What Are Marketing and Merchandising at the Point of Sale — and How They Boost Retail Sales

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Marketing and merchandising at the point of sale (POS) are two tightly connected strategies that directly shape customer behavior in-store. When executed effectively, they can increase product visibility, improve the shopping experience, and significantly raise conversion rates.

POS marketing grabs attention using promotional materials — banners, displays, price tags — while merchandising ensures the physical layout supports product discovery and enhances brand perception. Together, these approaches influence buying decisions at the most critical moment: right before purchase.

How POS Marketing Captures Shopper Attention

POS marketing relies on eye-catching, informative, and strategically placed materials that nudge consumers toward action. These can include:

Floor displays and branded racks
Hanging banners and signage
Price tags, shelf talkers, and posters
End-cap and checkout zone installations

Such materials work because shoppers are already in “purchase mode.” When executed correctly, POSM elevates product appeal, triggers impulse buys, and reinforces promotional messages.

The Psychology Behind Impulse Buying

Studies confirm that a significant portion of purchases are made spontaneously — without a shopping list or pre-planned intention. The emotional response to well-positioned, well-lit, or discounted items can drive immediate action.

Tactics like “limited-time offer” tags, bold pricing, and premium shelf placement increase perceived value. Items placed at eye level, near checkout, or in promotional hotspots are far more likely to convert. Strategic POS marketing capitalizes on this effect to drive incremental sales.

Where POS Marketing Works Best

POS marketing is effective in virtually all retail sectors, especially where quick decisions are common — such as:

FMCG and grocery
Electronics and home goods
Cosmetics and personal care
Pharmacies and health retail

For example, in fast-moving categories, product visibility boosted by well-positioned POSM can raise sales by 20–30%. But only if the materials are actually in place — and used correctly.

Maximize POSM Effectiveness with Ailet

Brands invest heavily in point-of-sale materials, but most lack the visibility to know whether materials are installed correctly, updated regularly, or delivering ROI.

The Ailet POSM Execution module solves this with AI-powered shelf photo analysis and automated POSM recognition. Every image captured by your field team becomes an insight — showing you what’s working, what’s missing, and where to improve.

Key capabilities include:

AI-based detection of branded displays, coolers, shelf talkers, and posters
Assortment matching to verify correct product presence within each display
Real-time reporting through both mobile apps and the web platform
KPI integration with Perfect Store scoring to ensure unified performance tracking

Business impact:

Up to 5–7% sales uplift through accurate, consistent POSM execution
Reduced non-compliance and financial losses
Improved field efficiency with instant alerts and visual confirmation
Greater ROI from promotional campaigns through verified shelf impact

Learn more about how Ailet supports Shelf Execution and Shelf Audit to ensure product visibility and performance at scale.

Avoiding Common POS Mistakes

Mistake	Why It’s a Problem	How to Fix It
Too much information	Confuses or overwhelms shoppers	Keep messages simple and product-focused
Poor physical condition	Damages brand trust	Regularly check and update displays
Incorrect placement	Reduces visibility and impact	Use traffic zones, eye-level positions
Outdated promotions	Misleads and frustrates customers	Sync materials with current campaigns
No clear call to action (CTA)	Leaves customer uncertain	Include “Buy now,” “Try today,” or deadlines
Conflict with store layout	Interrupts shopping flow	Align with customer path and navigation

A Complete View with Competitor Insights

True visibility means understanding your positioning and your competitors’. With Ailet Price Monitoring, you can:

Track price compliance across locations
Identify competitor promotions and pricing shifts in real time
Detect positioning gaps directly from shelf photos
Adjust your retail strategy proactively

For example, Perfetti Van Melle used Ailet to gain visibility into both their product pricing and competitive shelf activity — enabling faster reactions and more effective promotional planning.

Creating a Unified In-Store Experience

To maximize ROI, marketing and merchandising should operate in sync — not in silos. Aligning product messages, shelf execution, and promotional materials creates a seamless shopper experience that builds trust and drives loyalty.

By integrating POSM analysis, shelf audit, pricing insights, and field execution into one platform, Ailet helps brands turn marketing strategy into measurable results at every shelf.

Need to improve your in-store execution?

Start by aligning your marketing with how your products actually appear on the shelf. Learn more about how Retail Execution, Price Execution, and Planogram Compliance can elevate your in-store impact.