Below the Line Advertising

What is meant by “below the line” advertising What are some of the best advantages and disadvantages of utilising the ‘Direct Mail & Trade Show’ for advertising purposes? How Point-of-Purchase advertising works. Some examples it effectively utilised recently By ALI ZULFIKAR ZAHEDI, BBA,

PGDPM, MBA, DIP in AD (UK)

NEED AND FEED

Foundation

www.needandfeed.org

1

ALI ZULFIKAR ZAHEDI, BBA, PGDPM, MBA, DIP in AD (UK)

Explain what is meant by “below the line” advertising. BELOW THE LINE (BTL) is an advertising technique. It uses less conventional methods than the usual specific channels of advertising to promote products, services, etc. than ATL (Above the line) strategy. In organisational business and marketing communications, below the line (BTL) is an advertising technique. It uses less conventional methods than the usual specific channels of advertising to promote products, services, etc. than above the line (ATL) strategies. These may include activities such as direct mail, public relations and sales promotions for which a fee is agreed upon and charged up front. BTL advertising typically focuses on direct means of communication, most commonly direct mail and e-mail, often using highly targeted lists of names to maximize response rates." all advertising by means other than the five major media - the press, television, radio, cinema and outdoors; below-the-line advertising employs a variety of methods - direct mail, sponsorship, merchandising, trade shows, exhibitions, sales literature and catalogues, and so on. There are plenty of ways in which a small advertiser can promote his product or service through below the line like: direct mail letters , sports promotions , competitions , exhibitions , demonstrations , product tags , air banners , hot air balloons , beer mats , Tshirts , key rings , book matches , , calendars , bumper stickers , and so on, can all convey a message. All company need to exploit most of them is a logo, and perhaps a slogan. Only the first few need any elaboration. To understand clear about the BELOW THE LINE (BTL) here I feel too discuses about the deference between BELOW THE LINE (BTL) and ABOVE THE LINE (ATL). The term "Below the Line" and raise rapidly going out of fashion in advertising circles as agencies and clients switch to an 'Integrated Communication Approach.' BTL is common techniques used for touch and feel products. Those consumer items where the customer will rely on immediate information then previously researched items. BTL techniques ensure recall of the brand while at the same time highlighting the features of the product. Above the line (ATL) is an advertising technique using mass media to promote brands. Major above-the-line techniques include TV and radio

2

ALI ZULFIKAR ZAHEDI, BBA, PGDPM, MBA, DIP in AD (UK)

advertising, print advertising and internet banner ads. This type of communication is conventional in nature and is considered impersonal to customers. It differs from BTL (Below the line), that believes in unconventional brand-building strategies, such as direct mail. The ATL strategy makes use of current traditional media: television, newspapers, magazines, radio, outdoor, and internet. Below the Line uses less conventional methods than the usual specific channels of advertising to promote products, services, etc. than Above the Line strategies. These may include activities such as direct mail, public relations and sales promotions for which a fee is agreed upon and charged up front. Below the line advertising typically focuses on direct means of communication, most commonly direct mail and e-mail, often using highly targeted lists of names to maximize response rates. Another interesting and very effective BTL is Shop Intercept. Trained sales personnel, often girls, are deployed at Retail Stores, near the shelves of targeted products category. These girls convince customers visiting these shelves about the better aspects of their brand compared with others. This is ideal for new launches as it generates trials, which if successful result in repeat sales. Above the line is much more effective when the target group is very large and difficult to define. But, if the target group is limited and specific, it is always advisable to use below the line promotions for efficiency and cost-effectiveness.

Say, for example, if a manufacturer of pen is going to promote its product, it may take the ATL route, but if a company manufactures computer UPS, it will certainly take the BTL route, as the target group is very limited and specific. More recently, agencies and clients have switched to an 'Integrated Communication Approach.' BTL is a common technique used for "touch and feel" products (consumer items where the customer will rely on immediate information rather than previously researched items). BTL techniques ensure recall of the brand while at the same time highlighting the features of the product. 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.

3

ALI ZULFIKAR ZAHEDI, BBA, PGDPM, MBA, DIP in AD (UK)

What are some of the best advantages and disadvantages of utilising the following for advertising purposes? •

Direct Mail

•

Trade Shows

In the world everything has some advantages and disadvantages while we use. For advertising purposes we use Direct Mail and Trade Shows. My assignment focus is to be finding out that clearly as below: What are advantages and disadvantages of utilising the Direct mail? Direct Mail is a highly effective tool if company have a fairly small and specific target market. Once company know who are the potential clients are, advertiser can approach them direct, personally, and so avoid the wastage of public advertising. Because this is a below-the-line medium, company are not paying for space or commission, but simply for the material produced. With the advent of the computer, direct mail has become much simpler to operate. If company have a database, this is one area where can go right ahead and once have found if a good copywriter and artist and a reliable printer, company can do own direct mailing without using an agency. Direct Mail is wasted unless company have a precise mailing list. Company can obtain such lists from the direct mail houses that have hundreds of categories of people on disc. Many advertisers believe that a personalised letter, which will obviously cost far less than a leaflet or brochure, is the most effective way of all to reach on sales prospect. Company can pay for a newspaper ad, print a newsletter, broadcast commercials, erect a hoarding, or even send a plane up to write a sign in the sky. But not in any of those cases can be sure that individual target will see or read message. But send a letter by courtesy of the Royal Mail and he will! After reading the first sentence, he may decide not to go further, but he will open it and scan it. And thus company have generated, for however brief a moment, that precious commodity, company captive audience.

4

ALI ZULFIKAR ZAHEDI, BBA, PGDPM, MBA, DIP in AD (UK)

The Versatility of Direct Mail can be used for almost any type of advertising. company can send out personally signed letters, reply-paid cards, samples, free gifts, coupons, brochures and leaflets, special offers, catalogues with enclosed order forms, booking and reservation slips - the ideas are entirely up to company and all may need is the assistance of friendly copywriter, artist and printer! In the public relations or image-building sphere, direct mail can be used to post calendars, diaries, quartz clocks, pens and so on with company’s name to customers or prospects. In the industrial sphere, it can supply technical information on new developments to prepare the ground for the visit of a salesman; or to discover interested prospects. In the educational sphere, it can give customers information about a new service through brochures, leaflets or in-house magazines. In the simple direct-sales sphere, it can make special offers and personally-couched appeals to the most likely prospects. In the area of marketing, it can pinpoint new or ‘lost’ customers or appeal to any dealer or stockist for any reason.

The Advantages of Direct Mail : 1. Company can evaluate its effectiveness. If company compare the number of responses to the number of pieces mailed, company can calculate the response rate. If you include coded coupons or response cards you can keep track of exactly who responded and from where 2. It works quickly. Company will know right away if it has been successful or not. If company have a certain product to get rid of in a hurry, or are filling a gap in your production year, it is the best medium. 3. Once company have the right list, it gives very high accuracy in choosing the target market. Company can sort out a particular trade or profession, or select people by income, race, age, or whatever. 4. Company can time it precisely to reach the potential clients on almost the very day want to reach them. 5. Company can mail anything from a brief A5 letter to a bulky registered packet containing samples or free gifts. 6. Allows targeting the message to a very specific audience. Pick one street of houses or all residents of a city. Target college freshmen or just college freshmen at one college who own a car. Mail to all of your customers or just to those who spend an average of $25 per visit to store. The possibilities are as endless as mailing lists accuracy allows. 7. If company are able to focus on only high-probability purchasers, cost effectiveness can be good. 8. Direct mail messages can be personalized to add reader appeal.

5

ALI ZULFIKAR ZAHEDI, BBA, PGDPM, MBA, DIP in AD (UK)

9. Mail readers are actively involved. People read their mail when they choose. So, for at least second or two, message will have their undivided attention while they open and scan it.

The Disadvantages of Direct Mail: 1. The public tend to see any unsolicited mail as ‘junk mail’ and may consign it to the wastepaper basket unread. This can be countered by presenting an interesting image. 2. Its usefulness is entirely dependent on the strength of the mailing list. So company’s main job is to find them self a list that covers the target market! 3. Many people don't like unsolicited offers and many are sceptical of their validity. 4. Increasingly, busy people don't even open what they view as "junk mail." 5. Using this method of advertising requires thorough maintenance of mail lists. Many advertisers do not like to bother with updating mail lists. With outdated lists, however, mail goes to undeliverable addresses and wastes your money. Another possible glitch - mail may contain out of date messages, spell names wrong, or address a person who has died and these kinds of errors annoy, or worse yet offend, the recipient. 6. Some groups are concerned about the environmental impact of resources used for advertising mailings. 7. Cost - The cost per thousand will be higher than almost any other form of mass promotion (although the wastage rate may be much lower). 8. Waste - Large quantities of paper are thrown away (see below). 9. Alienation - Some recipients resent direct marketing being "forced" upon them, and boycott companies that do so. Moreover, they may obtain Prohibitory Orders against companies whose direct marketing mail they find offensive.

What are advantages and disadvantages of utilising the Trade Show? A trade show represents an excellent opportunity to present company and its products to an audience looking for new ideas and innovation in a specific field. And even if company are not attending a traditional “trade show” but something more like a product exhibit or vendor showcase, it is important that the presentation is attractive and professional so company can attract prospective customers.

6

ALI ZULFIKAR ZAHEDI, BBA, PGDPM, MBA, DIP in AD (UK)

Trade shows are sponsored by trade associations for specific industries, and there are thousands of associations running shows every year. Generally trade shows aren't open to the public and can only be attended by company representatives and members of the press. Exhibitions or trade show may be permanent (e.g. a building centre), general (like the Chelsea Flower Show) or specific to one industry (e.g. computer exhibition or any other type of Trade Fair). They may be Trade Fairs aimed at the business (as a computer exhibition usually is) or at the general public (e.g. Garden and Home exhibition or Family Fair). There are agricultural shows, careers exhibitions, motor shows, outdoor living exhibitions; trade fairs for many types of exhibitors. Among trade promotion techniques are: a. Free Goods: Where, for example, one free case is supplied with every dozen purchased. b. Buying Allowance: Where traders are offered a certain amount off the price of each case brought. This is usually done during the launch of a new product, or the re-launch or promotion of an old one. c. Count and Recount Allowance: Here the trade is paid a certain amount for each case sold during a certain period of time. Its intention is, of course, to speed up sales of the product, often when it is to be withdrawn and succeeded by a new one, or to sell excess stocks to ease distribution. d. Cooperative and Dealer Advertising and Promotions: Product and promotional advertising includes a list of dealers. This not only tells consumers where to buy the product, but persuades dealers to join the promotion and stock the product. The manufacturer may allow the trader a certain sum towards the cost of retail advertising for each unit sold. e. Sales Contests: These are used to motivate dealers, who win by having the highest sales of the product. The effect is a temporary one and such a contest may be used simply to sell off excess stocks. In practice, all advertising should be thought of as generating a buying response but whereas response advertising is intended to generate an immediate response, information advertising is intended to keep the business and its products in the mind of the consumer. Thus;

7

ALI ZULFIKAR ZAHEDI, BBA, PGDPM, MBA, DIP in AD (UK)

The advertiser can therefore reach either a wide cross-section of the public, or a more specific target market according to the venue he chooses. The decision to be made, however, is whether the money invested in an exhibition stand really pays off. A stand at an exhibition calls for more than simply renting space. Remember that you must budget for the costs of designing and building your stand, paying staff, having brochures and leaflets printed - possibly giving out samples, transporting and insuring units and goods, providing entertainment ranging from free cool drinks, coffee or wine to lectures and cabaret shows. Expenditure mounts up.

The Advantages of Trade show : 1. Exhibiting at a trade show is an excellent way to find customers to help your business grow. 2. According to a study conducted by the Centre for Exhibition Industry Research (CEIR), 86 percent of show attendees were the decision-maker or influenced buying decisions, yet 85 percent had not been called on by a salesperson before the show 3. Trade shows are also economical ways of getting sales 4. Trade shows are popular, and it's easy to find one that fits industry and the company’s needs.

The disadvantages of Trade show : 1. Exhibitors without attendees aren't of much worth. High-quality attendees are the lifeblood of any successful trade show 2. Company need to recruit new employees, distributors or dealers for the products, its cost much more. 3. It would be spend a lot of time talking to the wrong people. 4. To using trade show rentals. If company aren’t purchasing own displays, company are restricted to the rental components available. And company aren't free to have the entire exhibit customized. 5. If exhibition/demonstration staff are smoking, drinking, flirting, reading a novel or painting their nails, or just not giving interested attention to visitors, the stand is actually working against company.

8

ALI ZULFIKAR ZAHEDI, BBA, PGDPM, MBA, DIP in AD (UK)

How PointPoint-ofof-Purchase advertising works. Some examples it effectively utilised recently Globally Point-of-Purchase (POP) is growing quite rapidly. Historically, marketers and brands have found it very easy to spend money on television. However, as time has gone on and particularly with the advent of digital TV and the proliferation of the TV channels, it's become harder for Brands to work out where to spend money. With this the marketers have now started to identify that where, genuinely, does a shopper makes the buying decision. Is it all pre planned or is it in the stores. Sales promotions should be clear, simple and distinctive, and it must obviously do the job it is intended for: attract customer attention, remind her of any advertising she has seen for the product, and stimulate her to buy. One of the most powerful forms of advertising is the Point of Purchase advertisement. No matter what other forms of advertising you may have been exposed to concerning a product, POP advertising will often be the deciding factor when making a purchase. POP advertisements often include detailed information about the product such as features, warranty information, as well as cost. POP advertisements of the future promise to fully involve the customer at the point of purchase. Technology is currently being developed that allows images of customers to be electronically integrated into a display at the POP location which shows the customer being happy with the final product. Such technology could eventually lead to virtual "fitting rooms" where it will be possible for the customer to see their likeness holographically projected in the clothes that they are considering purchasing. 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. Sales promotions, this term (sometimes called Point-of-Sale) covers all advertising material used where the product is purchased. It includes both window and in-store displays. It is today the heaviest item of advertising expenditure for many

9

ALI ZULFIKAR ZAHEDI, BBA, PGDPM, MBA, DIP in AD (UK)

manufacturers and its use has grown with the growth of the supermarket. Among point-of-purchase (POP) items are: a. Window stickers and banners b. Display cut-outs (often quite sophisticated) c. Check-out counter display boxes d. Store fixtures such as dump bins, free-standing show cases, gondola ends e. Banners, streamers, card shelf takers, etc. Point-of-purchase material can often be a waste of money if the retailer does not use it. He must find it useful and suitable. For this reason it needs to be supported by personal selling to the stockist. The point of purchase display includes at least one display section, and preferably at least two display sections. Each display section can include one or more of the following components: a header, a product mount area where product is mounted for display, and containers that contain products suitable for that display section. In one implementation, the header is disposed at the top of the display section, the product mount area is beneath the header, and the containers are beneath the product mount area. Further, the products within each display section can be divided based on a variety of criteria, for example product quality and/or price. As an example, the product can be divided so that higher quality/priced products are located higher up in the display section, for example in the product mount area, middle quality/priced products are located in the middle, for example lower in the product mount area or higher in the containers, and lower quality/priced products are located lower in the display section, for example in the lowest containers. More of the product at the normal 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. Coupons Gift with purchase 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.

10

ALI ZULFIKAR ZAHEDI, BBA, PGDPM, MBA, DIP in AD (UK)

Money refunds a customer receive 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. Frequent user/loyalty incentives 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. 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 advice from a doctor would hold more value as compared to a commercial advertisement.

It is seen effectively utilised recently of point of purchase The majority of consumer purchase decisions are made in-store, as research suggests, the question has to be asked why the bulk of marketing money is not being spent in-store. It seems logical that in-store marketing should become more attractive as traditional above-the-line media become increasingly fragmented and marketers struggle to reach a wide audience through an affordable range of media. It is seen effectively utilised recently of point of purchase, whatever let us now look at the various methods that can be used as a good sales Promotion in point of purchase: The checkout counters of many convenience stores are cluttered with cigarette and candy POP displays. The message on unused floor and counter surfaces could be great tool to be a POP. This unique and inescapable medium stands out to increase brand awareness and reactivate the impact of advertising campaign The point of purchase display is particularly beneficial for use with hand tools, for example paint and decorating hand tools and related accessories. In the case of paint and decorating hand tools, the display is designed to assist the user in selecting the appropriate tool that is needed by the purchaser for the task that needs to be performed. The point of purchase display uses colour, text, and/or illustrations to assist the purchaser in selecting the appropriate product for purchase. The point of purchase display uses colour and/or text and/or illustrations to assist the purchaser in selecting the appropriate product for purchase. The use of colour helps

11

ALI ZULFIKAR ZAHEDI, BBA, PGDPM, MBA, DIP in AD (UK)

to, for example, categorize the products and draw the purchaser's attention to a particular product category. POP depend on some sales promotion activities also that make consumer’s decision strongly as below

• • • • •

Corporate image Displays, printed material, exhibitions and trade fairs Special promotions Sponsorship Personalised mail shots

Corporate Image There are considerable benefits to be gained from developing a corporate image, namely; Generation of trust, improved staff relations, a foundation for expansion and diversification. Once established the image will help to launch new products and expand into new markets as customers will already know and trust the company. Compared with other forms of advertising/promotion it is relatively cheap, but remember it does take time to establish a corporate identity. To develop the corporate image company need to; Establish a logo - a graphic design based possibly on the company name or an abstract design attached to the company name. Establish a set of company colours that can be used in all printed material, display material, equipment and packaging. Establish an image that reflects the type of Business Company is operating and advertiser’s basic approach.

Displays, printed material, exhibitions and trade fairs Displays. The basic principles with displays are to follow the corporate image and to be professional. If the display material is to have any chance of success it must be of good quality. Printed Material. What I am talking about here are things like price-lists, catalogues, brochures, leaflets, stationery, business cards, etc. All of these are essential to your business. They should promote the corporate image and, importantly, never be shoddy.

12

ALI ZULFIKAR ZAHEDI, BBA, PGDPM, MBA, DIP in AD (UK)

Exhibitions and Trade Fairs. These may be local, national or international. They are important though rarely do they pay for themselves in terms of orders taken. Rather, they are there for company to make new contacts, demonstrate new and complicated products and build goodwill. Before you go to an exhibition or trade fair, ensure that you prepare and present yourself properly. You will need to find out about the numbers and types of visitors and the other exhibitors. Company cannot rely upon the organisers for this information so, if possible, visit the exhibition/trade fair the year before to intend to exhibit and note; • • • • •

The precise layout of the stand area (and decide where you want your stand). The furniture provided and required. The lighting and power supplies available. The display material and audio visual facilities you will need. The sort of literature, samples, demonstration models, etc the other exhibitors have on their stands. Company should also consider issues such as;

• • • • •

How will record and process enquiries/orders. Staff rotas. Hospitality and entertainment. Special promotional activities. Who want to meet at the Exhibition/Fair? Advertiser should tell them (and the media) that company will be there and invite them.

Special promotions I can talking about here are things like 'money-off' coupons, bonus packs (x% free), buy one get one free campaigns, free samples, demonstrations, competitions and contests, special discounts, volume discounts, etc. These are all intended to create rapid, short-lived increases in business and are often used to launch a new product or a change in price. However, they should always be; • • • • • • •

Part of a planned programme of promotion over a period of time. Planned, controlled and monitored. Before embarking on a promotion, company should establish; What are attempting to achieve. The best method to use. The budget. The duration of the promotion.

Personalised mail shots

13

ALI ZULFIKAR ZAHEDI, BBA, PGDPM, MBA, DIP in AD (UK)

The mail service is often used as a promotional medium as are door to door deliveries of promotional material. It is one of the tools of marketing most used by small businesses. Its advantages include the fact that it is; •

• •

Selective - customers can be identified and classified into different groups or segments. Personal - therefore is hard to ignore. Monitor-able - its results can be evaluated accurately.

NEED AND FEED

Foundation

14