BTL Advertising and Promotion

Promotion can be loosely classified as "above the line" and "below the line" promotion. The promotional activities carried out through mass media like television, radio, newspaper etc. is above the line promotion.

The terms 'below-the-line' promotion or communications refers to forms of non-media
communication, even non-media advertising. Below-the-line promotions 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 by which companies do BTL (below the line) promotions are by
exhibitions, sponsorship activities, public relations and sales promotions like giving freebies
with goods, trade discounts given to dealers and customers, reduced price offers on
products, giving coupons which can be redeemed later etc.

BELOW THE LINE SALES PROMOTION

Below the line sales promotions are short-term incentives, largely aimed at consumers. With
the increasing pressure on the marketing team to achieve communication objectives more
efficiently in a limited budget, there has been a need to find out more effective and cost
efficient ways to communicate with the target markets. This has led to a shift from the
regular media based advertising.

A definition of below-the-line sales promotion given by Hugh Davidson:

'An immediate or delayed incentive to purchase, expressed in cash or in kind, and having

only a short term or temporary duration'.

Methods of below the line sales promotion

1. Price promotions

Price promotions are also commonly known as" price discounting". These can be done in two ways:
(1) A discount to the normal selling price of a product, or
(2) More of the product at the normal price.

Price promotions however can also have a negative effect by spoiling the brand reputation or just a temporary sales boost (during the discounts) followed by a lull when the discount  would be called off.

2. Coupons

Coupons are another, very versatile, way of offering a discount. Consider the following

examples of the use of coupons:

- On a pack to encourage repeat purchase
- In coupon books sent out in newspapers allowing customers to redeem the coupon at a
retailer
- A cut-out coupon as part of an advert
- On the back of till receipts

The key objective with a coupon promotion is to maximize the redemption rate – this is the

proportion of customers actually using the coupon.

It must be ensured when a company uses coupons that the retailers must hold sufficient stock to avoid customer disappointment.

Use of coupon promotions is often 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 extra along with the normal good purchased. It works best for

- Subscription-based products (e.g. magazines)

- Consumer luxuries (e.g. perfumes)

4. Competitions and prizes

This is an important tool to increase brand awareness amongst the target consumer. It can

be used to boost up sales for temporary period and ensure usage amongst first time users.

5. Money refunds

Here, a customer receives a money refund after submitting a proof of purchase to the
manufacturer.
Customers often view these schemes with some suspicion – particularly if the method of
obtaining a refund looks unusual or onerous.

6. Frequent user / loyalty incentives

Repeat purchases may be stimulated by frequent user incentives. Perhaps the best examples of this are the many frequent flyer or user schemes used by airlines, train companies, car hire companies etc.

7. Point-of-sale displays

Shopping habits are changing for the people living in metropolitan cities. People prefer big
retail outlets like Big Bazaar to localk ir ana stores. Most of the decisions of buying are taken
by the virtue of point-of-sale displays in these retail outlets.

SOME INTERSTING EXAMPLES OF BTL PROMOTION

Most of the big brands are following the suit of BTL promotion because of rising prices of

media based promotion, advertising clutter and increased impulse purchasing.
Some of the interesting examples are:
Most of the educational institutes like career launcher, Time and PT are holding informative

workshops and free tests for students which give a direct interaction of these institutes with

the target customer and hence a suitable platform to sell themselves.

Ring tones and music videos on cell phones are helping the entertainment industry to

Promote for a music video or a movie for dirt-cheap rate as compared to media promotion.

Various companies sponsor sport events to promote their brand, but nowadays media
companies like Hindustan Times are holding weekly events through out the country in which
companies can put up their stalls, display banners and posters and arrange for some fun
activities. These events give the companies a platform at very low price to promote their
brand and increase visibility among target consumer. These companies also give discount
coupons to winners in the games, which in turn boost the sales of the products and ensure
that first time users try these products as well.

Pepsi organized an inter school cricket event for 425 schools across 14 cities which did
wonders for the company by promoting the brand amongst the right target customer for
almost no cost.

Most of the pharmacy companies do BTL promotion 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 advise from a doctor would hold more value as
compared to a commercial advertisement.

Another interesting BTL promotion was by NIKE, an athlete dressed up in Nike sportswear could be seen jogging on an elevated treadmill for the whole day on National Highway 8, Delhi.

BTL promotions are gaining popularity among all big companies nowadays considering their
effectiveness because of the "individual customer promotion" at a price, which is much
lesser than the normal media promotions

Most of the educational institutes like Career Launcher, Time and PT are holding informative

workshops and free tests for students which give a direct interaction of these institutes with the

target customer, and hence, a suitable platform to sell themselves.

Ring-tones and music-videos on cell phones are helping the entertainment industry to promote a

music video or a movie for dirt-cheap rate as compared to media promotion.

Various companies sponsor sport events to promote their brands, but nowadays media
companies like Hindustan Times are holding weekly events throughout the country in which
companies can put up their stalls, display banners and posters, and arrange for some fun
activities.

These events give the companies a platform at very low price to promote their brand and
increase visibility among target consumers. These companies also give discount coupons
to winners in the games, which in turn boost the sales of the products and ensure that first-time

users try these products as well.

Pepsi organized an inter-school cricket event for 425 schools across 14 cities which did wonders

for the company by promoting the brand amongst the right target customer for almost no cost.

Most of the pharmacy companies do BTL promotion 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 advise from a doctor would hold more value as compared to a
commercial advertisement.

Another interesting BTL promotion was by NIKE, an athlete dressed up in Nike sportswear could

be seen jogging on an elevated treadmill for the whole day on National Highway 8, Delhi.

BTL promotions are gaining popularity among all big companies nowadays considering their effectiveness because of the "individual customer promotion" at a price, which is much lesser than the normal media promotions.