010 South-Western, a part of Cengage Learning. All rights reserved.20–23 Point-of-Purchase Advertising The Point-of-Purchase EnvironmentThe Point-of-Purchase Environment Is the time and place at which all elements of the sale (consumer, money and product) come together Is the time and place at which all elements of the sale (consumer, money and product) come together Is the final opportunity for an IMC program to influence consumer behaviors related to product and brand choices Is the final opportunity for an IMC program to influence consumer behaviors related to product and brand choices Spectrum of P-O-P MaterialsSpectrum of P-O-P Materials Permanent displays (in use six months or more) Permanent displays (in use six months or more) Temporary displays (in use less than two months) Temporary displays (in use less than two months) In-store media (use determined by third party) In-store media (use determined by third party)

© 2010 South-Western, a part of Cengage Learning. All rights reserved.20–24 Illustration of a Permanent Display Figure 20.10

© 2010 South-Western, a part of Cengage Learning. All rights reserved.20–25 Illustration of a Semi-Permanent Display Figure 20.11

© 2010 South-Western, a part of Cengage Learning. All rights reserved.20–26 Illustration of a Temporary Display Figure 20.12

© 2010 South-Western, a part of Cengage Learning. All rights reserved.20–27 Illustration of Floor Advertisements Figure 20.13

© 2010 South-Western, a part of Cengage Learning. All rights reserved.20–28 What Does P-O-P Accomplish? Service to Retailers Attracts consumers attention which increases shopping interest and extends the time they spend in the store Maximizes space for various products displayed in the same unit Enables better organization of shelf and floor space to improve inventory control and stock turnover Accomplishments for Manufacturers Keeps the firms name and the brand name before the consumer Reinforces a previously established brand image Calls attention to sales promotions and stimulates impulse purchasing Value to Consumers Simplifies consumers shopping and selection processes by delivering useful information that sets particular brands apart from similar items Informs consumers of new products and brands.

© 2010 South-Western, a part of Cengage Learning. All rights reserved.20–29 P-O-Ps Influence on Consumer Behavior Informing Reminding Encouraging Uses of P-O-P to Influence Consumers

© 2010 South-Western, a part of Cengage Learning. All rights reserved.20–30 P-O-Ps Uses: Informing Factors in the Effectiveness of Motion DisplaysFactors in the Effectiveness of Motion Displays 1.Motion displays attract attention 2.Motion displays direct attention to salient product features (e.g., recognition of the brands name) 3.Brand name information activates consumers memories pertaining to brand attributes previously processed from media advertising 4.Information on brand attributes, when recalled, supplies a reason for the consumer to purchase the displayed brand

© 2010 South-Western, a part of Cengage Learning. All rights reserved.20–31 P-O-Ps Uses: Reminding EncodingEncoding The placing of informational items into memory The placing of informational items into memory Encoding Specificity PrincipleEncoding Specificity Principle Information recall is enhanced when the context in which people attempt to retrieve information is the same as or similar to the context in which they originally encoded the information Information recall is enhanced when the context in which people attempt to retrieve information is the same as or similar to the context in which they originally encoded the information Explains the difficulty that consumers have in recalling specific brand yet can remember details of a specific advertisement for the brand Explains the difficulty that consumers have in recalling specific brand yet can remember details of a specific advertisement for the brand

© 2010 South-Western, a part of Cengage Learning. All rights reserved.20–32 P-O-Ps: Encouraging Effective P-O-P materialsEffective P-O-P materials Influence product and brand choices at the point of purchase Influence product and brand choices at the point of purchase Encourage unplanned purchasing and even impulse buying. Encourage unplanned purchasing and even impulse buying. Evidence of In-Store Decision MakingEvidence of In-Store Decision Making Unplanned purchasing is a high proportion of all purchases Unplanned purchasing is a high proportion of all purchases Many product and brand choice decisions are made while the consumer is in the store Many product and brand choice decisions are made while the consumer is in the store Point-of-purchase materials increase sales volume Point-of-purchase materials increase sales volume

© 2010 South-Western, a part of Cengage Learning. All rights reserved.20–33 Results from the Point-of-Purchase Advertising International (POPAI) Consumer Buying Habits Study Table 20.1

© 2010 South-Western, a part of Cengage Learning. All rights reserved.20–34 Product Categories with the Five Highest and Five Lowest In-Store Decision Rates: Supermarket Purchases Table 20.2

© 2010 South-Western, a part of Cengage Learning. All rights reserved.20–35 Product Categories with the Five Highest and Five Lowest In-Store Decision Rates: Mass Merchandise Purchases Table 20.3

© 2010 South-Western, a part of Cengage Learning. All rights reserved.20–36 Supermarket and Mass Merchandise Product Categories with Highest Average Brand Lifts from Displays Table 20.4 The Brand Lift Index:Indicates how the presence of P-O-P materials affects the likelihood that customers will buy a product they had not specifically planned to buy.

© 2010 South-Western, a part of Cengage Learning. All rights reserved.20–37 Display Information for POPAI/Kmart/P&G Study Table 20.5

© 2010 South-Western, a part of Cengage Learning. All rights reserved.20–38 The POPAI/Warner-Lambert Studies Benylin Study FindingsBenylin Study Findings Normal shelf position + feature price = 29% sales increase Normal shelf position + feature price = 29% sales increase Endcap + feature price = 98% sales increase Endcap + feature price = 98% sales increase In-aisle floorstand + feature price = 139% sales increase In-aisle floorstand + feature price = 139% sales increase Listerine Study FindingsListerine Study Findings Normal shelf position + feature price = 11% sales increase Normal shelf position + feature price = 11% sales increase Rear endcap + feature price = 141% sales increase Rear endcap + feature price = 141% sales increase Front endcap + feature price = 162% sales increase Front endcap + feature price = 162% sales increase

© 2010 South-Western, a part of Cengage Learning. All rights reserved.20–39 The Nonuse of P-O-P Materials Reasons Why P-O-P Materials Go UnusedReasons Why P-O-P Materials Go Unused No incentive for the retailer because the materials are poorly designed and dont meet their needs No incentive for the retailer because the materials are poorly designed and dont meet their needs Displays take up too much space for the amount of sales generated Displays take up too much space for the amount of sales generated Materials are too unwieldy, difficult to set up, or flimsy Materials are too unwieldy, difficult to set up, or flimsy They lack eye appeal They lack eye appeal Sales may transfer from one brand to another but not increase retailers overall sales and profits Sales may transfer from one brand to another but not increase retailers overall sales and profits

© 2010 South-Western, a part of Cengage Learning. All rights reserved.20–40 Encouraging the Use of P-O-P Materials P-O-P materials must be:P-O-P materials must be: The right size and format The right size and format Fit the store décor Fit the store décor User friendly User friendly Sent to stores when they are needed Sent to stores when they are needed Properly coordinated with other marketing communications program Properly coordinated with other marketing communications program Attractive, convenient, and useful for consumers Attractive, convenient, and useful for consumers

© 2010 South-Western, a part of Cengage Learning. All rights reserved.20–41 Measuring In-Store Advertisings Audience Pioneering Research for an In-Store Metric (PRISM)Pioneering Research for an In-Store Metric (PRISM) Is the result of a POPAI initiative Is the result of a POPAI initiative Is a procedure for acquiring standard diagnostics (e.g., reach, frequency, and gross ratings) for measuring in-store media performance Is a procedure for acquiring standard diagnostics (e.g., reach, frequency, and gross ratings) for measuring in-store media performance Will allow brand marketers to plan and evaluate in- store advertising in much the same way as they do for print and broadcast media Will allow brand marketers to plan and evaluate in- store advertising in much the same way as they do for print and broadcast media