Transcript Marcom Objective Setting and Budgeting

On- and Off-Premise
Signage and Point-ofPurchase Communications
Out-of-Home (Outdoor) Advertising
• $7.2 billion annually in the US
• Regarded as supplementary
• e.g., billboard(major), bus shelters, giant
inflatables, shopping-mall displays, airports, bus
and train transfers, sky writing, blimps, etc.
• Americans report traveling an average of slightly
over 300 miles in a vehicle in a typical week with
an average round-trip commute totaling about 55
minutes.
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Billboard Advertising
• 400,000 billboards in the US
• Designed with name recognition as the
primary objective
Three major forms:
(1) Poster Panels
(2) Painted Bulletins
(3) Digital billboards
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Billboard Advertising
Poster Panels
• Alongside highway and
heavily traveled locale
• Silk-screened or
lithographed and pasted in
sheets
• Sold on a monthly basis
• Clear Channel Outdoor,
CBS Outdoor, Lamar
Advtg.
Painted Bulletins
• Hand painted directly on
the billboard, or computer
generated vinyl images
• Purchased for 1-3 year
period
• To achieve a consistent
and relatively permanent
presence
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Digital Billboards
• Huge flat screen TV that rotates messages every so
often
• Potential for increased revenue for the billboard owner
• Expensive to install ($250,000 each); represent visual
pollution and distracts drivers
• Offer flexibility to advertisers (messages can be changed
frequently)
• As of 2007, 700 such billboards in the US – expected to
increase to 4000 by 2015
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Buying Out-of-Home Advertising
• Purchased through companies that own
billboards, called plants e.g. Clear Channel
Outdoor; Viacom Outdoor
• Plants sell space in terms of showings
– Showings are percent of population exposed
– #25: 25% of population exposed
• Recently, GRPs (gross rating points) are
used - % of population in a market reached at
least once.
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Outdoor Advertising’s
• Broad reach and high
frequency
• Geographic flexibility
• Low cost per thousand
($0.85 & $1.78 as opposed to
$9.62 for a full page color
magazine ad)
• Demographic Nonselectivity
• Short exposure time
• Environmental
concerns
• Prominent brand
identification
• Opportune purchase
reminder
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Measuring OOH Audience Size
and Characteristics
• The size of the audience to be reached
when using these media – Traffic Audit
Bureau – How many people pass by a
billboard site.
• Audience characteristics not measurable
• Nielsen Media Research – Npods (Nielsen
Personal Outdoor Devices) & GPS
systems
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On-Premise Business Signage
• Considered the most
cost-effective and
efficient form of
communication
available to retail
businesses.
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Types of Signs: Free-Standing
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Types of Signs: Free Standing
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Types of Signs: Building-Mounted
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Types of Signs: Building-Mounted
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ABC’s of On-Premise Signs
ttract New Customers
rand the retail site in consumers’ minds
reate impulse purchases
Conspicuity: the ability of a sign to capture attention.
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Point-of-Purchase Advertising
• Point-of-purchase;store environment
• A final opportunity to affect consumer
behavior
• Many product-and-brand choice decisions are
made at this time
• “Shoppers are explorers. They are on a
safari, hunting for bargains, new products and
different items to add excitement to their
everyday lives…”
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POP materials
• Signs, mobiles, plaques, banners, shelf
ads, mechanical mannequins, lights,
mirrors, plastic reproductions of products,
product displays, wall posters, floor ads,
in-store radio and TV, instore-billboards,
etc. etc.
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The Spectrum of P-O-P Materials
Permanent displays
displays intended for six
months or more
Temporary and
Semipermanent
displays
In-Store Media
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Point-of-Purchase Materials
Permanent P-O-P
Temporary and
Semipermanent P-O-P
displays intended for six
months or more
displays intended for
fewer than six months
In-Store Media
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Point-of-Purchase Materials
Permanent P-O-P
Temporary and
Semipermanent P-O-P
In-Store Media
displays intended for six
months or more
displays intended for
fewer than six months
executed by a third party
(P-O-P radio, shopping
cart ads, shelf talkers,
coupon dispensers, etc..)
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P-O-P’s Influence on Consumer
Behavior
• Informing
– Motion displays vs. static displays
– S.B. Thomas’ English muffin
• Two groups of 40 stores matched on store volume and
customer demographics
• Motion display group recorded more than twice the sales of
static display group
• Reminding
– Encoding specificity principle – recall is enhanced
when context during recall is the same or similar to
the context when the message was encoded.
• Encouraging to buy (sometimes on impulse)
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Motion displays
• Attract attention
• Direct attention to brand name
• Encoding specificity principle activates
brand information previously seen/heard in
media advertising
• Recalled brand information supplies a
reason to buy
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POPAI consumer buying habits
study
• Confirms that in-store media, signage and
displays heavily influence consumer
buying decisions
• 4200 consumers interviewed at Bradlees,
Target, Walmart and Kmart in 14 major US
markets
• Entry and exit interviews
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POPAI study
• Four categories of purchases
– Those who specified a brand and bought only that
brand (specifically planned)
– Those who specified the product category and bought
a brand from that category (generally planned)
– Those who specified a brand but bought another
brand (substitute)
– Those who did not specify a brand / product category
and bought a brand (unplanned)
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Results from the POPAI Consumer
Buying Habits Study
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Product Categories With the 5
Highest and 5 Lowest In-store
Decision Rates: Supermarket
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Product Categories With the 5
Highest and 5 Lowest In-store
Decision Rates: Mass Merchandise
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Factors affecting in-store
decision making
• Unplanned purchasing is higher when
– Major shopping trip
– Larger household size
– Deal-prone
• Retailers want consumers to stay in stores
longer
– Frequently bought items like milk, eggs, etc.
at the back of the store
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The Brand Lift Index
• Indicates how P-O-P materials affect the
likelihood that customers will buy a
product they had not specifically planned
to buy.
• Increase in in-store purchase decisions
when a POP is present vs. when it is not.
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Supermarket and Mass Merchandise
Product Categories with Highest Average
Brand Lifts from Displays
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Display Information for
POPAI/Kmart/P&G Study
• POPAI, P&G and Kmart
• 6 product categories – paper towels, shampoo,
toothpaste, deodorant, coffee and fabric softener
• P&G brands sold at regular price for 4 weeks
• Three groups of 25 Kmart stores each –
– Control – brands in their normal shelf position – no
display or other advertising
– Test group 1 – advertised brands on display
– Test group 2 – different display and/or in a different
location in store
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Display Information for
POPAI/Kmart/P&G Study
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The POPAI/Warner-Lambert
Benylin Study
• Drugstores in Canada – Toronto, Montreal
and Vancouver
• Benylin cough syrup and Listerine
mouthwash
• Four groups of stores – one control and 3
experimental
• Experiment over 2 weeks
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The POPAI/Warner-Lambert
Benylin Study
Regular Price Benylin
Normal Shelf Space
Normal Shelf PositionFeature Price
Feature Price on
Endcap Display
In-aisle floorstand
displays of Benylin at a
feature price
29% Sales Increase
98% Sales Increase
139% Sales Increase 33
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 displays
of Listerine at a
feature price
162% Sales Increase 34
Reasons Why P-O-P Materials Go
Unused
• There is no incentive for the retailer because the
materials are poorly designed and don’t meet
their needs.
• Some displays take up too much space for the
amount of sales generated.
• Some materials are too unwieldy, difficult to set
up, or flimsy.
• They lack eye appeal.
• Sales may transfer from one brand to another
but not increase retailers’ overall sales and
profits.
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Persuading Retailers to Use
P-O-P Materials
• P-O-P must satisfy the retailer’s need
and the needs of the consumer
– Right size and format
– Fit the store décor
– User friendly
– Sent to stores when they are needed
– Properly coordinated with other marketing
communications program
– Attractive, convenient, and useful for
consumers
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