P.O.P Stand

POP Stand

POP Stand: You're walking down a crowded city street in the summer heat, feeling overwhelmed by the heat. You wouldn't say "no" to a cold drink offered right there and then, would you? Marketers have noticed this and are using this method to promote their new products. Just when you need it most! The method is called "Point-of-purchase" (POP)... Companies like Unilever are using this method, and it's yielding amazing results.

You've all probably noticed: fire alarms have a warning that says "break the glass in case of emergency." This warning seems to have recently caught the attention of marketers, who have developed a new method called "marketing at the point of need."

For example, at a time when a consumer needs something like a bandage, you could organize an event to introduce your company's newly launched special bandage, say, in a children's park. Or, to promote scented wet wipes in a busy restaurant area...

It can actually be described as a different interpretation of familiar practices. Product promotion activities when needed constitute a subset of promotion. In a sense, it is considered a tool to improve sales. This method, which has recently started to be used extensively by companies, especially in the West, is also encountered in Türkiye...

In the right place at the right time

The approach's core principle is based on sales development activities at the point of purchase (POP), where the consumer makes their product and brand selection. Assistant Professor Dr. Esra Gençtürk from Koç University explains the POP approach as follows:

“Point-of-sale (POP) activities at the point of purchase have two main purposes: reminders and encouraging unplanned purchases. Research shows that consumers make most of their purchasing decisions at the moment of purchase, without prior planning. Therefore, in-store POP activities are known to reduce the need for information at the decision-making stage and increase internal reactive sales.”

Esra Gençtürk notes that the increase achieved through sales promotion activities is temporary. POP leads to customer switching and brand switching in the short term without growing the overall market. Therefore, Esra Gençtürk emphasizes that it should be used carefully and consciously.

Promotion when needed.

Product launches based on demand can be perceived as a natural extension of classic POP (Popular Open Market) activities. Both activities have the same purpose. However, these launches take place in environments where shopping isn't the primary goal. Thus, the product is presented to potential buyers at a time of need and in their current location. Esra Gençtürk says, "Examples of these activities include natural foods and sports equipment offered for sale in gyms and health centers; hair and hand care products launched in hair salons; or temporary book and magazine stands set up at scientific and commercial meetings."

Faruk Atasoy, President of the Advertisers Association, draws attention to an important element regarding this issue: “Applications in environments where that product group is consumed or might be considered can be even more beneficial, as consumer awareness and interest will be higher. But in addition to awareness, it is also important that the consumer being sampled is from the target group.”

Be prepared to start sweating.

Unilever plans to take over gyms with this initiative. They've even given their method a name: "Point-of-sweat" promotion. Starting next month, at Balyy's Fitness Clubs, aerobics instructors will hand out Dove body wash, deodorant, and facial wipes to students after their classes. Unilever's goal with this strategy is to "distribute and promote personal hygiene products where they are needed."

Marketing experts say the method solves a classic problem. You can give a product to a consumer for promotion, but you can't make them use it. But if you manage to be there at the exact moment of need, the consumer will definitely try it. So, imagine a situation where the consumer actually needs to wash their hands, and promote your soap there...

Claire Rosenzweig, director of the US Promotional Marketing Association, says, “Promotional advertising, an ever-increasing part of the $249 billion in annual consumer-facing promotional spending, has become a $1.2 billion industry.”

They also point out that in these times of economic downturn, this is the most attractive and affordable way to increase brand loyalty.

There are examples of this in Türkiye as well.

Unilever Board Member and Corporate Relations Officer Ahter Kutadgu explains the importance they place on this issue with the following words:

“It’s now necessary to build much closer ties with consumers. As part of Unilever’s new strategy, we plan to prioritize new channels. We are trying to find different ways to reach consumers. This is one of the most important pillars of our global strategy. We need to be where the consumer is. We need to adopt an approach that meets their needs immediately. But there’s something that shouldn’t be forgotten here: it needs to be done in a way that doesn’t diminish the brand’s value. We need to take initiatives that protect or enhance the brand’s value. It shouldn’t be an approach of being there for every single consumer.”

Currently, Lipton products are available at Total gas stations. Tea bag consumption is low in Türkiye. To increase this, it's necessary to offer tastings and samples. Besides that, Algida has many unique initiatives. Let's say you're on a boat trip in Fethiye or Göcek in the south, and you crave ice cream. Where will you find it? Algida's boat docks and lets you sample their new product.

ARE NEW STRATEGIES ON THE WAY?

A little research reveals that many companies are in the right place at the right time to promote their products. The key is to "corner the consumer when they need it." Convincing a consumer, who is bombarded with thousands of advertising messages and handed hundreds of products to try every day, to try your product is crucial.

As we said, it's possible to give many more examples: The "point-of-thirst" strategy has a similar starting point. There are beverage companies that promote themselves by handing out cold drinks to pedestrians on the streets on hot days.

"Point-of-dirt" promotions were also carried out very recently. Stain remover advertisements were conducted in the food courts of shopping malls.

When the famous coffee shop chain Starbucks introduced the Frappuccino, an iced drink, on a particularly hot day in New York, it generated a huge buzz.

It is said that we will soon witness the promotion of "Point-of-relief" initiatives. At the Chicago Marathon, the renowned pharmaceutical company Schering-Plough will offer runners Dr. Scholl's, a medication that treats water retention.

EXPERT EXPERTS EXPLAIN THE ADVANTAGES OF THIS METHOD.

Asst. Prof. Dr. Esra Gençtürk / Koç University Faculty of Economics and Administrative Sciences

Assistant Professor Dr. Esra Gençtürk, a faculty member at Koç University's Faculty of Economics and Administrative Sciences, lists the advantages of immediate promotions and sales stands set up at points of need as follows:

POSITIVE IMPACT ON THE BRAND: It can create additional sales locations and opportunities. By establishing a physical link between the product or brand and the primary activity or location, it positively impacts perceived brand quality.

INCREASES LOYALTY: Creates brand loyalty by supporting primary activity. Helps break competitor brand loyalty and existing purchasing habits.

A NEW ALTERNATIVE: Suitable for highlighting product and brand features in an environment free from in-store promotional clutter. It is an additional and/or new market development method.

CAUTION IS ADVISABLE: However, it is important to emphasize that these are potential advantages. Because, despite the time and space benefits created, if the promotions carried out at the time of need are flawed, the product is inadequate, or the marketing strategy supporting sales development activities is incorrect, none of these benefits will be realized, and the brand may be damaged in the long run.

Asst. Prof. Dr. Uğur Çağlı/METU Department of Business Administration

Assistant Professor Dr. Uğur Çağlı, a faculty member at the Middle East Technical University, has some interesting observations regarding promotions that are done only when needed:

CHANGING CONSUMER DECISIONS: The theoretical basis for "Point of Purchase" (POP) promotions, as used by marketing professionals, relates to the model of attitude formation within the consumer decision-making process and how existing consumer attitudes influence a consumer to engage in a specific behavior, such as making a purchase. Research on creating new attitudes in consumers, influencing and changing existing consumer attitudes, and consumer behavior in general, strongly and consistently shows that attitude influence tactics are most effective when consumers are contacted immediately before making a decision and exhibiting a behavior.

THE METHOD HAS A HIGH IMPACT: For example, if an advertisement for a product is delivered to the consumer just before they make a purchase in that product group, the advertisement will show its highest potential impact at that moment. However, as in classic marketing communication practices, if the advertisement is delivered to the consumer at a location far from the shopping environment and during the shopping process, for example, in the consumer's home environment, its effectiveness will be less than in the previous example, no matter how high-quality and effective the advertisement is.

PERFECT TIMING: In short, the relationship between attitude and behavior is at its peak just before the behavior is fully manifested. Therefore, any marketing activity aimed at influencing attitudes is known to be most effective when carried out just before the consumer exhibits their behavior on the relevant issue. This is why POP events are generally more effective. Because of this extra effectiveness, companies allocate significant budgets to POP events such as product tasting, test drives, and product samples. (Capital Business and Economics) POP Stand