Lepan Centre

Archive for the ‘Money Control’ Category

Promotion can be loosely classified as “above the line” and “below the line” promotion. The promotional activities carried out through mass media like television, radio, newspaper etc. is above the line promotion.

The terms ‘below-the-line’ promotion or communications, refers to forms of non-media communication, even non-media advertising. Below-the-line promotions are becoming increasingly important within the communications mix of many companies, not only those involved in fmcg products, but also for industrial goods.

Some of the ways by which companies do BTL (below the line) promotions are by exhibitions, sponsorship activities, public relations and sales promotions like giving freebies with goods, trade discounts given to dealers and customers, reduced price offers on products, giving coupons which can be redeemed later etc.

BELOW THE LINE SALES PROMOTION

Below the line sales promotions are short-term incentives, largely aimed at consumers. With the increasing pressure on the marketing team to achieve communication objectives more efficiently in a limited budget, there has been a need to find out more effective and cost efficient ways to communicate with the target markets. This has led to a shift from the regular media based advertising.

A definition of below-the-line sales promotion given by Hugh Davidson:

‘An immediate or delayed incentive to purchase, expressed in cash or in kind, and having only a short term or temporary duration’.

Methods of below the line sales promotion

1. Price promotions

Price promotions are also commonly known as” price discounting”. These can be done in two ways:

(1) A discount to the normal selling price of a product, or

(2) More of the product at the normal price.

Price promotions however can also have a negative effect by spoiling the brand reputation or just a temporary sales boost (during the discounts) followed by a lull when the discount would be called off.

2. Coupons

Coupons are another, very versatile, way of offering a discount. Consider the following examples of the use of coupons:

- On a pack to encourage repeat purchase

- In coupon books sent out in newspapers allowing customers to redeem the coupon at a retailer

- A cut-out coupon as part of an advert

- On the back of till receipts

The key objective with a coupon promotion is to maximize the redemption rate – this is the proportion of customers actually using the coupon.

It must be ensured when a company uses coupons that the retailers must hold sufficient stock to avoid customer disappointment.

Use of coupon promotions is often best for new products or perhaps to encourage sales of existing products that are slowing down.

3. Gift with purchase

The “gift with purchase” is a very common promotional technique. In this scheme, the customer gets something extra along with the normal good purchased. It works best for

- Subscription-based products (e.g. magazines)
- Consumer luxuries (e.g. perfumes)

4. Competitions and prizes

This is an important tool to increase brand awareness amongst the target consumer. It can be used to boost up sales for temporary period and ensure usage amongst first time users.

5. Money refunds

Here, a customer receives a money refund after submitting a proof of purchase to the manufacturer.
Customers often view these schemes with some suspicion – particularly if the method of obtaining a refund looks unusual or onerous.

6. Frequent user / loyalty incentives

Repeat purchases may be stimulated by frequent user incentives. Perhaps the best examples of this are the many frequent flyer or user schemes used by airlines, train companies, car hire companies etc.

7. Point-of-sale displays

Shopping habits are changing for the people living in metropolitan cities. People prefer big retail outlets like Big Bazaar to local kirana stores. Most of the decisions of buying are taken by the virtue of point-of-sale displays in these retail outlets.

SOME INTERSTING EXAMPLES OF BTL promotion

Most of the big brands are following the suit of BTL promotion because of rising prices of media based promotion, advertising clutter and increased impulse purchasing.

Some of the interesting examples are:

Most of the educational institutes like career launcher, Time and PT are holding informative workshops and free tests for students which give a direct interaction of these institutes with the target customer and hence a suitable platform to sell themselves.

Ring tones and music videos on cell phones are helping the entertainment industry to promote for a music video or a movie for dirt-cheap rate as compared to media promotion.

Various companies sponsor sport events to promote their brand, but nowadays media companies like Hindustan Times are holding weekly events through out the country in which companies can put up their stalls, display banners and posters and arrange for some fun activities. These events give the companies a platform at very low price to promote their brand and increase visibility among target consumer. These companies also give discount coupons to winners in the games, which in turn boost the sales of the products and ensure that first time users try these products as well.

Pepsi organized an inter school cricket event for 425 schools across 14 cities which did wonders for the company by promoting the brand amongst the right target customer for almost no cost.

Most of the pharmacy companies do BTL promotion by getting shelf space through doctors to display their products or by giving away free calcium tablets again through doctors, knowing that for a patient a personal advise from a doctor would hold more value as compared to a commercial advertisement.

Another interesting BTL promotion was by NIKE, an athlete dressed up in Nike sportswear could be seen jogging on an elevated treadmill for the whole day on National Highway 8, Delhi.

BTL promotions are gaining popularity among all big companies nowadays considering their effectiveness because of the “individual customer promotion” at a price, which is much lesser than the normal media promotions.

Gas prices are out of control! If you are looking for ways to travel cheap, here are a few tips to save money on gas during your vacation.

1. Turn off the air conditioner. Now of course if you are traveling through Florida in August this is impractical. But if it’s a nice day or you’re driving during the evening, try switching off the A/C for a while and enjoying the outside air. You will be pleasantly surprised how much you notice going on around you with the windows open. Try it! Using the A/C reduces fuel economy so you can go longer between pit stops at the gas stations.

2. If you have cruise control be sure to use it as this will save gas. By the same token, don’t forget to use the overdrive also, which is another gas-saving hint. Most people forget.

3. Try reducing weight – not people but things! Check out what is in your trunk and get rid of anything you don’t need that might be weighing you down.

4. Slow down. Driving faster actually increases turbulence and fuel use.

5. Another gas tip for help on how to travel cheap: If you are planning to remain stationary for more than a minute (waiting for someone to run into the store, waiting at a railroad track,etc), turn off the ignition. Surprisingly this saves on fuel.

6. Keep your tires at their specified level of air. This will improve your gas mileage.

7. Check Mapquest before leaving home and pick the best route. Don’t forget to print out the directions and bring them along with you as you will waste tons of gas if you get lost. And this is inevitable if you are in a strange place. I try to anticipate where I might be planning to go and print out all the directions. Bring along a local map too in case you do get lost.

If you want to learn how to travel cheap, saving money on fuel is a terrific way to get a head start on savings.

Education system teaches us every thing but it never teaches us how to manage money properly. We are educated and skillful but we are still unaware about the fact that how to utilize our financial resources and do lots of major and minor mistakes in our real life. We all are aware about the financial crisis which is currently faced by the whole world. Considering all these aspects I will tell you some facts about how to utilize your financial resources properly.

Following are major steps which will help you in managing your money properly:

1. The first and most important step you have to follow is to manage your expenses because these are the big threats. You can control expenses by avoiding wishes which are unnecessary.

2. The next important step you have to follow is that your must decide a budget according to your income.

3. Try to earn more, do extra work to increase your savings. Once you start savings you assure yourself a bright future.

4. If you are successful in controlling your expenses then now you have to get rid of your debts.

5. It is good for you if you separate some amount of money to spend on your investment plan it include insurance, government savings, bonds etc and if you are not sure about any one of these then you can open a saving account in any bank. Bank will pay you interest on your savings.

Above mentioned were some important steps that you must follow if you want to utilize your financial resources properly. You must keep in mind that it is very much important for you to manage your resources in a proper way.

MONEY MANAGEMENT – THE SECRET TO FINANCIAL FREEDOM

Money management is the key that will unlock the door to financial freedom. People who lack money management skills tend to daydream about the lifestyle they would live, if they were to come into possession of a large amount of money.

What few people realise is that managing their present income is the key to creating a prosperous lifestyle. What even fewer people realise is that to properly manage money, you need a written money management plan.

All successful people in life tend to follow a written management plan. The plan empowers them and gives them control of the process that will lead to success. To rely on your thinking is very hit and miss. It is well recognised that a person’s perception of their own situation is not always the most objective. That is why it is crucial to have a written plan that can make you accountable.

Peoples thinking and perception are subject to their moods and motivation and are often distorted by self-justification and self- interest.

Prolonged financial struggle creates perceptions that may appear to be perfectly normal but which will have consequences, such as creating a victim mentality or the belief that you are destined to ‘never have enough’.

It is well documented that prosperity starts with one’s own thinking. This is where a written money management plan serves to change your thinking. It creates a feeling of being in control and eases the sense of existentialist crisis.

People are often amazed at the ways in which they spend money and have absolutely little or no awareness of what they have done. “I don’t know where my money goes” is an often heard refrain from people who struggle to achieve prosperity.

Total awareness of how you spend your money and how much you earn is absolutely vital in the process of creating financial prosperity.

This awareness can only come from a written money management plan. We are confronted much better by the written word than by our own, often distorted, thinking. To achieve an understanding of why you are struggling financially you need to know exactly what the root cause of the problem is.

There are many causes of financial struggle, ranging from under earning to compulsive spending. Keeping a written record of your income and what exactly you are spending your money on will bring to your conscious attention what exactly the underlying problem is. You must record daily, every item of expenditure, even small items like a newspaper or a bar of chocolate. Keep this record for ninety days and from it you can formulate a budget and spending plan, which enables you to manage and control your money, and most importantly, change your thinking to a prosperity consciousness.

Mind control isn’t really as bizarre as film and television make it out to be. It is simply the process of knowing how to handle situations and people. There’s no need for any swinging pendulum or hypnotic eyes. All you have to do is understand what makes people tick. If you still don’t believe me, perhaps I should share with you one of my personal mind control stories.

I’ve heard and read enough mind control stories to realize when something similar happens to me. My story is simple; but at the same time, the actual moment made me feel like I did something great for myself.

While I was growing up, there were times when I found myself a little strapped for cash. My financial crisis was nothing too major, of course. Luckily, I always have my sister to borrow money from. She could be generous whenever she wants to (and I always pay her back, anyway). However, there were moments when she becomes incapable of caring for penniless me.

Around this time, I had already started reading up on persuasion techniques and interesting mind control stories. I came across a simple method that seemed plausible enough. After all, what do I have to lose by trying it out right?

This mind control technique simply suggests that you ask for more that you need. If the person refuses, then you make a concession to settle for a smaller version or amount. It’s basically the same concept you use when you’re trying to haggle prices with vendors.

So the next time I found myself in need of a little cash support, I asked my sister for an amount higher than what I really needed. She really didn’t want to lend me any money; but when I lowered the amount, her heart softened and she gave in.

Mind control stories like these are based on research indicating that people will be more willing to grant a smaller favor after turning down a bigger request.

Or perhaps, people just really want to give you a chance but don’t want to make it seem like they’re giving it away for free. A little prodding here and there ought to do the trick. Haggling with people often seems to work.

Mind control stories are often amazing, leaving us readers in awe. But sometimes, it’s the simplest accounts that make us sit up and take notice. I trust you’ll find your own special story soon enough. Good luck.

When life revolves around money it can be quite disheartening, especially if you don’t have much money and are in a poor financial situation. money worries have the ability to really drag you down and can leave people depressed and even on the brink of suicide. Whilst no one can eliminate your poor financial situation over night you can learn to appreciate life outside of money, and through this you can start to redress the balance of your thoughts when you start to worry about money.

Appreciating life outside of money is based on becoming more positive and trying to block all negative thoughts and beliefs relating to money. It is not about forgetting about debt or not paying the bills. When a person lives life outside of money successfully and puts their thoughts and beliefs about money into perspective things start to change, for the better, for them. Many people will notice that their stress levels go down and they start to feel happier and this will then reflect in other areas of their lives. Some people even find that when they refuse to let money control their lives and they start to appreciate life outside of money their financial position can actually improve.

People who appreciate life outside of money are the type of people who try to be positive, even in the face of adversity – and this outlook helps them greatly. It might put many people out of their comfort zone when they first start actively living their lives outside of money, but it does not take long to get used to.