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