Promotion “Above the Line” and “Below the Line”

Promotion can be loosely classified as “above the line” and “below the line” promotion. Promotional activities carried out through mass media such as television, radio, press, etc. is above the promotion line.

The terms promotion or “below the line” communications refer to forms of non-media communication, including non-media advertising. Below the line promotions are becoming increasingly important within the communications mix of many companies, not only those involved in fmcg products, but also for industrial products.

Some of the ways in which companies carry out BTL (below the line) promotions are exhibitions, sponsorship activities, public relations and sales promotions, such as product giveaways, trade discounts given to distributors and customers, reduced price offers on products, delivery of coupons that can be redeemed later, etc.

SALES PROMOTION BELOW THE LINE

Below the line, sales promotions are short-term incentives, primarily directed at consumers. With increasing pressure on the marketing team to achieve communication goals more efficiently on a limited budget, the need has arisen to find more effective and cost-effective ways to communicate with target markets. This has led to a shift from regular media based advertising.

A definition of sales promotion below the line given by Hugh Davidson:

‘An immediate or deferred incentive to purchase, expressed in cash or in kind, and having only a short term or temporary duration’.

Sales promotion methods below the line.

1. Price promotions

Price promotions are also commonly known as “price discounts.” These can be done in two ways:

(1) A discount to the normal selling price of a product, or

(2) More of the product at the normal price.

However, price promotions can also have a negative effect by spoiling brand reputation or simply a temporary increase in sales (during discounts) followed by a pause when the discount is cancelled.

2. Vouchers

Coupons are another very versatile way to offer a discount. Consider the following examples of coupon usage:

– In a bundle to encourage repeat purchase

– In coupon books shipped in newspapers that allow customers to redeem the coupon at a retailer

– A clipped coupon as part of an ad.

– On the back of cash receipts

The key objective with a coupon promotion is to maximize the redemption rate – this is the proportion of customers who actually use the coupon.

When a business uses coupons, it must be ensured that retailers have enough stock to avoid customer disappointment.

Using coupon promotions is often better for new products or perhaps to encourage sales of existing products that are slowing down.

3.Gift with purchase

The “gift with purchase” is a very common promotional technique. In this scheme, the customer gets something extra along with the normal good purchased. works best for

– Subscription-based products (eg magazines)
– Luxury consumption (for example, perfumes)

4. Contests and prizes

This is an important tool to increase brand awareness among the target consumer. It can be used to increase sales for a temporary period and ensure usage among first-time users.

5. Money refunds

Here, a customer receives a money refund after sending proof of purchase to the manufacturer.
Customers often view these schemes with some suspicion, especially if the method of obtaining a refund seems unusual or onerous.

6. Loyalty/frequent user incentives

Repeat purchases can be stimulated by incentives for frequent users. Perhaps the best examples of this are the many frequent flyer or user programs used by airlines, train companies, car rental companies, etc.

7. Point of sale displays

Shopping habits are changing for people living in metropolitan cities. People prefer big outlets like Big Bazaar to local kirana shops. Most purchase decisions are made by virtue of point of sale displays at these outlets.

SOME INTERESTING EXAMPLES OF BTL PROMOTION

Most of the big brands are following the lead of BTL promotion due to rising prices of media based promotion, advertising clutter and rise of impulse buying.

Some of the interesting examples are:

Most of the educational institutes such as Career Launcher, Time and PT conduct informative workshops and free trials for the students which provide direct interaction of these institutes with the target customer and thus a suitable platform to sell themselves.

Ringtones and music videos on cell phones are helping the entertainment industry to promote a music video or movie at a very low price compared to media promotion.

Various companies sponsor sporting events to promote their brand, but nowadays media companies like Hindustan Times organize weekly events across the country where companies can set up their stalls, display banners and posters and organize some fun activities. These events provide companies with a platform at a very low price to promote their brand and increase visibility among the target consumer. These companies also give discount coupons to the winners of the games, which in turn boosts the sales of the products and ensures that new users also try these products.

Pepsi organized an inter-school cricket event for 425 schools in 14 cities that did wonders for the company by promoting the brand to the right target customer at almost no cost.

Most pharmaceutical companies do BTL promotion by getting shelf space through doctors to display their products or by giving away calcium tablets again through doctors, knowing that personal advice from a doctor would be of more value to a patient in comparison to a commercial. .

Another interesting promotion of BTL was that of NIKE, an athlete dressed in Nike sportswear could be seen running on an elevated treadmill all day long on National Highway 8, Delhi.

BTL promotions are gaining popularity among all big companies nowadays considering its effectiveness due to “individual customer promotion” at a much lower price than normal media promotions.

Related Posts

Leave a Reply

Your email address will not be published. Required fields are marked *