POSM is a specialized form of sales promotion that is found near, on, or next to a checkout or buying area. There primary goal is to draw the customers' attention to products, which may be new products, or on special offers, and are also used to promote special events, e.g. seasonal or holiday-time sales. POS displays can include free-standing units (FSU), shelf edging, dummy packs, strut cards, standees, hanging signs, counter top units (CTU), display packs, endcaps, display stands, mobiles, posters, and banners.
Therefore, it is an acronym for "Point of Sale Marketing" or "Point of Sale Materials" and is used by brands to convey their message or communicate information to the consumers at the POS or POP. It is usually adopted by the ‘Below the Line’ or BTL marketing campaigns. BTL marketing focuses and targets a specific segment of people - for instance, dropping leaflets in a particular area or putting up a banner at the bus stop.
But before we dive into understanding POSM, you need to be familiar with two other terms- POP and POS.
POP, ie. Point of Purchase is anything that the customers interact with while deciding whether to buy the product or not. When brands place their products in the stores, in the aisles, on the shelves that customers use to choose what they want to buy- it is the Point of Purchase, whereas POS, ie. Point of Sales means the place where the transaction/ sale occurs- the cash counter or the checkout area at the retail store.
POS, ie. Point of Sale is referred to interactions between the product and customer. These interactions could be at the time of transactions and exit. Remember the chocolate, mint, and candy shelves placed around the billing counter? Well! These same candies are available in the chocolate and munchies section of the store (POP). But putting a few pieces of the candies right before the exit is a part of the brand’s marketing strategy incorporated in a robust merchandising system at the store.
Similarly, have you ever wondered why magazine racks get conveniently positioned at the checkout area? Well, that’s POS marketing! POS displays are exceptional for pushing products that shoppers buy impulsively. Magazines or mouth fresheners are usually not a planned purchase. Therefore, placing them at the Point of Sale is wiser than displaying them on the racks for purchase.
Both POP and POS work towards drawing customer attention to a product and brand. The most suitable display gets chosen depending upon the brand’s requirements and its goals. Brands usually carry out a study of consumer behaviour and associate it with the nature of the brand to choose which Point of Sale Material will work best for in-store promotion. Some examples are posters, danglers, shelves, leaflets & leaflet dispensers, hangers, wobblers, etc. These materials are appealing and informative and are capable of stimulating purchases even at the Point of Sale.
Written by: POSM Team member