Point of Sale Marketing

MKT  122X  
Getting Products to Market

Supplier Customer Shopper

Manufacturer Reseller Purchase

Dealer Institution – end-user Decision-Maker
Distributor Institution – producer

Sell-IN Retailer Sell-OUT

Sales & Profit Drivers
Sales

X X =

1) Shoppers 2) Frequency 3) Avg. Basket Size

Challenges in Retailing
•  Changing  consumer  behavior  
•  Changing  store  formats  
•  Declining  sales  produc=vity  
•  SKU  prolifera=on  
•  Informa=on  technology  
•  Financial  challenges  
Sell-­‐IN   Retailer   Sell-­‐OUT  

Product   Price  

Place   Promo=on  
 •  Range  &  assortment  
Product   •  Packaging  

•  Iden=fy  the  desired  range  and  

assortment  in  each  customer  
type  

•  Packaging  to  make  the  product  

appropriate  for  placement  
 
Range Variables
•  Breadth  –  the  number  of  brands  
•  Depth  –  the  number  of  sizes,  flavors,  variants  

Brand   Brand   Brand   Brand   Brand   Brand  

Palmolive Safeguard Johnson’s Vaseline Zest Splash

Brand   Brand   Brand   Brand   Brand   Brand  

Brand   Brand   Brand   Brand   Brand   Brand  

 •  Applica=on  of  correct  prices  
Price   •  Management  of  discounts  
•  Management  of  pricing  across  customers  

Pricing Across Products

Milk   Milk   Milk   Milk   Milk   Milk   Milk  

Powder   Powder   Powder   Powder   Powder   Powder   Powder  

Pricing Across Sizes

Milk   Milk   Milk  

Powder  
Powder  
Powder  

Pricing Across Channels

 •  Distribu=on  
Place   •  Availability  
•  Visibility  

Horizontal  distribu=on  –  the  number  of  places  where  a  product  is  available  

Ver-cal  distribu=on  –  the  number  of  products  that  are  available  in  each  

place  
Availability
•  Stock-­‐outs  result  in  opportunity  
cost  for  both  retailer  and  supplier  
•  Prolonged  stock  outs  may  result  in  
non-­‐recovery  of  loyal  shoppers  
•  Complete  stocks  add  to  a  posi=ve  
experience  in  a  store.  
Building Visibility: Merchandising
In-­‐Store  Loca=ons   Shelf  Layout  

Space  Alloca=on   Signage  

 •  Trade  promo=ons  
Promo=on   •  Shopper  promo=ons  

t t he point-
a
of-sale
Marke=ng  ac=vi=es  applied  for  a  
predetermined,  limited  period  of  .me  
to  shoppers,  retailers    or  wholesalers  in  
order  to  s.mulate  trial,  increase  
e r&
cust per demand  or  improve  product  
om
shop
availability.  
Building Visibility: Merchandising
In-­‐Store  Loca=ons   Shelf  Layout  

Space  Alloca=on   Signage  

In-store Location
•  Where  is  the  category  located?  
•  Where  are  the  brands  located?  
•  Are  there  secondary  sites?  
Space Allocation
•  At  minimum  have  enough  space  to  display  all  available  SKUs  
•  Use  space  to  reflect  importance  
•  Secondary  spaces  are  use  selec=vely,  where  incremental  
volume  can  offset  the  addi=onal  expense  
 Shelf Layout
•  The  layout  should  reflect  strategy  
•  Segments  in  easy-­‐to-­‐shop  flow  –  as  defined  by  shoppers  
•  “Hot  spots”  given  to  high  priority  segments  
 
Shelf Location Impacts Shopper
Behavior

HOT!

Cold Cold
Examples of Signage
Strategy 1:
Identification

•  Loca=on  
•  Scale  
•  Visibility  
Strategy 2:
Disruption

•  Promo=ons  
•  Packaging  
•  Colors  
•  Iconography  
•  Dis=nc=ve/Recognizable  
•  POPs/In-­‐Store  Media  
•  Tightly  focused  
•  Short,  clear,  relevant  
Strategy 3:
Enticement
•  Store  layout  
•  Presenta=on  
•  Design  
•  Ligh=ng  

•  All  designed  to  encourage  

shoppers  to  browse/linger  
•  Must  fit  need/moods  of  
shoppers  to  be  effec=ve