| Promotion can be loosely classified as "above | | | | tool to increase brand awareness amongst the |
| the line" and "below the line" promotion. The | | | | target consumer. It can be used to boost up |
| promotional activities carried out through | | | | sales for temporary period and ensure usage |
| mass media like television, radio, newspaper | | | | amongst first time users.5. Money |
| etc. is above the line promotion.The terms | | | | refundsHere, a customer receives a money |
| 'below-the-line' promotion or communications, | | | | refund after submitting a proof of purchase |
| refers to forms of non-media communication, | | | | to the manufacturer. |
| even non-media advertising. Below-the-line | | | | |
| promotions are becoming increasingly | | | | Customers often view these schemes with some |
| important within the communications mix of | | | | suspicion - particularly if the method of |
| many companies, not only those involved in | | | | obtaining a refund looks unusual or |
| fmcg products, but also for industrial | | | | onerous.6. Frequent user / loyalty |
| goods.Some of the ways by which companies do | | | | incentivesRepeat purchases may be stimulated |
| BTL (below the line) promotions are by | | | | by frequent user incentives. Perhaps the best |
| exhibitions, sponsorship activities, public | | | | examples of this are the many frequent flyer |
| relations and sales promotions like giving | | | | or user schemes used by airlines, train |
| freebies with goods, trade discounts given to | | | | companies, car hire companies etc.7. |
| dealers and customers, reduced price offers | | | | Point-of-sale displaysShopping habits are |
| on products, giving coupons which can be | | | | changing for the people living in |
| redeemed later etc.BELOW THE LINE SALES | | | | metropolitan cities. People prefer big retail |
| PROMOTIONBelow the line sales promotions are | | | | outlets like Big Bazaar to local kirana |
| short-term incentives, largely aimed at | | | | stores. Most of the decisions of buying are |
| consumers. With the increasing pressure on | | | | taken by the virtue of point-of-sale displays |
| the marketing team to achieve communication | | | | in these retail outlets.SOME INTERSTING |
| objectives more efficiently in a limited | | | | EXAMPLES OF BTL PROMOTIONMost of the big |
| budget, there has been a need to find out | | | | brands are following the suit of BTL |
| more effective and cost efficient ways to | | | | promotion because of rising prices of media |
| communicate with the target markets. This has | | | | based promotion, advertising clutter and |
| led to a shift from the regular media based | | | | increased impulse purchasing.Some of the |
| advertising.A definition of below-the-line | | | | interesting examples are:Most of the |
| sales promotion given by Hugh Davidson:'An | | | | educational institutes like career launcher, |
| immediate or delayed incentive to purchase, | | | | Time and PT are holding informative workshops |
| expressed in cash or in kind, and having only | | | | and free tests for students which give a |
| a short term or temporary duration'.Methods | | | | direct interaction of these institutes with |
| of below the line sales promotion1. Price | | | | the target customer and hence a suitable |
| promotionsPrice promotions are also commonly | | | | platform to sell themselves.Ring tones and |
| known as" price discounting". These can be | | | | music videos on cell phones are helping the |
| done in two ways:(1) A discount to the normal | | | | entertainment industry to promote for a music |
| selling price of a product, or(2) More of the | | | | video or a movie for dirt-cheap rate as |
| product at the normal price.Price promotions | | | | compared to media promotion.Various companies |
| however can also have a negative effect by | | | | sponsor sport events to promote their brand, |
| spoiling the brand reputation or just a | | | | but nowadays media companies like Hindustan |
| temporary sales boost (during the discounts) | | | | Times are holding weekly events through out |
| followed by a lull when the discount would be | | | | the country in which companies can put up |
| called off.2. CouponsCoupons are another, | | | | their stalls, display banners and posters and |
| very versatile, way of offering a discount. | | | | arrange for some fun activities. These events |
| Consider the following examples of the use of | | | | give the companies a platform at very low |
| coupons:- On a pack to encourage repeat | | | | price to promote their brand and increase |
| purchase | | | | visibility among target consumer. These |
| | | | companies also give discount coupons to |
| - In coupon books sent out in newspapers | | | | winners in the games, which in turn boost the |
| allowing customers to redeem the coupon at a | | | | sales of the products and ensure that first |
| retailer | | | | time users try these products as well.Pepsi |
| | | | organized an inter school cricket event for |
| - A cut-out coupon as part of an advert | | | | 425 schools across 14 cities which did |
| | | | wonders for the company by promoting the |
| - On the back of till receiptsThe key | | | | brand amongst the right target customer for |
| objective with a coupon promotion is to | | | | almost no cost.Most of the pharmacy companies |
| maximize the redemption rate - this is the | | | | do BTL promotion by getting shelf space |
| proportion of customers actually using the | | | | through doctors to display their products or |
| coupon.It must be ensured when a company uses | | | | by giving away free calcium tablets again |
| coupons that the retailers must hold | | | | through doctors, knowing that for a patient a |
| sufficient stock to avoid customer | | | | personal advise from a doctor would hold more |
| disappointment.Use of coupon promotions is | | | | value as compared to a commercial |
| often best for new products or perhaps to | | | | advertisement.Another interesting BTL |
| encourage sales of existing products that are | | | | promotion was by NIKE, an athlete dressed up |
| slowing down.3. Gift with purchaseThe "gift | | | | in Nike sportswear could be seen jogging on |
| with purchase" is a very common promotional | | | | an elevated treadmill for the whole day on |
| technique. In this scheme, the customer gets | | | | National Highway 8, Delhi.BTL promotions are |
| something extra along with the normal good | | | | gaining popularity among all big companies |
| purchased. It works best for- | | | | nowadays considering their effectiveness |
| Subscription-based products (e.g. magazines) | | | | because of the "individual customer |
| | | | promotion" at a price, which is much lesser |
| - Consumer luxuries (e.g. perfumes)4. | | | | than the normal media promotions. |
| Competitions and prizesThis is an important | | | | |