What is the life of a poster or a banner in an outlet selling fmcg product
A point-of-sale display (POS display) is a specialised form of sales promotion that is found near, on, or next to a checkout counter (the “point of sale“). They are intended to draw the customers’ attention to products, which may be new products, or on special offer, and are also used to promote special events, e.g. seasonal or holiday-time sales. POS displays can include free standing display units (FSDU), shelf edging, dummy packs, strut cards, standees, hanging signs, counter display units (CDU), display packs, endcaps, display stands, mobiles, posters, and banners.[1] POS can also refer to systems used to record transactions between the customer and the commerce.[2][3]
Usually, in smaller retail outlets, POS displays are supplied by the manufacturer of the products, and also sited, restocked and maintained by one of their regular salespersons. This is less common in large supermarkets as they can control the activities of their suppliers due to their large purchasing power, and prefer to use their own material designed to be consistent with their corporate theme and store layout.[4]
Common items that may appear in POS displays year-round are batteries, soft drinks, candy, chewing gum, magazines, comics, tobacco, and writable CDs and DVDs. These displays are also useful in outlets with limited floor space, as there tends to be much wasted space around counters.
The displays are normally covered with branding for the product they are trying to sell, and are made out of cardboard or foamboard, and/or a covering over a plastic or Perspex/Plexiglass stand, all intended to be easily replaceable and disposable. This allows designers to make full use of color and printing to make the display visually appealing. Some displays are fixed or non-disposable. These may include lighting to make the display more visible and may also contain a cooler for drinks or ice cream. Some are no more than a metal basket, with no design on the outside, simply showing a price. These types of display are easier to refill.[5]
Lightboxes
In the field of POS displays, a “lightbox” is a display fixture (or a modular component of a larger POS display structure) that contains a translucent graphic film with lamps that transmit light through the graphic, thus “backlighting” the graphic message for increased visibility, brightness and contrast relative to its surroundings. By definition, the artwork or backlit graphic film (aka “duratrans“) in a POS lightbox is replaceable without discarding the lightbox or any of its other components.
Lightboxes have historically been lighted with fluorescent lamps due to their (a) cooler operating temperature than incandescent; (b) relatively low power consumption; and (c) inherent diffusive property. As in most commercial lighting applications, there has been a significant shift in the late 20th and early 21st century toward LED lamps in POS lightboxes, for not just the universally-acknowledged benefit of economy but also of practicality, as LED lamps are more durable and impact-resistant in shipping, handling and public applications such as Point-of-Sale. Motion LED lightboxes are a variation on traditional lightboxes, and use programmed LEDs behind a display to create the impression of movement.
Note: the definition of “lightbox” as it relates to POS displays is similar to but distinct from that of a lightbox in the Photography and Graphic Arts industries. The similarity is that they both contain lamps whose light is diffused to uniformly backlight a translucent image. The distinction is that a POS lightbox is a permanent or semi-permanent fixture used to display an advertising message in a retail space, while a photography lightbox is usually a portable or table-mounted appliance used for image quality analysis and/or tracing in a photography studio, graphic design studio, graphic/print production shop or similar environment.
Free Standing Display Units (FSDU)
Free standing display units are designed to attract the attention of customers and promote key retail products or messages. They are often placed strategically within the customer journey, and utilise bright colours and graphics to stand out visually and encourage shoppers to buy.
FSDUs are generally made from cardboard. This reduces production costs, and makes them easy to transport and assemble, while being robust enough for use in a retail environment.
POSM (also called POPM or POP) stands for “Point of Sale Materials”. These are advertising materials that are used to communicate product information to the consumers at the point of sale. There are many types of POSMs which are used by companies for their advertising campaigns. Some of them includes Posters, Dangler, Dummy Boxes, Shelf Branding, Shelf Talker, Leaflets & Leaflets Dispenser, Wobblers etc. All these POSMs are deployed on POP or POS.
We will discuss about POSM types in detail. But first we need to understand what is POP or POS.
POS stands for Point of Sale & is considered when the discussion is from the view of seller. This is a point where seller used to sell his products to customers.
POP stands for point of purchase & is considered when the discussion is from the view of customer.
This means POS & POP are the same thing but are used differently by sellers & consumers respectively.
Types of POSM:
There are no fix types, shapes & sizes of POSMs in the market however can be categorized basis their application in retail.
Posters: Posters are signage that is pasted on a flat vertical surface such as a wall. They generally come in the following sizes: Large (24” X 36”), Medium (18” X 24”), Small (11” X 17”), & A4. Depending upon the quality/brand/theme & other classifications printing quality can be decided by companies.
Danglers: Danglers are hanging signage that is “dangled” from the ceiling of a retail store. At its simplest, a Dangler can just be rectangular piece of thick paper with SALE written on it. On the other end, it can be a 3-dimensional model of the product.
Standees: Standee is a self-standing display promoting a communication/campaign/scheme. It is generally placed outside of an outlet to grab attention of the passerby. Standees are of different types such as floor standee, rollup standee, cut out standee, canvas standee, MDF standee, LED Standee, 3D standee etc.
Bunting: Small stickers/flags/ribbons tagged together with thread in a sequence keeping uniform distance is known as bunting in POSM terminology. Bunting is usually a POSM used on doors or windows.
Other PoSMs: Other major types of POSMs are stickers, wobblers, LED window displays, levitating units, acrylic highlighter displays, etc. All these material are used in promoting the communications for brands
10 ways to promote your business with posters
Author: James Birch says Posters are a fabulous, innovative and cost-effective way of getting your message in front of people. They look good in all kinds of settings, from shop front to bus stops, tube stations and beyond. But understanding the impact of the poster and how to use it for maximum visual impact are not concepts that all businesses readily understand.
With many years’ experience in printing posters of all kinds, Colour Graphics can help you create a targeted poster campaign to make your business visible to consumers and fans.
#1 Brand your products or services
Business is no longer just about selling to a captive audience. With the advent of the internet, your customers can research and find all kinds of information and deals on a wide range of products. The make sure your business stays firmly in front of them, you need to create a brand, or an attitude, around your business.
The question is no longer ‘why should they buy from you?’ but ‘how will a consumer feel when they do buy from you?’. Just take a look at some of the larger, well-known companies and how they brand themselves. Posters are one way of promoting your business, your product or service.
#2 Enticement
Enticing customers to either take a closer look or to buy from you is a powerful message – and one that a poster can carry with panache and flair (with the right design and offer!). If you are offering the best deal you have ever offered to customers, then tell them with a poster is strategic places.
#3 Information giving
Too wordy and people will move away and not take any notice. If you want people to access more information, tell them where they can find it – email (and give the address), the website address of call us etc. You know the drill…
#4 Trade shows and exhibitions
All too often, people get a little stuck in a rut – e.g. banner stands are for exhibitions and so on. But, posters can have a place at an exhibition too. Don’t dismiss posters are being the thing that adorns the wall of a bus stop – and only this.
#5 Link everything together
Your logo, the colours you use, your tag line and any other parts of your design brief should all be firmly linked across all your marketing paraphernalia, including your posters. Make sure the logo is included and that the same information and colours are also used. This is about joining all aspects of your marketing to give a coherent approach.
#6 Seek out advertising space
On one hand, you will be advised to put your posters where you suppose your customers are but you know, sometimes, the most outlandish places can attract attention – and being talked about, for all the right reasons, is important. It is also a welcome boost to your business to make a funny or controversial poster campaign may work – but don’t go out too much on a limb or you may find it back fires.
#7 Use your own premises
Take a look at your shop, office or other business premises. Is it obvious that your business lives there? Not all business bases are open to the walk-in public but there is no harm in letting them know that you are there. You see how handy posters are becoming?
#8 Send them to stockists and retailers
It may be that your products are being stocked and sold in other shops or outlets. Not all posters have to be gargantuan – and A3 sized poster can be easily accommodated in most spaces – so why not send some merchandising kit to your retailers too?
#9 Tell everyone your social media platforms and addresses
Offline and online marketing activities should feed in to one another but if your website could do with a boost, or you need more likes and shares on Facebook then why not have a poster campaign to boost these?
#10 And finally, take a risk
Some well-known high street retailers, on advertising their annual stock clearance sale, have such a signature style that they use a few well-chosen and posed photos of models wearing some of their iconic outfits. This is a brave move indeed as the lack of test could so easily mean that the message is lost.
However, if you have a marketing idea with which you would like to experiment, then posters are a cost-effective way of doing it. In other words, if it doesn’t quite go as planned and is not as successful as you thought it would be, you’ve not completely blown the marketing budget.
Ten great reasons to use poster advertising in your media mix.
1. Money matters.
Posters are one of the most cost effective forms of advertising on the market.
Posters allow you to spread your message to a wide audience far cheaper
than radio, print or television advertising in a simple, easy and affordable way.
2. Posters are credible.
Poster advertising is a tradition that carries itself with distinction.
Customers are more likely to trust poster adverts because they appear in
public places and are more accessible. Posters have a rich visual history
embedded in our psyche so if in doubt, Keep Calm and Poster Advertise.
3. Customers Need YOU!
Poster campaigns may have history behind them but they have a future in
front of them. Use them to create a direct call to action for your customers
and tell them what you want them to do. Phone this number. Tweet this
message. Visit this shop. Grab this discount. Poster campaigns create
direct, effective response.
4. Posters ads are highly visible.
Posters are easy to see and pictorial messages are what makes poster
advertising so unique. A great poster with a striking and compelling
visual can improve your company’s visibility. So let your business shine!
5. They are versatile.
Endless design possibilities, fabulous fonts, gorgeous graphics and
joyous words combine to offer your business huge advertising scope
using poster power.
6. If you like it then you better stick a pin in it.
Think of your poster like a memory pin for the customer – poster advertising makes your message stick in their minds. Good posters are vibrant, creative, succinct and memorable.
7. A captive audience.
Shopping centres, public places, washrooms, lifts, escalators, eating areas and the heavy footfall outside toilet facilities all create perfect places for posters to impact on a captive audience.
8. Not all traffic jams are bad.
Heavy traffic in a shopping centre is good news for business, provides a guaranteed audience and insures your poster gets seen! Posters have the unique ability to reach a huge target audience and make an impact so take advantage of high traffic areas to display your poster for maximum reach. You can use your poster in some of the busiest shopping centres and designer outlets in the world
.
9. Posting isn’t just for social media!
Posters can be used to raise the profile of your twitter handle, create a buzz on social media with a cleverly planned strategy of intrigue or used as a great way for people to instantly connect with your business. Customers can use phones to snapshot information they need for later so if your poster catches their eye it can cut across the social media platform too. Make your poster campaign go viral!
10. Posters are a powerful medium.
They have the ability to cause a rapid response in customers. A good poster can arouse empathy, connecting your company to the hearts and minds of customers with emotive visual imagery demanding attention. So to get noticed
and get connected to your customers, poster advertising never fails.
With stores located across India, brands find it increasingly difficult to ensure that the stores are being appropriately maintained as per the visibility benchmarks set by the brand. While this is assessed by the brand’s sales team that is on field, sometimes the management wants an outside view to assess the brand’s visibility, either from a customer or brand guideline stand point. This is done by conducting Visibility Audits.
Visibility Audits essentially evaluate retail stores against a standard set of guidelines that relate to the visibility of the brand keeping in view hygiene and branding parameters at a retail store.
Visibility Audits can be done at exclusive as well as multi-brand outlets. Depending on the same, the parameters evaluated may vary given that the standards set for both the environments may be different.
The typical parameters measured during Visibility Audits are:
- External branding;
- Internal branding;
- Furniture & Fixtures;
- Demo Devices; and
- Grooming standards of staff.
Visibility Audits help brands determine the effectiveness of the marketing spend at the retail outlets and can help brands drive actions on field with respect to customer experience from a brand visibility stand point.
Display and branding Key Takeaways
Key Points
- Coupons gain popularity during tough economic times.
- Coupons are an inexpensive form of marketing.
- Coupons offer marketers both advantages and disadvantages.
- An effective coupon program can be measured and entices consumers to use the coupons.
Key Terms
- brand awareness: Brand awareness is the extent to which a brand is recognized by potential customers and is correctly associated with a particular product.
- up-sell: Upselling (sometimes “up-selling”) is a sales technique whereby a seller induces the customer to purchase more expensive items, upgrades, or other add-ons in an attempt to make a more profitable sale.
- discount store: a type of department store which sells products at prices lower than those asked by traditional retail outlets
Introduction
Coupons are hot and the state of the economy has much to do with their popularity. Article after article about saving money mentions using coupons. And consumers are following their advice.
You don’t have to look any further than the Promotion Marketing Association (PMA) Education Foundation, Inc. for proof that coupons work for consumers. Their figures show that in the first half of 2011, consumers saved a whopping $2 billion though the use of coupons.
The NCH Vice President of Marketing backs up this figure. According to him, coupon redemption volume continued to show a marked increase in the first half of 2011.
Why Consumers Love Coupons: It’s in the Definition
A coupon is a ticket or document that can be exchanged for a financial discount or rebate when purchasing a product. Coupons offer instantly redeemable savings on certain products. That means that consumers get an instant reduction on the price at the point of purchase. They don’t have to send anything to the manufacturer, they don’t have to enter any type of contest. They walk away from the store with the satisfaction that they have saved money.
Origins of Coupons
In 1887, the Coca-Cola Company was incorporated in Atlanta with Asa Candler as one of the partners. He transformed Coca-Cola from an insignificant tonic into a profitable business by using innovative advertising techniques. The key to this growth was Candler’s ingenious marketing, which included having sales representatives distribute complimentary coupons for Coca-Cola.
Coca-Cola Coupon: Believed to be the first coupon ever, this ticket for a free glass of Coca-Cola was first distributed in 1888 to help promote the drink. By 1913, the company had redeemed 8.5 million tickets.
Coupons were mailed to potential customers and placed in magazines. The company gave soda fountains free syrup to cover the costs of the free drinks. It is estimated that between 1894 and 1913 one in nine Americans had received a free Coca-Cola, altogether totaling 8,500,000 free drinks.
Marketers’ Love / Hate Relationship with Coupons
Why would a company let consumers walk away paying less for their product than the displayed price? Peer pressure may be one reason. Coupons are an inexpensive form of marketing. Due to this fact, almost half of all retailers say that they use some type of coupon program. If a company’s competitors are doing it, the company will most likely consider doing it as well.
That’s not the only reason, however. Coupon programs offer a host of benefits. They can:
- Increase the number of new customers – A customer may try a product just because they have a coupon for it and like it enough to continue to buy it.
- Help move a specific product
- Build brand awareness – A consumer sees the brand name on the coupon even when the coupon is not redeemed.
- Reward current customers – Customers are delighted when they receive the gift of savings from the manufacturer of a product that they buy regularly.
- Entice former customers to return
- Create the opportunity for the marketer to up-sell a more profitable product
- Provide the marketer with a highly measurable marketing program
The idea behind a coupon program isn’t simply to get consumers to buy your product. You want them to notice your brand. Well-designed coupon programs accomplish that goal. In addition, retailers will benefit from such programs as it will drive traffic to their store.
Coupons, though, can have both advantages and disadvantages. The optimal scenario for marketers is that coupons create brand awareness without consumers using the coupon. In fact most coupons are never redeemed. This makes marketers happy as there is no reduction in revenue. A reduction of revenue, however, is just one of the disadvantages of a coupon program. Others include:
- Mass-cutting
- Counterfeiting
- Misredemptions.
How Coupons are Distributed
You probably run across coupons on a daily basis. Open your mailbox and you’ll see direct mail containing coupons. Look on the Internet and you’ll see coupons that can be distributed electronically. A product that you buy may actually have a coupon on the package or you might go shopping and be happily surprised to find a pad on the shelf containing product coupons.Creating Effective CouponsEven though marketers may be happy to not have coupons redeemed, that is not the objective of issuing coupons. You do want to lure consumers to redeem the coupon. That’s how you get noticed in the sea of other offers.To accomplish that goal coupons must be created with clear, precise text that shows the:
- Face value
- Product image
- Bar code (if needed)
- Legal copy
- Expiration date
- Company name and address.
Measuring Effectiveness of Coupon Programs
You will not be able to judge the effectiveness of your coupon campaign without testing and measuring it. Tracking codes let retailers know not only who redeemed the coupons, but also where the coupons were found. This data can help you decide which coupon is best for your target audience.
Rebates
A rebate is an amount paid by way of reduction, return, or refund on what has already been paid or contributed.
Consumer retention Key Takeaways
Key Points
- The mail-in rebate (MIR) is the most common type of rebate.
- In some cases, the rebate may be available immediately, in which case it is referred to as an instant rebate.
- New companies that want to break into a market can offer substantial rebate savings on their new product as a means of capturing a customer’s attention.
- Even though rebates provide savings to customers, getting their money back requires a lot of work and may not be worth it to some.
Key Terms
- mail-in rebate: A MIR entitles the buyer to mail in a coupon, a receipt and barcode in order to receive a check for a particular amount, depending on the particular product, time, and often, place of purchase.
Introduction
A rebate is an amount paid, by way of reduction, return, or refund on what has already been paid or contributed. It one of the sales incentives promotion marketers use to supplement product sales.
The mail-in rebate (MIR) is the most common.
Rebates are offered by either the retailer or the manufacturer of the chosen product. Large stores often work in conjunction with manufacturers, usually requiring two or even three separate rebates for each item. Manufacturer rebates are sometimes valid only at a single store. Rebate forms and special receipts are sometimes printed by the cash register at time of purchase on a separate receipt, or available online for download.
In some cases, the rebate is available immediately, in which case it is referred to as an instant rebate. Some rebate programs offer several payout options to consumers, including a paper check, a prepaid card that can be spent immediately without a trip to the bank or even PayPal payout.
Rebates are heavily used for advertised sales in retail stores in the United States. In the UK, rebates are less common, with manufacturers and retailers preferring to give discounts at the point-of-sale rather than requiring mail-in or coupons. However rebates are sometimes given in the form of “cashback offers” for mobile phone contracts or other high value retail items sold alongside a credit agreement.
Rationale Behind Rebates
Beer Rebate: Unlike coupons, customers must mail the rebate to the manufacturer to get their money back.
- Rebates are arguably more effective selling tools than sales or instant discounts because with rebates consumers pay the full price for the product up front and associate the higher price product as one of greater quality.
- Rebates are more flexible and can be turned off and on more easily than a sale or instant discount which tends to lower the perceived value of a promoted product.
- The information given in the rebate form, such as name, address, method of payment, can be used for data mining studies of consumer behavior.
- The information can be used as evidence of a pre-existing business relationship for marketing purposes, such as ‘do not call’ lists.
- Rebates offer retailers the benefit of giving customers a temporary discount on an item, to stimulate sales, while allowing it to maintain its current price point.
- Rebates allow companies to “price protect” certain product lines by being selective in which models or brands to be discounted.
- During the turnaround time, the company can earn interest on the money.
- If the turnaround time crosses into the next fiscal year or quarter, a rebate offer can inflate sales in the current period, and not have to be accounted for until the next period and then it could be attributed as a cost reducing sales or expense for the next period.
- Not all buyers will meet the criteria to receive the rebate. Companies often require the original UPC barcode, receipt, and additional information, which a buyer may forget to include when redeeming the rebate. Companies almost always add other caveats to the rebate as well, such as the redemption having to be postmarked by a certain date. It works in the company’s favor if buyers do not act quickly to redeem.
- New companies that want to break into a market can offer substantial rebate savings on their new product as a means of capturing a customer’s attention. Zeus Kerravala, vice president at the Yankee Group, has said “For companies that haven’t been in a particular market, the rebate that essentially refunds the customer’s money is a great way to get people to pay attention to them. This is especially true in consumer electronics, where brand name does matter. It’s a good way to get customers to take a chance on a new brand. “
Benefits and Costs for Consumers
Rebates may seem to offer customers lower pricing. Deal hunter sites frequently tout the benefits of rebates in making technology affordable. According to 2011 research, 47% of consumers submitted a rebate within the past 12 months; whereas similar research conducted in 2009 showed that only 37% of consumers had submitted a rebate in the preceding year. Still, rebates take a certain amount of time and effort from the consumer – figuring out the rules, filling out the forms, preparing and dropping off the mailing, cashing in the check, keeping track of the paperwork while this is being done. Thus, a rebate can be thought of as being paid to do this paperwork and provide one’s personal data to the company. Chances of rebate mailing being lost or failing some criteria may further reduce the expected return on this effort. Consumers who are aware of this, and who value their time, effort and opportunity costs above the value of the rebate, may choose to ignore a non-instant rebate that requires such procedures and assume the out-the-door price when considering the purchase. On the other hand, if the consumer does not mind these obstacles and is more concerned with the price than their time for any reason, the rebate may be seen as a deal.
Premiums
Premiums are prizes, gifts, or other special offers consumer receive when purchasing products.
KEY TAKEAWAYS
Key Points
- Premiums fall into one of two categories: free premiums which only require the purchase of the product and self-liquidating premiums which require consumers to pay all, or some, of the price of the premium.
- Premiums can actually enhance an image and were, in fact, the basis of of the first loyalty marketing programs.
- To insure a successful program, match the premium to a target market by selecting one that reinforces the firm’s product and image. Integrate the premium with other marketing tools such as advertising and POP displays.
Key Terms
- Self Liquidating Premiums: require the consumer to pay a designated amount of money for the gift or item.
- In-or On-package Premiums: usually small gifts, such as toys in cereal or candy boxes
- Free Premiums: a sales promotion that only requires buying the product to receive the free gift or reward.
Introduction
Another form of consumer sales promotion is the premium. Premiums are prizes, gifts, or other special offers received when a consumer purchases a product. When a company presents a premium, the consumer pays full price for the good or service, as opposed to coupons that grant price reductions or to samples, instead of receiving the actually product.
One of the first loyalty marketing programs ever offered was a premium in which proof of purchase was redeemed for prizes or gifts. Some marketing experts believe that coupon over-use damages a brand ‘s image, while premiums can actually enhance it. The key is to match the right type of premium with the product and a predisposed buyer.
Though not as successful as coupons, premiums can be used to boost sales and remain a valuable consumer promotional tool. In the United States, each year over $4.5 billion is spent on premiums.
Type of Premiums
Premiums fall into one of two categories: free premiums which only require the purchase of the product and self-liquidating premiums which require consumers to pay all, or some, of the price of the premium.
Free Premiums
Free-in-the-mail premiums are gift that individuals receive for purchasing products.
Free In-The-Mail Premium: Such premiums are gifts individuals receive for buying a product.
The marketing objectives of such premiums are to:
- Promote multiple brand(s) purchases;
- Increase brand recognition and customer awareness;
- Encourage new or additional brand use;
- Make brands more user-friendly; and
- Reward loyal consumers.
The benefits of Free-In-The-Mail Premiums are that:
- They add value and are brand related;
- There is no need for elaborate packaging; and
- They allow larger premiums to be offered.
In-or On-package Premiums
are usually small gifts, such as toys in cereal boxes.
The marketing objectives of such premiums are to:
- Increase brand visibility and customer awareness;
- Revitalize a mature brand;
- Promote multiple purchases through continuity premiums;
- Encourage new or additional uses for a brand; and
- Reward customer loyalty.
The benefits of In- or On-Package Premiums are that they:
- Impact at point-of-sale due to their visibility;
- Offer immediate consumer gratification;
- Have no redemption or couponing cost;
- Provide added value.
Store or manufacturer premium are gifts given by either the retail store or the manufacture when the customer purchases a product.
The marketing objectives of such premiums are to:
- Increase brand visibility and customer awareness; and
- Encourage consumers to try a brand.
Marketers benefits from store or manufacture premiums as they add value to their brand.
Self Liquidating Premiums
Self liquidating premiums require the consumer to pay an amount of money for a gift or item.
Getting Double: Self-liquidating premiums require consumers to pay an amount of money for a gift or an item.
The marketing objectives of this type of premium is to attract more customers with low prices.
The benefits to the manufacturer is that they receive additional revenues.
Keys to Successful Premium Programs
Successful premium programs require that marketers:
- Match the premium to the targeted market;
- Carefully select the premium ( avoid fads, try for exclusivity);
- Pick a premium that reinforces the company’s product and image;
- Integrate the premium with other IMC tools ( especially advertising and POP displays); and
- Don’t expect premium to increase short-term profits.
Loyalty Marketing
Loyalty marketing is an approach whereby a company focuses on growing and retaining existing customers through incentives and rewards.
LEARNING OBJECTIVES
Discuss the basis, use and impact of loyalty programs as a personal selling and sales promotion tool
KEY TAKEAWAYS
Key Points
- Some loyalty marketing industry insiders, such as Fred Reichheld, have claimed a strong link between customer loyalty marketing and customer referral.
- In recent years, a new marketing discipline called “customer advocacy marketing” has been combined with or replaced “customer loyalty marketing”.
- The early part of 2010 saw the rise of Card Linked Offers (CLOs) as a new loyalty marketing technique for brands, retailers and financial institutions, stemming from a rise in popularity of both mobile payment and coupons.
- Many consumers in the US and Europe have become quite accustomed to the rewards and incentives they receive by being a “card carrying” member of an airline, hotel or car rental program.
Key Terms
- Card Linked Offers: Card Linked Offers connect offers or discounts directly to a consumer’s credit card or debit card, which can then be redeemed at the point of sale.
- customer advocacy: Customer advocacy is a specialized form of customer service in which companies focus on what is best for the customer. It is a change in a company’s culture that is supported by customer-focused customer service and marketing techniques.
Loyalty marketing is an approach to marketing, based on strategic management, in which a company focuses on growing and retaining existing customers through incentives.
Various Loyalty Cards: Loyalty programs are structured marketing efforts that reward, and therefore encourage, loyal buying behavior.
Branding, product marketing and loyalty marketing all form part of the customer proposition – the subjective assessment by the customer of whether to purchase a brand or not, based on the integrated combination of the value they receive from each of these marketing disciplines.
The discipline of customer loyalty marketing has been around for many years, its value as an advertising and marketing vehicle have made it omnipresent in consumer marketing organizations since the mid- to late-1990s.
Some loyalty marketing industry insiders, such as Fred Reichheld, have claimed a strong link between customer loyalty marketing and customer referral. In recent years, a new marketing discipline called “customer advocacy marketing” has been combined with, or replaced, “customer loyalty marketing. ” To the general public, many airline miles programs, hotel frequent guest programs and credit card incentive programs are the most visible customer loyalty marketing programs.
Modern Consumer Rewards Programs
Frequent Flyers
On May 1, 1981 American Airlines launched the first full-scale loyalty marketing program of the modern era with the AAdvantage frequent flyer program. This revolutionary program was the first to reward “frequent fliers” with reward miles that could be accumulated and later redeemed for free travel. Many airlines and travel providers saw the incredible value in providing customers with an incentive to use a company exclusively and be rewarded for their loyalty. Within a few years, dozens of travel industry companies launched similar programs.
Card Linked Offers
The early part of 2010 saw the rise of Card Linked Offers (CLOs) as a new loyalty marketing technique for brands, retailers and financial institutions, stemming from a rise in popularity of both mobile payment and coupons. CLOs connect offers or discounts directly to a consumer’s credit card or debit card, which can then be redeemed at the point of sale.
To receive and use CLOs, consumers must willingly opt in to a CLO program and provide their credit/debit card information. When consumers see relevant CLO-enabled advertisements and product offers while browsing online, using a mobile device, watching TV, reading a newspaper or magazine or listening to the radio they can click, text or scan a QR code to link the CLO-enabled ad directly to their credit/debit card. After consumers make a purchase at the designated retail location, the savings appeared are credited directly to their bank, credit card or PayPal account. As such, CLOs eliminate point-of-sale integration, mail-in rebates and paper coupons. Offers are typically based upon consumer preferences and previous purchase history.
Prior to 2010, static CLOs existed for many years in the form of bank-issued loyalty offers, such as points or savings on travel purchases.
Consolidated Loyalty Programs
Recently there has been a move away from proprietary loyalty schemes to a more consolidated approach, where a single registered account can link a consumer to any number of participating merchants. The principal advantage of this approach is that it minimizes the number of discrete relationships between consumers and merchants and only requires a one-off registration.
One prominent example is the US-based Punchd, which became part of Google in 2011. Others, like MazeCard, have offered consolidated loyalty marketing schemes in other continents.
Loyalty Marketing Impact
Many loyalty programs have changed the way in which consumers interact with the companies that they purchase products or services from and how much the consumers spend. Many consumers in the US and Europe have become quite accustomed to the rewards and incentives they receive by being a “card carrying” member of an airline, hotel or car rental program. In addition, research from Chris X. Moloney shows that nearly half of all credit card users in the US utilize a points-based rewards program.
In recent years, the competition for high income customers has led many of these loyalty marketing program providers to provide significant perks that deliver value well beyond reward points or miles. Both American’s AAdvantage program and Starwood Hotels’ Preferred Guest program have received industry awards, called “Freddie Awards” by Inside Flyer Magazine and its publisher Randy Petersen for providing perks that customers value highly. These perks have become as important to many travelers as their reward miles, according to research.
In his book, Loyalty Rules!, Fred Reichheld details the value of customer referral on the growth and financial performance of dozens of leading US firms. Reichheld purports that the measurement of company advocates, or promoters, is the strongest single measurable correlation between customers and corporate performance.
Similarly, Chris X. Moloney has presented new findings (Loyalty World London 2006) that showed a magnetic value to a company to promote and measure customer referrals and advocacy via research and marketing.
Contests and Sweepstakes
Contests and sweepstakes are two forms of sales promotions which attract consumers by offering them the chance to win a valuable prize.
LEARNING OBJECTIVES
Discuss the characteristics of contests and sweepstakes and how companies benefit from their use
KEY TAKEAWAYS
Key Points
- Contests normally require the participant to perform some type of activity and the winner is selected based on who performs the best or provides the most correct answers.
- Sweepstakes entice consumers to submit free entries into drawings of chance (not skill) that are tied to the product or service wherein the featured prizes are given away by sponsoring companies.
- Sweepstakes and contests both allow marketers to interact with and gain a better understanding of their target audience and leave customers with a positive image of the company and its products.
Key Terms
- sponsor: One that pays all or part of the cost of an event, a publication, or a media program, usually in exchange for advertising time.
- buzz: Major topic of conversation, widespread rumor, or information spread behind the scenes.
Introduction
Consumers tend to like sales promotions because they get something for “free. ” If you as a marketer really want to get their attention, however, give a select few of them the chance to receive something with a high value.
Marketers who want to use this type of sales promotion have two options to choose from:
- Contests
- Sweepstakes
Contests
Contests normally require the participant to perform some type of activity. The winner is selected based on who performs the best or provides the most correct answers. No purchase is required to enter a contest and a panel of judges determines the winner. Consumers can enter as many times as they wish, although it is permissible for firms to restrict customers to one entry per visit to the store.
The Best Quote Wins: Contests require skill; sweepstakes generally only reward luck.
Sweepstakes
There is another consumer sales promotion known as a sweepstake (also known by its inflected forms which are both single and plural: sweepstakes and sweeps). These have become associated with marketing promotions targeted toward both generating enthusiasm and providing incentive reactions among customers. A sweepstake entices consumers to submit free entries into drawings of chance (and not skill) that are tied to product or service awareness wherein the featured prizes are given away by sponsoring companies.
Prizes can vary in value from less than one dollar to more than one million U.S. dollars and can be in the form of cash, cars, homes, electronics, and so on. In Australia, New Zealand and the United Kingdom, a sweepstake is known as a competition.
Sweepstakes frequently have eligibility limited by international, national, state, local, or other geographical factors.
Sweepstakes are often referred to by marketing promoters as second-chance sweepstakes when utilized in conjunction with the awarding of unclaimed prizes during instant-win promotions.
General Structure of Winning a Sweepstakes Prize
Almost every sweepstakes in the United States offering prizes valued at 600 dollars or greater will typically follow the following structure:
Sponsor
promotion
- Creating the sweepstakes promotion for a sponsor or sponsors;
- Advertising the sweepstakes, prize structure, and the official rules;
- Opening date for receiving entries;
- Closing date for receiving entries;
- Drawing date to judge winning entries.
Winner notification
- Sweepstakes promotion judges contacting the prize winner;
- Winner filing publicity release with sponsor’s sweepstakes promotion agency;
- Winner filing affidavit of eligibility (compliance with official rules) with sponsor’s sweepstakes promotion agency;
- Winner filling any required federal or state tax forms with sponsor’s sweepstakes promotion agency;
- Winner receives prize.
By law, the sponsors of sweepstakes must not require the prize winners to pay any shipping or handing charges in order to win or receive their prizes.
Sweepers frequently send out SASE (self addressed, stamped envelopes) to receive free game pieces, official entry forms, and copies of the official rules that are unique and pertain to individual sweepstakes promotions.
How Marketers Value from Contests and Sweepstakes
Marketers have a lot to gain from giving away valuable prizes to consumers. Contests and sweepstakes allow them to:
- Create a buzz about the product — With the rise of social media, word-of-mouth marketing can help make or break a product. Exciting events, such as contests and sweepstakes, encourage people to talk about the company and its products. It is a great, cost-effective way to extend your advertising reach.
- Draw traffic to their website or store — Some consumers may never have heard of your company before. So contests and sweepstakes offer these companies an opportunity to build brand awareness with such consumers.
- Build an e-mail list — Marketers usually give contestants a newsletter or mailing list opt-in option when they enter the contest or sweepstake. New names mean new potential customers in the long-run.
- Perform marketing research — Marketers can easily add a survey to a contest or sweepstakes entry form. The information gathered is just as valuable to them as the prize is to the consumer because it can help marketers better understand their target audience. This better understanding can lead to better marketing campaigns.
- Strengthen their relationship with their customers — People buy from people they like. Contests and sweepstakes allow consumers to interact with the company in a fun way and creates a positive image of the company and its products.
Sampling
A free sample is a portion of a product given to consumers at no cost for their trial with the aim of driving product adoption.
LEARNING OBJECTIVES
Describe the characteristics and proper methods of sampling
KEY TAKEAWAYS
Key Points
- The purpose of a free sample is to acquaint the consumer with a new product.
- Small “trial size” containers of products are also classified as samples.
- Samples may also be loaned to the customer if they are too valuable to be given for free.
Key Terms
- social graph: The social graph is a term used for sociograms in the Internet context. A sociogram is a graph that depicts personal relations. It has been referred to as “the global mapping of everybody and how they’re related. “
Introduction
In 2000, best-selling author Seth Godin released a book entitled “The Idea Virus” and then proceeded to give it away for free. Was Seth, who has sold tons of books, suffering from temporary insanity? No, quite the contrary. You see, Seth knew that if he gave the book away for free, people would read it, and if they liked it they would help create a buzz about the book.That’s exactly what happened. In less than a month, 400,000 copies were downloaded for free and even though the downloads were free, people bought the hardcover. The book ended up being #5 on Amazon.com’s best seller list. The promotion strategy Seth Godin used is called sampling and when done correctly it can be one of the most effective ways to market your product.
What is Sampling?
A free sample or “freebie” is a portion of food or other product (for example, beauty products) given to consumers in shopping malls, supermarkets, retail stores, or other venues. Sometimes samples of non-perishable items are included in direct marketing mailings.
The purpose of a free sample is to acquaint the consumer with a new product. It is similar to the concept of a test drive, in that a customer is able to try out a product before purchasing it.
Try it, You’ll Like it.: This free wine tasting allows potential buyers to try, or sample, the wine before making a purchase.
Many consumer product companies now offer free samples through their websites to encourage consumers to regularly use the products and to gather data for mailing lists of potentially interested customers.
Food courts, grocery stores, and companies such as Costco and Sams Club routinely give out free samples to customers to persuade them to buy the product. Paint chips are samples of paint colors that are sometimes offered as free samples.
The expansion of online marketing with regard to promotional giveaways has facilitated the rise of “Freebie sites” that seek to aggregate all promotional free sample offers in one place. These sites will often compile free product samples from all over the web and categorize them by type.
Some product sample offers may require consumers to complete a survey or refer a friend to qualify for the freebies. When all requirements are fulfilled, the product samples are shipped to the consumer.
Additionally, the advent of the social graph and the realization that consumers take more and more cues from each other’s reviews, has opened up a new branch of sampling called social sampling.
History
Soap manufacturer Benjamin T. Babbitt in the 19th century was one of the first known, though almost certainly not the first ever, people to offer free samples of his products.
Other Samples
It is also possible to purchase products in small “trial size” containers. This is common with toiletries such as shampoo, which are useful for vacations or other travel, where large bottles or other containers would be impractical (or more recently, not permitted for air travel). These are also often provided in hotel and motel rooms for the guests.
Samples may also be loaned to the customer if they are too valuable to be given for free, such as samples of a countertop or of carpet to be used for remodeling, or tasting samples as in the Scream Sorbet stand at a farmers market.
How to Create an Effective Sampling Program
Sampling has been around for ages. So it obviously works. But like other promotional programs, bad implementation will lead to bad results. Here are some tips marketers use to create successful sampling programs:
- Find ways to drive new users to your company: Simply giving samples to people who already love your brand or your product is like preaching to the choir. They’ve already got the message.
- Get permission: You may think that you would never turn down something that is free. But how many free samples of perfume or cologne do you have stuffed in the back of your bathroom cabinet? Taking a sample doesn’t turn people into customers unless you have asked permission to give them the sample.
- Encourage trial: To do this, you need to give your samples as close to the point of need as possible. People who are your target audience, but in the wrong setting, will not pay any attention to your samples.
- Start a conversation: Be like Seth Godwin who gave away free copies of his book “The Idea Virus. ” Create a buzz.
- Measure your results: Sampling results might not be as easy to measure as other promotional strategies, but they can be measured. It would be mistake not to do so. Seth Godin saw the results of his sampling program not in the number of downloads, but in the number of people who bought the hardcover version of his book.
Point-of-Purchase Promotions
Point-of-sale displays are sales promotions that are placed where they can easily draw customer attention and trigger impulse buying.
LEARNING OBJECTIVES
Illustrate the rationale and use of point of purchase promotions
KEY TAKEAWAYS
Key Points
- In smaller retail outlets, POS displays are supplied by the manufacturer of the products, and are sited, restocked, and maintained by one of their regular salespersons, but this is less common is larger supermarkets.
- Point-of-purchase displays are intended to promote new products, make special offers, and/or capitalize on special events, such as holidays.
- POS displays are usually provided by product manufacturers for smaller stores while larger retail outlet with strong purchasing power, prefer to use sales material designed in-house to keep store layout and corporate themes consistent.
Key Terms
- Light Box: A box like point of sale display using florescent bulbs to illuminate a poster inserted from the side or rear of the box.
- Impulse Buying: Buying prompted by an emotional reaction to an item that is strategically placed and designed in such a way as to motivate and cause a consumer to take action.
- Disposable Displays: Displays made of cardboard or other inexpensive that can be discarded after use.
At some point in your life, you have been motivated and stimulated to buy something on impulse: an unplanned and somewhat emotionally driven purchase. Don’t be ashamed. You aren’t alone. According to research, almost 66% of all decisions to buy something are made while people are in the store shopping. What’s more, 53% of these decisions are classified as impulse buying.
Point-of-Purchase Display: A point-of-sale display selling products related to the Easter holiday.
Point of purchase promotions offer marketers one of the most effective sales promotion tools included in the “promotional mix.”
Point-of-Purchase Promotion Defined
Point-of-sale displays (POS) are a specialized form of sales promotion found near, on, or next to a checkout counter (the “point of sale”). They are intended to draw the customers’ attention to products. These may be new products, a special offer, or may promote special events, such seasonal or holiday-time sales.
POS displays can include:
- shelf edging
- dummy packs
- display packs
- display stands
- mobiles
- posters
- banners.
Note that POS can also refer to systems used to record transactions between the customer and the commerce, such as check-out registers, which are used at the point of sale. Don’t get confused if you see it used in this context.
How It Works
In smaller retail outlets, POS displays are usually supplied by the manufacturer of the products, but sited, restocked, and maintained by in-store salespersons. This is less common in larger retail outlets with strong purchasing power, because they control supplier activities and prefer to use sales material designed in-house to ensure that store layouts and corporate themes are consistent.
Common items that may appear in year-round POS displays are:
- batteries
- soft drinks
- candy
- chewing gum
- magazines
- comics
- tobacco
- writable CDs and DVDs.
POS displays are also useful in outlets with limited floor space, as a way to utilize the much wasted space around counters.
The disposable displays are usually covered with product branding. They are usually made out of cardboard, foam board, or Perspex/Plexiglas stands covered with plastic,and are easily replaceable. Displays are visually appealing because designers are able to make full use of color and special printing processes.
Non-disposable displays may include lighting for more visibility or include a cooler for drinks or ice cream. Some are as simple as a metal baskets that are easy to refill or re-stock, with a price sign and no design on the outside.
Light Boxes
A light box is the advertising industry term for a lighted POS display. These are similar to ones used by photographers, and use fluorescent bulbs to illuminate a poster that has been inserted into the light box from either the side or the rear.
Creating Point-of-Purchase Displays that Work
Setting up a display at a cash register, though simple in theory, requires planning and knowledge in order to deliver desired results. Poor results may be caused by:
- Failure to adhere to retailer ‘s size/space limitations. Proper fit, within the allotted space, increases chances for success.
- Failure to understand the store’s clientele and their true needs — Your product may have a multitude of benefits, but if the customers don’t need those particular benefits they won’t buy your product.
- Placing the display in the wrong location — Different areas in a store prompt different shopper responses. Not even a great display will stimulate a sale if the product is not in sync with the mind of consumer as the display is approached.
- Over design– Displays should be creative but simple, without encouraging consumer questions or objections.
- Not considering where consumers look when they shop — Displays should be designed with a shopper’s line of sight in mind. They won’t buy what they can’t see.
Online Sales Promotion
Online sales promotion can create personal relationships, channels of communication, and an exchange of information regarding a product.
LEARNING OBJECTIVES
Discuss on line sales promotion as a sales promotion method and relative to personal selling and sales promotion
KEY TAKEAWAYS
Key Points
- Online offers and giveaways are simple and enable marketers to cultivate and gather valuable sales information such as demographics, statistics, and consumer buying habits.
- The Internet allows sales representatives to reach exponentially more potential buyers.
- Interactivity is the key to site stickiness.
Key Terms
- Search Engine Marketing: Search engine marketing promotes websites by increasing their visibility on the search results page, usually through paid inclusion.
- search engine optimization: Search engine optimization offers a more organic, natural, and free way to garner a desired ranking on a search results page through the use of keywords.
- Affiliate Programs: Affiliate programs transform site visitors to business partners by offering rewards for referral business.
Introduction
Sales promotion techniques are certainly not new but they have been revitalized through new media and technology, especially as it relates to online usage.
Internet Marketing Plan: Some of the same promotions that work offline also work online.
Online sales promotions are meant to turn site visitors into consumers. The objective is to get the visitor to take action by contacting a sales representative and ultimately buying the offered product. The methods to accomplish this goal are diverse and include:
- Advertising
- Loyalty and rewards programs
- Contests
- Search engine usage and optimization
- Social media
- Email blasts
- Referral marketing
- Affiliate marketing
- Inbound marketing
- Videos
- Coupons, premiums, rebates, and other discounts
Personal Selling – An Integral Part of the Online Experience
The personal touch often makes all the difference when selling. The development of a relationship with a sales representative created by a personal referral often makes the difference between an inquiry and a sale. Interactivity is the key to site stickiness. Through online sales promotion, relationships are developed, channels of communication are opened, and an exchange of information regarding a product’s benefits and a consumer’s needs occurs.
The Internet allows sales representatives to reach exponentially more potential buyers. Emails blasts can reach thousands of potential buyers at one time. Videos posted on websites like YouTube have the potential to go viral. Through content and inbound marketing, a sales representative is capable of offering specific, expert, and personalized information to site visitors. Social media enables a company and its sales team to make contact with like-minded individuals and to convert those who are unfamiliar with the product or service being sold. It adds new meaning to the phrase “cold calling”, which refers to a personal selling technique whereby a sales representative contacts people who are not expecting a call or sales pitch.
Affiliate programs transform site visitors to business partners by offering rewards for referral business.
Search engine marketing (SEM) promotes websites by increasing their visibility on the search results page. Placements can be purchased as “paid inclusions” or the value of website content can be increased by including keywords that are most often searched and used by individuals. The latter, also referred to as search engine optimization (SEO), offers a more organic, natural, and free way to garner a desired ranking on a search results page.
Giveaways
Online offers and giveaways are simple and enable marketers to cultivate and gather valuable sales and demographic information. Personal likes, personal experience, email addresses, payment information, and addresses are needed in order to deliver gifts, product samples, free information, or other “value added” items. Software companies do this all the time when they offer free downloads, stripped down versions of the software, or trial periods.
Look at the Results
Online sales promotions enable you to obtain measurable results. Online sales promotions also enable you to see what the competition is doing. Most importantly, online sales promotions enable you to identify what works and what does not, thereby saving you money and delivering you much more “bang for your buck. ”
An Endcap is a product/PoSM placement shelf at the end of an aisle in a retail outlet. It is believed that products placed at endcaps attract more customers relative to others placed somewhere on the regular shelves. Retailers tend to rent out the endcap space to brands which benefits brands in improved sales. Brands tend to use End Caps to highlight their preferred products or new launches. Since a large number of customers will walk by an Endcap, they are also good areas to display products for impulse sales.
In store VM is the process of displaying products, services within retail outlets through available methods of direct & indirect communications & media. It is part of integrated marketing communication & plays a vital role in impacting impulse buying behaviour of prospected consumers. During purchase life cycle of a product In store VM is the last trigger which a brands can make on prospected consumers to minimise the resistance in buying behaviour. Brands currently saves significant budget for this from overall marketing spends considering the importance.
There are multiple methods available in advertising & media industry for the in store VM. Thus, brands carefully choose probable effective methods basis there retail presence, area segmentation & targeted consumer base. Let’s discuss few traditional but effective methods of in-store VM along with some modern methods:
PoSM Deployment: There are multiple types of PoSMs currently available in market. Posters, danglers, stickers, wobblers, standees, bunting etc. are few among traditional PoSMs. Magnetic posters, LED window displays, Floor stickers, two way vinyls etc. are among latest entrants.
Display Fixtures: Depended upon spends per outlet or priority of outlets basis sales or walk-ins, brands tend to display exclusive fixtures in outlets. It has large impact on walk-ins & attracts more comparison to paper based PoSMs. Few examples are, exclusive zones with display counter, hanging in store signages, End caps, floor standing units, etc.
In shop Branding: In shop branding is the one of the main contemporary methods of in store VM but can be considered as on of the most aggressive & impactful activity for triggering the sub-conscious mind of prospects. Few examples of In shop branding are eco solvent printing on vinyl pasted on sun-board with different thickness measurements. normal vinyl printing & pasted on walls, clip-ons, translites, wallbays etc.
3D hologram displays/windows: In today’s cut throat competition it is important for brands to stand out from the crowd specially in multi brand outlets like large format retails where multiple brands of same target consumer based are present at same floor. 3D holographic displays are latest methods of in-store VM which takes minimal space but attracts large customer base basis live content to show in holographic form.
At Channelplay, we have an experienced team of Visual merchandisers & partners across India who develops & execute these activities for multiple brands. We share our insights, recommendations & helps brands managers in executing the best & effective in store VM activities across India. You may connect through our contact us page to know more.
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What is the life of a poster or a banner in an outlet selling fmcg product?
It is believed in India that the lifespan of a poster at a Fmcg retail shop ( Kirana, Grocery ) is not more than 5 minutes.
Shops witness footfalls of consumers as well as salespersons. To ensure proper utility of the available posters or danglers sales persons look for vantage points.
On many occasions salespersons stick posters one over another while ensuring to occupy best view point.
In the process the purpose and life of a poster gets defeated.
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Best view i have ever seen !
Thank you! for your kind comments.
Best view i have ever seen !