The terminal market, the end of the sales channel, is the final destination for manufacturers' sales. It serves as a crucial link between manufacturers, wholesalers, and consumers. The basic rule for successful sales today is that whoever controls the terminal market wins.
Some manufacturers have mistakenly overemphasized advertising's role in pulling the market while neglecting terminal market construction. Many have learned from failures and are shifting their marketing strategies from advertising to channel promotion, focusing on improving retail store distribution rates and in-store product share.
Content of Terminal Market Promotion
Terminal market promotion can be divided into two parts: terminal observation and terminal support.
Terminal Observation: This involves observing consumers' purchasing activities at the store, retail staff's attitudes toward various brands, and competitors' terminal market promotions, to gather sufficient information for formulating marketing strategies.
Terminal observation includes:
- Changes in consumer lifestyles and their impact on purchasing behavior and product choices.
- Understanding the activities of competitors (or retail stores) and their impact on retail stores and consumers.
- Observing retail store conditions such as space, lighting, traffic flow, service attitude, and product assortment.
In short, any information related to consumer purchasing actions and retail store operations should be included in terminal observation.
Terminal Support: This includes off-store support and in-store support.
(1) Off-store Support: This refers to information materials provided by manufacturers to retail store employees, such as consumer data, trade area dynamics, product information; operational knowledge like sales plans, promotion plans, inventory control; and monetary rewards like performance contests and sales bonuses, to improve retail store efficiency.
(2) In-store Support: This includes:
- Product display and arrangement: Strengthening brand visibility at the terminal to increase sales, such as securing larger and better display positions, special displays at points of sale, and changing display methods to make products easy to reach and see.
- POP advertising: Posters, hanging ads, flyers, background music, etc.
- On-site promotional activities: Discounts, price reductions, free samples, live demonstrations, etc.
Methods of Terminal Market Promotion
Merchandising: Display and Arrangement: Merchandising means transforming factory-made "products" into attractive "merchandise" in the market, making them easy for consumers to see, choose, and pick up, and prompting them to buy after capturing their attention. Simply put:
Factory product + added appeal at the sales site = attracting customer purchases
After selling products to retailers, the salesperson's responsibility is to help customers sell "our" products again. Product display is a means to attract consumers and create purchase desire. Through store display and arrangement, factory products become "merchandise" with added value and appeal, thus promoting sales.
Product display and arrangement include two key points: display and arrangement for visibility, and vivid display. Six key points for product display:
(1) Fully utilize existing display space to maximize its effectiveness and appeal, avoiding empty spaces or stock shortages that allow competitors to move in. Competition for shelf space is fierce; a moment of neglect can let competitors in.
(2) Display all product specifications so consumers can choose according to their needs; otherwise, they may buy competitor brands if they can't find the right size. If shelf space is limited, display fast-moving items.
(3) Display series products together to enhance the effect, making them visible at a glance, allowing consumers to see and understand all company products, attracting attention and stimulating impulse purchases. Strong products in the series can also drive weaker ones, nurturing future stars. Concentrated display creates momentum and helps overall sales.
(4) Secure high-traffic display positions. At the point of sale, salespeople must understand customer movement routes and place products where consumers frequently pass, such as end caps or corners near entrances. Generally, the more people see the product, the higher the purchase probability. If placed in a remote corner, products are less visible and sales suffer. Salespeople must strive for the best display space.
(5) Place products at a height within easy reach. To attract purchases, salespeople should position products at eye level or within arm's reach based on consumer height. Too high or too low creates purchase barriers. For children's products, place them on lower shelves or even the floor. Display height should vary by target consumer for easy selection.
(6) Maintain product value. During display, keep products clean and promptly replace damaged, defective, or expired items. Handle slow-moving items to avoid dust accumulation that harms brand image. Facing products forward, arranging neatly, avoiding stockouts, and keeping shelves clean are basic methods to maintain product value. In short, present products in the best condition (neat, clean, fresh) to maintain value.
Display work is a long-term effort requiring persistence, daily care, and a clean display surface to achieve maximum effect and accumulate excellent results over time.
POP Advertising:
Product sales are closely related to POP advertising because it creates a pleasant in-store atmosphere. Recently, consumers have shown increasing interest in music, color, shape, text, and graphics. Effective use of POP advertising can make shopping enjoyable and influence purchasing decisions. If salespeople have POP knowledge, they can provide advice and practical help to retailers during visits, which is excellent sales support.
POP (Point of Purchase) advertising can exploit consumer psychological weaknesses, using attractive copy to emphasize product features and benefits. It is often called the "second salesperson."
POP advertising has important promotional effects for consumers, retailers, and manufacturers:
- For consumers: It informs about new product launches, conveys product content, helps customers recognize and remember brands and features, explains usage, strengthens purchase motivation when consumers are already familiar, and aids in product selection.
- For retailers: It stimulates impulse purchases, increases sales, creates a pleasant shopping atmosphere, and substitutes for staff explanations of features and usage.
- For manufacturers: It informs customers about new products, highlights performance and price, awakens potential purchase desire, attracts attention, generates dealer interest, and emphasizes product advantages, especially during gift promotions.
POP advertising can be categorized as: (1) Storefront POP: Placed at the storefront, such as signboards, standing displays, life-size samples. (2) Ceiling-hung POP: Such as banners and hanging signs. (3) Floor POP: Placed on the floor from storefront to interior, with display and sales functions. (4) Counter POP. (5) Wall POP: Attached to walls, such as posters, notice boards, decorations. (6) Shelf POP: Small POP attached to product shelves, such as display cards.
POP advertising reflects the retailer's attitude. Some stores have many POP ads and appear vibrant; others have none and seem lifeless. Coca-Cola advocates the principle of storefront activation, using displays, arrangements, and POP to make stores attractive.
Conduct On-site Promotional Activities: On-site promotions are a key part of terminal market promotion. Today, walking into a mall, you see various manufacturers conducting lively promotions: demonstrations, consultations, live performances, free tastings, etc.
A candy manufacturer in Wuhan sent staff to counters during holidays to participate in sales alongside clerks, focusing on their own products. They offered samples to customers, attracting more buyers.
Win the Support of Sales Clerks: Companies should treat sales clerks as their "first customers," ensuring they have a good impression of the product, company, and salespeople. This way, clerks will actively recommend the company's products to consumers.
Store shelves are full of products, new products emerge constantly, and technical complexity increases, making it hard for ordinary consumers to judge quality based on experience and knowledge. At the point of purchase, customers naturally view clerks as experts. When customers hesitate among many products, a clerk's comment or simple introduction can decisively influence the purchase.
Salespeople should devote effort to promoting to clerks. They should interact with clerks based on the "four K" standards—kind, credible, communicative, and likable—becoming friends beyond business. Companies should also train clerks on product knowledge, making them familiar with the company and its products, fostering goodwill, and especially highlighting product advantages so they can recommend confidently.
Editor's Note: From nearly 1,900 articles published on this account, we've selected 1,067 quality articles, organized into 14 categories and 57 knowledge points, systematically compiling frontline marketing management content into a library for learning. From market to customers, covering practical tactics and management, all valuable. Follow the account and reply with the number "1" to browse related content.