Point of Purchase

Today I learned one of the most comprehensive definitions of Point of Purchase (POP):

Point of Purchase is the decisive moment when all previous marketing activities stand or fall" (Marketing Week).

The Point of Purchase is any place when a product or service can be bought. It refers to all elements within or around that place. Therefore, when we talk about POP we refer at: fixtures, gondola ends, checkouts, stack displays, central alleys, refrigerators.

The POP is extremely important as 70% of the decisions are made at POP level. Generally speaking, for FMCG categories:

• one third of the decisions are solely made outside of the store - the shoppers come with the item in mind and leaves with the same item in shopping basket;
• one third of the decisions are made at shelf levels. Buying decision was taken because the item "was seen on the shelf";
• another third of the decisions are a mix of the two influences - decision is switched at POP. Shoppers come into the store to buy a certain brand or format and leaves with another item.

There are two moments of truth for a brand interaction with the shopper / consumer:

• first moment of truth is at shelf level - when the product is bought
• second moment of truth is at home - when the product is consumed.

It's very clear that if the first moment of truth is not won by a brand, the second do not exist anymore; here lies the untapped power of trade marketing.