Below the line marketing activities - Essay Example

Below the line marketing activities Introduction Below the line marketing activities involve direct method of communication in which highly specific lists of consumers are targeted in an attempt to increase consumer responses. Unlike above the line marketing efforts which generally involve using different forms of media to send a single message to a broader, diverse group of consumers, below the line communications involve direct mail, event marketing and promotional marketing. Where above the line efforts would, for instance, utilise television and radio to reinforce a company or brand message, below the line efforts are message- and consumer-specific. This report identifies below the line activities and explores several examples of these marketing functions in today’s companies. Below the line Lancaster (2008) describes above the line activities in terms of advertisements which are submitted to various publishers with a commission paid to the entity for the communications space. Below the line marketing involves non-media advertising such as a public relations news release or a trade exhibition (Lancaster, 2008: 1). What determines whether a company utilises above or below the line advertising will depend upon the marketing budget for promotion and the specific message which the company desires to send to customers. Consider the following hypothetical scenario: A wholesale retail outlet specialising in serving the working class begins to carry upscale, luxury merchandise to broaden their consumer audience. Using mass media efforts, such as a radio advertisement, may be too costly for the small volume of upscale customers it will reach. Instead, the wholesaler’s use of the shopping Club or Value Card which send promotional literature only to those consumers who have illustrated high dollar shopping would receive a customised e-mail message or other sale promotion. It would seem that under most accepted definitions of below the line marketing, when concentrated targeting is required, below the line activities are most appropriate and less costly. Below the line efforts should “aspire to establish targeted relationships between marketers and individual consumers, and offer comparable ease in measurability (V12 Group, 2006: 2). The key term in this definition is measurability, which is something that below the line efforts provide. For example, it would be quite difficult to determine exactly how many customers had visited a retail store based on a community-wide television advertisement. However, a below the line activity such as the distribution of target customer promotional cards would indicate the volume of promotional literature returned, offering a specific return ratio based on percentages sent and volume returned. When using this type of below the line marketing, it is clear to see that a significant advantage lies in measurability for the sake of strategic or operational planning. Carter (2006) offers a wider variety of activities associated with below the line marketing, including text message promotions, sales catalogs, trade shows and public relations events. Unlike above the line efforts which are generally variable in cost, below the line efforts are usually fixed fees associated with promotion. The development of various key chains or other logo-inspired products used for promotion would be common items of the below the line marketing activity. Flack (2008) offers the importance of below the line promotion by suggesting that the consumer population has evolved far beyond the traditional, promotional writing pen, thus companies need to come up with a more brand-focused and innovative series of promotional materials in order to capture the sophisticated consumer attention. The author suggests that throw-away gimmick items will no longer be effective in below the line efforts due to the shift in consumer attitude regarding these items. The whole purpose of below the line promotional activities are to build a connection between the brand and the consumer, thus the promotional items commonly found in trade shows and exhibitions must have a meaning for the consumer as well as speak to their individual lifestyles or personal views of the branded product. For instance, a manufacturer of a hypothetical laundry detergent would likely not find value in below the line marketing through the creation of a key chain illustrating the product’s logo. Instead, consumers might find increased value for a clothing lint brush with the product logo as it has both function and unique presentation. Reynolds (2008) offers that a major shift from above the line to below the line activities occurs today because of marketing budgets. Dispelling the advertising agency and moving promotional activities in-house allows companies increased internal cooperation, leading to a higher pool of ideas about promotional activities in a way that is unique to the business’ culture and business climate. Consider an organisation which maintains a large portion of its consumer audience in urban, metropolitan areas because the product has found connection with these consumers. An in-house promotional campaign, a below the line marketing function, might involve representatives from the business sponsoring an exhibition on the streets of London. After establishing all of the proper legal and obligatory approvals, having members who are familiar with the company’s brand and brand-related attitude perform elements of the exhibition would serve the below the line business objectives. This would offer a personal touch in a fashion that is congruent with communicating the desired brand message and the exhibition would be performed in an environment which is conducive to buyer demographics. A television or radio ad could not accomplish the same outcomes nor provide this personal, interactive touch. Below the line activities also include direct mail communications and other e-mail promotions which can be customised to fit the desired consumer profile. Direct mailing would include various coupons or informational brochures which are sent to specific customers which have the highest probability of responding to the message. For instance, a luxury rugs cleaning company would want to identify potential customers based on income bracket or home variety. The firm’s below the line marketing efforts might include a 20% off loyalty coupon or simply illustrate a scenario which more affluent customers experience to build brand loyalty. It would be wasteful both to budget and marketing expectations to deliver expensive print literature to struggling working class homes for this type of business. Instead, customised messages designed to inspire the customer or make the consumer perceive a connection between needs and needs fulfillment is accomplished by personalised below the line efforts. Below the line activities could also include direct-mailing promotional items to a consumer household, such as refrigerator magnets, as a means to appeal to the desired consumer segment. Periodic mailings with these items would serve to reinforce the company’s brand on the mind of the consumer as well as give the consumer the impression that the brand is always thinking about them. In some sense, it appears that below the line marketing activities can be a more invasive method of advertisement which is likely to get a larger response than a generic television communication. The on-air media format can certainly send the consumer message effectively, but the method by which it is received can be controlled or better manipulated using a below the line advertising and promotion philosophy. It would appear that it is highly dependent on the objective of the marketing company in terms of whether the business chooses above the line or below the line promotional activities. Is the business considering an expansion into new market territory? Is the business looking for a new consumer demographic to replace one in which sales volumes are struggling? These are questions that the business must ask itself before determining which method of promotion will bring a higher rate of return and increased brand value. For new market opportunities, the establishment of a trade show can be customised to fit with a new consumer profile as a means to introduce them to the company’s brand. By having a tangible representative from the company it creates an interactive marketing format whereby the customer can offer objections or suggestions about the product and provide instantaneous quality control information to the business representative. Conclusion Clearly, below the line marketing efforts are quite different than above the line measures and impact the company in terms of cost, overall targeting effectiveness and ability to measure the return on the investment. Below the line promotion can be customised to fit a particular consumer audience in far greater proportion than that of mass advertising campaigns on television or radio. Below the line efforts are a more direct form of brand building with an opportunity to promote the company in an interactive marketing environment or one in which consumers feel they are being individually rewarded for their dedication to the brand or their buying histories. Whether the marketing entity uses above the line or below the line marketing is a strategic business decision which should be carefully considered before creating promotional materials or changing promotional policies. It is all about increasing brand value. Bibliography Carter, Stacy M. (2006). “Going below the line: Creating transportable brands for Australia’s dark market”. University of Sydney. Retrieved 8 Nov 2008 from http://tobaccocontrol.bmj.com/cgi/content/full/12/suppl_3/iii87 Flack, Jo-Anne. (2008). “Promotions and Incentives: It really is the thought that counts”. Marketing Week, London. 19 Jun 2008: 35. Lancaster, Geoff. (2008). “Above- and below-the-line promotion”. Retrieved 9 Nov 2008 from http://www.marketingmasters.co.uk/communications.htm. Reynolds, John. (2008). “Analysis: Is in-house advertising wise?”. Marketing Week, London. 7 Feb 2008: 11. V12 Group. (2006). “Tracking the Trends: A Comparison of Above-the-line and Below-the-line Expenditure Trends”. Winterberry Group LLC. Retrieved 9 Nov 2008 from http://www.v12group.com/pdf/report.pdf. Read More