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Promotion "Over the line" Y "below the line"

The 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 companies conduct 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.

BELOW THE LINE SALES PROMOTION

Below the line, sales promotions are short-term incentives, primarily aimed at consumers. With increasing pressure on the marketing team to achieve communication objectives more efficiently with 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 change 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.’

Below the line sales promotion methods.

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 sale 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 the reputation of the brand 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 use:

– In a bundle to encourage repeat purchase

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

– A coupon clipped as part of an advertisement.

– 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 must have enough stock to avoid customer disappointment.

Using coupon promotions is often best 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)

– Consumer luxury items (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 back after submitting a 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 frequent user incentives. Perhaps the best examples of this are the many user or frequent flyer 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 purchasing decisions are made by virtue of the POS 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 media-based promotion prices, advertising clutter, and the rise of impulse purchases.

Some of the interesting examples are:

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

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.

Several 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 provide discount coupons to the winners of the games, which in turn drives 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 which did wonders for the company by promoting the brand to the right target customer at almost no cost.

Most pharmaceutical companies run BTL promotions by getting shelf space through doctors to display their products or by giving away free calcium tablets again through doctors, knowing that for a patient a personal advice from a doctor would be more valuable in comparison with a commercial advertisement. .

Another interesting BTL promotion was for 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.