Ebook Advertising, promotion, and other aspects of integrated marketing communications (7th ed): Part 1

Ebook Advertising, promotion, and other aspects of integrated marketing communications (7th ed): Part 1 includes the following contents: Integrated marketing communications: processes, brand equity, and the marcom environment; the fundamental marcom decisions: targeting, positioning, objective setting, and budgeting; marcom for new products, store signage, and point-of-purchase communications.

SEVENTH IEDITION Advertising, Promotion, and Other Aspects of Integrated Marketing Communications Terence A Shimp University of South Carolina Advertising, Promotion, and Other Aspects of Integrated Marketing Communications, 7th Edition Terence A Shimp VP/Editorial Director: Jack W Calhoun Sr Production Project Manager: Emily S Gross Art Director: Stacy Shirley VP/Editor-in-Chief: Dave Shaut Manager of Technology, Editorial: Vicky True Sr Publisher: Melissa Acuña Technology Project Editor: Pam Wallace Internal and Cover Designer: Craig LaGesse Ramsdell www.ramsdelldesign.com Executive Editor: Neil Marquardt Sr Developmental Editor: Susanna C Smart Marketing Manager: Nicole C Moore Sr Marketing Communications Manager: Terron Sanders COPYRIGHT © 2007 Thomson South-Western, a part of The Thomson Corporation Thomson, the Star logo, and South-Western are trademarks used herein under license Printed in the United States of America 10 09 08 07 06 Web Coordinator: Karen Schaffer Manufacturing Coordinator: Diane Lohman Production House: Stratford Publishing Services Cover Images: © Getty Images Photography Manager: John Hill Photo Researcher: Susan Van Etten Printer: Quebecor World Dubuque Dubuque, IA ALL RIGHTS RESERVED No part of this work covered by the copyright hereon may be reproduced or used in any form or by any means— graphic, electronic, or mechanical, including photocopying, recording, taping, Web distribution or information storage and retrieval systems, or in any other manner—without the written permission of the publisher Library of Congress Control Number: 2005936424 For permission to use material from this text or product, submit a request online at http://www.thomsonrights.com Thomson Higher Education 5191 Natorp Boulevard Mason, OH 45040 USA ISBN 0-324-32143-0 For more information about our products, contact us at: Thomson Learning Academic Resource Center 1-800-423-0563 Dedication To my dear wife, Judy, who has been my number-one supporter over the years, and who helped me on this edition by locating advertising illustrations and other visuals Since the previous edition, I have been blessed with two additional grandsons, John Parker and Spencer James —now the twenty-first-century version of a basketball team is in place (my brothers know what I refer to) Also, to all of my family members, past and present, to whom I owe whatever positive character traits I may possess, a heartfelt word of appreciation and love This page intentionally left blank BRIEFICONTENTS Preface xv PART 1: Integrated Marketing Communications: Processes, Brand Equity, and the Marcom Environment 1 Overview of Integrated Marketing Communications and the Marcom Process 2 Marcom’s Challenges: Enhancing Brand Equity, Influencing Behavior, and Being Accountable 30 Ethical, Regulatory, and Environmental Issues in Marketing Communications 54 PART 2: The Fundamental Marcom Decisions: Targeting, Positioning, Objective Setting, and Budgeting Marcom Targeting 88 Marcom Positioning 118 Marcom Objective Setting and Budgeting 87 144 PART 3: Marcom for New Products, Store Signage, and Point-of-Purchase Communications 167 Facilitation of Product Adoption, Brand Naming, and Packaging 168 On- and Off-Premise Signage and Point-of-Purchase Communications 212 PART 4: Advertising Management 10 11 12 13 14 15 16 Overview of Advertising Management: Messages, Media, and Measurement Creating Effective and Creative Advertising Messages 262 Selecting Message Appeals and Picking Endorsers 292 Assessing Ad Message Effectiveness 330 Planning for and Analyzing Advertising Media 364 Using Traditional Advertising Media 406 Employing the Internet for Advertising 438 Using Other Advertising Media 464 237 238 PART 5: Promotion Management, Marketing-Oriented Public Relations, and Sponsorships 17 18 19 20 Sales Promotion and the Role of Trade Promotions 488 Consumer-Oriented Promotions: Sampling and Couponing 526 Consumer-Oriented Promotions: Premiums and Other Promotional Methods Marketing-Oriented Public Relations and Sponsorships 576 487 552 Glossary 601 Name Index 609 Subject Index 615 v This page intentionally left blank CONTENTS Preface xv r Part 1: Integrated Marketing Communications: Processes, Brand Equity, and the Marcom Environment The Concept of Brand Equity Chapter 1: Overview of Integrated Marketing Communications and the Marcom Process Marcom Challenge: B2C and B2B Applications of IMC The Nature of Marketing Communications Marketing Communications at the Brand Level The Integration of Marketing Communications 12 IMC Focus: An Authority Declares That Positioning Is Out of Date 14 Changes in Marketing Communication Practices 15 • Obstacles to Implementing IMC 16 36 IMC Focus: Neuromarketing and the Case of Why Coca-Cola Outsells Pepsi 42 Affecting Behavior and Achieving Marcom Accountability 46 Difficulty of Measuring Marcom Effectiveness 47 • Assessing Effects with Marketing-Mix Modeling 49 Summary 50 17 Chapter 3: Ethical, Regulatory, and Environmental Issues in Marketing Communications Fundamental Marcom Decisions 18 • Marcom Implementation Decisions 20 • Marcom Outcomes 23 • Program Evaluation 23 Chapter 2: Marcom’s Challenges: Enhancing Brand Equity, Influencing Behavior, and Being Accountable Global Focus: When Brand Marketers Must Deal with Unfavorable Country Images What Benefits Result from Enhancing Brand Equity? 44 • Characteristics of World-Class Brands 44 Global Focus: Baby Carriages as Touch Points Summary 32 A Firm-Based Perspective on Brand Equity 33 • A Customer-Based Perspective on Brand Equity 33 How Can Brand Equity Be Enhanced? 40 What Exactly Is IMC? • The Payoff from IMC: The Value of Synergy • Key IMC Features A Model of the Marketing Communications Decision-Making Process 24 30 Marcom Challenge: Harley-Davidson—An Iron Horse for Rugged Individualists 30 Desired Outcomes of Marcom Efforts 32 54 Marcom Challenge: Trans Fat Labeling 54 Overview 56 Ethical Issues In Marketing Communications 57 The Ethics of Targeting 58 IMC Focus: An Adman’s Struggle with Joe Camel and Free Speech 61 vii viii Contents Ethical Issues in Advertising 62 • Ethical Issues in Public Relations 65 • Ethical Issues in Packaging and Branding 66 • Ethical Issues in Sales Promotions 67 • Ethical Issues in Online Marketing 67 Global Focus: Is the Use of the “SOR” Brand Logo Too Similar to “SCR”? Regulation of Marketing Communications When Is Regulation Justified? 70 • Regulation of Marketing Communications by Federal Agencies 71 • State Agencies’ Regulation of Marketing Communications 75 • Advertising Self-Regulation 76 67 Fostering Ethical Marketing Communications 68 IMC Focus: A Rigged Promotion for Frozen Coke 69 Environmental, or “Green,” Marketing Communications Part 2: The Fundamental Marcom Decisions: Targeting, Positioning, Objective Setting, and Budgeting 88 Marcom Challenge: Esprit and Gap—No Longer Just for Youth 88 Targeting Customers and Prospects 90 Behaviorgraphic Targeting 90 Online Behavioral Targeting 92 • Privacy Concerns 93 Phychographic Targeting 93 Geodemographic Targeting 98 Demographic Targeting 99 The Changing Age Structure 100 IMC Focus: Tweens and Materialism 105 Global Focus: Can Renault Develop a Hip Image? 106 The Ever-Changing American Household 109 • Ethnic Population Developments 109 113 Summary 114 118 Marcom Challenge: Tango to Success 118 Positioning in Theory: A Matter of Creating Meaning 120 Benefit Positioning 125 87 126 Attribute Positioning 127 • Repositioning a Brand 129 IMC Focus: Diamonds (Given to Yourself) Are Forever 130 Implementing Positioning: Know Thy Consumer 130 The Consumer Processing Model (CPM) 131 • The Hedonic, Experiential Model (HEM) 137 Summary Chapter 6: Marcom Objective Setting and Budgeting 139 144 Marcom Challenge: Brands with the Most Loyal Customers 144 Overview 146 Setting Marcom Objectives 146 IMC Focus: The Cat(fight) Is a Dog 150 Requirements for Setting Suitable Marcom Objectives 152 • Should Marcom Objectives Be Stated in Terms of Sales? 153 Marcom Budgeting 156 Budgeting in Theory 156 The Meaning of Meaning 121 • Meaning Transfer: From Culture to Object to Consumer 121 Positioning in Practice: The Nuts and Bolts Global Focus: The Symbolism of Certifying Products as Fair Traded 82 The Hierarchy of Marcom Effects 147 IMC Focus: A Special Beverage for Latino Consumers, Clamato Chapter 5: Marcom Positioning 77 Green Marketing Initiatives 77 • Guidelines for Green Marketing 81 Summary r Chapter 4: Marcom Targeting 70 Global Focus: The Top-25 Global Marketers’ Advertising Spending 157 Practical Budgeting Methods 159 Summary 123 165 Contents ix r Part 3: Marcom for New Products, Store Signage, and Point-ofPurchase Communications Chapter 7: Facilitation of Product Adoption, Brand Naming, and Packaging 168 167 Chapter 8: On- and Off-Premise Signage and Point-of-Purchase Communications 212 Marcom Challenge: Absolut Wanna Be Becomes Absolute Flop 168 Marcom Challenge: “Shopping Buddy”— an Intelligent Shopping Cart 212 Overview 170 Overview 214 Marcom and New Product Adoption 170 Out-of-Home (Off-Premise) Advertising 214 Product Characteristics That Facilitate Adoption 173 Global Focus: Washing Machines for the Masses in Brazil, China, and India 174 Managing the Diffusion Process 179 Stimulating Word-of-Mouth Influence 180 On-Premise Business Signage 183 Some Anecdotal Evidence 183 • Formal Perspective on Buzz Creation 185 • Using the Internet for Creating Buzz 188 Brand Naming 189 195 Packaging 197 Packaging Structure 197 • Evaluating the Package: The VIEW Model 200 203 221 The Spectrum of P-O-P Materials 222 • What Does P-O-P Accomplish? 222 • P-O-P’s Influence on Consumer Behavior 223 IMC Focus: ABC, CBS, Fox, NBC, and Now Wal-Mart TV Network IMC Focus: Selecting a Name for a New Airline 219 Types of Signs 220 • The ABCs of On-Premise Signs 220 • Don’t Be a Fool 221 Point-of-Purchase Advertising What Constitutes a Good Brand Name? 189 • The Brand-Naming Process 193 • The Role of Logos 195 IMC Focus: Illustrations of Workable Packages Global Focus: Live Soccer Players on Japanese Billboards 217 A Case Study of Billboard Effectiveness 218 Strong and Weak Ties 180 • Opinion Leaders and Market Mavens 181 • Avoid Negative Information 182 Creating “Buzz” Billboard Advertising 215 • Buying Out-ofHome Advertising 215 • Billboard Advertising’s Strengths and Limitations 216 • Measuring OOH Audience Size and Characteristics 217 224 A Vital Result of P-O-P: Increased In-Store Decision Making 226 • Evidence of Display Effectiveness 230 • The Use and Nonuse of P-O-P Materials 232 • Measuring In-Store Advertising’s Alliance 232 Summary 233 Designing a Package 204 Summary r 206 Part 4: Advertising Management Chapter 9: Overview of Advertising Management: Messages, Media, and Measurement 238 Marcom Challenge: Is Advertising Rocket Science? 238 Overview 240 The Magnitude of Advertising 240 IMC Focus: B2B Advertising on Television 241 Advertising-to-Sales Ratios 244 • Advertising Effects Are Uncertain 245 Advertising Functions Informing 246 • Influencing 247 • Reminding and Increasing Salience 247 • Adding Value 247 • Assisting Other Company Efforts 248 246 237 Global Focus: A Global Advertising Campaign for Exxon Mobil 248 The Advertising Management Process 249 Managing the Advertising Process: The Client Perspective 249 • The Role of Advertising Agencies 250 • Agency Compensation 253 Ad-Investment Considerations 254 The Case for Investing in Advertising 254 • The Case for Disinvesting 255 • Which Position Is More Acceptable? 255 Summary 259 Chapter 8: On- and Off-Premise Signage and Point-of-Purchase Communications 221 definition, conspicuity involves those signage characteristics that enable walkers or drivers and their passengers to distinguish a sign from its surrounding environment.14 This requires that a sign be of sufficient size and the information on it be clear, concise, legible, and distinguishable from competing signage Don’t Be a Fool Point-of-Purchase Advertising Brand names and packages, topics of Chapter 7, confront head on at the point of purchase the ultimate arbiter of their effectiveness, the consumer The point of purchase, or store environment, provides brand marketers with a final opportunity to affect consumer behavior Brand managers recognize the value of point-of-purchase (P-O-P) advertising; indeed, marketers in the United States annually spend in excess of $17 billion on various forms of point-of-purchase communications.15 The point of purchase is an ideal time to communicate with consumers because this is the time at which many product and brand-choice decisions are made It is the time and place at which all elements of the sale (consumer, money, and product) come together.16 The consumer’s in-store behavior has been described in the following terms that highlight the importance of point-ofpurchase advertising: Shoppers are explorers They’re on safari, hunting for bargains, new products and different items to add excitement to their everyday lives Three of every four are open to new experiences as they browse the aisles of supermarkets and search for bargains at drugstores and mass merchandisers.17 This translates into an opportunity to make a measurable impact just when shoppers are most receptive to new product ideas and alternative brands Savvy marketers realize that the in-store environment is the last best chance to make a difference P-O-P advertising often represents the culmination of a carefully Courtesy, The Signage Foundation for Communication Excellence, Inc This section has merely touched on the topic of on-premise signage Although the material presented is basic and descriptive, it cannot be overemphasized how important signage is to retail success Signs perform an extremely important communication function, and one is well advised to seek the assistance of professionals when making such determinations as where best to locate a sign, how large it should be, and what colors and graphics are best employed The old saying “He who represents himself has a fool for a lawyer” is likely as applicable to making an on-premise sign-selection decision as it is in all matters legal Fortunately, a tremendous amount of experience and expertise has accumulated in the off-premise sign industry, and retailers can turn to professional sign companies for needed assistance Large retail chains include professionals on their staffs who specialize in signage, but small retailers don’t have this luxury and should seek the assistance of professionals A wealth of accumulated information is available for ready access (see endnotes in this section) Figure 8.4 Illustrations of BuildingMounted Signs 222 Part 3: Marcom for New Products, Store Signage, and Point-of-Purchase Communications integrated IMC program—at the point of purchase, consumers are reminded of previously processed mass media advertisements and now have the opportunity to realize the benefits of a sales promotion offer The Spectrum of P-O-P Materials Point-of-purchase materials include various types of signs, mobiles, plaques, banners, shelf ads, mechanical mannequins, lights, mirrors, plastic reproductions of products, checkout units, full-line merchandisers, various types of product displays, wall posters, floor advertisements (Figure 8.5), in-store radio and TV advertisements, electronic billboard advertising, and other items.18 Industry representatives classify P-O-P materials into four categories: © Susan Van Etten Figure 8.5 Illustration of a Floor Advertisement Figure 8.6 Illustration of an AwardWinning Permanent Display • Permanent displays: These are displays intended for use for six months or more (Note that the six-month dividing line is an arbitrary convention established by Point-of-Purchase Advertising International, which is known by its abbreviation, POPAI.) An illustration of an award-winning permanent display is presented in Figure 8.6.19 • Semipermanent displays: Semipermanent P-O-P displays have an intended life span of less than six but more than two months An illustration of an awardwinning semipermanent display is presented in Figure 8.7 • Temporary displays: Temporary P-O-P displays are designed for fewer than two months’ usage An illustration of an award-winning temporary display is presented in Figure 8.8 • In-store media: In-store media include advertising and promotion materials, such as in-store radio and TV advertising, shopping cart advertisements, shelf advertisements (called shelf talkers), floor graphics (advertisements placed on store floors), coupon dispensers, and other in-store materials A third-party company (i.e., a company other than the brand manufacturer or retailer) executes these in-store media For example, ActMedia, a company well known in the P-O-P industry, provides a variety of in-store services, including in-store radio programs that carry commercials in thousands of stores nationwide, shopping carts with signs that are available nationwide, and shelf extensions that promote brands in stores nationwide Brand marketers pay ActMedia advertising rates to secure in-store radio time or shopping-cart and shelf-talker space on a nationwide basis or in specific markets What Does P-O-P Accomplish? Companies are increasingly investing in point-of-purchase advertising materials As mentioned earlier, P-O-P advertising expenditures in the United States exceed $17 billion annually This investment is justified inasmuch as in-store materials provide useful services for all participants in the marketing process: manufacturers, retailers, and consumers Accomplishments for Manufacturers POPAI For manufacturers, P-O-P keeps the company’s name and the brand name before the consumer and reinforces a brand image that has been previously established through mass-media advertising or other outlets P-O-P signage and displays also call attention to sales promotions and stimulate impulse purchasing Chapter 8: On- and Off-Premise Signage and Point-of-Purchase Communications 223 Service to Retailers P-O-P serves retailers by attracting the consumer’s attention, increasing his or her interest in shopping, and extending the amount of time spent in the store—all of which lead to increased retail revenue and profits Furthermore, P-O-P materials perform a critical merchandising function in aiding retailers in using available space to the best advantage when, for example, various products are displayed in the same unit P-O-P displays also enable retailers to better organize shelf and floor space and to improve inventory control and stock turnover Value to Consumers POPAI Consumers are served by point-of-purchase units that deliver useful information and simplify the shopping process Permanent, semipermanent, and temporary P-O-P units provide this value to consumers by setting particular brands apart from similar items and simplifying the selection process Also, in-store radio and TV advertisements serve to inform consumers of new products and brands (See the IMC Focus for further discussion of in-store TV advertising.) However, there is a downside to the growing use of in-store displays and advertising materials, namely, consumers sometimes are overwhelmed with excessive P-O-P stimuli A marketing commentator has even compared the widespread usage of in-store advertising materials with online spam.20 In other words, like all advertising media, the in-store environment suffers from ad clutter, which can irritate consumers and reduce the effectiveness of brand marketers’ advertising efforts In addition to benefiting all participants in the marketing process, point-ofpurchase plays another important role: it serves as the capstone for an IMC program P-O-P by itself may have limited impact, but when used in conjunction with mass-media advertisements and promotions, P-O-P can create a synergistic effect Indeed, research has shown that when P-O-P reinforces a brand’s advertising message, the increase in sales volume can average more than 100 percent compared to advertising alone.21 Illustrations of this synergism appear in a later section that presents empirical evidence of P-O-P’s effectiveness Figure 8.7 Illustration of an AwardWinning Semipermanent Display Figure 8.8 Illustration of an AwardWinning Temporary Display P-O-P’s Influence on Consumer Behavior P-O-P materials influence consumers in three general ways: (1) by informing them about specific items; (2) by reminding them of information acquired from other advertising media; and (3) by encouraging, or directing, their brand-choice decisions Informing POPAI Informing consumers is P-O-P’s most basic communications function Signs, posters, displays, in-store advertisements, and other P-O-P materials alert consumers to specific items and provide potentially useful information Motion displays are especially effective for this purpose Motion displays, though typically more expensive than static displays, represent a sound business investment because they attract significantly higher levels of shopper attention Evidence from three studies shows that motion displays are often worth the extra expense.22 Researchers tested the relative effectiveness of motion and static displays for Olympia beer, a once successful but now bygone brand, by placing the two types of displays in a test sample of California liquor ABC, CBS, Fox, NBC, and Now Wal-Mart TV Network There are four major TV networks in the United States: ABC, CBS, Fox, and NBC Each of these networks has affiliated stations throughout the country, thus representing attractive media for reaching millions of viewers for TV programs and the commercials carried therein And now there is another major network for carrying television commercials, the Wal-Mart TV network Unlike the four major TV networks, which reach consumers in the comfort of their homes or at bars and other public venues, the Wal-Mart TV network reaches consumers while they are shopping in Wal-Mart stores This in-store television network is available in over 80 percent of Wal-Mart’s 3,000 U.S stores Nielsen Media Research estimates that the Wal-Mart network reaches 133 million viewers in a typical four-week period, which represents about onethird of Wal-Mart’s customers during the same period What advertising content is carried on the Wal-Mart TV network? You might think just ads placed by Wal-Mart itself In actuality, the ads are placed by national advertisers who hope to reach consumers as close as possible to the point at which they make purchasing decisions For example, Kellogg Co reported a significant increase in sales from advertising two new products on Wal-Mart TV, Cheez-It Twists and Corn Flakes with bananas TV spots on Wal-Mart TV cost anywhere from $50,000 to $300,000 per four-week period, with the actual cost depending on the frequency with which the ads appear Advertisers have learned that it is best to customize ads just for in-store TV rather than merely running the identical ads shown on conventional television In-store ads must be particularly attention grabbing in order to divert consumers’ attention away from the primary reason they are in the store, namely to shop rather than watch TV imc focus SOURCES: Erin White, “Look Up for New Products in Aisle 5,” The Wall Street Journal Online, March 23, 2004, http://online.wsj.com; Ann Zimmerman, “WalMart Adds In-store TV Sets, Lifts Advertising,” The Wall Street Journal Online, September 22, 2004, http://online.wsj.com stores and supermarkets Each of the sampled stores was stocked with either static or motion displays Another sample of stores, serving as the control group, received no displays More than 62,000 purchases of Olympia beer were recorded during the four-week test period Static displays in liquor stores increased Olympia sales by 56 percent over stores with no displays (the control group) In supermarkets, static displays improved Olympia sales by a considerably smaller, though nonetheless substantial, amount (18 percent) More dramatic, however, was the finding that motion displays increased Olympia sales by 107 percent in liquor stores and by 49 percent in supermarkets A second test of the effectiveness of motion displays used S B Thomas’ English muffins as the focal product Two groups of 40 stores each were matched by store volume and customer demographics One group was equipped with an S B Thomas’ English muffin post sign that moved from side to side The other 40 stores used regular floor displays with no motion Records of product movement revealed that sales in the stores stocked with motion displays were more than 100 percent greater than in stores with static displays Researchers conducted a study of motion displays for Eveready batteries in Atlanta and San Diego Studied in each city were six drugstores, six supermarkets, and six mass merchandise stores The stores were divided into two groups, like the English muffin study For mass merchandisers, the static displays increased sales during the test period by 2.7 percent over the base period, but surprisingly sales in the drug and food outlets using the static displays were slightly less (each 1.6 percent lower) than those not using the static displays By comparison, the motion displays uniformly increased sales by 3.7 percent, 9.1 percent, and 15.7 percent in the drugstore outlets, supermarkets, and mass merchandisers, respectively All three sets of results demonstrate the effectiveness of motion displays The consumer information-processing rationale (see Chapter 5) is straightforward: motion displays attract attention Attention, once attracted, is directed toward salient product features, including recognition of the displayed brand’s name Brand name information activates consumers’ memories pertaining to brand attributes previously processed from media advertising Information on brand attributes, when recalled, supplies a reason for the consumer to purchase the dis- Chapter 8: On- and Off-Premise Signage and Point-of-Purchase Communications played brand It also is possible that the mere fact of seeing a display suggests the prospect that the displayed brand is on sale, whether in fact it is.23 Hence, a moving display performs the critical in-store function of bringing a brand’s name to active memory The probability of purchasing the brand increases, perhaps substantially (as in the case of S B Thomas’ English muffins), if the consumer is favorably disposed toward the brand The Eveready display was less effective apparently because the selling burden was placed almost exclusively on the display Without prior stimulation of demand through advertising, the static display was ineffective, and the motion display was not as effective as it might have been Reminding A second point-of-purchase function is reminding consumers of brands they have previously learned about via broadcast, print, or other advertising media This reminder role serves to complement the job already performed by advertising before the consumer enters a store To fully appreciate the reminder role served by point-of-purchase materials, it is important at this point to address a key principle from cognitive psychology: the encoding specificity principle In simple terms, this principle states that information recall is enhanced when the context in which people attempt to retrieve information is the same as or similar to the context in which they originally encoded the information (Encoding is the placing of informational items into memory.) A non-marketing illustration—one that may bring back some unpleasant memories—will serve to clarify the exact meaning and significance of the encoding specificity principle Remember back to a time when you were studying for a crucial exam that required problem-solving skills You may have been up late at night trying to solve a particularly difficult problem, perhaps in accounting, calculus, or statistics Eventually, the solution came to you, and you felt well prepared for the next day’s exam Sure enough, the exam had a problem very similar to the one you worked on the night before However, to your dismay, your mind went blank, and you were unable to solve the problem But after the exam, back in your room, the solution hit you like the proverbial ton of bricks Encoding specificity is the “culprit.” Specifically, the context (your room) in which you originally encoded information and formulated a solution to the problem was different from the context (your classroom) in which you subsequently were asked to solve a similar problem Hence, contextual retrieval cues were unavailable in the classroom to readily facilitate your recall of how you originally solved the problem Returning to the marketplace, consider the situation in which consumers encode television commercial information about a brand and its unique features and benefits The advertiser’s expectation is that consumers will be able to retrieve this information at the point of purchase and use it to select the advertiser’s brand over competitive offerings It doesn’t always work like this, however Our memories are fallible, especially since we are exposed to an incredible amount of advertising information Hence, although we may have encoded advertising information at one time, we may not be able to retrieve it subsequently without a reminder cue at the point of purchase Consider, for example, the pink-bunny-pounding-a-drum advertising campaign Most everyone is aware of this campaign, but many consumers have difficulty remembering the advertised brand (Think for a moment; which brand is it?) When facing brands of Duracell, Eveready, and Energizer on the shelf, the consumer may not connect the pink-bunny advertising with any specific brand Here is where point-of-purchase materials can perform a critically important role Energizer (the pink-bunny brand) can facilitate encoding specificity by using shelf 225 226 Part 3: Marcom for New Products, Store Signage, and Point-of-Purchase Communications signs or packaging graphics that present the bunny and the Energizer name together (just as they appeared together in advertisements) Accordingly, by providing consumers with encoding-specific retrieval cues, chances are that consumers will recall from earlier advertisements that Energizer is the battery brand that powers the unceasing drum-pounding bunny The crucial point is that media advertising and P-O-P communications must be tightly integrated so that in-store reminder cues can capitalize on the background work accomplished by media advertising Signs, displays, and in-store media provide the culmination for an IMC campaign and increase the odds that consumers will select a particular brand over alternatives Encouraging Encouraging consumers to buy a specific item or brand is P-O-P’s third function Effective P-O-P materials influence product and brand choices at the point of purchase and encourage impulse buying A Vital Result of P-O-P: Increased In-Store Decision Making Studies of consumer shopping behavior have shown that a high proportion of all purchases are unplanned, especially in supermarkets, drugstores, and mass merchandise outlets (such as Wal-Mart and Target) Unplanned purchasing means that many product and brand choice decisions are made while the consumer is in the store rather than beforehand Point-of-purchase materials play a role—perhaps the major role—in influencing unplanned purchasing and in increasing sales The following section discusses research on unplanned purchasing, and a subsequent section then presents impressive evidence on the role of P-O-P displays in increasing sales volume The POPAI Consumer Buying Habits Study This study, conducted by POPAI, is the most recent of a series of studies conducted by this trade association.24 The study confirms that in-store media, signage, and displays heavily influence consumers’ purchase decisions In conducting the study, researchers obtained purchase data and other information from 4,200 consumers who were shopping in the stores of 22 leading supermarket chains and mass merchandisers—Bradlees, Kmart, Target, and Wal-Mart—located in 14 major markets throughout the United States The Consumer Buying Habits Study was conducted in the following manner:25 shoppers age 16 or older were screened by researchers to determine that they were on a “major shopping trip.” Researchers then interviewed qualified shoppers both before they began their shopping (entry interviews) and after they had completed their shopping trips (exit interviews) During the pre-shopping entry interviews, researchers used an unaided questioning format to ask shoppers about their planned purchases on that particular occasion and probed for brand buying intentions Then, during post-shopping exit interviews, researchers gathered supermarket shoppers’ register tapes or physically inventoried shoppers’ carts at the mass merchandise stores Interviews were conducted during all times of the day and every day of the week By comparing shoppers’ planned purchases obtained during entry interviews with actual purchases during exit interviews, it was possible to classify every brand purchase into one of four types of purchase behaviors: Specifically planned: This category represents purchases of a brand that the consumer had indicated an intention to buy For example, the purchase of Diet Pepsi would be considered a specifically planned purchase if during the entry Chapter 8: On- and Off-Premise Signage and Point-of-Purchase Communications Type of Purchase Specifically planned Generally planned Substitute Unplanned In-store decision rate (2 + + 4) Supermarket 30% 60 70% 227 Mass Merchandising Store 26% 18 53 74% Table 8.1 Results from the POPAI Consumer Buying Habits Study SOURCE: The 1995 POPAI Consumer Buying Habits Study, p 18 (Washington, D.C.: Point-of-Purchase Advertising International) Reprinted by permission interview a consumer mentioned her or his intention to purchase that brand and in fact bought Diet Pepsi According to the Consumer Buying Habits Study (see Table 8.1), 30 percent of supermarket purchases and 26 percent of mass merchandise purchases were specifically planned Generally planned: This classification applies to purchases for which the shopper indicated an intention to buy a particular product (say, a soft drink) but had no specific brand in mind The purchase of Diet Pepsi in this case would be classified as a generally planned purchase rather than a specifically planned purchase Generally planned purchases constituted percent of those in supermarkets and 18 percent in mass merchandise stores (see Table 8.1) Substitute purchases: Purchases where the shopper does not buy the product or brand he or she indicated in the entry interview constitute substitute purchases For example, if a consumer said she or he intended to buy Diet Pepsi but actually purchased Diet Coke, that behavior would be classified as a substitute purchase These represented just percent of supermarket purchases and percent of mass merchandise purchases Unplanned purchases: Under this heading are purchases for which the consumer had no prior purchase intent If, for example, a shopper buys Diet Pepsi without having informed the interviewer of this intent, the behavior would be recorded as an unplanned purchase Sixty percent of the purchases in supermarkets and 53 percent of those in mass merchandise stores were classified as unplanned Notice in Table 8.1 that the summation of generally planned, substitute, and unplanned purchases constitutes the in-store decision rate In other words, the three categories representing purchases that are not specifically planned all represent decisions influenced by in-store factors The in-store decision rates are 70 and 74 percent for supermarkets and mass merchandise stores, respectively These percentages indicate that approximately out of 10 purchase decisions are influenced by instore factors It is apparent that P-O-P materials represent a very important determinant of consumers’ product and brand choice behaviors! A technical point needs to be addressed at this time It is important to recognize that not all purchases recorded as unplanned by interviewers are truly unplanned Rather, some purchases are recorded as unplanned simply because shoppers are unable or unwilling during the entry interview to inform interviewers of their exact purchase plans This is not to imply that the POPAI research is seriously flawed but rather that the measurement of unplanned purchases probably is somewhat overstated due to the unavoidable bias just described Other categories may be biased also For example, by the same logic, the percentage of specifically planned purchases is probably somewhat understated In any event, POPAI’s findings are important even if they are not precisely correct © Susan Van Etten 228 Part 3: Marcom for New Products, Store Signage, and Point-of-Purchase Communications Table 8.2 Product Categories with the Five Highest and Five Lowest In-Store Decision Rates: Supermarket Purchases Category Highest in-store decision rate First aid Toys, sporting goods, crafts Housewares/hardware Stationery Candy/gum Lowest in-store decision rate Produce Meat, seafood Eggs Coffee Baby food/formula In-Store Decision Rate 93% 93 90 90 89 33 47 53 58 58 SOURCE: “Product Categories with the Five Highest and Five Lowest In-Store Decision Rates: Supermarket Purchases,” p 19 The 1995 POPAI Consumer Buying Habits Study (Washington, D.C.: Point-of-Purchase Advertising International) Reprinted by permission Table 8.3 Product Categories with the Five Highest and Five Lowest In-Store Decision Rates: Mass Merchandise Purchases Category Highest in-store decision rate Apparel accessories Foils, food wraps Hardware, electric, plumbing Infant/toddler wear Garbage bags Lowest in-store decision rate Disposable diapers Baby food Eyedrops and lens care Prerecorded music, videos Coffee, tea, cocoa In-Store Decision Rate 92% 91 90 90 88 35 35 52 54 55 SOURCE: “Product Categories with the Five Highest and Five Lowest In-Store Decision Rates: Mass Merchandise Purchases,” p 20 The 1995 POPAI Consumer Buying Habits Study (Washington, D.C.: Point-of-Purchase Advertising International) Reprinted by permission The summary statistics in Table 8.1 represent types of purchases aggregated over literally hundreds of product categories It should be apparent that in-store decision rates vary greatly across product categories To emphasize this point, Tables 8.2 and 8.3 present categories with the highest and lowest in-store decision rates for supermarkets (Table 8.2) and mass merchandise stores (Table 8.3) The data presented in Tables 8.2 and 8.3 make it clear that in-store decision rates vary substantially Supermarket products that are virtual staples (e.g., produce) and mass merchandise products that are essential and regularly purchased items (e.g., disposable diapers) have the lowest in-store purchase rates because most consumers know they are going to purchase these items when they go to the store On the other hand, nonnecessities and items that generally not occupy top-of-the-mind thoughts (e.g., first-aid supplies and garbage bags) are especially susceptible to the influence of in-store stimuli It is clear that for these types of products, brand marketers must have a distinct presence at the point of purchase if they hope to sway purchase decisions toward their brands Factors Influencing In-Store Decision Making Two academic researchers were provided access to data from POPAI’s Consumer Buying Habits Study.26 The researchers’ objective was to determine what effect a variety of shopping-trip factors (e.g., size of shopping party, use of a shopping list, number of aisles shopped) and consumer characteristics (e.g., deal proneness, compulsiveness, age, gender, and income) have on unplanned purchasing Chapter 8: On- and Off-Premise Signage and Point-of-Purchase Communications 229 Among other findings, they determined that the rate of unplanned purchasing is elevated when consumers are on a major (versus fill-in) shopping trip, when they shop more of a store’s aisles, when the household size is large, and when they are deal prone Perhaps the major practical implication from this research is that retailers benefit from having consumers shop longer and traverse more of the store while shopping, thus increasing the odds of purchasing unintended items One way of accomplishing this is by locating frequently purchased items (e.g., items such as bread and milk) in locations that require consumers to pass as many other items as possible.27 The Brand Lift Index POPAI and its research collaborator (the Meyers Research Center) have developed a measure—called the brand lift index—to gauge the average increase of in-store purchase decisions when P-O-P is present versus when it is not.28 (The term lift is used in reference to increasing, or lifting, sales in the presence of P-O-P materials.) This index simply indicates how in-store P-O-P materials affect the likelihood that customers will buy a product that they had not specifically planned to buy Table 8.4 shows the products sold in supermarkets and mass merchandise stores that enjoy the highest brand lift indexes from displays For example, the index of 47.67 for film and photofinishing products in mass merchandise stores indicates that shoppers are nearly 48 times more likely to make in-store purchase decisions for these products when advertised with displays than if there were no displays (Note that the index of 47.67 does not mean that sales of film and other photofinishing items are over 47 times greater when a display is used Rather, this index merely reveals that consumers are nearly 48 times more likely to make in-store decisions in the presence versus absence of displays.) And supermarket shoppers are 6.47 times more likely to make in-store decisions to purchase butter or margarine when these items are displayed compared to when they are not displayed Needless to say, displays can have incredible influence on consumer behavior Brand Lift Index Supermarket categories Butter/margarine Cookies Soft drinks Beer/ale Mixers Sour cream/cream cheese Cereal Hand and body soaps Packaged cheese Canned fish Salty snacks 6.47 6.21 5.37 4.67 4.03 3.79 3.73 3.62 3.57 3.55 3.50 Mass merchandise categories Film/photofinishing Socks/underwear/panty hose Cookies/crackers Small appliances Foils, food wraps, and bags Adult apparel Pet supplies Packaged bread 47.67 29.43 18.14 8.87 7.53 7.45 5.55 5.01 SOURCE: “Supermarket and the Mass Merchandise Product Categories with Highest Average Brand Lifts from Displays,” p 24 The 1995 POPAI Consumer Buying Habits Study (Washington, D.C.: Point-of-Purchase Advertising International) Reprinted by permission Table 8.4 Supermarket and Mass Merchandise Product Categories with Highest Average Brand Lifts from Displays 230 Part 3: Marcom for New Products, Store Signage, and Point-of-Purchase Communications Evidence of Display Effectiveness Practitioners are vitally interested in knowing whether the cost of special P-O-P displays is justified It has only been in recent years that good research evidence has been available to provide answers to this question Two particularly important studies have examined the impact of displays on a brand’s temporary sales The POPAI/Kmart/P&G Study This notable study was conducted by a consortium of a trade association (POPAI), a mass merchandiser (Kmart), and a consumer-goods manufacturer (Procter & Gamble [P&G]).29 The study investigated the impact that displays have on sales of P&G brands in six product categories: paper towels, shampoo, toothpaste, deodorant, coffee, and fabric softener The test lasted for a period of four weeks, and P&G’s brands were sold at their regular prices throughout this period Seventy-five Kmart stores in the United States were matched in terms of brand sales, store volume, and shopper demographics and then assigned to three panels of 25 stores each: Control panel The 25 stores in this group contained the advertised brands in their normal shelf position with no display or other advertising present Test panel These 25 stores carried the advertised brands on display Test panel These stores contained the advertised brands either on a different display or on the same display as in test panel but at a different location in the store Specific differences in displays/locations between test panels and are shown in Table 8.5 For example, paper towels were displayed in a mass waterfall display at two different (but undisclosed) store locations; shampoo was displayed in either a special shelf unit display or a floorstand display; and coffee was displayed either on a quarter pallet outside the coffee aisle or a full pallet at the end of the coffee aisle—called an endcap display Most importantly, the last column in Table 8.5 compares the percentage sales increase in each set of test stores (with displays) against the control stores where P&G brands were sold in their regular (non-display) shelf locations It is readily apparent that positive sales increases materialized for all products and both test conditions; in some instances the increases were nothing short of huge P&G’s brands of shampoo and deodorant experienced modest increases during the four-week test of only about 18 percent (test panel 1), whereas paper towels and coffee experienced triple-digit increases in both display conditions—sales increases of 773.5 percent for paper towels (test panel 2) and 567.4 percent for coffee (test panel 2)! Table 8.5 Display Information for POPAI/Kmart/P&G Study Product Category Paper towels Shampoo Toothpaste Deodorant Coffee Fabric softener Test Panels and Displays Test 1: Mass waterfall (MW) display Test 2: MW display in a different location Test 1: Shelf unit Test 2: Floorstand Test 1: Floorstand in toothpaste aisle Test 2: Quarter pallet outside toothpaste aisle Test 1: Powerwing Test 2: Powerwing in a different store location Test 1: Quarter pallet outside coffee aisle Test 2: Full pallet on endcap of coffee aisle Test 1: Full pallet on endcap of laundry aisle Test 2: Quarter pallet outside laundry aisle Test Panel Sales versus Control Panel Sales (percentage increase) 447.1% 773.5 18.2 56.8 73.1 119.2 17.9 38.5 500.0 567.4 66.2 73.8 SOURCE: “Display Information for POPAI/Kmart/P&G Study,” from POPAI/Kmart/Procter & Gamble Study of P-O-P Effectiveness in Mass Merchandising Stores, p 20 The 1995 POPAI Consumer Buying Habits Study (Washington, D.C.: Point-of-Purchase Advertising International) Reprinted by permission Chapter 8: On- and Off-Premise Signage and Point-of-Purchase Communications The POPAI/Warner-Lambert Benylin Study Another important study extends the POPAI/Kmart/P&G findings obtained from mass merchandise stores in the United States to drugstores in Canada.30 POPAI and Warner-Lambert Canada jointly investigated the effectiveness of P-O-P displays on sales of health items in drugstores Eighty stores from four major drugstore chains participated (Shoppers Drug Mart, Jean Coutu, Cumberland, and Pharmaprix), and testing was conducted in three major cities: Toronto, Montreal, and Vancouver Two brands were involved in the testing: Benylin cough syrup and Listerine mouthwash This section discusses the Benylin study, and the following section describes the Listerine study For the Benylin test, stores were divided into four groups: one group offered regularly priced Benylin in its normal shelf position; a second group merchandised Benylin in the normal shelf position but at a feature (i.e., discounted) price; a third group of stores displayed Benylin at a feature price on endcap displays; and the final group employed in-aisle floorstand displays of Benylin at a feature price Sales data were captured during a two-week period in each store to gauge display effectiveness The effectiveness of both feature pricing and displays is determined simply by comparing sales volume during the test period in store groups through with sales in group 1—the baseline group These comparisons reveal the following: • Stores in group (Benylin located at its regular shelf position but feature priced) enjoyed 29 percent greater sales volume of Benylin than the stores in group (Benylin at both its regular price and shelf location) This 29 percent increment reflects simply the effect of feature pricing inasmuch as both store groups sold Benylin from its regular shelf location • Stores in group (Benylin on an endcap display and feature priced) enjoyed 98 percent greater sales of Benylin than did stores in group This increment reflects the substantial impact that the endcap display and feature price combination had on the number of units sold The large percentage increase in comparison to group (i.e., 98 percent versus 29 percent) reflects the incremental impact of the endcap display location over the effect of feature pricing per se • Stores in group (Benylin displayed in-aisle and feature priced) realized 139 percent greater sales volume than the baseline stores, which indicates that this location, at least for this product category, is more valuable than is the endcap location The POPAI/Warner-Lambert Listerine Study Stores were divided into four groups for this test: one group offered regularly priced Listerine in its normal shelf position; a second group of stores offered Listerine in the normal shelf position but at a feature price; a third group displayed Listerine at a feature price on endcap displays at the rear of the store; and the fourth group displayed Listerine at a feature price on endcap displays at the front of the store Sales data were captured during a two-week period in each store to gauge display effectiveness Again, the effectiveness of displays can be determined simply by comparing sales volume of groups through with sales in baseline group 1: • Stores in group (Listerine located at its regular shelf position but feature priced) enjoyed 11 percent greater sales volume of Listerine than the stores in group (where Listerine was regular priced and located in its regular shelf position) • Stores in group (Listerine at a rear endcap display and feature priced) experienced 141 percent greater sales of Listerine than the stores in group • Stores in group (Listerine at a front endcap display and feature priced) enjoyed 162 percent greater sales volume than the baseline stores 231 232 Part 3: Marcom for New Products, Store Signage, and Point-of-Purchase Communications Both sets of results reveal that these two drugstore brands, Benylin and Listerine, benefited greatly when feature priced and merchandised from prized locations The Listerine study results came as a bit of surprise to industry observers, however, who expected the advantage of the front endcap location to be substantially greater in comparison to the rear endcap location The premium price that manufacturers pay for front endcap placement (versus rear endcap positioning) may not be fully justified in light of these results Additional research with other product categories is needed before any definitive answer is possible The Use and Nonuse of P-O-P Materials Although P-O-P materials can be very effective for manufacturers and perform several desirable functions for retailers, the fact remains that perhaps as much as 40 to 50 percent of all P-O-P materials supplied by manufacturers are never used by retailers.31 Reasons Why P-O-P Materials Go Unused Five major reasons explain why retailers choose not to use P-O-P materials First, there is no incentive for the retailer to use certain P-O-P materials because these materials are inappropriately designed and not satisfy the retailer’s needs Second, some displays take up too much space for the amount of sales generated Third, some materials are too unwieldy, too difficult to set up, too flimsy, or have other construction defects A fourth reason many signs and displays go unused is because they lack eye appeal Finally, retailers are concerned that displays and other P-O-P materials simply serve to increase sales of a particular manufacturer’s brand during the display period, but that the retailer’s sales and profits for the entire product category are not improved In other words, a retailer has little incentive to erect displays or use signage that merely serves to transfer sales from one brand to another but that does not increase the retailer’s overall sales and profits for the product category Encouraging Retailers to Use P-O-P Materials Encouraging retailers to use P-O-P materials is a matter of basic marketing Persuading the retailer to enthusiastically use a display or other P-O-P device means that the manufacturer must view the material from the retailer’s perspective First and foremost, P-O-P materials must satisfy the retailer’s needs and the needs of the retailer’s customers (i.e., consumers) rather than just those of the manufacturer This is the essence of marketing, and it applies to encouraging the use of P-O-P materials just as much as promoting the acceptance of the manufacturer’s own brands Hence, manufacturers must design P-O-P materials to satisfy the following requirements: • They are the right size and format • They fit the store decor • They are user friendly—that is, easy for the retailer to attach, erect, or otherwise use • They are sent to stores when they are needed (e.g., at the right selling season) • They are properly coordinated with other aspects of the marcom program (i.e., they should tie into a current advertising or sales promotion program) • They are attractive, convenient, and useful for consumers.32 Measuring In-Store Advertising’s Audience Earlier in the chapter we concluded the section on OOH advertising by discussing the measurement of that medium’s audience size and characteristics and noting that, unfortunately, accurate data have in the past been unavailable regarding OOH’s audience characteristics Historically, the same could be said for P-O-P Chapter 8: On- and Off-Premise Signage and Point-of-Purchase Communications advertising However, in recent years the P-O-P’s trade association—the Point of Purchase Advertising International (POPAI)—has undertaken a major initiative to develop a means of measuring in-store advertising media.33 It would take us too far afield at this point in the text to go into the methodology that has been developed, but let it simply suffice to say that a procedure has been devised for acquiring standard diagnostics (reach, frequency, gross ratings, etc.) for in-store media Advertisers can now plan and evaluate in-store advertising using the same procedures and discipline that they have used for decades in planning for and evaluating print and broadcast media Summary This chapter covers three relatively minor (vis-à-vis mass-media advertising) forms of marcom communications: out-of-home, or off-premise, advertising; onpremise business signage; and point-of-purchase advertising The first two topics are covered somewhat briefly compared to P-O-P advertising, but the argument is made that both off- and on-premise messages perform important functions and are capable of influencing consumers’ awareness of and perceptions of stores and brands The various forms of off- and on-premise messages are described and illustrations provided Major chapter coverage is devoted to P-O-P advertising The point of purchase is an ideal time to communicate with consumers Accordingly, anything that a consumer is exposed to at the point of purchase can perform an important communications function A variety of P-O-P materials—signs, displays, and various in-store media—are used to attract consumers’ attention to particular brands, provide information, affect perceptions, and ultimately influence shopping behavior P-O-P displays—which are distinguished broadly as permanent, semipermanent, or temporary—perform a variety of useful functions for manufacturers, retailers, and consumers Research has documented the high incidence of consumers’ in-store purchase decision making and the corresponding importance of P-O-P materials in these purchase decisions POPAI’s Consumer Buying Habits Study classified all consumer purchases into four categories: specifically planned, generally planned, substitutes, and unplanned decisions The combination of the last three categories represent in-store decisions that are influenced by P-O-P displays and other store cues Importantly, it is estimated that in-store decisions represent as much as 70 percent of supermarket purchase decisions and 74 percent of the decisions in mass merchandise stores Research on the effectiveness of displays—such as the joint undertaking by POPAI, Kmart, and Procter & Gamble—provides evidence that displayed brands sometimes enjoy gigantic, triple-digit increases in sales volume during the display period Discussion Questions What are your personal views about the advantages and disadvantages of supermarket shopping with “Shopping Buddy” (see Marcom Challenge)? During past decades, cigarette advertisements were responsible for a very large percentage of all billboard advertising in the United States What explanation can you offer for why this product used to dominate the billboard medium? In other words, what is it about consumer behavior related to this product that would make billboards an especially attractive advertising medium? 233 234 Part 3: Marcom for New Products, Store Signage, and Point-of-Purchase Communications Changeable message signs are billboards that vary the advertising message on a schedule of every to 10 seconds What, in your opinion, is the value of this technology to the advertiser, and what are the potential hazards to society? The Outhouse Springs bottled water case illustrated an effective application of billboard advertising With reference to the material on “buzz generation” covered in Chapter 7, what is it about this particular campaign that may make these results atypical and thus unrepresentative of more mundane products advertised via billboards? Conduct an informal audit of on-premise business signage in your college or university community Specifically, select five examples of on-premise signage that you regard as particularly effective Using material from Chapter on the CPM and HEM models, explain why your chosen illustrations likely stand a good chance of attracting consumer attention and influencing their behavior What functions can point-of-purchase materials accomplish that mass media advertising cannot? Explain why the POPAI Consumer Buying Habits Study probably overestimates the percentage of unplanned purchases and underestimates the percentage of specifically planned and generally planned purchases Although not presented in the chapter, the POPAI Consumer Buying Habits Study revealed that the percentage of in-store decisions for coffee was 57.9 percent, whereas the comparable percentage for salsa, picante sauce, and dips was 87.1 percent What accounts for the 29.2 percent difference in in-store decision making for these two products? Go beyond these two product categories and offer a generalization as to what product categories likely have high and low proportions of in-store decision making The POPAI Consumer Buying Habits Study also revealed that the highest average brand lift index from signage (rather than displays) in mass merchandise stores was dishwashing soaps, with an index of 21.65 Provide an exact interpretation of this index value 10 The discussion of the S B Thomas’ English muffin study pointed out that in stores using motion displays, sales increased by more than 100 percent By comparison, sales of Eveready batteries, when promoted with motion displays, increased anywhere from 3.7 percent to 15.7 percent, depending on the type of store in which the display was placed Provide an explanation that accounts for the tremendous disparity in sales impact of motion displays for English muffins compared with batteries 11 Why were motion and static displays considerably more effective at increasing Olympia beer sales in liquor stores than in supermarkets? E N D N O T E S This description is based on the following sources: “We ‘Check Out’ Latest Supermarket ‘Smart’ Cart,” MSNBC.com, July 20, 2004, http://www.msnbc.com; “Stop & Shop to Roll Out New Intelligent Shopping Carts from IBM and Cuesol,” Yahoo! Finance, October 13, 2004; Kelly Shermach, “IBM Builds HighTech Grocery Cart,” CRMBuyer, November 16, 2004 R James Claus and Susan L Claus, Unmasking the Myths about Signs (Alexandria, VA: International Sign Association, 2001), 16 “Outdoor,” special advertising section of Advertising Age, June 9, 2003, C1 Pierre Bouvard and Jacqueline Noel, “The Arbitron Outdoor Study,” Arbitron, 2001, http://www.arbitron.com Claus and Claus, Unmasking the Myths about Signs, 17 “The Great Outdoors,” special advertising insert in Agency 11 (fall 2001) Estimates by the Media Edge as reprinted in “The Great Outdoors.” Kimberly Palmer, “Highway Ads Take High-Tech Turn,” The Wall Street Journal Online, September 12, 2003, http:// online.wsj.com Myron Laible, “Changeable Message Signs: A Technology Whose Time Has Come,” Journal of Public Policy & Marketing 16 (spring 1997), 173–176; Frank Vespe, “High-Tech Billboards: The Same Old Litter on a Stick,” Journal of Public Policy & Marketing 16 (spring 1997), 176–179; Charles R Taylor, “A Chapter 8: On- and Off-Premise Signage and Point-of-Purchase Communications 10 11 12 13 14 15 16 17 18 19 20 21 22 Technology Whose Time Has Come or the Same Old Litter on a Stick? An Analysis of Changeable Message Boards,” Journal of Public Policy & Marketing 16 (spring 1997), 179–186 One of my graduate students, Ms Brie Morrow, informed me of the Outhouse Springs billboard campaign Brie and two of her colleagues, Jason Darby and Erin Vance, performed background work in writing a term paper for another class I have referred to their term paper as well as additional source materials such as Jeremy D’Entremont, “Outhouse Springs and Piggly Wiggly Help Save the Light,” Lighthouse Digest, http://www.lighthousedepot.com Claus and Claus, Unmasking the Myths about Signs, This distinction and the following details are from The Signage Sourcebook: A Signage Handbook (Washington, DC: U.S Small Business Administration, 2003), 193 Darrin Conroy, What’s Your Signage? (Albany, NY: The New York State Small Business Development Center, 2004), Ibid., 20 “Retail Details,” Promo, April 2004, AR31 John A Quelch and Kristina Cannon-Bonventre, “Better Marketing at the Point-of-Purchase,” Harvard Business Review (November/December 1983), 162–169 “Impact in the Aisles: The Marketer’s Last Best Chance,” Promo, January 1996, 25 An inventory of P-O-P advertising materials is provided in Robert Liljenwall and James Maskulka, Marketing’s Powerful Weapon: Point-of-Purchase Advertising (Washington, DC: Point-of-Purchase Advertising International, 2001), 177–180 This and the following examples are drawn from resources provided by the Point-of-Purchase Advertising International at its Web site available to members only (http:// www.popai.com) Kate Fitzgerald, “In-store Media Ring Cash Register,” Advertising Age, February 9, 2004, 43 Doug Leeds, “Accountability Is In-Store for Marketers in ’94,” Brandweek, March 14, 1994, 17 The Effect of Motion Displays on the Sales of Beer; The Effect of Motion Displays on Sales of Baked Goods; The Effect of 23 24 25 26 27 28 29 30 31 32 33 235 Motion Displays on Sales of Batteries (Englewood, N.J.: Pointof-Purchase Advertising Institute, undated) J Jeffrey Inman, Leigh McAlister, and Wayne D Hoyer, “Promotion Signal: Proxy for a Price Cut,” Journal of Consumer Research 17 (June 1990), 74–81 Measuring the In-Store Decision Making of Supermarket and Mass Merchandise Store Shoppers (Englewood, N.J.: Point-ofPurchase Advertising Institute, 1995) Please note that POPAI has since changed its name from the Point-of-Purchase Advertising Institute to Point-of-Purchase Advertising International This and all following details are according to the 1995 POPAI Consumer Buying Habits Study, ibid J Jeffrey Inman and Russell S Winer, “Where the Rubber Meets the Road: A Model of In-store Decision Making,” Marketing Science Institute Report No 98–122 (October 1998) Ibid., 26 Measuring the In-Store Decision Making of Supermarket and Mass Merchandise Store Shoppers, 23 POPAI/Kmart/Procter & Gamble Study of P-O-P Effectiveness in Mass Merchandising Stores (Englewood, N.J.: Point-ofPurchase Advertising Institute, 1993) POPAI/Warner-Lambert Canada P-O-P Effectiveness Study (Englewood, N.J.: The Point-of-Purchase Advertising Institute, 1992) John P Murry, Jr and Jan B Heide, “Managing Promotion Program Participation within Manufacturer-Retailer Relationships,” Journal of Marketing 62 (January 1998), 58 POPAI/ Progressive Grocer Supermarket Retailer Attitude Study (Englewood, N.J.: Point-of-Purchase Advertising Institute, 1994), Adapted from Don E Schultz and William A Robinson, Sales Promotion Management, 278–279 For further insights on gaining retailer participation in P-O-P programs, see Murry, Jr and Heide (1998), “Managing Promotion Program Participation within Manufacturer-Retailer Relationships.” Doug Adams and Jim Spaeth, “In-store Advertising Audience Measurement Principles” (Washington, DC: Point-of-Purchase Advertising International, July 2003) ... IEDITION Advertising, Promotion, and Other Aspects of Integrated Marketing Communications Terence A Shimp University of South Carolina Advertising, Promotion, and Other Aspects of Integrated Marketing. .. Signage and Point -of- Purchase Communications 212 PART 4: Advertising Management 10 11 12 13 14 15 16 Overview of Advertising Management: Messages, Media, and Measurement Creating Effective and Creative... dynamic nature of this field or to make a career in advertising, promotions, or some other aspect of marketing, Advertising, Promotion, and Other Aspects of Integrated Marketing Communications