All You Need To Know About POSM And Its Types

What does POSM mean?

POSM 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 point of sale. 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 (Point of Sale) refers 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. 

POP vs. POS

• The term Point of Purchase (POP) indicates the physical spot where a purchaser finalizes a transaction, which may include a store shelf, a vending machine, or an online marketplace. It is the moment when the customer encounters a product and determines whether or not to make a purchase.
• Point of Sale (POS) is the area where the exchange between the customer and the retailer occurs, such as a checkout counter or an online shopping cart. It is where the customer pays the bill for their purchased products.
• While POP aims to attract customers to buy a product, POS is focused on completing the transaction and obtaining payment. Both POP and POS aim to optimize sales and improve customer satisfaction.

POP Uses & Examples

Point-Of-Sale (POS) materials are promotional tools used at the transaction point to increase visibility, promote new products, boost sales, build brand awareness, and educate customers. Point of sale materials examples include banners, shelf talkers, digital signage, brochures, coupons, loyalty cards, and product displays. These materials are used to persuade people to buy products at retail stores.

Uses of POSM

1. Boost Brand Awareness- At the point of sale, brand visibility is boosted through POS materials like banners, posters, and shelf talkers.
2. Promote New Products- POSMs are used to publicize and generate interest in new items.
3. Informational Materials- POS materials like pamphlets and flyers are used to inform clients about the goods, services, and promotions available.
4. Boost Sales- By highlighting special deals, discounts, and promotions, POS materials help promote impulsive purchases and boost sales.
5. Improves Appearance- POSM can help design a welcoming and eye-catching store atmosphere that improves customers’ shopping experiences.

Enhance Brand Image- By using consistent colors, logos, and messages, POS materials can be used to enhance a company’s brand image and values.

History of POSM

POSM full form in marketing is Point of Sale Material. It has been used by retailers since the early 20th century to promote their products at the point of sale. Over the years, it has evolved with advances in printing technology, digital displays, traditional signage, and augmented reality experiences. POSM remains an essential tool for retailers looking to attract and retain customers.

Why is Point of Sale materials important?

Point-of-sale materials are important as they can help,

1. Increase brand awareness and visibility for a business – Posters, banners, and other materials can be used to attract customers toward products or promotions. Logos, colors, and slogans of the brand can be printed on the material to increase brand recognition and recall.
2. Generate repeat business- Repeat business can be generated from customers & build customer loyalty
3. Increase sales– POS materials can support sales growth by highlighting particular products or deals and enticing customers to make a purchase. 
4. Inform customers– Customers can learn vital information about a product, such as its characteristics, advantages, and price, via POS materials.

Let’s categorize these Point of Sale Materials based on their application: