The Case for P.O.P.

Compared to other forms of advertising and promotion, point-of-purchase merchandising has a number of powerful advantages.

It has been estimated that 75% of consumer purchasing decisions are made in the retail outlet. This figure clearly conceals wide variation from product to product - the proportion will not be the same for basic repeat purchase items like milk, as it is for, for example, electronic gadgetry. It is likely that an even higher proportion of decisions are finalised in-store for goods bought rarely where there is a wide choice and a range of competing features on offer. This means that, for some goods in particular, the point of purchase is also the point of greatest influence on the consumer. Advertising, sponsorship, and public relations may all have a part to play but none of these influences is there, in front of the customer, at the time of decision, in the way that point of purchase merchandising is.

Of course POP can be part of a promotional strategy that plants a brand name in the consumer's mind by advertising and reawakens that recognition in the in-store environment.

We all know that half the money spent on advertising works, and half is wasted, but, as the old saying goes, we don't know which half. Point of purchase merchandising, however, is an extremely measurable form of advertising expenditure. A store using a prototype P.O.P. display can easily be compared to a similar store not using the display. By comparative assessment, the effectiveness of the P.O.P. unit can be measured quite accurately. This degree of measurability sets P.O.P. merchandising apart from most other forms of promotion.

Point of purchase advertising can do more than advertise. It can be part of the stock control system, and it can provide opportunities for the consumer that other forms of advertising cannot. For example product testing can be facilitated, or the customer can be educated and informed about the product's features and how it is used. With the aid of modern technology, interactive features such as touch screens can be incorporated.

In summary, point of purchase advertising offers a highly measurable medium at the point where consumers very often make their final purchasing decision, the point at which it is most important to persudae them.