Assignment 2 – 1527 words

In the concept of the ‘marketing mix’ what is meant by the term ‘Below the line’ activities? Discuss the range of objectives likely to be set in using such activities.

  1. Introduction
  2. Objectives likely to be achieved through BTL activities
  3. Conclusion
  4. References

1.Introduction

Out of the four P’s of the marketing mix, promotion is arguably the most prominent one for marketers.  Once the product is finite, the price set and the distribution channels decided, the organisation needs to concentrate its efforts to communicate to consumers about their product/service, and that can be achieved through promotion.

 Below the line activities (BTL) are an important part of promotion. They are classed as forms of non-media communication that are efficient and cost-effective; they target limited and specific groups in both consumer and trade markets  and act as short-term or temporary incentives to purchase. Examples of below the line activities are exhibitions, sponsorships, direct mail and sales promotions such as competitions, gift with purchase, coupons and vouchers, merchandising (point of sale displays), etc that target the consumer market or promotions that target the trade market such as discounts and special terms or tailor made promotions.

2.Objectives likely to be achieved through BTL activities

Through exhibitions and trade fairs, organisations target both trade markets and consumer markets. The organisational objectives are to gain as much exposure as possible and crate trial and awareness but also to test new markets and encourage consumers to purchase their products as oppose to those of their competitors. Exhibition attract a high quality audience and the organisation is in a better position to make contact with decision making unit members who might influence the companies they work for to endorse their products more than others thus possibly offering more display space in case of retailers or switch brands altogether. Individual visitors/potential customers are possible opinion leaders and attending an exhibition gives them the opportunity to try out the products and benefit from expert advice from representatives and following a purchase they may influence the group they identify with into trying out the product. But even if purchase is not made, the visitors have to pay an entrance fee, which will go towards keeping the organisation’s expenditure within budget. An example of such a below the line activity comes from YAMAHA, a multinational corporation that specializes in musical instruments, Pro Audio equipment and Home Cinema/ Hi Fi products, that entered the SOUND EXPO 2008 – Sound Design Software & Music Technology Exhibition (that is in its 7th year) together with 135 other exhibitors. SOUND EXPO 2008 was part of a bigger even called Music Live 2008, that apart from gathering numerous music fans to the live concerts, it also called upon the ‘budding producer, engineer or project-studio obsessed muso’ to ‘ try out loads of hi-tech recording and performing kit’ .

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Organisations that sponsor different types of events have as objectives to promote their brand and increase awareness and interest among target consumers. Associating a brand with a certain event can change the consumer’s attitude towards the brand or can help target new markets. For instance, Heineken who is an official sponsor of UEFA Champions League, has come up with a unique concept to communicate and interact with its target audience in Nigeria. Heineken opened  The Heineken House where, after a selection that took place in bars around Nigeria, the football fans were taken into The House and apart from ...

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