Archive for August, 2011
Promotion “Above the Line” and “Below the Line”
Promotion “Above the Line” and “Below the Line”
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 local kirana 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.
About the Author
Mr. Amarendra B. Dhiraj is a frequent speaker at internationally renowned global events, CEO/CTO/CIO Roundtables, Technology Conferences and Symposiums. He hosted and organized the Executive Technology Leadership Forum. He specializes in strategy, innovation, and leadership for change. His strategic and practical insights have guided leaders of large and small organizations worldwide.
Amarendra Bhushan has been named to lists of the European Management Guru and is named as “Europe’s youngest management Guru” and one of the “Top most influential business thinkers in the world”. http://www.theerce.com, http://www.indogreek.org The Economic Times, CNBC, moneycontrol
Source: ArticlesBase.com
Custom & Trendy Promotional Tote Bag is used as Promotional Products
Custom & Trendy Promotional Tote Bag is used as Promotional Products
In the today’s competitive world everything should be very easily available There are wide range of products are available in the market and consumer is having lots’ of options are available which create mash for both consumer and companies. Consumer is always on confusing stage that which product is better and affordable and companies are putting all its effort to give unique and better thing to consumers. Promotional product is the best idea which creates a brand image of any product and its associated company. Advertising and marketing of any product has always been there in the business world and the only issue was the cost-effectiveness, as well as the cost of recurring the product recollect and visibility which provides a product positioning into the market. One of the ways to do advertising is the traditional way which the means of advertising was to test their effectiveness over time, and it was found that is suitable only for those who can cope with such costs over a certain period of time.
Promoting the services of a company through advertisements is very old concept. If you or your company is preparing to launch a new product in to the market, you can consider how to promote a product custom- These days, one of the most recent promotional products is promotional pencil, promotional tote bags, and other promotional items. Consider selling or gifting promotional tote bags with your company’s logo as well as the name and website address.
Promotional tote bags are the perfect way to attract new customers. Promotional totes come in several varieties of material, Promotional tote bags are one of the best items to offer your customers as a perk for shopping with you and most people who buy tote bags for promotional purposes would tend to get the cheapest material. Nowadays, the companies use very innovative methods to promote their services. There are many corporate gifts available in the market. Some of them include key chains, pen sets, calculators, note pads, fridge magnets, sticky notes, apparels, shopping bags and others.
]]>
There are a wide variety of promotional bags, personalized bags, and custom totes for purchase. You can find hundred of unique ideas for imprinted bags. While Considering selling or gifting promotional tote bags with your company’s logo as well as the name and website address. People are generally attracted to stylish items and go out of their way to purchase them. A well-designed logo placed on a color coordinating tote will attract a lot of attention.
The big advantage to Promotional being small is that you can put them in packages with other items. . Selling tote bags and sending all proceeds towards a specific cause is extremely popular in today’s world. Any time you have an opportunity to hand out bags or packages with multiple promotional items in them you should. Promotional Tote Bags, Custom Canvas Tote Bags, Embroidered Tote Bags, Promotional Drink Bottles, Custom Imprinted Tote Bags ready for your trade show or event brought to you by all these promotional tote bag are helps to promote your company in a convenient and fashionable way, order promotional bags today!
Branding your own business takes time and dedication as well as the know-how of a great marketing team. You can put your company logo or your website address on non-woven tote bags. If you want your company logo out there for people to see then this is one of the best ways. These promotional tote bags can have your company name anywhere you want to put them. The imprinted logos are easy to read and highly visible.
Custom tote bags are the best way to promote your business because they provide total visibility, anywhere and everywhere. You can give these out to customers or sell them and make a profit. You can choose any type of custom printed tote bag for your business. You can choose the colors and the styles of the bags. Marketing savvy will do all the promotion, if investment returns are good When you have custom printed tote bags created for your business you are creating an area for advertising that is unlimited. When you have custom printed tote bags created for your business you are creating an area for advertising that is unlimited. Everywhere people travel they will see your company name and logo. You can choose any type of custom printed tote bag for your business. You can choose the colors and the styles of the bags
Promotional tote bags are the perfect way to attract new customers. The big advantage to Promotional being small is that you can put them in packages with other items. Promotional Tote Bags, Custom Canvas Tote Bags, Embroidered Tote Bags, Promotional Drink Bottles, Custom Imprinted Tote Bags ready for your trade show or event brought to you by all these promotional tote bag are helps to promote your company in a convenient and fashionable way.
Source: ArticlesBase.com