What is the Function of POS Marketing? To Increase Sales of Course!

If You Fail at Retail — You Fail, Period

Part of the OnTrak sales process is an on-line, live demonstration showing what our software does. Our intention, during a demonstration, is to present the features and benefits of OnTrak’s point-of-sale (POS) marketing management software in such a way that our prospective customers have an “ah-ha” moment.

A moment where they see the features and get the benefits of using OnTrak software to order, track, measure and manage their POS marketing initiatives or campaigns.

We’ve learned, since 2006, that manufacturers, suppliers, distributors and retailers are all looking for ways to achieve the goal of increasing sales and improving business results. And they know that POS helps them achieve these goals!

We’ve also learned that a consumer makes a decision to ‘stop shopping’ and ‘start buying’ at the point-of-purchase. Recent research from POPAI (Note 1) has shown that 76% of all purchase decisions are made at-retail. This means that marketers need to consider where and when they spend their marketing dollars - At the point-of-sale.

Achieving Your Objectives

For those of you who manufacture, distribute and sell consumer goods, your marketing budget should be allocated according to your objectives.

If your primary objective is ‘to maintain or increase sales’, your POS marketing initiatives should be where you spend the lion’s share of your budget. Often it appears as if ‘supportive’ broadcast and print advertising receives greater attention and funding than POS advertising.

Assuming we agree with the POPAI study findings, it seems appropriate to allocate a marketing budget as follows: 76% for POS spend, and 24% on other ways to build brand awareness. At the same time it seems logical to begin measuring the success or failure of POS marketing programs to assure you're getting the maximum return on investment (ROI) for your POS marketing campaign.

Armed with customer or product specific POS and product sales data, suppliers, distributors and retailers can measure which at-retail marketing efforts are best correlated to sustaining or increasing sales.

The Potential of POS Marketing Software

Before the advent of software that automates and facilitates POS data tracking, measurement and management, the gathering and analyzing of POS marketing data was daunting. With few exceptions, these processes are completely manual, requiring dedicated personnel and a significant amount of time. These manual processes are also labor intensive, slow, and full of errors.

Now, due to specific technology solutions (like OnTrak), and in response to growing market pressure, CPG companies are able to gather and analyze POS data to improve forecasting and to make information based decisions. Manufacturers, distributors and retailers who use POS marketing data correlated to sales data will have a competitive advantage over those who simply push POS materials through the channel hoping it provides sales lift.

Note 1 - Point of Purchase Advertising International - www.popai.com

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