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What is the Difference Between POP and POS?

August 15, 2018

What is the Difference Between POP and POS?

What is the Difference Between POP and POS?. The meaning of Point of Purchase (POP) varies according to the context in which it’s used. In a broader sense, POP refers to the physical location where a sale is made, like a retail store. Within a store, however, the term becomes a bit more complicated, since it is often divided into POP and POS (Point of Sale).

Here’s everything you need to know about each.

POP vs. POS: A High Level Overview  

Traditionally, POP is the area in a store where the customer pays for their purchase and the seller provides a receipt for the transaction. These days, however, many retailers refer to this area as POS and use the term POP to reference point of purchase displays that showcase a product.

POP Displays

POP displays are dedicated sections in a store where certain products are promoted and/or sale items are showcased. These retail POP displays highlight products by removing them from shelves and placing them in a more prominent place where the best features are also highlighted.

POP displays are placed at different locations in a retail store, with the entrance and checkout area being two of the most popular. Many large retailers meticulously plan product placement for their stores and see an increase in sales , simply by using large displays in prominent locations. In-store promotions like this typically have an impact on consumer behavior. In fact, in a 2017 survey , 42.4% of respondents said that promotions influenced their decision about what groceries to buy.   

POS Systems

POS systems are used to accept payments from customers.  While some retailers may still prefer cash registers, many small and large retailers use sophisticated point of sale systems, which consist of hardware and software components that are often designed to fit the requirements of the business sector or retailer.  Typical POS hardware components include a cash drawer, credit card reader, barcode reader, printer, and screens (standard or touch-screen).

POS systems are either on-premise or a cloud-based (SaaS) solution. With on-premise systems, retailers purchase licenses to use the software on their computers. With a cloud-based solution, the transaction occurs via the Internet. It’s important to note, however, that most SaaS systems can track transactions when offline as well. Compared to on-premise models, SaaS systems offer the benefit of low upfront costs.

Businesses use POS systems in different ways. For example, many retailers have installed self-checkout systems, where the customers weigh, scan, and pay using a touch-screen interface.

Besides logging purchases, POS systems perform many other functions as well. They help retailers:

  • Analyze sales data
  • Market to existing customers
  • Manage inventory and employees

POP displays and POS systems work in tandem.  While one is designed to help sell more products, the other is required to actually process the financial transaction. If you’re looking for ways to increase your business’s revenue and are interested in using POP displays to do so, contact us today for a free quote.         

January 17, 2025
Point-of-purchase displays and merchandising solutions are not just functional tools; they are an extension of your brand’s identity.
December 26, 2024
Successful POS Design Pushes Traditional Marketing Strategies To Another Level. Point of Sale marketing in 2018 took traditional marketing methods – unique design, eye-catching presentation, effective branding with clear messaging, a clear tieback to existing consumer advertising, targeting emotional triggers, and an awareness of the shopper's journey – and pushed them to the limits of creativity. Studies in point-of-sale effectiveness showed that in 2016, properly leveraged marketing initiatives resulted in an average of 9.2% sales lift and that 40% of shoppers recalled the merchandising displays. As marketing has become more complex, these numbers have improved, and it’s been found that the most successful campaigns didn’t prioritize one method over any other but rather ensured each factor was leveraged to the fullest to maximize the impact of the overall strategy. Marketing is More than Matching Form to Function Across every industry and market segment, setting your brand apart from the competition is a fierce and driving force that informs every business decision. The process of marketing is no exception – companies everywhere have come to understand that customers can get whatever service you offer from a myriad of sources, so a successful marketing plan can usher consumers beyond any concerns of quality and focus their behavior on the one thing you can control: the journey they take in buying your product. Don’t Think Outside the Box, Leave the Box at Home Successful creative marketing approaches break down the boundaries around how consumers expect to consume and interact with your brand. Bold, compelling designs, larger-than-life displays, interactive or dynamic displays, and point-of-sale media that not only showcase the product but draw the user into the unique experience your brand has to offer. And don’t stick to only static floor installations. Explore shelf edging, ceiling-hung displays, or signage and displays for register counters. Approach your marketing without limitations on space and location, and open the door to all of the possible ways to engage consumers. Show and Tell with Clear Branding and Messaging While creativity is necessary, clarity is just as important. The last thing you want consumers to do is look at your POS branding and either not be able to tie your product to it, or worse, not understand the message you’re trying to get across. Your brand should be front and center, and the supporting messaging or call to action should cleverly play into your brand without straying too far afield. An energy drink display modeled after a refueling jet or a gas station is not only clever and engaging, but on-brand and appropriate. A display focused on your brand’s new chocolate bars combining imagery of clowns having a party on a yacht inviting consumers to dive in? Memorable, sure, but in none of the right ways. POS Displays are Breadcrumbs on the Trail Back to Your Brand A cohesive marketing campaign requires your point of sale materials to tie back to your overall brand image and message. As with the example above, great POS displays tell a story and paint a picture consistent with your brand presence across all mediums. Think about it from the perspective of the Apple aesthetic, where you can instantly recognize the sleek minimalistic design of an Apple product. Consumers should be able to see your branding anywhere – the store, online, on a billboard – and instantly recognize consistency in your messaging and presentation. Disrupt Routine with Emotion Let’s go back to the crucial element in marketing that successful campaigns take into account: the market is oversaturated, no matter the market niche to which you cater. All of the guidance discussed to this point is meaningless if you’re marketing department cannot embrace this one guiding principle: you’re not selling a product or service. You’re selling what it feels like to engage with your product or service. You’re honing in on the emotions and the place your product should hold in a consumer’s life. Your material must embody that aesthetic, that a lifestyle where your brand plays a role is the lifestyle they would prefer to anything else. Don’t Be Passive, Take Control of the Consumer Journey Building effective eye-catching, emotion-inducing POS displays for your product isn’t enough in the modern marketplace. Buying and shopping habits have shifted and more decision-making occurs before customers step foot into a brick-and-mortar retail space, requiring a marketing approach that places you squarely into the consumer journey. Engage digital throughout your marketing efforts – from targeted online advertisements that draw consumers to your brand to engaging and digital-savvy store installations that incorporate video and digital POS displays when consumers follow your advertising into the store and complete their journey to where your product is displayed. A Firm with a Successful Track Record in POS Design You want your product to stand out and make an emotional impact on consumers. You’ve created a solid branding and marketing plan, and need to find a solutions provider with a track record of success and the ability to bring your visions to life in ways that will draw consumers to your brand and maximize the return on your marketing initiative. Or maybe you’re a small business just starting and you could use some help in designing your marketing strategy to support your product. Whatever your needs might be, contact the award-winning team at Butler Merchandising Systems, LLC. today to collaborate on your next project.
By Butler MSI Team October 21, 2024
With online shopping growing rapidly, physical stores are under increasing pressure to stand out to the average consumer. Out of all the possible ways to differentiate yourself from your e-commerce competitors, visual merchandising is crucial in attracting foot traffic and driving sales.
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