Transcript package

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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-ofpurchase (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.
©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.
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Chapter Objectives (cont’d)
5. Appreciate the importance of measuring audience size and
demographic characteristics for out-of-home as well as instore 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 offpremise, advertising.
9. Understand billboard advertising’s strengths and limitations.
©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.
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Mobile Grocery Shopping
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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
©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.
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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
©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.
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Evaluating Packaging
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Evaluating the Package: The VIEW Model
Visibility
Information
Emotional Appeal
Workability
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Figure 22.1: Illustration of Workability
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Figure 22.2: Hypothetical Illustration of
Quantifying the VIEW Model Components
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Designing a Package
Step 1: Specify Brand Positioning Objectives
Step 2: Conduct a Product Category Analysis
Step 3: Perform a Competitive Analysis
Step 4: Identify Salient Brand Attributes/Benefits
Step 5: Determine Communication Priorities
©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.
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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.
©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.
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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)
©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.
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Figure 22.4: Illustration of a Permanent
Display
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Figure 22.5: Illustration of a Semipermanent
Display
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Figure 22.6: Illustration of a Temporary
Display
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Figure 22.7: Illustration of Floor
Advertisements
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The Growth of In-Store POP TV
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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
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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)
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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
©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.
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POP’s Influence on Consumer Behavior
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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
©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.
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Encoding Specificity Principle
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.
©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.
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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
©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.
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Results from the POPAI Consumer Buying
Habits Studies: 1965  2012
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Product Categories with the Five Highest and
Five Lowest In-Store Decision Rates
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POPAI Results for In-Store Decisions
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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
©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.
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Brand Lift Defined
Brand Lift
Measures the average increase of in-store
purchase decisions when POP materials are
present versus when they are not.
©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.
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Supermarket and Mass Merchandise Product Categories
with the Highest Average Brand Lifts from Displays
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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.
©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.
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Display Information for POPAI/Kmart/P&G
Study
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The POPAI/Warner-Lambert Listerine
Study
Regular Price Listerine
Normal Shelf Space
Normal Shelf PositionFeature Price
11% Sales Increase
Feature Price on Rear
Endcap Display
141% Sales Increase
Front Endcap Display
and Featured Price
162% Sales Increase
©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.
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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
©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.
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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
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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
©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.
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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, Aframe (sandwich board) signs, portable signs,
inflatable signs
• Building-mounted: Projecting signs, wall signs,
roof signs, banners, murals, canopy signs, awning
signs
©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.
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Figure 22.8: Illustration of a Free-Standing
Sign
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Figure 22.9: Illustration of a Building-Mounted
Sign
©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.
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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
©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.
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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
©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.
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Figure 22.10: Illustration of an Interactive
Media Wall
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Figure 22.11: Illustration of a Specialty Board
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Billboard Advertising’s Strengths and
Limitations
Broad reach
Demographic nonselectivity
High frequency
Short exposure time
Geographic flexibility
Environmental concerns
Low cost per thousand
Substantial brand
identification
Excellent last reminder
before purchasing
©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.
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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”
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Figure 22.14: Illustration of a Transit
Advertisement
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