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