Question

Topic: Research/Metrics

Posm Spend Stats

Posted by Anonymous on 250 Points
We need to estimate how much companies spend for Point Of Sales materials - that is, all branded materials that are used in retail outlets. The country of interest is Poland but I am looking for some benchmarks

POSm spend as % of sales?
POSm spend related to advertising budget (ATL)?
POSm spend related to market research budget?

POSm spend related to other BTL spend?

Does POSm spend in proportion to other marketing outlays depend on industry?

Industries of interest: FMCG (including alcohol and tobacco), Pharma, Mobile telecoms, Banking, Retailing, Automotive

Any other ideas how to measure it?

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RESPONSES

  • Posted by adammjw on Accepted
    Agnieszka,

    There's a little bit of info here :
    https://www.aba.com/Surveys+and+Statistics/Bank_Marketing.htm

    https://www.coadc.com/FT_20040802.html

    https://www.ftc.gov/opa/2001/03/cigarette.shtm

    For pretty comprehensive info you might think of contacting AC Nielsen.

    Adam
  • Posted on Member
    Wouldn't this depend on what you are purchasing the POS to achieve? A completely new product market would assumably require more spending than a long-term plan. I would approach it from looking at my goal first and finding what I need to achieve that goal and then put a dollar figure the plan in that fashion.
  • Posted on Member
    Angie, I know you know this already, but maybe the mission is so important that you've let yourself slip into the trap.

    The numbers you're seeking are averages that span a wide range of situations. Each data point is a function of the marketer's objective, the creative used, the target audience, the seasonality, the industry, the distribution channel, the country, and probably a dozen other factors. When you lump them all together to get an average, the number itself is totally meaningless and potentially misleading -- if you're tempted to use it at all.

    If I told you that the average temperature in the world were 58.6 degrees (F), would it help you to determine whether to wear shorts or an overcoat when you go outside? Of course not.

    Well, the average spend on POSm as a % of sales and the other ratios are just as meaningless. My suggestion is that you reframe the question and prevent yourself from inflicting harm on the project for which you seek the data.

  • Posted by Chris Blackman on Member
    Agnieszka

    Why not select some target companies of interest, telephone their marketing dept and ask one of their young marketing team members the questions?

    You might be surprised what people will tell you over the telephone.

    Chris
  • Posted by adammjw on Accepted
    Agnieszka,

    It's hard for me to believe that marketing research spending might take so much of the overall marketing budget.
    I had a look at the data I managed to lay my hands on but referring to the 1992.
    Do not know how much it's changed last years but for one of major FMCG companies in Europe it was approximately like that :

    advertising : 44,3%
    trade rebates& promotions: 55,4%
    market research : 0,3%
    as percentage of the total marketing spending

    Adam

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