Point of Sale marketing is the economic process by which goods and services are exchanged between the producer and the consumer and their values determined in terms of money prices. Much of marketing is concerned with the problem of profitably disposing of what is produced.
Marketing originates with the recognition of a need on the part of a consumer. Marketing terminates with the satisfaction of that need by the delivery of a usable product at the right time, at the right place, and at an acceptable price. There are five distinct concepts related to Point of Sale marketing. First is the exchange concept, which, as the very name indicates, holds that the exchange of a product between the seller and the buyer is the central idea of marketing.
While exchange does form a significant part of marketing, to view marketing as a mere exchange process would amount to a gross undermining of the essence of marketing. Exchange, at best, covers the distribution aspect and the price mechanism involved in marketing.
Second is the production concept. In organizations that practice this concept, production and technology dominate the thinking process of the key people. The concept holds that consumers would, as a rule, support those products that are produced in great volume at a low unit cost. Thirdly, there is product concept, which seeks to achieve the same result via product excellence – improved products, new products and ideally designed and engineered products. It also places the emphasis on quality assurance.
At this stage, it would be appropriate to explain the phenomenon of ‘marketing myopia’. Excessive attention to product or selling aspects at the cost of the customer and his actual needs creates this myopia. As more and more markets became buyers markets and the entrepreneurial problem became one of solving the shortage of customers rather than that of goods, the sales concept became the dominant idea guiding Point of Sale marketing.