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Assessing the Role and Use of Below-the-line Techniques

Outcome 3, Unit 18, Advertising and Promotion, BTEC Higher National Diploma
Tawfiq Fayed

outcome 3 of unit 18, Advertising and

promotion, BTEC Higher National Diploma. In this document has the

author

described

about different below-theline techniques and

assessed their role. The author also applied the techniques in two commercial situations.

2011

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BTEC Higher National Diploma in Business NQF Level 5 Unit Name: Advertising and Promotion
Unit No. : 18 Unit Type: H2

Prepared By:
Author Name Tawfiq Fayed About the Document The Author prepared this document to fulfill the above unit of the HND course requirement. Contact Information Cell No# +88 01717 16 88 86 E-mail: Tawfiq.bt@gmail.com

Note: This Document Covers the Outcome 3.0 of Unit 18: Advertising & Promotions

Outcome 3: Assess the role of below-the-line techniques and how they are used Differentiate between the characteristics and the objectives of various below-theline promotional techniques. Recommend the use of individual techniques in two commercial situations

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Assignment Brief
SCENARIO This is a group assignment. Every group should consist of 3 members. A power-point presentation will be taken on the assignment on submission day. Although it is a group assignment, the assessment will be based on both individual presentation and group performance of the written assignment. The focus of this outcome is on the role and use of different below-the-line promotional techniques. Your Tasks: Task1: Give an overview of below-line-techniques and their effectiveness compared to above-the-line techniques.

Task2: Differentiate between the characteristics and objectives of the various below-the-line promotional techniques (e.g., sales promotion, public relations, sponsorship and product placement, direct marketing, packaging and merchandising etc.). You should use class materials, text, and other materials from any secondary source to develop your answer.

Task3: Think of two alternative commercial situations and propose different below-the-line techniques for each of the situations. Your recommendations must go in line with the specific commercial situation and the motto of specific techniques that you are proposing.

Note : This assignment covers Unit 18 - Learning Outcome 3.0

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Asses the Role of Below-the-Line Techniques and How They Are Used

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11. 08. 2011

Khan Md. Raziuddin Taufique Assistant Professor Faculty, Business School BAC- alternative to traditional education

Sir, In compliance with the fulfillment of the requirements on the subject Advertising and Promotion, the proponents would like to present the proposal entitled Assess the role of below-the-line techniques and how they are used in accordance with your instructions. We hope that this proposal will meet your approval.

Very truly yours, Tawfiq Fayed, Nizamuddin, Mashad-Al-Rashid

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Unit Name: Advertising and Promotion

Unit No. : 18 Unit Type: H2

Prepared By:
Name ID No.

Tawfiq Fayed Nizamuddin Mashad-Al-Rashid

01-02-10035 01-02-10043 01-02-10040

Prepared For
Khan Md. Raziuddin Taufique Assistant Professor Faculty, Business School, BAC.

Date of Submission: The 11th August 2011

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Contents
Acknowledgment ............................................................................................................................ 9 Executive Summary ...................................................................................................................... 10 Chapter One .................................................................................................................................. 11 Promotional Techniques ............................................................................................................... 11 Below-the-Line & Above-the-Line Techniques ......................................................................... 11 Effectiveness of Below-the-Line Technique compared to Above-the-Line Technique ............. 12 Chapter Two.................................................................................................................................. 14 Below-the-Line: An Insight Into ................................................................................................... 14 Various Below-the-Line promotional Techniques .................................................................... 14 Findings from Sales Promotion ............................................................................................ 15 Findings from the Public Relations....................................................................................... 17 Findings from the Product Placement ................................................................................... 17 Findings from the Direct Marketing ..................................................................................... 18 Overall Judgment ...................................................................................................................... 19 Chapter Three................................................................................................................................ 20 Below-the-Line: In Application .................................................................................................... 20 Commercial Situation 1 ............................................................................................................ 20 Suggested Promotional Tool for the Commercial Situation 1 .............................................. 20 Commercial Situation 2 ............................................................................................................ 21 Suggested Below-the-Line Promotional Type ...................................................................... 21 Overall Judgment ...................................................................................................................... 21 Reference ...................................................................................................................................... 22

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Acknowledgment

This work would not be possible if almighty Allah would not give us effort. So, we are grateful to Almighty Allah. We are also thankful to our course teacher Khan Md. Raziudddin Taufique. He has guided us through the whole assignment.

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Executive Summary

The prepared document covers the outcome 3 of Unit 18, Advertising and Promotion of BTEC Higher Nationals. In this document the learners have assessed the role of below-the-line promotional techniques and also applied it in two different commercial situations. Chapter one of document concerns with the overview of below-the-line promotional technique. Chapter two concerns with the characteristics and the objectives of the different below-the-line techniques. And, finally, Chapter Three has shown an application of below-the-line technique.

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Chapter One Promotional Techniques

In this competitive business world the business organisations are coming with new promotional techniques almost in every day. The purpose is to promote their products towards the consumers; ultimately to survive in the market. Thus, promotional activities and techniques are so important to the marketers now-a-days. To promote, introduce, and advertise, there are mainly two general techniques are available that we can name of. One of these techniques is below-the-line technique. Our central concentration of chapter one in fact is below-the-line technique. Another technique that we can name is abovethe-line technique. However, in the given assignment task 1 has asked to provide an overview, moreover, the effectiveness of below-the-line promotional technique compared to above-the-line. Therefore, the whole chapter one covers the task 1 of the given assignment. Lets proceed to the next.

Below-the-Line & Above-the-Line Techniques

Below-the-line promotional techniques can be stated as an effective marketing communication tool. Its a form of non-media communication, sometimes even advertisement. Other than TV, print, radio and internet advertisements, there are some promotional activities like sales promotion, public relations, sponsorship and product placement, direct marketing, packaging and merchandising etc. These promotional activities are called the below line technique. Now, it can easily be understood that other than the above promotional activities, all advertisements are above-the-line techniques. More clearly, an above-the-line technique uses the mass media like TV, Radio, internet and print media that means it believes in traditional form of advertising.

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Effectiveness of Below-the-Line Technique compared to Above-the-Line Technique

We have already known that above-the-line is a kind of traditional form of communication method to reach the customers. And, this traditional method of commercial advertising doesnt sell the product anymore. And, it is very simple that if any advertisement doesnt sell, there is no value of that advertisement; I mean, useless. This is the only reason for marketers to bring some new promotional activities so that the sales can increase, I mean increasing the sales is the ultimate purpose, but there also some other purposes of promotional activities. To increase the sales and to attain other benefits promotional activities or below-the-line is so effective. Lets see how effective the below line technique compared to the above line technique. A below-the-line technique is effective than the above-the-line in reaching the appropriate person to identify and satisfy his/her needs Above-the-line uses mass media like TV, Radio, and Print where consumers are the mass audiences. But, there are several below-the-line techniques like direct marketing, direct selling to target the appropriate individual consumers, based on their expressed needs and preferences. And, reaching these very specific, individual customers increases the chance of selling a product many times than the traditional above-the-line technique. A below-the-line is more effective when it comes about the accuracy or the measurability of success Again, because of its being mass or not specific, its difficult to measure the accuracy of above-the-line whether the certain ad can increase the sales or not. On the other hand, below-the-line medias are highly measurable, allowing marketers insight into their return-on-investment, as well as those tactics that are (and are not) working. There are some other advantages or the effectiveness of below-the-line that we can find compared to above-the-line are 12 | P a g e

 Below-the-line technique is really responding and sales effective as it issues a call-to-action, inspiring specific customer activity or tailored messages about a product or a brand whereas above-the-line media establish brand identity or reinforce emotional concept surrounding a product or brand. it drives individual responses but above-the-line media may or may not drive customer response. So, from the above paragraph and the bulleted points we have got some features of below-theline techniques that actually shows its effectiveness compared to above-the-line technique.

Finally, it can be said that if anyone read this chapter from the beginning, he or she may find that this chapter doesnt give the detail of below-the-line technique but an overview. And, we know our concentration of this chapter was only the below line technique, and, we have made that. Therefore, to understand the below-line-technique you should not stop reading the document here. Lets proceed to the next chapter.

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Chapter Two Below-the-Line: An Insight Into

Marketers use promotional tools to meet their purposes. Behind every single promotional activity there is a purpose. Same thing goes with when they use below-the-line promotional tools. We know there are different types of below-the-line techniques. So, its really important for the marketers to know the objective of each of the technique or promotional tool that which type of tool serves which purpose the best. In this chapter, we will try to look into the depth of below-the-line promotional technique. We have got the definition in the previous chapter. Now, we will know about various below-the-line techniques. These are sales promotion, public relations, sponsorship and product placement, direct marketing, packaging and merchandising etc. However, task 2 of the given assignment has asked to differentiate between the characteristics and objectives of these above various below-the-line promotional techniques. Therefore, chapter two will show the different below-the-line promotional techniques, and their objectives and characteristics.

Various Below-the-Line promotional Techniques

We have already known about the various types of below-the-line promotional techniques, and these are sales promotion, public relations, sponsorship and product placement, direct marketing, packaging and merchandising etc. now, we will try to show you that how these promotional techniques are different from each other according to their characteristics and objectives, lets see it in below. One of the very important tools for the marketers to promote their product is sales promotion. Simply to say, sales promotion is an attempt to increase the sales of the goods. Now, there are some criteria to achieve the objectives of sales promotion, and these are actually the

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characteristics without the additional features that a sales promotional activity should contain. Lets see those characteristics below Generally, the message of sales promotion is tailored that means purposeful and informative so that the customers can get the necessary information to buy certain product, and can be convinced to grab the offer. Incentives are always offered in a sales promotion. It can be said as an approach of sales promotion. Sales promotions are short term in nature that means these are not offered to customers through the year. Sales promotions drives customer towards a quick response. The above bulleted points are some general characteristics of sales promotion. There may be some other additional features too. But, I think I have covered the main features. However, if any sales promotion activity meets these general characteristics, we can expect some outcomes from it. And, these expected outcomes are actually the objectives. Lets see the objectives in below Generally, marketers use sales promotion to introduce new products in the market. They often distribute free sample to create taste among the consumers. Marketers ultimate objective is to grow the feeling for having the product later on. Thus, it will increase the sales ultimately. Sales promotion is also used to attract new customers and to keep the existing customers. Generally, customers are attracted by the discounts, free, gifts these sorts of offer. Thus, marketers use sales promotion that ultimately increases the sales. One of the major objectives of sales promotion for the marketers to survive in the competition. As new products are coming in a frequent process, a company needs to hold the market share by attracting customers towards its products by offering incentives. Thus, sales promotion works to hold the market share, ultimately to increase the sales.

Findings from Sales Promotion

We have got the objectives of sales promotion as well as the characteristics. From the objectives and characteristics, it can be said that the main focus of sales promotion is increasing the sales 15 | P a g e

volume. And, to get this job done marketers use tailored, attractive messages, and attract the customers. In sales promotion we have seen that the main focus of this below-the-line promotional tool is to increase the sale, but there is also some below-the-line promotional tools that not only look for sales increase, even sometimes other than sales increase. One of these below-the-line promotional tools is public relation. Public relation is actually a much broader concept than the sales promotion. While saying sales promotion, it is easily understandable that its something regarding increasing the sales of goods. But, in case of public relations we cant actually be specific instantly. What actually public relation is? Actually, if we want to know about public relations, we have to think of a continuum where on one end of the continuum public relation is viewed as a non-marketing function that actually maintain the mutually beneficial relationships between the organisation and the public. On the other side of the continuum it actually performs the task of marketing communication. And, this part is actually the new edition of PR. Thus, we can characterize public relations as its often a press conference that actually tells us about the company, brand, product towards the public It is a way communicating the message of the company towards the people. It focuses the brand image and corporate value of the company. Form the characteristics we can identify the objectives of PR. And, these are Building marketplace excitement before the media advertising that means it is often arranged in a form of press conference where company gets the chance to introduce themselves and their product. Improving ROI by reducing the overall marketing cost. Introducing a product with little or no advertising. Building brand to customer bonds.

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Findings from the Public Relations

So, we have got that the principle of public relation is not increasing sales like sales promotion. Basically, it is used for maintaining brand image of the company, and keeping a good relation with publics. Another below-the-line that we can name is sponsorship. Actually, there is little bit similarity between the objective of sponsorship and public relations as both them are used for building the brand image and popularity. We can say that sponsorship is a form of public relations. Product Placement, a Special Form of Marketing Communication So far we have discussed few of the below line promotional techniques. Now, we will look on an exceptional form of marketing communication that is product placement. The term product placement is defined as the purposeful incorporation of a brand into an entertainment vehicle. Some of the main characteristics of product placement are It can be both in audio and video format. It is found in TV entertainment like movies or dramas. The objectives are product placement is The main objective of product placement is creating the brand image or let the brand be known to the people as a popular one.

Findings from the Product Placement

From the above we have found very similar like public relations that the purpose of product placement is to make the brand known to the customers and creating a brand image. Direct Marketing, a Popular Form of Marketing Communication Now-a-days, direct marketing is a very popular promotional tool for the marketers. It is a form of communication that helps to reach customers directly. Lets have a look on its characteristics below

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 Its a kind of promotional tool that a business makes contact with their existing or potential customers to generate sales. Telemarketing, e-mail, leaflet drops can be a form of direct marketing Direct marketing is one of the cost effective method to reach the customers. From the characteristics we got the reason why this promotional is so popular among the marketers now-a-days. It reduces cost, and brings accuracy in reaching the customers. So, objectives are definable now. Lets see the objective of direct marketing below Keeping the existing customers as well as increasing the sales. Reducing the cost Building customer loyalty

Findings from the Direct Marketing

The overall paragraph gives us a view that direct marketing is a very effective form of promotion that facilitates both the marketers and the customers. Packaging is another very useful tool for the marketers to promote their product. It is an important part of the promotion. Just think of a situation where in large superstore more than thousands products are displayed. If your packaging is not attractive, the customers will not look on your product. Again, packaging should be meaningful. Thus, packaging is so important for the promotion. The main purpose of the packaging is to attract the customer so that it can increase the sales. And, last of all, we will say about merchandising. This is a form of communication that presents or communicates the message of the product in an attractive as well as creative way so that the customers can get convinced by. It can contain a logo of brand along with the product or sticker or CDs. The objectives of merchandising are Generating good return on investment. Increase the sales of good.

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Overall Judgment
So, the above long discussion regarding the differentiation between the characteristics and objectives of different below-the-line techniques have revealed that the purposes of all the below-the-line promotional technique are not the same. Some of the promotional techniques are used to increase the sales, some of the promotional techniques are used to create brand image, or anything other related issues of marketing.

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Chapter Three Below-the-Line: In Application

Today marketers are applying as many as promotional techniques to increase the sales. They often use below-the-line promotional techniques according to the demand in certain situation. This is really important for us to know that when and where we should use which type of belowthe-line technique. Otherwise, it may result that expected outcome is not coming. The central concentration of this chapter is to have a clear concept about understanding the appropriate use of below-the-line promotional techniques based on situation. However, task 3 of the given assignment has asked to think of two alternative commercial situations where we need to suggest different below-the-line promotional for each of the situation.

Commercial Situation 1
The scenario of commercial situation 1 includes an automobile manufacturing company where the company has manufactured an executive sedan car for the niche market. Additionally, they want to market this car to their existing loyal, high class customers with cost effective communication. Moreover, the company never wants to market it to the inappropriate persons who cannot afford to buy this car. Again, the company is not looking for any mass media to advertise this very specific product as mass media communicates to all classes of people. At this situation the company is looking for something new so that they can market their product to the appropriate persons without having any kind of mass media.

Suggested Promotional Tool for the Commercial Situation 1

As per the requirement we can easily suggest that direct marketing is the best way for that company in commercial situation 1.

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Justification of the Suggestion Direct marketing facilitates marketers by reducing cost and by reaching appropriate persons, and it was the requirement in the commercial situation 1. Therefore, we have made the right decision. Direct marketing helps to keep the existing customers, and that company was also looking for marketing the product to the existing customers. Therefore, we have suggested the right promotional tool.

Commercial Situation 2
The scenario of commercial situation 1 includes an airlines company that they want to increase the sales of airlines ticket and travel packages. We know that summer is not a time for tourist to travel in the airlines. Generally, in this season airlines companies face decrease in the sales. So, at this situation the company is looking for using a below-line-technique to increase the sales of airline tickets and travel packages.

Suggested Below-the-Line Promotional Type

The company should use the sales promotion tool to increase the summer sales of airline tickets. Their offer will be like Buy 1 Get 1 Free, but there will be some conditions apply for the tickets and tours are that they have to pay the airline taxes for the tickets and travel packages. This is a very effective below-the-line technique because people will always go for or wants anything free out of anything. So by this they can increase their sales to a large number on summer. Justification of the Suggestion Sales promotion helps to generate sales by providing incentives in a shorter period of time so that customers can be in hurry, and respond quickly.

Overall Judgment
Finally, it can be said that for both of the situation appropriate use of below-the-line promotional technique is suggested. 21 | P a g e

Reference
Book Source:
1. George Belch & Michael Belch, 2009, 8th Ed. Boston: McGraw-Hills Publication Electronic Sources:

1. http://www.nos.org/Secbuscour/24.pdf, Date Visited: 02-08-2011 2. http://www.ballantine.com/2011dmtrends.pdf, Date Visited: 02-08-2011 3. http://www.jellyfishlegal.co.uk/res/pdfs/library/direct-marketing-the-basics.pdf, Date Visited: 02-08-2011 4. http://www.leanderbusinesscircle.org/pdf/EyeOn_May09.pdf, Date Visited: 02-08-2011 5. http://www.bizplus.ie/upload/documents/surveys/0708_Direct_Marketing.pdf, Date Visited: 02-08-2011 6. https://dspace.stir.ac.uk/bitstream/1893/2362/1/Tobacco%20packaging%20as%20promot ion.pdf, Date Visited: 02-08-2011 7. http://digitalcommons.calpoly.edu/cgi/viewcontent.cgi?article=1019&context=grcsp&sei, -redir=1#search=%22packaging%20techniques%20marketing%22, Date Visited: 02-082011 8. http://www.referenceforbusiness.com/small/Op-Qu/Packaging.html, Date Visited: 02-082011 9. http://www.ash.org.uk/files/documents/ASH_124.pdf, Date Visited: 02-08-2011 10. http://www.egyankosh.ac.in/bitstream/123456789/38332/1/Unit-17.pdf, Date Visited: 0208-2011

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