Promotion , ABOVE-THE-LINE PROMOTION (ATL):, Advertising:, INFORMATIVE…
Short-term incentives provided by a business with the aim of increasing or boosting the sales. Examples include:
Money-off coupons.- Discounts provided to customers when a product is purchased.
Point-of-sale display.- Draw attention so impulse buying is performed.
Free offers or free gifts
Competitions.- Works a lot with videogames.
BOGOF.- Promotional strategy that can be used to attract new customers or assist in eliminating excess stock. Often used in the maturity or saturation stage.
Its objectives are:
Creating awareness or informing consumers of a new or improved product in the market.
Convincing or persuading consumers to purchase a firm’s products instead of competitors’ products.
Reminding consumers of the existence of a product in order to retain existing customers or gain new customers for a product.
Enhancing the brand image of the product as well as the corporate image of the business.
BTL promotional strategies include:
BRANDING (PRODUCT BRANDING, FAMILY BRANDING, OWN-LABEL BRANDING, COMPANY BRANDING, GLOBAL BRANDING)
SLOGANS (A concise messagedesigned to represent the essence of a business)
WORD OF MOUTH
This ensures that the product is aimed directly to consumers.
Eliminates the use of intermediaries and therefore can save the business money.
Forms of direct marketing include: -Direct Mail, -Catalogues, -Personalized Flyers.
A limitation of this method is that the most consumers can regard the information as junk mail and not pay any particular attention.
Involves the sale of a firm’s product through personal contact.
It makes use of sales representative and can be done face to face or over the telephone.
Common example of this form is telemarketing.
A limitation of this method is that it may be expensive to have a sales representative team, especially when they are paid by commission.
BELOW-THE-LINE PROMOTION (BTL):
It refers to the use of non-mass media promotional activities. Form of communication where the business has direct control over its promotional activities.
Unlike ATL promotion, it does not depend on the use of independent media, and no commission has to be paid to external media agencies.
Focus the promotional activities on consumers they know or on those who are interested in their products.
THE PROMOTIONAL MIX:
A successful promotional mix will involve a good balance of both ATL and BTL promotional methods.
This could involve using an appropriate mix of advertising, sales promotion, personal selling, PR, etc. Marketers often consider the Marketing acronym AIDA: Attention, Interest, Desire, Action
Certain factors are needed to perform an effective promotional mix: - Cost - Legal Framework - Target Market - Stage in the product cycle - Type of product
IMPACT OF TECHNOLOGY ON PROMOTIONAL ACTIVITIES:
The most common way to make promotional activities is through SMM.
Every promotional activity done through social networks becomes a viral marketing form.
Viral marketing is a form of peer-to-peer communication where individuals are encouraged to pass on promotional messages within their social networks (similar to word of mouth)
The term is coined from millitary-related terminology.
It adapts the “hit and run” guerrilla warfare tactics where you hit if you can win but run if you cannot.
It is eye-catching and surprising and so highly efficient in capturing customers’ attention.
Refers to methods of communicating messages to the market with the intention of selling a firm’s products.
The main aim of promotion is to obtain new customers and to retain existing ones.
Includes advertising through the television, radio, cinema, the Internet (broadcast) or newspaper, billboards (outdoors ad), magazines (printed media).
In this case the control or responsibility of advertising is passed on to another organization.
This is a paid form of communication that uses independent mass media to promote a firm’s products.
Plays a central role globally in passing on the information about a product to a particular target audience.
Choosing the right media for advertising is important in ensuring a successful promotional campaign.
Focus here is to provide information about a product’s features, price, or other specifications to consumers.
Increases consumers’ awareness of a firm’s product so as to enable them to make rational decisions about what to buy.
Aims at convincing customers to buy one firm’s product instead of a competitor’s products.
Persuades customers to think that they really need a product and should buy it.
Aims to create impulse buying.
The focus is on existing customers, to reminding that they made the right purchasing decisions when they chose to buy a firm’s products and that they should continue purchasing it.
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ABOVE-THE-LINE PROMOTION (ATL):