Understanding and Practical Application of Advertising and Promotion in Business

Mohammed Imran Ahmed

Edexcel BTEC HNC Certificate in Business

2013/2014

British Institute of Technology &E-commerce

Advertising and Promotion

The Advertising and Promotion strategy has a significant part to move organizations to higher levels such as branding a product or business. The communication process dynamically works in advertising and promotional campaigns. The creative aspects of advertising help to branding and strengthen business and product.

TASK-1 The Scope of Marketing Communication

1.1 The Marketing communication process that applies to advertising and communication and promotion.

Marketing is the performance of business activities that direct the flow of goods and services from producer to consumer or user.

The marketing communication influencing the day to day life of people in each and every moment in different forms, the marketing communication media should vary, besides that the electronics, IT and communication technologies and other forms like newspapers, sign boards, magazines even mouth advertisements may influence every moment.

According to American Marketing Association (2004), Marketing is an organizational function and set of processes for creating, communicating and delivering value to customers and for managing relationships in a way that benefits both the organization and the stakeholder.

The communication process is, The sharing of meaningful information between two or more people with the goal of the receiver understanding the sender's intended message. In business, the effectiveness of a company's internal and external communication process has very often been important to its overall success (Business dictionary, 2014).

https://www.google.co.uk/image

According to Kotler, Marketing is the process by which an organization relates creatively, productively, and profitably to the marketplace. 2) Marketing is the art of creating and satisfying customers at a profit. 3) Marketing is getting the right goods and services to the right people at the right places at the right time at the right price with the right communications and promotion.

Advertising and promotion are the significant part of the economic system. It is structured and makes the audience experience with dimensions of communication, marketing, economic and social. Promotions are adding value to the purchase price and promoted with advertising tools.

1.2 How the advertising and promotion industry is organised

Promotion is the part of marketing business and marketing is the process of audience awareness by adopting strategies to maintain product or service awareness to customers and generate continued demand. Promotional activities linked to sales, distribution and focused markets and groups. The various ways of actions can be used for promotion such as, advertising, publicity, face to face, sponsorships and staff structuring.

The organizations of advertising and promotional industry formed for not only the motto of exchange ideas and work together but also enhance reputation. Besides that promote standards, lobbying and arrange an awards for recognition. Moreover maintain professional standards, co-operation between other advertising bodies and sales promotion. (HUDs, 2014 )

1.3 Assessment of how promotion is regulated

The brand building is vital to the competitive market and advertising has an important role to build the brand. Advertising has many responsibilities and it accuses of encouraging materialism and consumption of stereotyping, unnecessary purchase, using sex to sell, taking advantage of children, manipulating behaviour, contributing to downfall of value system. Therefore the regulatory bodies are established to control and monitor the advertising system. The advertising regulation is the laws and rules defined to advertise the products in a particular region in different aspects, likewise advertisement placement, timing and content (e-NOTES MBA, 2014).

The Advertising Standards Authority (ASA) established in 1962 by the Advertising Industry and responsible for regulating the content of advertisements, promotions and direct marketing affecting the advertising code. In November 2004, the communication regulator, contracted out day to day responsibility for regulating T.V and Radio. Advertisements to ASA. The advertising codes created by CAP (Committee of Advertising Practice and BCAP (Broadcast Committee of Advertising Practice). The main organizations in advertising and promotion Industry in EU are-

1.EFSP- The European Federation of Sales Promotion

2.EACA- The mission of the European Association of Communication Agencies

3.EFSP- European Federation of Sales Promotion

4.PMCE- Promotion Marketing Council of Europe

1.4 Current trends in Advertising and Promotion

The Information and Communication Technology is a vital part of life and business. In marketing it used for to generate audience experience or awareness. The media in ICT include internet, television and mobile phone and also gain an edge over non ICT promotional materials of brochures, posters or billboards due to advantages in promotional material.

The ICT made revolutionary changes and trends in marketing. It has wonderful scope such as, Market Expansion through in Market Expansion through the internet and social media allows faster communication and break through boundaries and it is Cost Effective, Easy Approach to Targeted Audience also Extremely Interactive and Any Time, Anywhere Marketing.

The rapid progress in ICT and globalization, besides the enhancement in strategically approach to globalized consumer market let global companies use the opportunities globally. Therefore utilization of those opportunities with the framework of advertising and promotion campaigns and they think globally and selling locally. The Samsung coordinated 55 advertising agencies globally to communicate with audience by strategically planned and developed plans and generated audience experience by various tools, media, people and process and messages (The Advantages of Using ICT, 2014).

Conclusion

Communicate with advertising agencies at first look after the goods and service of the company also know about the process for the advertisement of the product. For the proper communication know about the technical aspects and the product promotion aspects and details description of the market valuation of the product response is needed. When inform about the choice of the customers then the product advertising is done carefully also select the level of the customer who needs the product. At the time of campaigning of product advertisement then choose the location for proper advertisement also needs the proper process for the campaigning of product with the product value description.

Task – 2. The Role and Significance of Advertising

Advertising is the prime method to communicate with people. It helps to inform people about the available products and different useful products. It includes the mass population and using different media with a variety of techniques and methods to suit the advertising strategy. The objectives of advertising consist of trial, continuity, brand switch and switching back. Besides that the advertising is vital to the competitive business atmosphere and also vital to the producer, traders, customers and advertising agencies. Advertising helps customers to collect

information, select right product with the right price and quality and it helps producers and sellers to increase sales and understand competitors to plan to competency level. It benefits all those who involved with the process including society that it prevent illegal and malpractices in the society. (Management Study Guide , 2014)

2.1 The Role of Advertising in Integrated Promotion Strategy for a Business or Product

Refers to American Association of Advertising Agencies, integrated marketing defined as, “Synergic Approach to achieving the objectives of a marketing campaign through a well coordinated use of different promotional methods”. It is framed in a unified force together with the aspects of marketing communication. The tools for integrated marketing communication are public relations, advertising, personal selling, direct marketing and sales promotion.

The integrated promotional strategies have significance to achieve the sales targets. The effective communication development consists the following of:-

Decide the target audience and stick with them. Determine the communication objective with category need, brand awareness, brand

attitude and brand purchase intention. Design message with getting attention, hold interest, generate desire and obtain

action, moreover it has rational, emotional and moral appeals. Choose the media and type of communication channel like personal or non-personal. Selection of message source in personal or non-personal communication. Co-ordination of feedback.

There are factors to fix the communication mix such as type of product or market like a push or pull strategy, readiness stage of buyers, product life cycle stage and organization’s market rank.

Advertising has a significant role in an integrated marketing system in real applications. The recent practices and developments in social media, design thinking and impacts globalization made advertising more significant. Integrated marketing strategies benefits from a mix of the advertising tools, it spreads the message to the audience and it confirms the message reached into the audience.

2.2 What Is Branding And How It Strengthen a Business or Product

branding is -The process involved in creating a unique name and image for a product in the consumers' mind, mainly through advertising campaigns with a consistent theme. Branding aims to establish a significant and differentiated presence in the market that attracts and retains loyal customers (Business dictionary, 2014).

The definition points out that the branding process consists of a unique name, advertising campaign, with a theme, branding, difference in presence and attracts loyal customers. To build the brand name, organisation focused on price over quality and sold lower price than toped names, besides that build the name equal to quality. To achieve the change of image

has supported by advertising and promotion. The success in branding created an image and difference in presence attracted the loyalty.

2.3 Creative Aspects of Advertising

The creativity in advertising demands a higher skill to write the words and slogans for advertisements, graphic artists for to layout the visuals, transformation of strategy into real advertisements, therefore creative and expressive talents required to produce effective advertisements. The creative department is the place where the campaign comes together and great ideas generated and visualizing. Copywriters and art directors are the main part of it. They work with business owners and dig out the brand’s business problems. Then continues with media planners, production department turns the idea into reality. The art director responds to the creative brief by communicating ideas or moods visually. The knowledge, skill as well as creative and innovative talents bases the success.

The creative advertising consists the aspects of the creative process, creative person and creative situation and the creativity rules are, produce the product relevant to customers, promise to customers, don’t let it stand alone, moreover put the product into a center of commerce. (Zeepedia.com, 2014)

2.4 The Ways of Working with Advertising Agencies

The custom of working with advertising agencies is working with clients to develop and sustain the product or brand that both they together serve with consumer awareness and insight through creative and innovative media delivery skills. The brands are more than a product or service, because once the brand created it has a separate entity than mere products. (MBA Knowledge Base, 2014 )

Refers to (MBA Knowledge Base, 2014), ““A product is something that is made, in a factory: a brand is something that is bought, by a customer. A competitor can copy a product; a brand is unique. A product can be quickly out-dated; a successful brand is timeless.””

Therefore the role of advertising agencies is to take part the transformation process of product or service to brands by positioning the offering to consumers the benefits and role of the product, besides that communicate the brand’s unique personality.

Task-3 Below-Line-Techniques and their usage

The terms “below the line” promotion or communications, refers to forms of non-media communication, even non-media advertising.

Below the Line uses less conventional methods than the usual specific channels of advertising to promote products, services, etc. than Above the Line strategies. These may include activities such as direct mail, public relations and sales promotions for which a fee is agreed upon and charged up front. Below the line advertising typically focuses on direct means of communication, most commonly direct mail and e-mail, often using highly targeted lists of names to maximize response rates.

The organisation structure strengths lies in our ability to help the customers grow their businesses, continually enhancing the value of brands to both customers and consumers. In order to continually grow business of Company needs to be increasingly efficient in use of resources. Below-the-line promotions are becoming increasingly important within the communications mix of many companies, not only those involved in individual products, but also for industrial goods.

In addition, above the line is much more effective when the target group is very large and difficult to define. But if the target group is limited and specific, it is always advisable to use BTL promotions for efficiency and cost-effectiveness.

Say, for example, if a pen manufacturer is going to promote its product, it may take the ATL route, but if a company manufactures computer UPS, it will certainly take the BTL route, as the target group is very limited and specific

More recently, agencies and clients have switched to an 'Integrated Communication Approach.' BTL is a common technique used for "touch and feel" products (consumer items where the customer will rely on immediate information rather than previously researched items). BTL techniques ensures recall of the brand while at the same time highlighting the features of the product.

TASK-4

4.1 Select and follow a process that is appropriate for formulation of a budget for an integrated promotional strategy.

The marketing plan then, is a dynamic document which focuses on bringing marketing strategies to life, serving as a roadmap for carrying out marketing activities and implementing marketing strategies. It is a multi-step process, which considers the following:

Formulating a strategy of company or division and making sure that appropriate linkages are made between company strategy and marketing activity planning.

Analyzing the environment within which you do business to make sure the marketplace, the industry, competitors, and other influences.

Carrying out market profiling, enabling you to identify market segment, target customer types, and overall demand. Additionally, analysis of the industry and competitors, coupled with analysis of customer types, enables the creation of demand possibilities and the resulting forecasts.

The marketing mix, which considers a combination of activities which come together harmoniously, in bringing the product to market and sustaining it while in the market.

Budgeting of marketing programs so that the appropriate sales goals and corporate strategies can be attained.

4.2 Explain how would use it to carry out the development of promotional plan for any chosen business or product.

Sampling-if objective is to trial the product then sampling is an effective sales promotion method. Usually sampling is involved with low value products and products having highly visible features of benefits.

Couponing-it is one of the oldest sales promotion strategies and sometimes couponing makes the product problematic by cheapening your brand name. Coupon is mainly used for attracting new customers as well as to increase instant sales with price reduction of a product.

Loyalty schemes- It is basically a point based system, where each customer gets some points on each purchase and later he can use these points on buying the same products or other products at a reduced price. To many marketers, loyalty schemes are also known as-frequent purchasing scheme.

Packaging- many marketers does no pay much attention to the quality of packaging, because they simply do not understand the psychological and brand image aspects of packaging. An attractive and innovative packaging can work like a salient sales man-packaging does the hooking function to buyers. A well-packaged product carries not only the brand values but also create an emotional link to your prospects. Not that it is only important for packaging to be eye-catching, aesthetic, but it needs to protect the product inside with proper manner.

4.3 Provide a plan for how would integrate promotional techniques

A typical sales promotion budget covers almost 70% of the total consumer sales promotional budget. It is also considered as a brand differentiator by many big players like star buck. For Starbuck business experts and academics, sales promotion is regarded as typical marketing techniques that add value to a product in order to achieve specific marketing goals.

The primary purpose of promotion strategy is to induce the consumers to make a quick buying-decision in order to create increases sales. Integration of promotion is to offer customers to take chance of winning a prize or offering some extra products with the same price. Sales promotion and marketing are inter-related but not have the similar purpose. The star buck company takes different promotions activities such as fair trade, summer special cool coffee same time also at the summer season the takes different promotions activities for achieve the new customers and evaluate their products computations.

It is advertising which makes a platform for sales promotion where customers can see the direct added value of buying your product. On the other hand, advertising is an intangible promotion of products to send the marketing message to the customer-base.

4.4 Select and apply techniques that are appropriate to measure the effectiveness of particular campaign.

The integrated management system of the Starbucks business for meet the strategies goal for 2014 is—

The Starbucks Management System is the new management system for achieve the target by the company. This system aligns with the internationally recognized requirements for quality, environment, health and safety, and food safety. In 2010, the Starbucks system will begin to transition to ISO standards for all Management System requirements previously covered by Starbucks.

• Quality: Starbuck management procedures ensure that we maintain high-quality standards. Ten facilities earned certification in North America and all of production facilities in Europe are ISO 9001 certified.

• Environment: All of European production facilities are ISO 14001 certified, and 17 facilities in North America achieved Starbuck certification in 2008.

• Health and safety: Currently, 18 of European facilities are ISO 18001 certified and 17 facilities in North America are Starbuck certified.

• Food safety: Six of European production facilities are ISO 22000 certified and plan to certify six more in 2009 also certify 23 U.S. production facilities in 2009.

Conclusion

To recapitulate, the advertising and promotion plays a significant role in the sustainability of the organization and it can use its creativity and innovative skills for transforming mere products to a brand. Therefore the absolute aim of the advertising and promotion activity is brand creation.

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