presentation can be loosely classified as “above the line” and “below the line” promotion. Promotional activities carried out through the media like television, radio, newspaper, etc. is the line promotion.
words “under-the-line” promotion or communications, refers to the form of non-media relations, even media advertising. Below-the-line promotions are becoming increasingly important in the communications mix of many companies, not only those involved in FMCG products, but also for industrial products.
Some of the ways that companies make BTL (below the line) presentations with performances, sponsorship activities, public relations and sales promotions like giving freebies in goods, trade discounts given to dealers and customers, Reduced price offers on products, which provides coupons that can be redeemed later, etc.
below the line sales promotion
below the line sales promotions are short-term incentives, particularly aimed at consumers. With increasing pressure on the marketing team to achieve the objectives of effective communication in a limited budget, there has been a need to find a more effective and cost efficient ways to communicate with target markets. This has led to a shift from regular media based advertising
Definition of under-the-line sales presentations given by Hugh Davidson :.
‘immediate or delayed incentives to buy, given in cash or in kind, and have only short-term or temporary duration’.
Methods below the line sales promotions
1. Price promotions
price promotions are also commonly known as “price discounting.” This can be done in two ways :.
(1) A discount in the normal selling price of a product or
(2) more goods at normal prices
price promotions, however, can also have a negative effect by spoiling the brand reputation or just a temporary sales boost (discounts) that followed a lull when the discount would be called off.
Coupons are other, very versatile, a way to offer a discount. Consider the following example of using coupons
– On a package to encourage repeat purchases
– The coupon books sent out in newspapers allow customers to redeem coupons dealer
– A cut-out coupons as part of an advertisement
– Behind where income
The main objective coupon promotion is to maximize the redemption rate – this is the proportion of customers actually use the coupons.
must be ensured when a company uses coupons that retailers need to keep sufficient stock to avoid customer disappointment.
Use coupon promotions is often best for new products or perhaps to encourage the sale of existing products which are slowing down.
3. Gift with purchase
“gift with purchase” is a very common promotional techniques. In this system, the customer gets something extra with the usual good buy. It works best for
– subscription-based products (eg magazines)
– Consumer luxuries (such as perfumes)
4. Competitions and prizes
This is an important tool to increase brand awareness among target consumers. It can be used to increase sales for a while and ensure usage among first time users.
5. Money refunds
Here, the client gets the money refund after submitting proof of purchase to the manufacturer.
Customers often view this system with some skepticism -. Especially if the method of reimbursement looks unusual or onerous
6. Frequent user / loyalty incentives
Repeat purchases may be stimulated by frequent user incentives. Perhaps the best example of this are many Frequent Flyer or user systems used by airlines, train companies, car rental companies, etc.
7. Point-of-sale displays
Shopping habits are changing for people living in metropolitan cities. Vote large stores like Big Bazaar to local shops Kirana. Most decisions are made by the purchase power of point-of-sale displays in these stores.
SUM intersting EXAMPLES OF BTL promotion
Most of the big brands are follow BTL promotion due to rising prices of media based promotion, advertising clutter and increase impulse purchases
Some of the most interesting examples are :.
Most educational institutions as a career launcher, Time PT are holding informative seminars and free testing for students who give direct interaction of these structures with the target customer and therefore the appropriate venue to sell itself.
ring tones and music videos on cell phones are helping the entertainment industry to promote a music video or movie for dirt-cheap rate compared to media promotion.
Various companies strengthen sporting events to promote their brand, but nowadays media companies like Hindustan Times are holding weekly events through out the country in which companies can set up their stalls, display banners and posters and arrange for some fun activities. These events give businesses the platform at a very low price to promote the brand and increase visibility among target consumers. These companies also give discount coupons to the winners of the games, which in turn increase the sales of products and ensure that first time users try these products as well.
Pepsi organized among school cricket event for 425 schools across 14 cities, which did wonders for the company by promoting the brand among the right target customer for almost no cost.
Most pharmacy companies do BTL promotion by getting shelf space in doctors to showcase their products or by giving away free calcium tablets back through doctors, knowing the patient personal advice from the doctor would keep more value compared to commercial advertisements.
Another interesting BTL promotion was a Nike athlete dressed in Nike sportswear could be seen jogging on a treadmill increase for the whole day on National Highway 8. Delhi.
BTL promotions are gaining popularity among all big companies nowadays consider their effectiveness because “individual customer presentation” at a price that is much less than normal media presentations.