Page 4: Above and below the line
Promotion is divided into two areas: above-the-line and below-the-line.
Above-the-line promotion is that which is paid for directly. It includes spending on TV, radio, poster and press advertising and on other paid-for media such as the Internet.
Below-the-line promotion refers to those methods of promoting a product that do not use direct advertising. These include public relations, such as getting stars to endorse products, or news and magazine stories featuring the product. They also involve packaging and point-of-sale material. Kellogg used both in the effective Star WarsTM campaign, including TV advertising along with special packaging, inserts and competitions.
Kellogg also separates below-the-line spending between consumers and the trade. For the trade, the Star WarsTM event included buy three for the price of two and special value-added offers. For consumers, there was a free insert in the box and the chance to win special prizes.
It is vital that all parts of the promotion are effective and within the law. There are two types of 'bad ads' to take into consideration. Firstly, those that fail to reach the target audience and increase sales; these are bad for the business, but not disastrous. The second type includes those that are offensive or illegal.
Advertisements that do not fall within the law (e.g. by breaking the Trades Descriptions Act), or which break ASA guidelines, can attract large financial penalties which can seriously damage a business. If an advertisement breaks guidelines it has to be pulled, even though this is expensive.