—You will hear two people discussing Point of Purchasing (POP) projects.—For ea

A: So what exactly is POP?
B: Well, POP stands for Point of Purchasing and it refers to the advertising techniques used to sell specific products at the point where customers buy them.
A: Such as at the supermarket check-out or on the shelves in a shop?
B: Yes, that’s right, and managers are slowly beginning to realize how successful it can be and are building it into their general plans for promoting product ranges. The surprising thing is it’s taking a while to catch on in a big way.
A: Is that because firms are going to have to spend a lot of money in the early stages?
B: That’s true, and of course the displays have to be serviced regularly. But we know that most people don’t decide what to buy until they are in the shop. And it seems that retail managers are beginning to see sense at last. Firstly, it’s generally accepted that consumers ignore adverts on TV. Secondly, the expansion of cable and satellite TV channels has made it much more difficult to reach all consumers with an effective TV advertising campaign while remaining within budget. Point of Purchasing advertising is more selective but cheaper.
A: I believe that Samsung, for example, has invested heavily in POP to boost sales of its computer monitors?
B: That’s right. They wanted to convince consumers to purchase individual components when buying a computer system rather than what it describes as ’inappropriate’ packages. They say they have gone for POP because it wasn’t just awareness-raising they were after. They wanted to influence even those customers who had decided on something else by demonstrating Samsung’s products in store.
A: So are companies actually employing POP agencies?
B: Some are but many, like Ford, are asking their planners to look into the research that has been done in the area to find out things like how long it takes to launch a new brand, how many people visit an advertising fixture in a shop and so on.
A: But companies are still reluctant to allocate large budgets to POP because it’s almost impossible to assess the results of specific campaigns?
B: Yes, but there are success stories. The Cheltenham and Gloucester Building Society decided to move into a retail environment and sell their pensions more aggressively. They looked seriously at where they sited displays and did some research to find out where the best places in the branch were. They placed their leaflets in well-designed dispensers in the walkways between the doors and the counters rather than on the walls.
A: So You think more companies can be persuaded down the POP route?
B: I think retailers will always want to set a number of conditions on POP campaigns. They’ll want the campaign to fit in with their store’s style and they won’t want the products detracting too much from their own brands. They’ll also want to manage the area themselves or ensure that the agency keeps the displays in good condition.
A: So is the future for POP agencies looking good?
B: In the short term it’s reasonable. The pressure on retail space brought about by retailers’ own-label products is an obstacle and POP needs to develop a more exciting image by using interactive ideas such as smell, visual effects and sound, Hopefully this will mean that consumers stay longer to consider their purchase.