In: Operations Management
Explain why some businesses use both above the line and below the line methods of promotion [8]
In Above the line promotions, company uses mass media to promote their business and create awareness about the services they offer to the target customers. These include TV, radio, internet and print media. The reasons for using this method are:
1. Reaching a very large number of people (a wider spread of audience) using this method.
2. More exposure can result in a bigger market share of the firm by creating more profits.
Below the line promotions are the promotions which are targeted to capture individual customers. The usage of below the line promotion techniques are as follows:
1. Does not have to pay intermediaries and external agencies hence cost saving.
2. Targets individuals according to needs and preference hence specific thereby making the promotion customized.
3. The feedback from below the line promotion can be instantly received.
4. It involves direct contact hence better customer relationship.
5. It helps to communicate a lot of information, hence increasing the customer awareness.