Advertising and Promotion In Business - Assignment Example

Advertising and Promotion In Business Table of Contents 1 Explanation of the process of Communication applied to advertising and promotion 4 2Explain the organization of the advertising and promotions industry 6 1.3Asses how promotion is regulated 8 1.4Examine the current trends in advertising and promotion, including the impact of information communication technology (ICT). 9 2.1 Explain the role of advertising in an integrated promotional strategy for a business or products 10 2.2 Explain branding and how it is used to strengthen a business or product 12 2.3 Review the creative aspects of advertising 13 2.4 Examine the ways of working with advertisement agencies 14 3.1 Explain the primary techniques of below- the line promotion and how you will use them in an integrated promotional strategy for the business 15 3.2 Evaluate other techniques used in below-the –line promotion 15 4.1 How would you design an appropriate process for the formulation of a budget for an integrated promotional Strategy? State how you would follow an appropriate process for the formulation of a budget for an integrated promotional strategy 16 4.2 Assume that you have recently been appointed the Advertising Manager of a car manufacturing company. Carry out the development of a promotional plan for the new brand of car called ‘’Cricket’’ recently launched by the company 17 4.3 How would you plan the integration of promotional techniques into the promotional strategy for a chocolate bar 17 4.4 What appropriate techniques would you use for measuring campaign effectiveness? 18 References 19 1.1 Explanation of the process of Communication applied to advertising and promotion In this age, reputation and brand image acts as the most important requirements of any organization, irrespective of size and segment. However, in order to attain such a position and image, effective advertising and promotion is essential. This is because; advertising means, a set of information or potential message communicated to the customers in order to improve its rankings and popularity in the market among others. By doing so, the level of awareness of the customers over the features and benefits of the products might get enhanced resulting in amplification of their reliability and consistency over the brand. For example: in classic advertising procedure, a specific problem is presented in front of the customers along with a solution to resolve the problem. This encourages the customers to purchase such type of product or services that may amplify the profitability and uniqueness of the brand or organization in the market1. Thus, advertising or marketing is recognised as a process of communicating the features and advantages of the product or services to its potential customers in order to improve the total sale and revenue of the organization. However, in this process, the sender or the communicator presents the message to the receiver. He encodes the message and then decodes it and attains value information as presented below. Source: 2 Promotion is also described as a medium to communicate the values and benefits of a specific brand or product line. For example: varied types of events, sponsorships and contests are organised to promote some specific products such as Frooti, Thumps up etc. By doing so, the level of relationship with the customers also gets enhanced resulting in amplification of the brand value and market share of the organization in the market among others. Due to these reasons, promotion and advertising is considered as holistic approaches of marketing. Thus, marketing or advertising and promotion are composed of four activities that mainly focus on customer values and perceptions that motivate their buying behaviours and leads to sale of the product or service. 1.2 Explain the organization of the advertising and promotions industry The industries operating under the segment of advertising and promotion is extremely complex in structure and arrangement. This segment comprises of numerous parties like advertising agencies, media suppliers, advertisers, client companies, promotional material suppliers etc. Although, each and every party comprises of different structure and job roles but they include good interpersonal relationship or communication among them3. Advertising agencies: these are independent organizations, whose main activity is to undergo planning processes for the advertising campaigns of a specific brand or product lines. Other than this, the advertising agency executives also provide the choices for the medium that may prove effective for the campaign. The executives of the advertisement agencies prepares for the creative components for the organization so as to make it attractive and informative for its potential customers. Besides, the advertising agencies are also responsible for implementing the advertisement campaign, monitoring and evaluation of the results so as to retain its distinctiveness in the market4. Moreover, the executives of the advertisement agencies are extremely creative and talented in nature and so they try to prepare the campaign in such a way that, it is extremely unique and distinctive from the competitors. Thus, it might be stated that advertising agencies communicates with the clients and understands their requirements and prepares in their desired way. Client companies or advertisers: these are the clients who desire their product or service o be promoted by any advertising agencies. The prime desire behind it is to amplify the brand image and reputation of the organization as well as the product line in the market among many other rival players. Media suppliers: media is the most essential requirement of advertisement and promotional companies. This is because; it is the media through which, the message or information regarding he features or benefits of the products or services are send to the customers. Therefore, it is the work of the advertisement companies to select the best media for the clients such as television, radio, newspaper, magazines, banners etc. In spite of varied types of advantages and disadvantages, the advertisement companies select the best opted media for the advertisement campaigns5. Promotional material suppliers: these suppliers also play a vital part for the client companies as well as advertisement agencies. They offer promotional gifts, printers, lights, costumes etc, so as to make the promotion extremely effective in all aspects. Therefore, it might be clearly revealed that in spite of varied job responsibilities, all the parties of advertisements are entirely linked with one –another through proper coordination and communication as presented below: Structure of Communication industry Source:5 1.3 Asses how promotion is regulated In this age, each and every material is promoted. It is done, in order to improve the total sales and productivity of the organization in the market among many other rival contenders. However, in order to do so, various advertisement agencies and client companies follow negative rules and regulations. As a result of which, such type of promotion offers negative impacts over the youths and kids of the society. However, each and every market offers varied types of rules and regulations for promotion and advertisements. It is done for the companies to obey these rules and regulations at the time of preparing the promotional ads. For example: ordinance 39-2001-PL-UBTVQH10 is passes in the nation of Vietnam for the advertisement companies. The ordinance clearly mentions the type of language to be used, contents, promotional materials etc so as to regulate the negative impacts of promotion over the society. Moreover the prime aim of implementing such type of ordinances to maintain the effectiveness of culture, sovereignty, national independence, parity etc. This might help the advertisement agencies to stop utilisation of extremely sexy models and images for the promotional of the products. Thus, the implementation or introduction of varied types of laws and ordinances helped to regulate negative impacts of advertising over the citizens of the society6. 1.4 Examine the current trends in advertising and promotion, including the impact of information communication technology (ICT). In this age of globalization and industrialization, the activities of life are becoming easier and simpler. This is mainly due to the presence of numerous advanced technologies and machineries such as laptops, computers, television, social networking sites etc. However, all these advanced technologies are also used in advertisement and promotional campaigns as well. For example: Promotion through online sites: this is one of the one important medium of promotion in this age of aggressiveness. This is because; it helps to attract a wide range of customers of varying age-groups and income levels towards the product or brand that may increase its total sale and profitability of the organization. Moreover, due to the promotion through online sites, within a very small time span, the product or the brand might attract the attention of the customers in both domestic and international markets that may improve its position and ranking among others. Promotion through social networking sites: this is also another reputed promotional medium. With the help of this medium, maximum extents of the organizations or marketers advertise their products or services to the customers. By doing so, the customers might present their feedbacks, ideas and suggestions to the advertisers or the organizations7. These feedbacks are extremely essential for the marketers as they might innovative the features of the product accordingly so as to satisfy the requirements of the customers. Promotion through television: with the help of television, the marketers promote varied types of products. For example: teleshopping is a reputed organization that promotes varied types of products and services of various brands so as to increase their sale and amplify its reputation in the globe among others. Promotion through banners, posters and flyers: outdoor advertising is also quite popular. Varied types of products such as cosmetics, body massage oils, beauty essential oils, educational courses, teachers etc are promoted with the help of outdoor advertisement materials. Thus, it might be clearly revealed that ICT not only enhanced the path of advertising agencies but also of the advertisers and the customers as well. Therefore, the unique techniques of ICT proved worthy for all. 2.1 Explain the role of advertising in an integrated promotional strategy for a business or products In this age, sustainability is extremely essential. In order to attain it, marketing is the only process by which, the level of awareness of the customers might get enhanced. Marketing communication comprises of numerous techniques such as advertising, personal selling, direct marketing, sales promotion and public relations. Although, each and every technique is essential for an organization or brand to amplify its image and reputation in the market among other rival contenders, still, advertising is offered more attention. This is because; advertising helps in presentation of varied information to its customers. As a result of which, it helps an organization to increase its total sale and brand value in the market among other rival contenders. For example: in case of McDonald’s, advertisements offer varied types of information such as healthy food for all seasons. Source: 8 Advertisements not only inform the customers but also persuade them to purchase it. By doing so, the total operating income and market value of the brand enhances to a significant extent thereby amplifying the portfolio of the organization in the market. However, in order to promote or advertise any product of Nike Inc varied type mediums might be used such as magazines, online sites, televisions, banners etc. This might prove effective for the organization to improve its market share and customer bases. As a result, the reputation of Nike Inc increases as presented below: Source: 8 Thus, the medium of advertising need to be an integrated one so that it might amplify the growth rate and net income of the organization as compared to many other rival players. 2.2 Explain branding and how it is used to strengthen a business or product Branding plays a very important role in today’s age of extensive competition. This is because; it is the process of branding that distinguishes a product line or services from others by presenting a specific brand name, trade name, logo, equity, tag line etc. For example: Nike Inc comprises of a specific brand symbol or logo that helps the organization to amplify its position and loyalty within the minds of the customers as presented below: Source: 9 Other than this, branding helps the organization to represent itself as a unique one, with the help of an attractive tag line such Just D It. This tag line presents a distinctive image to the organization and its product lines that might amplify the dependency and consistency of the customers. By doing so, the level of profitability and total sale of the organization might also get enhanced to a significant extent in the market among many other rival contenders. Moreover, the process of branding presents a separate equity and belief within the minds of the customers that may persuade them to purchase the product lines of Nike Inc. Thus it might be depicted that branding helps to create a strong foothold in the market among others that enhances the rate of growth and reputation of the organization in the market. Hence, it might be stated that in order to enhance the level of sustainability and position in this turmoil market, promotion or advertisement is the most advantageous option for the marketers or organizations. 2.3 Review the creative aspects of advertising Advertising is the technique that helps to develop or damage a brand. This is because; it is with the help of advertisings, the organizations or marketers present meaningful information that amplifies the image and reputation of the brand. However, in order to maintain the image and market share of the marketer, it is extremely essential for the advertisement organizations to design unique and attractive ads for the organization. Only then the customers might get fascinated to view the features and information of the advertisement and the market share and equity of the organization might get increased. Apart from this, advertising need to be designed in such a way that it presents the message in a totally different way as compared to its competitor. However, in order to do so, it is extremely essential to utilise the exact advertising theme, style, design, pictures, images, languages, fronts etc. But it needs to be presented as per the objectives of the organization, only then it is successful in the market. For example: the tagline of Nike Inc is Just Do It, this means, the shoes and apparels might enhance the stimulus of the sportsmen and hep to achieve their desired dreams or outcomes. Due to such reasons, the advertisements of the shoes or apparels of Nike Inc always tries to present the message to its customers that these are offer effective results in all seasons. Such type of advantages of the product lines might also be used as selling proposition of the organization in order to improve the total sale 9. Apart from this, the advertisement campaign of Nike Inc also clearly highlights its target customers such as the young and energetic youths. Due to which, the logo or the symbol of Nike Inc is designed black in colour so as to present a unique sense or belief. Thus advertising need to be designed, keeping in all the aspects of the product or brand such as theme, message, tag line, target customers, features, colour of logo etc. Only then, it might prove effective for the organization in amplifying its total value and operating income as compared to others. 2.4 Examine the ways of working with advertisement agencies Now a day, the work of agencies has increased. In this age, maximum extent of the organizations or marketers makes use of advertisement campaigns in order to promote its products. By doing so, the brand image and portfolio of the organization might get enhanced to a significant extent among others. Due to which, the position and demand of advertisement agencies is increasing in this age. Varied types of advertisement agencies are present such as full-service agencies, creative hot shops, media independent, in-house, marketing agency, A-la carte etc. In spite of different types of agencies, the organizations or marketers select full-time agencies so as to present entire process of advertisements, i.e. planning, production, planning for media and selection of media etc10. The entire process of advertising might be performed by the agencies in a very easy and simple ways among many others. Other than this, the executive engaged within the advertisement agencies need to be extremely creative and intelligent in character so as to execute the activities of the advertisement. Only then the advertisement might fulfil the objectives of the organization and might amplify the profitability and demand of the product lines. Along with this, the competitive position and sustainability of the advertisement agency might also get amplified in the market among others. 3.1 Explain the primary techniques of below- the line promotion and how you will use them in an integrated promotional strategy for the business Below- the line promotion is used to promote a specific line of products for a specific group of customers. In such type of promotional advertisements, trade shows and catalogues are used to specify the features of the product on that specific show. The prime advantage of this type of promotional campaigns is to amplify the demand of those products thereby increasing the total profitability of the organization. For example: the organization of Revlon tries to organise a trade show so as to highlight the features of Chronicle eyes such as bright eyes, shimmering finish, satin shaded eyes, rich refined eyes etc among the females of all age groups and income groups. By implementing these types of promotions, the organization tries to increase the market share and brand value of the organization. This might also help in enhancement of the customer bases of the organization and equity of the product. 3.2 Evaluate other techniques used in below-the –line promotion Other than below- the –line technique, another technique used in to touch and feel the products is employment of sales personnel in various retail stores. In this technique, the customers might directly communicate with the sales personnel and evaluate the features of the products. Moreover, by doing so, the customers might touch and feel the products and make their purchasing decisions. Furthermore, by presenting such types of techniques, the customers might present the feedbacks and the organizations might act accordingly11. Hence, such types of promotions are extremely essential for the up-liftment of an organization in the market among others. 4.1 How would you design an appropriate process for the formulation of a budget for an integrated promotional Strategy? State how you would follow an appropriate process for the formulation of a budget for an integrated promotional strategy The appropriate procedure for the formulation of a budget for a promotional strategy is through marketing communication plan. BY doing so, the feedback of the customers might be analysed and evaluated and then the type of promotional strategy and medium might be selected. Apart from this, the organization might clearly analyse the percentage of sales, total revenue, operating income, net income of the organization, range of customers, demand of the products, reputation of the product lines, brand image of the organization etc. If the organization attains clear information about the above mentioned facts, then it might become easier to define the promotional strategy. Moreover, the promotional strategy might also become more specific, measurable, attainable, and relevant and time bound. Thus, keeping all these facts in mind, the estimated budget for integrated promotional strategy might be formulated. An appropriate process for preparation of a budget for integrated promotional strategy might be followed only by measuring the estimated sales and revenue figure of the previous years. Moreover, prior preparing or planning for the budgeted cost, the total costs spend over advertisements and promotions need to be evaluated. Only then, the estimated budget for promotional cost might be evaluated that may improve the brand image and reputation of the organization and its product lines in the market among others. In addition, from previous year’s data, the rate of effectiveness of promotional advertisements might also be evaluated. This might help the organization as well as the advertising agency to select the most effective medium of promotion such as television, radio, social networking sites or any other medium. 4.2 Assume that you have recently been appointed the Advertising Manager of a car manufacturing company. Carry out the development of a promotional plan for the new brand of car called ‘’Cricket’’ recently launched by the company In order to promote the new brand of four wheelers, named Cricket, both television as well as online advertising is essential. It is launched with the desire, Drive Cricket, drive green. Moreover, the vision of the organization is to enhance the affordability, safety and efficiency of the car thereby presenting a comfortable and reliable ride. The unique features that need to be promoted are dual power systems for the car to reduce the rate of consumption of electricity1. It needs to be positioned as an elegant and prestigious product for the premium customers enjoying a high life style and living standard. Moreover, it needs to be promoted as a small utility vehicle (SUV), available with all dealers with varying price ranges. In addition, the features of the SUV CRICKET need to be promoted through newspaper advertisements, direct mails as well as social networking sites as well to increase its awareness and total sale. 4.3 How would you plan the integration of promotional techniques into the promotional strategy for a chocolate bar The chocolate bar needs to be promoted as a premium product, mainly targeting the adult members of the society. This need to be promoted with the help of television advertisements, online sites, billboards, newspapers, leaflets etc to increase its demand and total profit margin. It is mainly promoted highlighting its unique features, such as healthy and tasty in nature. Not only this, it needs to be promoted as a product that offers refreshing and stirring effect within the heart. This strategy might prove effective for the organization thereby amplifying its total revenue and sale in the market among many other rival players4. Other than this, the organization might offer high attention over relationship marketing in order to improve its brand value and market share. Only then, it might be effective for the brand and organization as well. 4.4 What appropriate techniques would you use for measuring campaign effectiveness? In order to measure the effectiveness of campaign, varied methods might be used such as position of the company in the market, reputation, sales value, popularity etc. Other than this, the organization might measure its range of customers, enrolment of fresh retailers, improvement of market share and many others6. By doing so, an organization might very easily analyse the effectiveness of a campaign and may try to offer more attention over it. This might prove effective for the organization to fulfil its targeted objectives and sales volumes for the next financial years. References Hackley, C, Advertising and Promotion- An integrated Marketing Communications Approach, 2nd Edition. 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