The promotion can be freely classified as “above the line” and “below the line” promotion. Promotional activities carried out through the media such as television, radio, press, etc. is above the promotion line.
The terms “below the line” promotion or communications refer to non-media forms of communication, including non-media advertising. Promotions below the line are becoming increasingly important within the communications mix of many companies, not only those involved in fmcg products, but also for industrial goods.
Some of the ways companies run BTL (below the line) promotions are through exhibitions, sponsorship activities, public relations and sales promotions such as product giveaways, trade discounts given to distributors and customers, discounted price offers on products, delivery of coupons that can be redeemed later, etc.
SALES PROMOTION BELOW THE LINE
Below the line, sales promotions are short-term incentives, primarily aimed at consumers. With increasing pressure on the marketing team to achieve communication goals more efficiently on a limited budget, there has been a need to find more effective and cost-effective ways to communicate with target markets. This has led to a shift away from media-based advertising.
A definition of sales promotion below the line given by Hugh Davidson:
‘An incentive to purchase immediate or deferred, expressed in cash or in kind, and of short duration or temporary’.
Sales promotion methods below the line
1. Price promotions
Price promotions are also commonly known as “price discounts”. These can be done in two ways:
(1) A discount on the normal selling 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 canceled.
2. Coupons
Coupons are another very versatile way to offer a discount. Consider the following examples of coupon use:
– In a package to encourage repeat purchase
– In coupon books sent in newspapers, allowing customers to redeem the coupon at a retailer.
– A coupon that can be cut as part of an advertisement.
– On the back of the cash receipts
The key goal 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 sufficient stocks to avoid customer disappointment.
Using coupon promotions is usually 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 additional along with the normal good purchased. Works best for
– Subscription-based products (for example, magazines)
– Consumer luxuries (for example, perfumes)
4. Contests and awards
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 to guarantee usage among new 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 burdensome.
6. Loyalty incentives / frequent users
Repeat purchases can be stimulated by incentives for frequent users. Perhaps the best examples of this are the many frequent flyer or user schemes 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 stores. Most purchasing decisions are made by virtue of the point of sale displays at these points of sale.
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, ad clutter, and increased impulse purchases.
Some of the interesting examples are:
Most educational institutes like Career Launcher, Time, and PT are running informative workshops and free tests for students that provide direct interaction of these institutes with the target customer and thus a suitable platform to sell themselves. .
Ringtones and music videos on cell phones are helping the entertainment industry to promote a music video or movie at a very cheap price compared to the promotion in the media.
Various companies sponsor sporting events to promote their brand, but today media companies like the Hindustan Times hold weekly events across the country where companies can put up their booths, display banners and posters, and host some fun activities. These events provide companies with a very low-priced platform to promote their brand and increase visibility among the target consumer. These companies also offer discount coupons to the winners of the games, which in turn increases the sales of the products and ensures that new users also try these products.
Pepsi hosted an inter-school cricket event for 425 schools in 14 cities that did wonders for the company by promoting the brand to the right target customer at almost no cost.
Most pharmaceutical companies promote BTL 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 have more. value compared to a commercial ad. .
Another interesting BTL promo was from NIKE, an athlete dressed in Nike sportswear could be seen jogging on an elevated treadmill all day on National Highway 8, Delhi.
BTL promotions are gaining popularity among all large companies today considering their effectiveness due to “individual customer promotion” at a price, which is much lower than normal promotions in the media.