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Personal Selling and Sales Promotion  |  Chapter 17  503



                            Point-of-Purchase Materials and Demonstrations
                             Point-of-purchase (POP) materials      include outdoor signs, window displays, counter pieces,
                       display racks, and self-service cartons. Innovations in POP displays include sniff-teasers,
                       which give off a product’s aroma in the store as consumers walk within a radius of four feet,
                       and computerized interactive displays. These items, often supplied by producers, attract atten-
                       tion, inform customers, and encourage retailers to carry particular products. Retailers have      point-of-purchase (POP)
                       also begun experimenting with new forms of POP technology. In an attempt to encourage   materials    Signs, window
                       an open-sell environment, Clinique incorporates different point-of-purchase displays into its   displays, display racks, and
                                                                                                     similar devices used to attract
                       retail stores, including an Experience Bar complete with iPads and push-button dispensers;
                                                                                                     customers
                       signs that encourage customers to open drawers to sort through products; and product recom-
                                                                                                        demonstrations    Sales pro-
                       mendation printouts. Clinique’s point-of-purchase materials are meant to encourage custom-
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                       ers to shop without worrying about being interrupted by a salesperson.                                             A retailer is likely   motion methods a manufacturer
                                                                                                     uses temporarily to encour-
                       to use point-of-purchase materials if they are attractive, informative, well-constructed, and in
                                                                                                     age trial use and purchase of
                       harmony with the store’s image.                                               a product or to show how a
                                Demonstrations      are excellent attention-getters. Manufacturers offer them temporarily to   product works
                       encourage trial use and purchase of a product or to show how a product works. Because labor      free samples    Samples of a
                       costs can be extremely high, demonstrations are not used widely. They can be highly effective   product given out to encourage
                       for promoting certain types of products, such as appliances, cosmetics, and cleaning supplies.   trial and purchase
                       Even automobiles can be demonstrated, not only by a salesperson but also by the prospective      premiums    Items offered free
                       buyer during a test drive. Cosmetics marketers, such as Estée Lauder and Clinique, sometimes   or at a minimal cost as a bonus
                       offer potential customers “makeovers” to demonstrate product benefits and proper application.  for purchasing a product

                             Free Samples and Premiums

                          Marketers use   free samples      to stimulate trial of a  product,
                       increase sales volume in the early stages of a product’s life
                       cycle, and obtain desirable distribution. Trader Joe’s gives
                       out free samples of its coffee hoping to entice buyers to
                       make a purchase. Sampling is the most expensive sales
                       promotion method because production and distribution—
                       at local events, by mail or door-to-door delivery, online, in
                       stores, and on packages—entail high costs. However, it can
                       also be one of the most effective sales promotion methods:
                       an Arbitron survey found that more than half of consumers
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                       who sampled a product plan to purchase it in the  future.
                       Other studies reveal that sampling can lead to repeat pur-
                       chases as well as purchases of other products under the
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                       same brand name.                                                            Despite  high  costs,  use  of  sampling
                       is increasing. In a given year, almost three-fourths of con-
                       sumer products companies may use sampling. Starbucks
                       often provides free samples of its new drinks to try to stimu-
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                       late interest in the new products.                                             World’s Best Cat Litter
                       provides a free sample of its product for a limited time
                       period by inviting consumers to go online and download
                       a rebate for their purchase. The advertisement emphasizes
                       that its cat litter is superior to the competition and provides
                       the free sample so that consumers can experience its effec-
                       tiveness. The product is     100     percent natural and a website is                                             Courtesy of World’s Best Cat Litter
                       provided for downloading the rebate.
                                Premiums      are items offered free or at a minimal cost
                       as a bonus for purchasing a product. Like the prize in the
                       Cracker Jack box, premiums are used to attract competi-    Free Samples
                       tors’ customers, introduce different sizes of established         Companies, such as World’s Best Cat Litter, offer free samples to
                       products, add variety to other promotional efforts, and   encourage product trial and adoption.





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