©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 1 1 Packaging, Point of Purchase Communications, and Signage

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter Objectives After reading this chapter you should be able to: 1.Describe the elements underlying the creation of effective packages. 2.Appreciate the role and importance of point-of- purchase (POP) advertising. 3.Review evidence of POP’s role in influencing consumers’ in-store decision making. 4.Examine empirical evidence revealing the effectiveness of POP displays. 2

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter Objectives (cont’d) 5.Appreciate the importance of measuring audience size and demographic characteristics for out-of-home as well as in- store advertising messages. 6.Appreciate the role and importance of on-premise business signage. 7.Review the various forms and functions of on-premise signage. 8.Appreciate the role and importance of out-of-home, or off- premise, advertising. 9.Understand billboard advertising’s strengths and limitations. 3

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Mobile Grocery Shopping 4

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Packaging Both protects and helps sell the product Packaging performs key communication and sales roles at the point of purchase in 10 to 12 seconds The package serves to: 1.Draw attention to a brand 2.Break through competitive clutter at the point of purchase 3.Justify price and value to the consumer 4.Signify brand features and benefits 5.Convey emotionality 6.Motivate consumers’ brand choices 5

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Packaging Structure Gestalt: consumers react to the unified whole of the package not the individual parts. The package is the most important part of the product. The brand name is the most important part of the package. Packaging Structure Components: Color Design and Shape Cues Packaging Size Physical Materials 6

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Evaluating Packaging 7

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Evaluating the Package: The VIEW Model InformationWorkabilityEmotional AppealVisibility 8

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Figure 22.1: Illustration of Workability 9

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Figure 22.2: Hypothetical Illustration of Quantifying the VIEW Model Components 10

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Designing a Package Step 1: Specify Brand Positioning ObjectivesStep 2: Conduct a Product Category AnalysisStep 3: Perform a Competitive AnalysisStep 5: Determine Communication PrioritiesStep 4: Identify Salient Brand Attributes/Benefits 11

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Point-of-Purchase (POP) Communications A final opportunity to affect consumer behavior; many decisions made at this time POP advertising has grown 12% each year since 1983, with over $21 billion now spent on POP communications. 12

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. The Spectrum of POP Materials Permanent Displays Intended for six months or more Semipermanent Displays Intended for two to six months Temporary Displays Intended for fewer than two months In-Store Media Executed by a third party (in-store radio advertising, digital signage, shopping cart ads, shelf ads, and floor graphics) 13

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Figure 22.4: Illustration of a Permanent Display 14

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Figure 22.5: Illustration of a Semipermanent Display 15

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Figure 22.6: Illustration of a Temporary Display 16

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Figure 22.7: Illustration of Floor Advertisements 17

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. The Growth of In-Store POP TV 18

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. What Does POP Accomplish? Manufacturers: Keeps the company’s name and brand name before the consumer Reinforces brand image Calls attention to sales promotions Stimulates impulse purchasing 19

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. What Does POP Accomplish? (cont’d) Retailers: Attracts the consumer’s attention Extends the amount of time spent in the store Maximizes available space Better organizes shelf and floor space (improves inventory control and turnover) 20

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. What Does POP Accomplish? (cont’d) Consumers: Delivers useful information Simplifies shopping Sets brands apart Informs consumers of new products and brands HOWEVER: Consumers can be overwhelmed by excessive POP stimuli 21

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. POP’s Influence on Consumer Behavior 22

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. POP’s Influence on Consumer Behavior Informing: POP materials alert consumers to specific items and provide potentially useful information Reminding: Reminds consumers of brands they have previously learned about via broadcast, print, or other advertising media Encouraging: Influences product and brand choices Encourages unplanned purchasing, and impulse buying Merchandising: Effective and efficient use of retail space 23

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Encoding 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 information. 24

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. POPAI Consumer Buying Habits Study POPAI Study Categories: 1.Specifically planned: intend to buy the brand (e.g., Pepsi) and actually do so 2.Generally planned: intend to buy the product (e.g., soft drink) and actually do so 3.Substitute purchase: intend to buy the brand or the product and buy something else or don’t buy Intend to buy “Pepsi” – bought “Coke” Intend to buy “Pepsi” – didn’t buy soft drink Intend to buy “soft drink” – didn’t buy soft drink 4.Unplanned purchase: bought without prior intent 25

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Results from the POPAI Consumer Buying Habits Studies: 1965 

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Product Categories with the Five Highest and Five Lowest In-Store Decision Rates 27

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. POPAI Results for In-Store Decisions 28

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Factors Influencing In-Store Decision Making The rate of unplanned purchasing is elevated when: Consumers are on a major shopping trip They shop more of a store’s aisles The household size is large They are deal prone Retailers benefit from having consumers shop longer and traverse more of the store while shopping 29

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Brand Lift Defined Brand Lift Measures the average increase of in-store purchase decisions when POP materials are present versus when they are not. 30

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Supermarket and Mass Merchandise Product Categories with the Highest Average Brand Lifts from Displays 31

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Evidence of Display Effectiveness: The POPAI/Kmart/P&G Study Investigated the impact that displays have on sales of P&G brands in six product categories: Paper towels, shampoo, toothpaste, deodorant, coffee, and fabric softener Positive sales increases materialized for all products under two sets of display conditions versus nondisplay control stores. 32

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Display Information for POPAI/Kmart/P&G Study 33

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. The POPAI/Warner-Lambert Listerine Study Regular Price Listerine Normal Shelf Space Normal Shelf Position- Feature Price Feature Price on Rear Endcap Display 141% Sales Increase Front Endcap Display and Featured Price 162% Sales Increase11% Sales Increase 34

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Encouraging Retailers to Use POP Materials POP Materials should: Be the right size and format to meet retailer specifications Fit the store décor Be user friendly Be sent to stores when they are needed Be properly coordinated with other aspects of the marcom program Be attractive, convenient, and useful for consumers 35

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Why POP Displays Go Unused Do not satisfy the retailers needs Take up too much space Too unwieldy/too difficult to set up/ flimsy Lack eye appeal Some retailers do not believe the displays increase sales 36

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Measuring In-Store Advertising’s Audience Pioneering Research for an In-Store Metric (PRISM): Is the result of an In-Store Marketing Institute initiative with Coca-Cola, Kellogg's, Kroger, Miller, P&G, and Wal-Mart A procedure for acquiring standard diagnostics (e.g., reach, frequency, and gross ratings) for measuring in-store media performance Gross impressions = traffic (i.e., freq.) x compliance (i.e., POP in-store use) x unduplicated audience (i.e., net coverage) Allowed brand marketers to plan and evaluate in-store advertising (e.g., Wal-Mart TV) in much the same way as they do for print and broadcast media Unfortunately, the project was discontinued in 2009 with the pullout of Wal-Mart 37

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. On Premise Business Signage Considered the most cost-effective and efficient form of communication available to retail businesses Types of On-Premise Signs: Free-standing: monument signs, pole signs, A- frame (sandwich board) signs, portable signs, inflatable signs Building-mounted: Projecting signs, wall signs, roof signs, banners, murals, canopy signs, awning signs 38

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Figure 22.8: Illustration of a Free-Standing Sign 39

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Figure 22.9: Illustration of a Building-Mounted Sign 40

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Forms of Billboard Ads Poster Panels Regularly seen alongside highways and in other heavily traveled locales Bulletins Hand painted, or computer generated vinyl images Digital Billboards Relatively new; represent 30% of OOH revenue in the USA; rotates ads every 4 to 10 seconds; expensive and controversial in some areas Specialty Billboards Use different artistic and graphical techniques in an engaging and creative way 41

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Out-of-Home (Off-Premise) Advertising OOH advertising expenditures in the United States amounted to $6.83 billion in 2011, with $2.05 billion devoted to digital out-of-home (DOOH) advertising OOH advertising is the oldest form of advertising (thousands of years) Billboard advertising is the major outdoor medium and accounts for nearly two-thirds of total OOH advertising expenditures 42

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Figure 22.10: Illustration of an Interactive Media Wall 43

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Figure 22.11: Illustration of a Specialty Board 44

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Billboard Advertising’s Strengths and Limitations Broad reach High frequency Geographic flexibility Low cost per thousand Substantial brand identification Excellent last reminder before purchasing Demographic nonselectivity Short exposure time Environmental concerns 45

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Billboard Audience Measurements and Other Forms of OOH Advertising Nielsen Personal Outdoor Devices (Npods) were developed by Nielsen Media Research to determine demographic characteristics of outdoor audiences using GPS technology Other forms of OOH advertising include: Transit advertising “Street furniture” 46

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Figure 22.14: Illustration of a Transit Advertisement 47