What is sales promttion? Describe different types of sales promotions and thier relevence.

A direct inducement that offers an extra value or incentive for the product to the sales force, distributors, or the ultimate consumer with the primary objective of creating an immediate sale. The need for sales promotion activities is vast and varied. A company may offer high qualitygoods of reasonable price with attractive package, etc. The company might have spent a loton advertising and have good sales force. Still the product may not sell by itself. Here lies theimportance of sales promotion. The need for sales promotion arises due to following reasons: To secure attention towards new products and product improvement. To avoid duplication of goods To create awareness among consumers about new brands To face competition in the market To create talking points for their sales force Role of promotion To facilitate exchanges directly or indirectly by informing individuals, groups, or organizations and influencing them to accept a firms products or to have more positive feelings about the firm Convey product and service information directly to target market segments Provide information to interest groups, regulatory agencies, investors, and the general public To maintain positive relationships between a company and various groups in the marketing environment Promotions - Consumer promotions- Pull effect - Trade and dealer promotions Push effect

5.3 Involvement of Salesmen and Dealers (Methods of Sales Promotion) Method 1: Sales Force (Sales men) Promotion: The personal selling is very essential in marketing. To make personal selling highly effective, sales force promotion is essential. The tools of sales force promotion are bonus, sales force contests and sales meetings and conferences. Bonus is usually offered to salesmen who sell in excess of the quota. Similarly sales force contests are arranged to stimulate the efforts of the salesmen. The sales promotion department usually arranges such contests to increase the efforts and energies of the sales force. Sales meetings and conferences are also arranged for the purpose of educating and inspiring the sales force. In such conventions and conferences, the sales promotion department exposes the salesmen to the latest sales techniques and latest methods of promotion of goods.

The sales promotion department assist the salesmen to contact the prospective customers. Sometimes, it prepares the ground for the sales men to meet the prospects by sending those circular letters and sales literature. This helps the salesmen a lot while selling. Method 2: Sales Promotion of Dealers Objectives: Obtain Distribution of New Products Maintain Trade Support for Existing Products Encourage Retailers to Display and Promote Existing Brands Build Retail Inventories Types of Trade-Oriented Promotions Trade sales promotion techniques to stock up on a product. and display a product. de contest: A contest to reward retailers that sell the most product. -of-purchase displays: Extra sales tools given to retailers to boost sales. product. n as "spiffs". An extra commission paid to retail employees to push Products. payments to distribution channel members for performing some function .

DEALER PROMOTION o Dealers aim at obtaining maximum cooperation from distribution channels such as wholesalers, semi-wholesalers and retailers, who form the vital links in the distribution chain. o Manufacturers want preferred store locations and special displays. They want the product to be displayed in those retail outlets where it is possible to attract the maximum number of consumers. o Trade deals are sales promotion devices aimed at obtaining extended or more focused distribution of a product, or more attractive presentation of the product, at the point of sale.

Types of deals Dealers loaders: The marketers have to keep the dealers properly supplied with stocks continuously. Incentives given in this connection are known as dealer loaders. ntive scheme may be designed to correct seasonal slumps, increase volume in specific areas, counteract competition or sometimes just meet the annual sales targets. Types of dealer loaders: Merchandise deals: When the marketer aims at building dealer inventories by offering extra quantities of the product as incentive, the technique is described as a merchandise deal. In merchandise deals, two non-competitive manufacturers agree to offer each others product as merchandise deals. Price deals: Under price deals, special discounts are offered to the retailer over and above the regular discount. Price discount is more advantageous from the dealers point of view because under merchandise deals the dealers has to convert merchandise into cash. Gifts to dealers: A company may give like watches , clocks or transistor radios to dealers, according to the volume of orders placed. This may serve as a useful reminder of the dealers link with the company.

These allowances are used to induce wholesalers and retailers to promote a product through advertising displays.

Advertising incentives have three categories: 1. Merchandise allowance: This is a short-term contractual agreement through which a manufacturer compensates wholesalers or retailers for advertising or in-store display of the products. 2. Cooperative Advertising: The manufacturer makes a long-term contract to pay an allowances to retailers in relation to the quantity of products purchased by them. 3. Dealer-listing promotions: Dealer-listing promotions are very popular among the two general classes of trade deals concerning advertising because they are directed almost equally at retailers and consumers. The names and addresses of retailers who stock the product or who are

cooperating in the promotion are publicized through the press and other appropriate media.They aim at announcing a product introduction or a promotion, to consumers, and also inform them where the product can be purchased Point-of Purchase Promotion: The majority of all sales-promotional activity fulfills its direct objective of `promoting sales. Most sales-promotion programmes are geared to encouraging the dealers to stock, display and promote a manufacturers products. Point of purchase is another important area of dealer incentive. Point of Purchase types: Display contests: Display contests are more of an advertising medium rather than a dealer incentive offer. Display contests carry prizes in order to induce the dealer to take active part in the sales-promotion programme. POP Displays: There are many kinds of retail displays like shop signs, window displays, counter pieces, enlarged reprints of press advertisements mounted on cardboard and displayed on counters or store windows , display racks and other easily noticed places in a shop. Manufacturers use the retail-display form of sales promotion to remind consumers of their products at the point of purchase as well as aid their being quickly spotted by prospective buyers. Trading Stamps and Dealer coupons : Devices that attract consumers to particular store, such as trading stamps and dealer coupons, help build consumer loyalty to the store as well as increase the volume of business for retailers.Such devices also remind consumers about the product and may prompt them into buying them. Trading stamps: Trading stamps are a premium given to consumers for purchase from a particular retail outlet. The number and value of stamps that the buyer receives depends on the value of the purchase. Dealer coupons: Dealer coupons are similar to consumer coupons and are useful in building brand loyalty among dealers. Retail Demonstrations: Retail demonstrations are an important means of attracting attention to a product. Demonstrators attempt to make the consumers buy a product either by giving a sample of the product or showing prospective buyers the method of using the product. Online sales promotion: 1. Encourage impulse buys. Fast food restaurants understand this concept. Suggest related products. An online shopper searches for a particular book and clicks to view the details and reviews. The detail page offers the book at a special price if the customer buys it together with a book on a related topic or by the same

author. Associate linked products. If a customer buys a video game, ask if he'd also like to buy some batteries, games, or other peripherals. Those are items the customer may forget to purchase or might not realize are available. Limited time offer! A visitor is more likely to take advantage of a special offer if she knows there's a time limit. "Only 2 days left!" But don't get carried away. An advertised limited time offer really needs to expire. Otherwise, you lose the trust of your customers. 2. Offer online-only specials. Many Web users prefer to gather information about products online. They visit a few sites to get an idea of what's available and at what cost. But they don't complete the sale online. Instead, many log off and head directly for nearest brick and mortar store to make their actual purchase. Combat this tendency by providing an incentive to buy online. Advertise an offer that's only available at your Web site and you give your visitors added incentive to become a customer. Remember though: most users are quite well educated about what's available. They'll know if your offer is really a special deal. 3. Ship larger orders for free. It doesn't take much more time and effort to pack and ship 5 items than to pack and ship 1 item. It's more efficient for you to pack more items in each order, so give customers an incentive to purchase more at one time . 4. Be honest about pricing. People want to know the total price before they start filling out a shopping cart order form. Most users will leave a site without completing their purchase if the site doesn't show total cost including shipping - before asking for personal information. 5. Provide great customer service. You don't want one-time customers! It takes far more effort to attract new customers than it does to keep existing ones. : That simple c oncept seems to be forgotten in these days of anonymous email and the torture of automated phone systems. 6. Create compelling Web site copy. Web site design is an important component of Web site credibility, but design only takes you so far. Visitors quickly note the design, but then look for content. Format your content to reflect how people read online and consult The Copywriter's Handbook for instructions on how to write persuasive, convincing online copy. Format your content to reflect how people read online and consult The Copywriter's Handbook for instructions on how to write persuasive, convincing online copy. 7. Have complete product information and photos. People want to see what they're buying and they want to know a lot about it. But consider overall page size and download time when you're adding this information. 8. Informational pages. You accomplish two goals when you create informational pages. Pages loaded with useful information attract human visitors and search engine spiders. Good information turns your site into an authority site on the Web so customers feel more comfortable buying from you. 9. Create thumbnail images and link them to full-size photos of the product. Even

if you can post life-size images of your product from several viewpoints, don't place them on the main informational page. Instead, create thumbnail images the link to the larger photos. Visitors with slow dial-up connections will thank you! Method 3: Sales Promotion of Consumers Objectives: To Obtain Trial and Repurchase To Increase Consumption of an Established Brand To Defend (Maintain) Current Customers To Target a Specific Segment Enhance IMC programs and build brand equity Consumer sales promotion techniques

and redeem them for rewards. examples are Pepsi Stuff . -off deal: Offers a brand at a lower price. Price reduction may be a percentage marked on the package. ce-pack deal: The packaging offers a consumer a certain percentage more of the product for the same price (for example, 25 percent extra).

oduct is temporarily reduced in order to stimulate other profitable sales -standing insert (FSI): A coupon booklet is inserted into the local newspaper for delivery. -shelf couponing: Coupons are present at the shelf where the product is available.

-line couponing: Coupons are available on line.Consumers print them out and

take them to the store. mobile phone. Consumers show the offer on a mobile phone to a salesperson for redemption.

associated with the promoted product. See an example of the InteractiveInternet Ad for tomato ketchup.

to the producer.

event by purchasing the product. -of-sale displays: Aisle interrupter: A sign the juts into the aisle from the shelf. Dangler: A sign that sways when a consumer walks by it. Dump bin: A bin full of products dumped inside. Glorifier: A small stage that elevates a product above other products. Wobbler: A sign that jiggles. Lipstick Board: A board on which messages are written in crayon. Necker: A coupon placed on the 'neck' of a bottle. YES unit: "your extra salesperson" is a pull-out fact sheet

DIFFERENCE BETWEEN ADVERTISING AND SALES PROMOTION Advertising By using a variety of persuasive appeals, it offers reasons to buy a product or service. Sales Promotions Besides giving reasons in the form of different appeals, they offer incentive to the consumers to buy the product or service now. Appeals are rational Time frame is short term To get sales quickly or to induce trial. Direct in approach to induce consumers to buy a product or service immediately by temporarily changing the existing pricevalue relationship of the product or service.

Appeals are emotional or functional in nature Time-frame is long term The primary objective is to create an enduring brand image Indirect and subtle approach towards persuading customers to buy a product or service

But both advertising and sales promotions go hand in hand. Both are very essential to achieve success. Both are complementary to each other. REASONS FOR RAPID GROWTH OF SALES PROMOTION There are a number of reasons that are favourable to the growth of sales promotion: Increasing Competition The air of change is gaining momentum after the introduction of economic liberalisation.Due to increase in competition, companies are finding it increasingly difficult to compete on quality. They are therefore resorting to more and innovativemethods of sales promotion. To break away from the clutter, Samsung introduced the phod ke dekho andphir se phod ke dekho offers, which helped increase sales. Customers Have Become More Price Sensitive This increased price sensitivity is a direct result of rampant inflation. Economic recession is likely to fuel this trend further, as consumers and dealers become more sensitive towards prices. Sales Promotions Generally Create An Immediate Positive Impact On Sales Advertising, personal selling and other methods of promotion produce slower sales response compared to sales promotion. Sales promotions are mostly for short duration, for a specified

period, leading to a sense of urgency in consumers to buy now. This creates an immediate positive impact on sales. With careful planning, it would not be difficult to measure the impact on sales volume and profit, and see the consequences of running the promotion even on weekly or daily basis. Products have become more standardised In many product categories, there is a proliferation of brands; many of them are line extensions and me-too brands. Most brands are being perceived by consumers to be more or less similar within a given price range because of the inability of manufacturers to develop truly differentiated products. Under these circumstances, advertising messages are unable to strongly influence the consumers perceptions and create brand franchise. As a result of these perceptions of similarity among brands, marketers have no way but to compete on the basis of extra benefit offered through sales promotion. Competing companies struggle to capture market share by using every tool likely to bring sales success. Consumer Acceptance As competition intensifies and promotions proliferate, consumers have learnt to earn the rewards of being smart shoppers. Over a period of time, they have also learnt that brands on promotion are not necessarily of lower quality. Woodland has a scheme of upto 50% off on Woodland shoes and apparel. This learning based on experience, gets transferred to other product categories as well. Consumers have learnt that promotions are being extended to many product categories where such promotions were unheard of. Expectations Of Price Decrease With the entry of many different brands of consumer durable products in the same product category, consumers anticipate that the prices of durable goods will come down. This encourages them to postpone their purchases. To speed up the purchase in this segment of consumers, sales promotions are an effective and attractive method. Consumers evaluate the incentives associated with their purchase decision and are motivated to act now, rather than wait for the anticipated decrease in price. The marketers should ensure that the extra benefit is attractive enough to create a sense of urgency in consumers. Samsung offers upto Rs. 8,000 off on exchanging an old refrigerator for a new Samsung refrigerator. Advertising Has Become More Expensive And Less Effective All the advertising media have become quite expensive. Audio-visual medium, which is considered as the most effective for short-duration ads, may cost in excess of Rs. 1 lakh for a

10 second exposure during prime time. In many cases, consumers have reached a point of boredom due to excessive advertising on TV. Some consumers even consider advertising as an intrusion into their privacy, leading to zapping (surfing channels). Firms with small budgets cannot compete with big companies which spend huge sums of money on advertising. For these small budget firms, sales promotion is a more cost-effective promotion method to produce sales results. Trade Has Become More Powerful Retailers and wholesalers have become powerful and find themselves in a position to demand extra facilities from the companies. They Channel members demand more incentives to get the desired results. Manufacturers do not seem to have any alternatives but to concede to their demands, keeping in view the competitive market conditions. Pepsi offers silver coins to their dealers stocking Pepsi cases during Diwali season. And the promotions offer differs across dealers. Emphasis On Sales Volumes Towards achieving the long-term profit goals, manufacturers try to attain high sales volume. Brand managers and product managers find themselves under pressure to achieve short-term sales results for the sake of their careers. Compared to any other promotional method, sales promotion is a more effective method to generate short-term sales volume. Sales Promotions Maximise Profits A number of economic theories conclude that a company can maximise profits by using sales promotion. Such promotions can permit price discrimination by allowing the brand to compete in 2 or more different market segments. Sales promotion may allow a premium brand to compete with a lower tier brand among price sensitive consumers. For example, a premium band of toilet soap may be on promotion in some price sensitive markets, while in the remaining markets it is sold at its normal price. Introducing An Element Of Interest There are a number of promotions which are often called interest promotions. Some of the more popular interest promotion techniques are samples, contests, and sweepstakes, free premiums and mail-in premiums. These promotions create an element of interest and excitement, and consumers enjoy these and response enthusiastically to such contests and sweepstakes, etc. Fevicol had recently launched a contest in which one had to choose 3 Fevicol ads which they considered the best, and then complete a slogan I like Fevicol ads because Impulse Buying Is Increasing

The number of marginal customers is increasing. Displays at the point of purchases lead to impulse buying by consumers, more so if the items on display are not expensive. There is a popular saying in Hindi, jo dikhta hai, voh bikta hai. This strategy is followed by soft drink majors like Pepsi and Coke on a large scale. They pay huge sums of money to keep their products in front so that they are visible. These are also known as display promotions Sales Promotion Specialists Are Available As a result of economic liberalisation, the number of management institutions has increased. This has lead to the availability of specialists, who are not only well paid but can handle this specialised work more efficiently in the current market conditions, where sales promotion has become more important. Excess Stocks Because of increasing number of brands, it is difficult for manufacturers and dealers to anticipate future sales. This, at times, leads to excessive inventories, and the quickest way to clear that, is to go for sales promotion. Footwear companies like Bata, Woodland, etc regularly offer around 50% discount on their products. ADVANTAGES OF SALES PROMOTION Sales promotions have a significant effect on the behaviour of consumers and trades people. Such promotions can bring in more profits for the manufacturers because they permit price discrimination. Price discrimination Producers can introduce price discrimination through the use of sales promotions. They can charge different prices to different consumers and trade segments depending on how sensitive each segment is to particular prices.Coupons, special sales events, clearance sales and discounts are examples to explain the phenomenon. Often such price discrimination are offered in specific cities in the country, Bajaj Auto Ltd. started the scheme on 20th august 2001, where by if you buy a Bajaj Spirit two-wheeler you get Rs.3000/- off, valid only in Ahmedabad. Such price discriminating sales promotions that enable consumers and traders to pay less in certain market area or stores usually bring in more contribution than if one price is charged to

all. Such price discrimination also held in adjusting to fluctuations in demand and supply situation without affecting any changes in the list price. Effect on consumer behaviour As sales promotions are mostly announced for a short period, customers may feel a sense of urgency and stop comparing the alternatives. They are persuaded to act now rather than later. With every 500g pack of Tang,you get a free Tang glass. Offer valid only till stocks last. In our over communicated society and because of selective attention, it is not uncommon to ignore many advertisements. Sales promotion deals such as discounts, debates, coupons, premiums, etc also increased the attention getting power of advertisements and convey the advantages and benefits of the brand, including price information. By using promotions, marketers can reach the deal prone customers and encourage brand switching. Effect on trade behaviour Short-term promotions present an opportunity and encourage dealers to forward by. This forward buying ensures that retailers wont to go out of stocks. As dealers have more than the normal stocks, they think it advisable to advertise in local media, arranged displays and offer attractive promotion deals to consumers. These actions help in increasing the store traffic. Retailer promotion: Buy Cadburys products worth Rs.3000/- and get any 30 chocolates worth Rs.5 each free. Buy a box of Munch and get 1 Munch free. Regional Differences The South is generally characterised by greater degree of going out and people tend to drink outside the house. The Tamilian, consumer in particular, is value oriented, rational and looks up to film stars, while the Keralite is more international in his outlook. The Bangalorean is as Cosmopolitan as his Mumbai or Delhi counterpart." That sort of diversity, believes Coca-Cola, calls for a corresponding variety in promotions. The place to attract is the retail zone. Coca-Cola recently launched a promotion called ' world of Coca-Cola' covering Chennai in Tamil Nadu and Bangalore and Mysore in Karnataka.It was a value deal, aimed at the consumer disposed towards global- style outings. The consumer pays Rs 20 along with a label of a 500 ml of PET bottle to get a card which entitles him to gifts and discounts at 29 outlets, including those of global chains such as TGI Friday and Baskin and Robbins this, in these cities. About four years ago, Pepsi had a similar promotion with its Pepcards.This, however was on a national level, while the CocaCola promotion is South based build retail level activity matters more than it does in the North. The primary aim is to help the retail raise volumes.

DISADVANTAGES OF SALES PROMOTIONS While sales promotion is a powerful and effective method to produce immediate short term positive results, it is not a cure for a bad product or bad advertising. In fact, a promotion is speed up the killing of a bad product. Increased price sensitivity Frequently promoted brands in the product category, especially on the basis of price, make consumers and traders more price sensitive not only for the promoted brands but for other brands as well in the same product category. Consumers wait for the promotion deals to be announced and then purchase the product. This is true even for brands where brand loyalty exists. Customers wait and time their purchases to coincide with promotional offers on their preferred brands. Quality image may become tarnished If the promotions in a product category have been rare, or the product happens to be of high involvement category, the promotions could have a negative effect about its quality image. Consumers may start suspecting that perhaps the product has not been selling well, the quality of the product is true compared to the price or the product is likely to be discontinued because it has become outdated. Dealers forward buy and divert stocks In case of deals for the trade, many dealers forward buy, in excess of their inventory requirements. This is particularly happens if a product is low bulk, much in demand and the inventory holding costs are favourably low. This is true both for wholesalers as well as retailers. Forward buying of excessive stocks on deals or quantity discounts can lead to diversion of some of the stocks in non-deal areas. Forward buying of excessive stocks on deals or quantity discounts can lead to diversion of some of the stocks in non- deal areas. Wholesalers and retailers do not hesitate in selling these excess stocks in non- deal areas on prices that are less than the list price, but keeping some reasonable margin for themselves. This is likely to have a negative effect on price discrimination efforts of the company as dealers and those areas would not be buying even the normal requirements from the company. Merchandising support from dealers is doubtful One of the trade promotions tool is to offer promotional allowances to trade people to motivate them to provide merchandising support and to pass on some benefit to consumers. This generally is the condition attached with such promotional allowances. In many cases, the dealers do not cooperate in providing the merchandising support nor do they pass on any benefit to consumers. The retailer might not be willing to give support because he does not

have the place, or the product does not sell much in his shop, or may be he thinks the effort required is more than the commission/benefit derived. Short-term orientation Sales promotions are generally for a short duration. This gives a boost to sales for a short period. This short-term orientation may sometimes have negative effects on long-term future of the organization. Promotions mostly build short-term sales volume that is not maintained. Heavy use of sales promotion, in certain product categories, may be responsible for causing brand quality image dilution. The argument given in favour is that companies should develop superior products or services which are better than competitors and consumer should be convinced through appropriate and focused advertising about the superiority of the product and its image. This will result in lasting brand identities reflecting consumer values. Then there will be no need to offer any extra benefits; only the lasting brand image will keep customers loyal to the brand. Shifting Role of Sales Promotion Agencies THEN Created tactics Single project basis Hired for specialty Single agency contact Inferior to ad agency Indirect accountability NOW Create strategy Continuing service One full-service firm Agency team contact Equal to ad agency Directly accountable

ATL And BTL Above The Line (ATL) advertising is where mass media is used to promote brands and reach out to the target consumers. These include conventional media as we know it, television and radio advertising, print as well as internet. This is communication that is targeted to a wider spread of audience, and is not specific to individual consumers. ATL advertising tries to reach out to the mass as consumer audience. Below the line (BTL) advertising is more one to one, and involves the distribution of pamphlets, handbills, stickers, promotions, brochures placed at point of sale, on the roads through banners and placards. It could also involve product demos and samplings at busy places like malls and market places or residential complexes. For certain markets, like rural markets where the reach of mass media like print or television is limited, BTL marketing with direct consumer outreach programmes do make the most sense. Says Raghu Khanna, CEO, CASHurDRIVE, When budget is issue and the brand wants to have a consumer connect BTL has better ROI.

Other BTL activities could include roadshows, or moving hoardings with the ad of the product, and vehicles with promotional staff interacting with people demonstrating the product and distributing literature on the product. BTL advertising is advertising that uses less conventional methods of advertising that the specific channels of advertising that may or may not be used by ATL advertising to promote products and services. According to Iya Malhotra Bhatia, Marketing Professional, BTL is a preferred tool when test marketing a product, sampling and also in case of a targeted campaign in related to another bigger phenomenon. Also when TG is very niche, BTL makes more sense.

BTL promotion might include direct mail promotional campaigns, PR and sales promotions which are handled directly by the company itself or outsourced to specifically PR agencies and sales promotion agencies and may or not be related to the advertising campaign. BTL advertising might include email campaigns, telemarketing, etc with targeted groups of potential clients. Says Megha Ghosh, Account Director, Client Services at Encompass, BTL is preferred on several occasions but the foremost would be when you need to have a personal interaction with the consumer. Says Kapil Taneja, Regional Head, North, FUN Cinemas (Esselgroup company), Sometimes BTL is preferred over ATL due to budget issues, the need to physically display the product, to conduct a hand on product contest as well as for new launches and teasers campaigns. Companies prefer adopting BTL as a means of reaching out to their target consumers when their product is something they need to engage the consumer in a touch and feel experience with. Some people would consider ATL and BTL antiquated terminologies in an era which uses the internet and lightening speed changes in modes of communication to reach out to the consumer. When you are communicating with a niche audience BTL is better. However, digital media has more or less broken these boundaries of ATL versus BTL as digital communication can address both at the same time., says Namrata Rana, Director, Futurescape. Interestingly, there is a new phrase called Through the Line, or TTL, which integrates both ATL and BTL activities. BTL communications from brands is rapidly becoming a dying form of reaching out to the audience with agencies and clients going adopting the Integrated Communication approach. To end with a quote O&Ms Piyush Pandey, from a previous interview, on the two forms of brand communication, Below-the-line is extremely important, but then when wasnt it? It is just that till now it was taken a bit for granted and not too many innovations were made. I am glad the industry is planning to revolutionise this game. It is not a question of mass media versus below-the-line. It is an era of mass media plus below-the-line. Through the Line, or TTL

Through the line (TTL) refers to a promotional strategy taking advantage of the best of ATL and BTL advertising concepts, ensuring maximum growth of the product or the brand. Here, the customers are guided from one medium to another.

For example, a hugely circulated newspaper will carry an ad, asking customers to visit their physical store and avail discounts or freebies, a classic 'above the line technique. When

the customers visit the store, he or she will be offered with 'below the line' promotional material such as store banners, product samples etc. For example, a hugely circulated newspaper will carry an ad, asking customers to visit their physical store and avail discounts or freebies, a classic 'above the line technique. When the customers visit the store, he or she will be offered with 'below the line' promotional material such as store banners, product samples etc.

ATL and BTL 2 Above the line (ATL) Above The Line (ATL) refers to promotional activities done at macro level. It is done at national, regional or at bigger territory level and mass audience is covered in this type of promotion. A brand image is created about the company and its product. Media such as television, cinema, radio, newspapers, and magazines are used to create an impact about the company and its product. ATL communication is more of conventional in nature.

Below the line(BTL)

Below The Line (BTL) communication is unconventional in nature, done at micro level and forms part of non-media communication. Measures include direct mailing, distribution of flyers, brochures, and usage of sponsorships, public relations, tele-marketing and point of sale Interestingly, ATL and BTL terms were coined at Proctor & Gamble in 1954 where accountants differentiated advertising agencies payments vis--vis who undertook promotional activities other than advertising for fixed fees. Gradually, marketers started to differentiate activities other than advertisements as separate marketing practice called Below the line (BTL). Today, ATL is used for branding effect, to generate mind share while BTL is used to generate loyalty and repeat sales. ATL is tailored for mass audience while BTL promotions are targeted at individual level according to their needs and preferences. ATL promotions are difficult to measure while BTL are measurable in terms of sales and feedback and it gives marketers valuable insights on their return on investment (ROI). Since BTL focus is targeted and customer centric, it is efficient and cost effective, apt for start-ups. Social networking sites such as face book, twitter, my space, you tube help generate leads and enable companies to develop eCRM and use data in a varieties of ways. Though, social media is an integral part of BTL activity today, but it beats even television, audio, magazines in creating brand value in terms of numbers and is way more rewarding. Through The Line (TTL) Through the line refers to an advertising strategy involving both above and below the line communications. This strategic approach allows brands to engage with a customer at multiple points (for example, the customer will see the television commercial, hear the radio advert and be handed a flyer on the street corner). This enables an integrated communications approach where consistent messaging across multiple media create a customer perception. The advent of social media has blurred the line segregating the marketing techniques. These days, companies use an integrated approach involving both ATL and BTL and it is called Through The Line (TTL) approach. This approach allows brands to engage with their customers at multiple points and thus generate a solid perception regarding the company and the product, the main aim of Marketing!

Definitions for points-of-difference (POD) and points-of-parity (POP)

Points-of-difference (POD) and points-of-parity (POP) are essentially opposite in nature, with the first referring to differences in the second referring to similarities. As a result, we can the following definitions for our purposes as students of marketing: When deciding upon a brands/products positioning in the marketplace, the organization must ensure that end positioning has both sufficient points-of-parity (POP) and points-of-

difference (POD). What this means is that you want the brand/product to be consider equal/similar (on par with, hence the word parity) with the major offerings in the category for the key attributes (POP), but the brand/product also needs to have a number of unique or differentiated attributes (POD). An appropriate balance is required for market success. Too much reliance on points-of-parity in the products positioning and it could be perceived as a me-too product offering. And too little emphasis on points-of-parity and the product might be perceived as not meeting the core needs for the target market. Points-of-difference (POD)

The aspects of the product offering that are relatively distinct to the offerings of like competitors.

Points-of-parity (POP)

The aspects of the product offering that are largely similar to the offerings of like competitors.

You will note that both definitions referred to the offerings of competitors, so these terms are relative measures. And to clarify the word aspects; it refers to the various product features, benefits, brand equity, and other marketing mix elements (including price and place, plus any associated marketing mix elements of services).

Understanding PODs and POPs

Typically, a firm decides the positioning of a product when it is either: entering a new target market for the first time or launching a new product into an existing target market. In either case, the product will usually need to win market share from established competitors (which is referred to as selective demand). For the product to win market share, it requires existing consumers in the marketplace to change their purchasing behavior. That means that customers who currently buy a competitive product will need to trial the new offering and/or current non-consumers need to be activated to purchase in the product category for the first time (which is primary demand). To achieve this goal of changing established purchasing behavior, the firm has both meet the core need of product, as well as bring something new to the marketplace. The following diagram demonstrates this in visual terms. As you can see, the large circle in the middle of the diagram represents the core needs of the market (points-of-parity) and the smaller circles represent new features or benefits (points-of-difference). Therefore, the positioning of any new entrant needs to have many points-of-parity (that is, it must be seen to offer a relatively similar solution), but it needs to have something unique or different about it (points-of- difference). (For more information, please refer to the example section below.)

The POD POP Trade Off

One of the challenges for a firm launching a new product offering is to the extent that they differentiate the product. As outlined in the positioning section of this marketing study guide, one of the purposes of positioning is to simplify the offering in the minds of the consumer. As we know, marketing communication is a very competitive world and it is difficult to communicate many messages about a product, particularly low-involvement one. Therefore, as it is necessary to simplify the message, firms need be careful about overindulging in points of difference. As shown in the following diagram, there is a distinct trade-off between the ability of the firm to communicate points-of-parity and points-of-difference. This is because consumers are likely to only remember a few elements about the product. .Ideally, an organization would like to communicate everything about all of their products, but that is just not practical given the interests of the consumer and the vast array of marketing messages being sent out. Therefore, firms need to strike an appropriate balance and to position the product within the product category as having sufficient points-of-parity, while highlighting one or two pointsof-difference. The assessment of consumer desirability criteria for PODs should be against:

Relevance Distinctiveness Deliverability

Whilst when assessing the deliverability criteria for PODs look at their:

Feasibility

Communicability Sustainability

These will help understand how successful these PODs are likely to be in the minds of the consumer.

Unique Selling Proposition (USP)

The concept of a unique selling proposition (USP) has become quite popular in terminology in recent years. Essentially what this refers to is points-of-difference and you can use the terms interchangeably if required. A point-of-difference is basically what is different about the firms product, as compared to most competitive offers. The same meaning is applied to the term unique selling proposition; that is, what is unique (that is, different) about the firms offer. What to emphasize POD or POP? Continuing on from the discussion on the previous section, while firms do need to balance their emphasis between points-of-parity (POP) and points-of-differentiation (POD) there are occasions when a firm should more heavily emphasize one of these elements. The following table outlines the circumstances when a greater emphasis is required.

Situation
When the firm is a me-too competitor

What to emphasize
In this case, being a weaker competitor, the goal is to piggyback on the success of the market leader by highlighting many pointsof-parity

When the firm as a market leader This is the reverse situation from the one above. To maintain market leadership, the brand/product needs to be seen in as superior/different in key ways, thus highlighting the need to focus on relevant points-of-difference When the firm enters an established and mature market When the firm and is a fastgrowing market In this case, the likelihood of switching is relatively lower, so points-of-difference are required to break their habitual loyalty Fast-growing markets have primary demand (that is, first-time customers to the market), therefore points-of-parity positioning will should be quite successful in capturing new customers

When there is a diversity of needs, When there is significant diversity of consumer needs, a pointseven when looking at fairly narrow of-difference positioning should ensure that reasonable market market segments share is generated In a target market where the firm To reduce the risk of cannibalization of sales, the firm would already offers multiple products need to have more emphasis on points-of-difference In a relatively price sensitive market Our goal in this case would be to provide additional benefits, in order to reduce the importance of price in the decision. Therefore, a points-of-difference positioning emphasis would be required

Kevin Keller and Alice Tybout[1] note there are three types of difference: brand performance associations; brand imagery associations; and consumer insight associations. The last only comes into play when the others are at parity. Insight alone is a weak point of difference, easily copied. Putting these together, check their desirability, deliverability and eliminate contradictions. Traditionally, the people responsible for positioning brands have concentrated on the differences that set each brand apart from the competition. But emphasizing differences isn't enough to sustain a brand against competitors. Managers should also consider the frame of reference within which the brand works and the features the brand shares with other products. Points of Parity Association POPs come in four basic forms Category related Benefit related Usage Occasion and Time of Use Price / Quality by Usage Occasion and Time of Use

Category Related

Tanishqwatches sold as jewellery Vaselinepetroleum jelly sold as lip salve and moisturizer Sugar free.historically sold to diabetics through chemist outlets, now being sold as weight control device, targeted at the figure conscious being sold through supermarkets

Benefit related a) b) Functional Lifebuoy (kills the germs you cannot see) Pepsodent (12 hr protection against germs) Fevicol (jod jo tootega nahin) M-Seal (seals all leaks) Emotional Close-Up (confident) Franklin Templeton Blue Chip (secure) Liril (fresh) J&J (caring) Axe (irresistible)

By Usage Occasion and Time of Use Kwality Walls.(post dinner treat.10 oclock) Listerine (Night time rinse.Get fresh tonight) Clorets (after drinking, smoking, eating.after anything) Nescafe (great start to the morning) Britanias Chai Biscoot (for tea times) Dominos (when families are having fun, e.g. watching TV or playing scrabble

Price-Quality by Usage Occasion and Time of Use Peter England (the honest shirt) Big Bazaar Westside (surprisingly affordable) Indian Airlines (Apex fares) Nirma

Why me ? Points of Difference Associations

PODs are Strong, Favourable, Unique brand associations for a brand. They may be based on virtually any type of attribute or benefit association.

Brand Gillette Dove Soap Orchid Hotels Ariel Detergent Ceat Tyres Maruti Service Maggi McDonalds Saffola Asian Paints ICICI Bank Scotch Brite

Differentiating Parameter Double Edged Blade One Fourth Moisturiser Eco Friendly Hotel Performance Tough After Sales Service Food in two minutes Burgers that taste the same 98% Fat free Computerized Shade Cards First Internet Banking Service Scrub with Sponge & Coir