BTL - what is it? BTL advertising - what is it? The main advantages of BTL advertising. Development of promotion mechanics and conditions Rules and mechanics of promotions

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From this article you will learn

What are BTL events and how do they differ from ATL?
What are the main elements that make up a set of BTL activities?
What kind of BTL events are held?
What are the features of BTL events in the B2B sector?
What are the benefits of BTL events on the Internet?

Promoting any product or service in current market conditions without advertising is almost impossible. Recently, BTL events are gaining great popularity when developing company marketing plans. This advertising direction helps to effectively and quickly increase sales of a product or service, promote a brand, and also allows you to competently present and present a new product on the relevant market.

What is the difference between ATL and BTL events?

All types of buyer-seller interactions can be divided into two main categories: ATL and BTL.

ATL is an abbreviation for the English phrase “above the line.” It is translated into Russian as “above the line.” This term appeared accidentally when the large American company Procter & Gamble was drawing up its next advertising plan with a budget. The plan included only the costs of the most well-known methods of direct advertising, which were distributed through the media (radio, newspapers, television, etc.). After the plan was drawn up, the marketing department specialists remembered several more advertising methods: distributing free samples, holding competitions of various formats, sponsorship, various discount systems. These methods also needed to be included in the plan, so they drew a line under the main list, and wrote down new ones under it. Subsequently, this division began to be applied in other companies, and so it spread throughout the world. In Russia they also use a similar classification.

It turns out that ATL are methods of direct advertising that contain a number of activities for its placement:

Mass radio stations.
Newspapers and magazines.
Television (federal and cable).
Various ways to advertise on the Internet.
Outdoor advertising.
Advertising in transport (taxi, buses, trolleybuses, subway cars).
Advertising in cinemas.

All remaining methods of interaction with the buyer that are not included in this list are BTL.

BTL is an abbreviation for the English phrase “below the line,” which translates as “below the line.” These methods of communication do not apply to direct advertising.

According to statistics, at this point in time, BTL events are much more popular than ATL, and they will gain more and more popularity every year. ATL advertising is gradually fading away. This has a very simple explanation. Direct advertising is already so boring for people that it is more repulsive than attractive. Therefore, in modern conditions it is much more effective to use disguised advertising methods.

A distinctive feature of BTL events is that they do not require significant financial expenditure. But this does not mean that any novice marketer can cope with their organization and implementation. For a BTL event to bring the desired result, you need a professional approach to its organization and management. When the main staff of the company already has specialists in this type of advertising, there is no need to look for others. If there is no such staff, because the company is not so huge, it would be wiser to turn to a specialized BTL agency for help. You need to understand that an unsuccessful action can put an end to your reputation, which is why it is so important to attract specialists.

The main goals of implementing BTL events are:

Increasing the popularity of a product or service.
Providing complete and detailed information about the new product to end consumers.
Increasing the number of potential consumers by switching their attention from competing brands to your own.
Brand promotion and maintaining its image.
Increasing sales of goods or services of a particular brand.
Positioning and presentation of a brand, in which consumers develop an emotional attachment to it and its products.

The most important task of the entire BTL event is to bring the end consumer as close as possible to the brand’s goods or services, but with a minimum budget for carrying out the necessary promotions. First, there is a gathering place for potential buyers, and then promotions and BTL events of various types are held to influence buyers.

The main elements that make up a set of BTL activities

BTL events include several different schemes for stimulating product sales: direct marketing, public relations, personal sales, thematic exhibitions, etc. These events are planned and implemented based on a certain percentage of the entire advertising campaign budget. In Russia, the classification is slightly different, and it includes:

BTL activities to stimulate sales among consumers of these products.
BTL events to stimulate sales among sales representatives.
Direct type marketing.
Special events (presentations, festivals, exhibitions, etc.).
POS materials.

Sales promotion (sales promotion) is a means of marketing interaction that uses several persuasive techniques towards both consumer and trade audiences to induce specific actions or reactions.

Main advantages:

Actively stimulates further action.
The value of the product is positioned in such a way that in the eyes of the buyer it becomes more important than the price of the product.
New additional motives appear that encourage the purchase of a product.
Increases the percentage of repeat purchases several times.
Significantly increases the frequency of purchases and their volume.

Main disadvantages:

The retail price may be reduced.
It will reduce the reach of the target audience, because part of it will wait for discounts.
There may be a decline in brand authority.
May provoke competitors to make forward purchases.

Element 1. Sales promotion among resellers

Sales promotion in the field of resale is certain processes of BTL activities that are aimed directly at trade participants involved in bringing a product or service to the consumer. In the United States, according to statistics, there are somewhere around 1.3 million dealers in retail trade and about 340 thousand in wholesale. The main methods of sales promotion here will be:

All kinds of competitions among the dealers themselves (the main prizes will depend on the company’s sales level).
Special dealer bonus (this bonus is given to the seller himself for purchasing the product being sold in a certain quantity).
Trade coupons (certain compensation for enterprises engaged in retail trade from the manufacturer of goods). As a rule, such coupons are not returned to the manufacturer of the goods.

Element 2. Promotion of sales among consumers

This type of incentive includes the following BTL activities:

Game with product prices. There are three main options here: a discount from the main price, a discount when purchasing packaging (packaging that combines several products, or exclusive), coupons of various types.
Money back guarantee if the buyer is not satisfied with the product.
Various lotteries and thematic competitions.
Gifts that are given when purchasing a product, gifts by mail (to receive these, the buyer must send a label that will be evidence of this purchase), long-term work with discount coupons.
Distribution of free samples of sold products (allows you to increase sales by 10%).
Long-term loyalty programs.

Element 3. Direct Marketing

Another component of BTL events is direct marketing. It has a number of advantages:

Thanks to direct marketing, it becomes possible to work with narrow segments of the general market. This is done by delivering the necessary information to the right audience.
The communication process can be personified in certain ways.
Allows you to save your overall advertising budget thanks to efficient spending.
Direct marketing is very well managed.
There are more opportunities to conduct a complete analysis of all information.

Main advantages:

Specific focus on specific goals.
Controllable and easily measurable results.
All elements of the system are very flexible.
It becomes possible to personalize various information.

Main disadvantages:

If the strategy is designed for a short period of time, such advertising will be ineffective.
Contradictions appear between outgoing information and communication messages.

Element 4: Special Events

The next element of BTL events is the so-called “special events”. BTL events of this type allow you to reach the target audience as much as possible and provide flexibility for main selling messages.

Main advantages:

The necessary corporate image is formed.
Very large coverage of a diverse target audience.
All crisis situations are predicted in advance, and a plan to overcome them is also thought out.
Thanks to such events, the buyer develops trust and emotional attachment to the company.

Outgoing information cannot be completely controlled.
Time costs are inevitable because all decisions require approval before they are made.

Element 5. POS materials

The last component of BTL events is POS materials. Particular attention should be paid to the following number of features:

The nature of the information that will be provided to the buyer at the time of sale plays an important role.
Particular attention should be paid to strategies for promoting and positioning a product or service.
Goals at various levels must be clearly stated.
Other options for using the marketing communications mix are emerging.

Read material on the topic: POS materials

What BTL events can be held

BTL events with image communication

One of the most obvious examples of image communication will be charitable events. The main objective of such BTL events is to raise funds to solve a specific problem or a number of problems of social significance. People love to participate in such events because they want to help others and show their best side. As a result of such actions, a positive brand image is formed.

Organizing club programs is a good way of image communication. Such programs are aimed, first of all, at creating a certain group of people with common interests who will love and purchase brand products. Groups (clubs) will help not only improve your image, but also increase sales.

Distributing leaflets is one of the popular types of BTL events. This method of communication allows you to convey to potential buyers all the necessary information and does not require significant financial expenditure.

POS materials for BTL events. This may include some visual elements (displays and light panels). These materials help to attract attention to goods or services. They are located in places where potential clients gather (shops, exhibitions, etc.).

Promotional area with easy transportation. It is a special stand with advertising materials, near which there is always service personnel - promoters. They provide all the necessary information about goods or services and offer free product samples. It is very important that communication with the audience is competent, so promoters must have the appropriate qualifications. The success of the BTL event will depend on them.

Special BTL entertainment events. Their main task is to promote the brand and popularize certain products.

Special packaging is the transformation of the appearance of the products offered in the light of an upcoming holiday or a specific event. For example, packaging in a New Year's style for Christmas or in the style of the World Cup in anticipation of this event.

BTL events with guaranteed benefits for the consumer

When such promotions are carried out, the benefits of the product become very attractive to the buyer. This type of BTL event includes promotional packaging. This is a package in which, in addition to the main product, a bonus product is included, the cost of which should not exceed 40% of the standard price of the main product. Ideally, it should be 20 - 30%.

Special programs that are aimed at increasing customer loyalty. These are BTL marketing activities that allow you to maintain a buyer’s connection with the brand. An example of such programs is a cumulative system of bonuses, which can be exchanged for real goods when the required number has been accumulated. Many modern specialty goods stores offer such cards to their customers. For each purchase, bonuses are awarded to the card, which can then be exchanged for any product from the store’s assortment.

Sampling is a marketing tool for a BTL event that allows you to competently present brand new products to your target audience, which will increase the likelihood of a first purchase. Types of sampling include the distribution of free product samples or demo versions of the product (computer and mobile software), tasting and test drives.

BTL measures to reduce prices. These promotions, which are aimed at selling a certain type of product, are temporary. To make the new price of the product noticeable, bright price tags with the words “Sale” are made.

Coupon promotions. Allows you to purchase goods at a certain discount. In terms of its main action, this BTL event is similar to a regular trade marketing move aimed at reducing prices. Only in this case a discount is provided if the buyer has a special coupon available. Such promotions allow you to attract new customers.

BTL promotions with probable benefits

These promotions (BTL events) allow customers to win various gifts. The growth of the percentage of sales and brand promotion will depend on the quality, cost and necessity of the gift.

Lotteries. During such a BTL event, all buyers of certain products have the opportunity to win one or more prizes. For example, the Lays company announced that every packet of chips contained a code that you could register on their website and get the chance to win a variety of valuable prizes, the main one being a car.

Competitions. These are very effective promotions among all BTL events. Thanks to the development of the Internet and social. networks, holding competitions has become very simple. For example, a manufacturer of computer components, Intel, announced a competition. The prize was a powerful computer processor. The main conditions were joining the community and reposting the post. Thus, the popularity of the brand has increased significantly.

Instant gift. This BTL event is as follows. When purchasing a product for a certain amount, the buyer receives a gift.

Mobile and computer games. The brand is integrated into such a game, which increases its recognition and, on a subconscious level, creates an emotional attachment to the products of this brand.

Organizing and conducting BTL events: step-by-step instructions

Step 1. Study the target audience

The very first and most important step for successfully conducting BTL events will be identifying your potential buyer. This will allow you to select the target audience, because it is much easier to create correct and effective ways of interaction, which will significantly increase the level of sales.

To determine the type of buyers for a specific product, you can use the following:

The results of various marketing studies.
Information on these products from users on the Internet (various reviews on forums and discussions on social networks).
Direct observation of the behavior of potential buyers at points of sale. As a result of these observations, one can understand the motives of people choosing a particular product.

If a company sells toys, it is clear that the main target audience is parents and young couples. Pensioners, athletes and other segments of buyers will not be interested in these products.

Step 2. Estimate the costs of the BTL event

Standard methods of advertising in various media are very expensive. In comparison, BTL events are not only much cheaper, but also more effective. Each promotion can be tailored to a specific task, which will allow you to divide the advertising budget evenly and in small portions. To conduct BTL events of various types and directions, you must have:

qualified personnel;
free product samples;
necessary materials (booklets, posters, leaflets, magazines, catalogs, etc.);
a special stand for the presentation of materials and rental of space at the main sales points.

As an example, let's look at a BTL event based on sampling. So, there is a coffee company that sells special types of coffee products. Her advertising budget is 3 million rubles. 375 thousand free samples are being prepared, each costing 8 rubles. In 1440 promotional hours, the materials are completely distributed. Conducting various consultations will require no more than 300 thousand rubles. Over the entire period, you can conduct up to 2,500 consultations and conclude 400 contracts of various sizes.

Step 3. Select the type of BTL promotion

The type of BTL event must be selected based on specific goals (which may be different for each company) and the category of goods or services. You can focus on distributing samples, various lotteries, distributing leaflets, etc.

Step 4. Choose a place and time

The place and time of BTL events are not clearly defined. Depending on the main goals and individual preferences of the company itself, the places for holding the actions and their exact time will be determined.

To achieve the desired effect from BTL events, they need to be held in places where people buy something (various shopping centers, specialized salons and stores), since this is where access to a wide target audience is available, some of which are your potential buyers. Sometimes good results are shown not only by shopping centers, but also by busy city streets, train stations and airport waiting rooms.

As for the timing of BTL events, there are no restrictions. BTL events can be held absolutely on any days when there is a target audience at the points of sale. To stand out from your competitors, you can hold promotions during special periods (when it’s time to give gifts), since this way you can not only differentiate yourself, but also increase the percentage of sales.

Step 5. Select an agency to organize the event

In order for the outcome of the BTL event to meet your expectations, you need to correctly present the product and find an approach to the buyer. Therefore, everything falls on the shoulders of the promoters. Future sales of goods or services depend on their qualifications and professional skills.

You can look for professionals of this kind among the company’s personnel, but it is best to seek help from a specialized agency. However, it is worth paying attention to the track record of this organization (what promotions were carried out, what brands they collaborated with). You need to choose the most successful ones.

Step 6. Form the rules for the event

Specific rules for conducting BTL events are drawn up based on the main goals. The company must have a complete understanding of what it will promote, for whom it will do it, and what results this promotion should lead to. The promotion format should not go beyond the overall brand strategy.

The fundamental goals of such BTL events are to increase brand popularity and increase sales. Therefore, it is very important to pay attention to all the little things. A stand with advertising materials and the color of the service staff's clothing must match the overall style of the brand itself. The duration of such promotions should range from 3-6 weeks, since after 6 weeks interest in the goods and services offered disappears and it is not advisable to continue the promotion longer.

Step 7. Evaluate the effectiveness of the BTL campaign

At the end of each campaign, it is necessary to make a full assessment of the effectiveness of the BTL event. This will allow you to identify strengths and weaknesses that can be taken into account when conducting subsequent BTL activities. For example, this way you can identify a specific event that has shown the greatest effectiveness and repeat it at other sales points.

The full effectiveness of the BTL event is assessed according to the following criteria:

Total income from the promotion.
The percentage increase in sales of goods or services.
Direct and indirect costs of carrying out the campaign.
The period during which the action has fully paid for itself.
Overall profitability of the stock.

The event is considered successful if all the results were not lower than those planned by the company. After a successful BTL event, sales should increase by 25%, and sometimes more.

Effective BTL events: examples of famous companies

In modern market conditions, the buyer has become more demanding. All traditional methods of advertising bring less and less effect every year, especially if they are used to promote a completely new product on the market.

As an example, let’s remember thanks to which BTL events the world-famous brand “Media Markt” entered our market. The emergence of the company was accompanied by a special play on stereotypical Russian values: bears, nesting dolls, an open soul. Stores opened with a bright holiday program that attracted a lot of people. For the first few months there were discounts on the entire range. The brand in Russia was actively involved in holding competitions, distributing free trial materials, various competitions and shows with invitations from world stars. Thanks to this, he won the hearts of customers.

Launching a brand is one thing, but you also need to keep it afloat.

For example, the well-known company Red Bull regularly holds competitions for aircraft made by amateurs. In just a few years, this event gained worldwide popularity and attracted the attention of millions of people. In addition, the company sponsors many sporting events. It is not surprising that energy drinks from this brand are very popular all over the world.

Modern conditions for the development and implementation of the Internet in our lives make it possible to use all Internet marketing tools for the effective conduct of BTL events.

Main features of the Internet:

You can create a specialized website where all the necessary information about the brand and ongoing BTL events will be posted.
Advertising of various types (banners, direct messages, advertising on social networks).
Regular updates on the progress of promotions and all the news.
Sending mail with news, invitations to new promotions and congratulations.

To conduct a full-fledged BTL event, the Internet will play a very important role. All costs for conducting advertising activities on the Internet are small. There is no need to develop a specialized design or print anything additional. Of course, websites and emails will require a certain design in the brand style, but web design is quite simple and inexpensive. All costs are the creation and promotion of a website, mailing lists, and advertising on the Internet.

Costs for online BTL events include:

Cost of attraction

The cost of communication with a potential buyer on the largest portals on the Internet (following a link with an advertisement) is much lower compared to standard communication. It’s worth noting that in order to carry out some promotions on the Internet, you do not need to advertise on all major portals. It would be more advisable to choose less popular, but more thematic Internet platforms, since these are the ones where the necessary narrowly focused target audience gathers. Plus, this is not just information about the BTL event, but the full interest of the potential buyer. After all, advertising links are not simply clicked on; only interested users click on them.

Cost of direct communication

When a BTL event takes place on the Internet, this allows you to significantly save your advertising budget. In this case, there is no need to hire professional promoters and set up a call center to answer calls. Internet marketing tools are very extensive and allow you to perform many useful functions.

There is a dedicated support service to answer all questions. In 90% of cases, all questions are standard and of the same type, so you can create a section on the website with frequently asked questions. By going there, a potential buyer will be able to find answers. This will significantly increase brand trust and impact sales.

All responsibilities for promotion, answering questions, sending letters can be handled by 1-2 people, and not by a whole department of promoters and other employees, as with traditional methods of holding BTL events.

Costs for running/project management

Organizing BTL events on the Internet has a great advantage over standard methods. Throughout the entire promotion (from the start of the launch to the determination of the winners), you only need to monitor the competent presentation of advertising materials and occasionally notify with news. All other processes take place automatically.

Attracting the necessary audience, collecting a contact database - all this happens automatically, thanks to Internet marketing tools. One specialist can monitor the entire process of the BTL event, answer questions and send the necessary letters. All this will significantly save your advertising budget.

Thus, The option of a BTL event on the Internet with minimal costs consists of three stages:

preparatory stage (creation of a website and advertising materials);
the stage of attracting sponsors to the BTL event and organizing advertising on the Internet;
purchasing and packaging of prizes necessary for the promotion.

The final cost of the entire promotion (BTL event) will depend on the chosen direction, the popularity of this topic on the Internet, the presence of a target audience and its quality, and the availability of Internet platforms on this topic with a large number of visitors (target audience).

The average conversion rate of a website visitor into a BTL event participant is 2%. If the promotion is organized correctly and successfully reaches the target audience, you can increase this figure to 15%, but no more. Although there are no limits - with the right approach, everything is possible.

It is very effective to use Internet marketing when promoting mass consumer goods.

Industries for which BTL events on the Internet are effective:

Computer software.
Automotive industry (sale of spare parts and provision of repair and maintenance services).
Products of various FMCG categories.
Mobile communications, phones and mobile software.
Mass goods and services of various types for women/children.
Appliances.
Legal and financial services (assistance with loans, card processing, etc.).
Travel and tourism industry (vacations, air tickets, guides, etc.).
Sports nutrition and products.

To summarize, we can say that conducting and organizing BTL events on the Internet can seriously compete with standard methods of conducting such events. The high efficiency and low costs of BTL events on the Internet are simply amazing.

Which BTL events are always a winner?

One of the simplest and most effective BTL events is the distribution of printed advertising materials. For the successful implementation of such events, high-quality printing of leaflets, flyers, leaflets, etc. is necessary. In this case, you should contact the printing house. If you want to order high-quality roll printing of printed products in Moscow, the SlovoDelo printing house, which specializes in all types of printing, will help you. In addition, it has the most modern and high-quality equipment, and qualified employees carry out orders of any complexity.

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European and Russian product manufacturers spend millions annually on sales promotion. In this situation, companies are often at risk of ineffective promotion of their products. This is where a complete sales program strategy is needed, the cornerstone of which is the development of a promotional strategy. According to Nielsen, in most cases promotions are ineffective and often lead to losses. The purpose of this article is to become more familiar with the promotional tool, how to use it, and evaluate its effectiveness.

The choice of a promotional strategy as an element of a trade marketing strategy generally takes into account many patterns and is developed in accordance with the goals and objectives of the manufacturing company and retailer. According to a Nielsen survey, Russian consumers are extremely receptive to promotions: a 20% discount typically doubles a brand's weekly sales. Given the rising cost of the consumer basket, more and more buyers are paying attention to reduced prices. How are brands responding to this? What strategy do they choose? In most cases, they further expand the practice of promotions.

Promotion is a set of activities initiated by a manufacturer or retailer (or both), aimed at stimulating the target audience to purchase a product or service within a certain period of time. Typically, promotional offers include a price reduction, a gift with purchase, or a bonus offer for a short period. All these actions stimulate demand and increase the attractiveness of the product in the eyes of the buyer.

There are two types of promo: trade promo, or trade promo, the second is consumer promo, buyer promo. Trade promo is a promotion that stimulates the sale of goods through the activation of activities in the trading network.

It may include both motivational programs for network staff and stimulating demand through price discounts, additional placement, special design of retail space, etc.

Consumer promotion is a concept that includes advertising activities in the press and print, personal selling techniques, analysis of consumer preferences, activities to increase brand awareness, and activities to stimulate purchases (in-store promotion). Consumer promotion helps the manufacturer “agree” with the buyer; it is often called “customer marketing.”

Both types of support are aimed at achieving the same goals, and the main difference is only in the method of communication to the buyer. Moreover, in some cases, trade promotion and consumer promotion can occur simultaneously, for example, advertising on TV and a price discount on the shelf, promotional packaging and a price reduction in the same period, but in different retail chains.

Promotions and special offers can increase customer loyalty to a product, make the price at the point of sale more competitive with other products, as well as stimulate an additional impulse to purchase and attract new customers. Also, carrying out a promotion affects the positioning of the brand, maintaining and improving its image.

Companies that manage a large product portfolio need to draw up a special promotional plan and take into account the seasonality of consumer demand, and also pay attention to ensuring that the number of products for which the promotion is carried out does not exceed two or three, otherwise the effect will be significantly less .

Thus, an important task for the company becomes effective planning of promotional activities, which will allow the company to maximize sales and even win new consumers. As a result of the analysis, the author identified the following principles and criteria for building an effective promotional plan, which are recommended to be taken into account when building a strategy:

Goals and objectives pursued by the brand strategy;
Basic preferences of buyers;
Company goals based on customer preferences;
Goals pursued by the promotion;
Choosing promotional mechanics depending on your goals;
Determining the intensity and correct distribution of promotional periods between all market players;
Evaluating all promotions carried out for further improvement.

To ensure a strong and consistent impact, each promotion should focus on one of the growth variables consistent with the strategy of the brand being promoted.

Rice. 1. The impact of a promotion on metrics in the brand equation

For example, promotions aimed at increasing brand awareness will increase brand penetration by increasing the number of customers purchasing your product. Other promotions will affect the frequency of purchase or the amount of purchase in monetary or quantity terms.

Another important indicator in conducting a promotion is mechanics. Depending on the manufacturer’s goals, using an effective promotional mechanism, you can increase market share or sales volume and be less vulnerable to seasonal downturns. A promotional mechanism is a method of conducting a promotion, which determines the format of its implementation and special tools for implementation.

Thus, depending on the manufacturer’s goals, by correctly using promotional mechanisms, it is possible to increase market share, increase sales (profit), and maintain sales levels during a less active season/period. The main thing is not to make the rules of the promotion so complex that they will make the consumer unwilling to participate further, and therefore will not generate a repeat purchase. Simplicity is a guarantee that the participant’s primary interest in the promotion will not be lost.

Let's look at some popular promotional mechanics used today by manufacturing companies in the table. 1.

Table 1. Types of promotional mechanics used in retail chains

Online promotional options may vary depending on the format of the network. So, for example, in a hypermarket format with a sales floor area of more than 5 thousand square meters. meters, it is necessary to make the promotion more noticeable through massive displays, promotional equipment, navigation, additional promotional equipment, etc. All this will stimulate the buyer to make an unplanned purchase, and the average cost of such a purchase in a hypermarket is higher than in small stores with smaller area and narrower range.

Another store format for promotion is a supermarket with an area of 600-1600 sq. m and a wide range of food and related products, as well as high transport accessibility (within residential areas, at the intersection of traffic flows). In such chains, the promotion period should not exceed one week, since the buyer’s need for them is exhausted after the first or second visit to the store. On the other hand, thematic, seasonal and category promotions can be carried out for a duration of 3-4 weeks, as they are aimed at involving the buyer and stimulating long-term demand.

Various types of promotions can be used in this format due to the activity of the target audience. A big bet can be placed on price-sensitive customers and the use of aggressive promotions.

Another format is a discounter with a small retail space and a very limited assortment. Depending on the country, retail chain and category, prices at discounters can be 18%-70% lower than the market average. Therefore, price promotions are of limited use. Very popular in this format is a promotional calendar with information about promotional start dates for customers, as well as a high percentage of the use of loyalty programs for certain product groups, for example, private labels.

The next step in working with a promotion is to evaluate its effectiveness. The effectiveness of a promotion is the achievement of certain results that the company sets as its goal with minimal financial costs. There are some performance indicators for evaluating promotions suggested by the author:

Sell-in - sales volume expressed in purchase prices;
Sell-out (off-take) - sales volume expressed in retail prices;
ROI - return on investment in promotion;
Penetration and loyalty (HH panel and customer loyalty cards) - the indicator is based on data from consumer panels and data from chain loyalty cards.

ROI = ((Revenue per share - Revenue before promotion) * Margin - Expense per share) : Cost per share.

For example, a promotion is considered effective and generates profit if ROI > 1.

Let's consider some proposals for increasing promotional activities.

First, more shares does not mean more profit. In fact, the relationship between them is inversely proportional. According to Nielsen research, excessive promotion ultimately leads to poor performance.

Also, excessive use of large discounts is another way to undermine the effectiveness of a promotional campaign. The use of large discounts (those where prices are 25% lower than usual) leads to the fact that the effectiveness of sales promotion is significantly reduced in 50% or more percent of the entire promotional campaign. Therefore, it would be more rational to use a deep discount during a certain period of time with a balanced promotional presentation and a clear, relevant message.

Another important point that increases the effectiveness of using promotions is timeliness; for example, you can expand the options during the holidays or time them to coincide with some event, creating an emphasis on the promoted product and the period of the event.

The display of goods at the point of sale is the most important trade marketing element that should accompany a promotion. For example, additional points of sale should be accessible and visible to the buyer; competent design of the product category on the Internet will enable the manufacturer to encourage the buyer to make a cross-category purchase, for example, a box of chocolates and champagne, etc.

To summarize, promotions are a powerful way to gain market share. Each category can have successful and unsuccessful promotions. An important point in managing a promotion strategy is the balance of the promotional portfolio, as well as the analysis of consumer sensitivity to promotions in different trading formats: successful redistribution of the promotional activity structure discussed in the article can provide higher profits.

Bibliography

3. Ilyukha S.A. Assessing the effectiveness of promotions at the stage of developing a marketing strategy // Store Management, 2014, No. 3.

4. Ivina E. Planning and evaluating the effectiveness of trade promotions // Marketing PRO, 2010, No. 6.

Demand Management Committee ECR-Rus: “Effective promotion: theory and practice in Russia.”

Data from the American public opinion marketing company Nielsen

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