BELOW THE LINE MARKETING: ROLE OF ONLINE

MARKETING
Abstract
Faced with media fragmentation and escalating demand for measurable results, marketers
are shifting their spending from brand building to direct response oriented promotional
channels. Even the advertising industry is propagating 360 degree marketing as it too is
confronted with wafer-thin margins. Many analysts have estimated that margins in BTL
activities are as high as 20% as it provides value-added services. This paper focuses on
the trends in online marketing- the role of interactive marketing, rise of e-commerce, its
advantages and potential. Creativity and innovation is the key to this form of promotion
as customer is most important asset for an organization.
Introduction
The shift in marketing spend from mass media branding efforts to targeted, direct-
response marketing including interactive marketing, database marketing, direct mail,
insert media is referred to as below the line marketing. It also includes non-media
promotional activities like bazaar contests, public space hoopla, phone-in gifting, road
shows, guerilla marketing, carnivals and loyalty programs. Rapidly developing new
technologies, media outlets constantly proliferating and changing markets dissolving and
re-emerging almost daily are some of the factors, which has contributed to this shift. The
other related development is commoditization of products due to increasing competition.
Below the line initiatives are more successful because they are more customer-centric and
easily measurable.
The rate of shift of communications budget to below the line has also escalated as a
result of changing consumer attitudes and media fragmentation. More channels and more
diverse consumers are making it harder for marketers to reach a truly mass audience. For
illustration by co-coordinating a direct mail drop rate with e-mail, a marketer can expose
consumers to the same message in multiple media.
The main reason for the shift is that every investment is being viewed critically and
expenses are always under scrutiny in a ever-changing, dynamic market. As product life
cycles are shrinking, marketers are shifting their focus to customer equity management.
A decision should be strategically correct, financially viable and operationally
convenient, therefore the shift to BTL marketing. Below the line communication efforts
provides the right strategic focus; measurable results; that is economy, efficiency and
efficacy as organizations are increasingly questioning the marketing “expenses”.
The few instances quoted here from Indian Corporate further highlights the shift in focus
(and budgets) to below the line marketing efforts:
 Launch of ‘Nebula’ range of jewelry by Titan. Titan did not use TV as a medium;
rather it came with offers during the gold-buying season depending on the region;
for e.g ‘Akshayatrita’, ‘Gudipadwa’ and occasions when the gold buying is at its
peak.
 Himalaya Drug Company when they launched baby care products focused their
communications on relationship with parents and building target groups through
maternity homes and pediatric clinics.
 Samsung India the first organized player to launch MP3 players in India n
specifically targeted the youth and children in schools and colleges. In the BPO
 segment it set up temporary demo ‘music rooms’ where users can touch and feel
the products.
 ICICI Bank as also roped in Cartoon Network’s Tom and Jerry duo to promote its
Young Stars Account to 4-14 years old. Innovatively the account allows children
to manage their finance while being monitored by parents.
 Saint-Gobain an established float glassmaker has initiated a programme called ‘
Transparence’ in a bid to encourage architecture and design students to generate
solutions using glass as a structural and decorative element.
Role of online Marketing:
The digital revolution has shaken marketing to its core. The difference between a
television screen and a computer screen becomes one of mere size as mass media evolves
into a personalized two-way communication. Technology has not only changed
businesses but also people, it is not just computers that are being reprogrammed; it is
customers themselves. These consumers want to customize everything from products
they buy, prices they are willing to pay and the information they seek. Most importantly
they are no longer content to be passive recipients of marketing messages. The interactive
marketing media fits the bill as it provides the consumer with unimaginable quantity and
quality of information in an as they can sort information on any desired attribute or
combination of attributes. The following table highlights the illustrative characteristics of
the networked world:

Illustrative Characteristics of the Complex, Dynamic and Networked

World

From To
 Technology as Enabler  Technology as a Driver
 Seller Centric  Customer Centric
 Physical Assets  Knowledge Assets
 Vertical Integration  Virtual Integration
 Functional (Silo) Focus  Cross Functional Integration
 Planning Processes  Agility experimentation and learning
 Firm Focused Strategy  Network Focused Strategy

(Source: Vijay Mahajan and Jerry Wind, “Digital Marketing” August 1999)

These customers like to obtain customized information, education and consultation

interactively anytime, anyplace. But they are not homogenous; the reliance on the internet
varies by domain viz financial services vs grocery shopping and other consumer-related
characteristics like whether internet is the preferred mode of communication and whether
they use net for social interaction / entertainment.
Even radio has redefined itself with visually interactive information. The concept is
actually pretty simple: When one tune into the said FM Channel on the cell phone, one
can surf trivia about the particular song on the air Thus below the line is also about
delivering the right experiences; the vital sensory touch points which has the potential to
ignite consumer desires. Below the line digital technology-led communications enable a
company to increase sales ‘ focus on ROI and leverage knowledge. It is pertinent to
reflect on the business model introduced by Domino’s Pizza in a non-internet
environment where location is irrelevant, the buying decision can be made anytime/
anyplace and the value proposition is speed. The database marketing techniques have
played a pivotal role by redefining the firm’s relationship with its customers. Marketers
can build mutually valuable relationships with customers through a trust based
collaborative process highlighted as below:

Branding Content
Management
Online Marketing
Customer Acquisition Customer Retention

The contention that BTLM will not enable the organization to build Brand Equity does
not hold true as a strong brand is the one, which offers an insight.

Marketing Research on the Internet:

The internet provides volumes of timely and useful information. In the physical world,
secondary research has the reputation of being limited in scope, lacking in detail, and
often out of date. In the networked world, the reverse is true.
Another source of online secondary data is archives of newsgroups. The net being home
to numerous interest groups in a wide range of areas provides valuable inputs about
market trends, consumer opinions and problems.
On-line data collection, storage and retrieval systems have simplified and accelerated
primary data collection. Online focus groups and online surveys have several benefits;
they are convenient for both clients and respondents and effective in bringing together
people from different parts of the globe together Installation of UPC scanners, in-store
tracking and other such systems allow marketers to test new marketing ideas quickly
and inexpensively.
Innovations in retail technology will make it easier to conduct experiments in the
physical store. For instance when a shopper inserts a ‘Loyalty Card’ in the electronic
kiosk, it displays a customized set of products and store specials based on the customers’
past purchases.
A web presence allows marketers to track what visitors do at their site. From a marketer’s
perspective, individual –level data are more important than aggregate data
The marketing research data complied and disseminated through internet would generate
increasing returns to scale.
Mobile Phone as a medium for BTL Marketing
As India is becoming increasingly digital there is a huge market for using mobile phones
for sending targeted messages (viz. caller tunes and ring back tones). Many sales
promotion messages can sent and/or downloaded. As Indian consumers are more tech-
savvy than their counterparts in the world, using mobile services for marketing-related
communication can also grow. Marketers can send targeted messages to individual
groups, track their patterns and develop consumer profiles about frequency of downloads.
The personalization strategy can meet the unique needs and expectations of key
segments. A firm can hence use different versions for different target segments. SMS and
MMS can also be use as a conduit of marketing communications. The following table
illustrates the shift in marketing strategy as a result of power technology:

From To
Enhance brand image Create customer affiliation
Selling products Marketing experiences
Product life cycle Customer life cycle
Acquisition Retention
Meeting standards Setting standards
Advertisement being directed by the Advertising being requested by the
marketers customers and therefore personalization

Customer characteristics and benefit Behavioral segmentation based on

segmentation customer database

The technology also enables to measure how many toll-free calls and on line registrations
a particular advertisement generates and how many are converted into sales, which is
important parameters of marketing metrics.
Conclusion
Below the line efforts will not only enable an organization to build brand equity but will
also create customer affinity.. Discovering new and non-traditional medium is an
important tool for innovation and therefore effective marketing. The non-traditional
media also enable a marketer to capitalize on niche audiences and peer-to-peer
marketing. This can definitely complement above the line efforts to build goodwill and
trust in the long run.
As discussed the winners are those firms who
 Shift their focus to digital media
 Develop formats to promote interaction with audiences
 Combine ATL & BTL
 Create their own branded entertainment assets
The customer has continued to embrace the internet as an increasingly powerful channel:
the difference is that they use it in concert with other relevant channels.
REFERENCES:

1. Malhotra Naresh K, ‘Marketing Research: An Applied Orientation’ 4 th ed.,

Pearson Education
2. Edith Weiner & Arnold Brown, ‘The New Marketplace’ The Futurist May /
June 1995.
3. Jack Martin’s ‘Bimonthly New letter of Experimental Marketing’ Nov 2006.
4. John O’ Corner, E Colvin Martin Evons, ‘Electronic Marketing
Communication’ The Role of Technology.
5. Pahwa Sumit ‘Welcome Interactive Marketing’ A & M July 1999.
6. Malhotra Naresh K ‘Peterson and Susan Bardi Kleiser ‘Marketing Research” A
State of the art review and directions for the twenty first century’ 1999.
7. Kellet,Kevin L ‘Strategic Brand Management’ (Indian edition), Pearson
Education
8. Issues of Business standard
9. Issues of The Hindu Business Line

* E.g. In a bid to reinforce its brand on kids, ITC Foods Ltd will soon cover more than
1,000 schools across the country as part of its Sunfeast school programme. The Sunfeast
school programme focuses on building the children’s creativity through an opportunity to
paint and win prizes.
* “Our learnings corrobrate the fact that brands register better among kids compared to
adults. Learnings from our biscuits track revealed that spontaneous recall of Sunfeast
among kids is about three timesmore than their mothers,” said the ITC Foods Division
Chief Executive, Mr ravi Naware.
*While the ad agency employed for Sunfeast is FCB Ulka, the below-the-line marketing
initiative has been executed by various direct marketing agencies.
*Above-the-line marketing consists of traditional channels that strive to reach a mass
audience and include:
 Television
 Radio
 Newspapers
 Magazines
 Yellow pages
* Below-the-line marketing consists of channels that strive to establish targeted
relationships between marketers and individual consumers, and offer relatively easier
measurement. They include:

 Direct mail
 Direct response broadcast
 Direct response print
 Even marketing
 Interactive marketing
 Promotional marketing
* Caught between the contrasting needs to grow profitably and meet the demands of a
sophisticated customer base, Winterberry Group dual imperative is causing a significant
shift in marketing emphasis away from mass-oriented channels and toward more targeted
channels that offer more measurable ROI. The marketing challenge is to identify the
appropriate media mix that incorporates branding and identity opportunities with
initiatives that promote customer acquisition, retention and loyalty development. The
most successful marketers figure out the best multi-channel mix.