Chapter Eight On- and Off-Premise Signage and Point-of

Chapter Eight On- and Off-Premise Signage and Point-of. Purchase Communications 2007 Thomson South-Western

Chapter Eight Objectives • Appreciate the role and importance of out-ofhome or off-premise advertising. • Understand billboard advertising’s strengths and limitations. • Appreciate the role and importance of onpremise business signage. • Review the various forms and functions of onpremise signage. • Appreciate the role and importance of point of purchase advertising. 2

Chapter Eight Objectives • Examine the tasks that P-O-P advertising accomplishes. • Review evidence of P-O-P’s role in influencing consumers’ in-store decision making. • Examine empirical evidence revealing the effectiveness of P-O-P displays. • Appreciate the importance of measuring audience size and demographic characteristics for out-ofhome as well as in-store advertising messages. 3

Out-of-Home (Outdoor) Advertising • Greater than $5 billion annually • Regarded as supplementary • e. g. , billboard(major), bus shelters, giant inflatables, shopping-mall displays, 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. 4

Billboard Advertising • 400, 000 billboards in the US • Designed with name recognition as the primary objective Two major forms: (1) Poster Panels and (2) Painted Bulletins 5

Billboard Advertising Poster Panels Painted Bulletins • Alongside highway and • Hand painted directly heavily traveled locale on the billboard • Silk-screened or • Purchased for 1 -3 year lithographed period • Sold on a monthly basis • To achieve a consistent and relatively permanent presence 6

Outdoor Advertising’s • Board reach and high frequency • Geographic flexibility • Low cost per thousand • Prominent brand identification • Opportune purchase reminder • Nonselectivity • Short exposure time • Difficult to measure audience size and characteristics • Environmental concerns 7

Measuring OOH Audience Size and Characteristics • The size of the audience to be reached when using these media. • The demographic characteristics of audiences reached by media vehicles such as individual magazines or television programs. • Nielsen Media Research is making great strides toward developing ways to determine the characteristics of outdoor audiences. 8

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. 9

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 • It is the time and place at which all elements of the sale (consumer, money and product) come together 10

The Spectrum of P-O-P Materials Permanent displays intended for six months or more Temporary and Semipermanent displays In-Store Media 11

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 12

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. . ) 13

What Does P-O-P Accomplish? • Accomplishments for Manufacturers • Service to Retailers • Value to Consumers 14

P-O-P’s Influence on Consumer Behavior • Informing • Reminding • Encouraging 15

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. 16

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. 17

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 18