Two main different types of promotion are classified as Above the Line Promotion (ATL) and Below the Line Promotion (BTL).
Promotion Mix is the combination of promotional techniques that a firm uses to sell the product. Promotion Mix is comprised of Above the Line Promotion (ATL) methods and Below the Line Promotion (BTL) methods.
Determining the optimum promotional budget and forecasting future sales as a result of promotional spending is a challenging task for the marketing manager.
Above the Line Promotion (ATL)
Above the Line Promotion (ATL) refers to marketing expenditure on advertising in the paid-for independent mass media such as television advertising, radio advertising, cinema advertising, newspapers advertising, magazines advertising, Internet advertising, outdoor advertising, etc.
Why using Above the Line Promotion (ATL)? It helps to establish brand awareness on the market.
How to use Above the Line Promotion (ATL)? Make payment directly to mass media to target mass market audiences.
Benefits of using Above the Line Promotion (ATL): Ability to potentially reach a large number of customers at the same time, advertising campaigns are more creative thus interesting and eye-catching, etc.
Drawbacks of using Above the Line Promotion (ATL): Less control over the recipients and their reactions, very high cost, might not appeal to the target market audience as many advertisements are ignored, not suitable for targeting specific market segment, difficult to measure success as it is difficult to measure the effectiveness, using external advertising agencies will incur high fees, etc.
Above the Line Promotion (ATL) caters for one-way communication with customers.
Below the Line Promotion (BTL)
Below the Line Promotion (BTL) refers to the use of all other non-mass media promotional activities over which the firm has total control including sales promotion, personal selling, direct mail, trade fairs and exhibitions, sponsorship, Public Relations (PR), viral marketing, branding, slogans, logos, packaging, word-of-mouth, direct marketing, etc. These methods are used in the short-term to support Above the Line Promotion (ATL) methods.
Why using Below the Line Promotion (BTL)? It is helps to secure actual sales of products.
How to use Below the Line Promotion (BTL)? Mainly use short-term incentives throughout the year to keep sales.
Benefits of using Below the Line Promotion (BTL): Much cheaper as there are no direct payments to mass media outlets, greater control over the recipients and their reactions, business managers have more control over the Below the Line Promotion (BTL) methods, can persuade individual customers to buy the product instead of competitive brand products, helps with introducing new products to customers, etc.
Drawbacks of using Below the Line Promotion (BTL): Aimed at individuals therefore not able to reach a large number of customers at the same time, the firm must have creative employees in the Marketing department, one method may not be sufficient to achieve promotional objectives, etc.
Below the Line Promotion (BTL) caters for two-way communication with customers.
In reality, most businesses use a combination of both Above the Line Promotion (ATL) and Below the Line Promotion (BTL). Through the Line Promotion (TTL) involves combining both Above the Line (ATL) and Below the Line (BTL) promotional strategies.
