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Unit 5
Advertising and promotion in Business
Table of Contents
Introduction ................................................................................................... Error! Bookmark not defined.
Task-1 Scope of marketing communication................................................... Error! Bookmark not defined.
Task-2
The role and importance of advertising......................................... Error! Bookmark not defined.
Task-3 ‘Below-the-line Technique and their usage........................................ Error! Bookmark not defined.
Task-4 Ability to plan integrated promotional strategies .............................. Error! Bookmark not defined.
Conclusion ...................................................................................................... Error! Bookmark not defined.
References ..................................................................................................... Error! Bookmark not defined.
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Introduction
The present paper would evaluate the candidates who have applied for the internship position
with Lundy Ltd which is one of the renowned marketing communication organizations in UK.
The present paper would emphasize on the four tasks which would represent the scope of
marketing communication, role and importance of advertising, below the line technique & their
usage and ability to plan an integrated promotional strategies.
Task-1 Scope of marketing communication
1.1 Briefly state three marketing communication theories use one of the theories to analyze
how marketing communication process is important and applicable to advertising and
promotion of business, and state how ICT has impact on communication process
There are several marketing communication theories underpinning the importance of
marketing communication process such as hierarchy of effects, DAGMAR model and
information processing model. Hierarchy of effect model states that consumers would lead to
step by step process in order to obtain the marketing information so as to develop a decision
for particular situation (Clow & Donald, 2009). There are basically five steps which would be
covered in the hierarchy of effect model and these are unawareness, awareness,
comprehension, conviction and action. DAGMAR model is the improvement made over the
existing model of AIDA and this would go through stages named as awareness, comprehension,
conviction and action. Information process model has eight different stages through which
complete marketing communication information is received by a consumer and these eight
stages are exposure, perception, comprehension, agreement, retention, retrieval, decision
making and action.
Using the first model or theory of hierarchy of effect it can be represented that consumers
would gain marketing information through these five stages i.e. unawareness, awareness,
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comprehension, conviction and action. Marketing communication process is important in order
to impart information to the consumers at first level i.e. unawareness as these customers have
near heard of the product (Tom and Caywood, 2006). Second level of the consumers would be
awareness and role of marketing communication at this level would be to provide the
advantages of products to consumers as these consumers are knowing about product existence
but unaware of the benefits. Third stage of consumers would be comprehensive wherein
consumers would be comprehended about the product and role of marketing communication
would be to convince these consumers about usage of the product. At the conviction stage for
consumers they would know about the merits of the products and role of marketing
communication would be to take these consumers around in order to buy these products. The
final stage of consumers would be the action for purchase and this would be the ultimate aim
of the marketing communication relating to a particular product. ICT has an important role in
overall marketing communication process in shaping the advertising and promotion field as ICT
has reduced the overall cost of marketing communication through tools such as social media
and email marketing. Further ICT helps in targeting the particular niche consumer segment
based on the positioning of the organization which was not possible through traditional
marketing communication medium.
1.2 Mention the core factors in choosing a suitable advertising and promotion agency and
identify three regulatory bodies, examining how they regulate advertising and promotional
activities.
Ad agencies can be of different structure wherein a simple shop with two or three persons and
freelancers doing all the functions. Small & medium sized organizations such as traction and
large size organizations such as Omnicom group, Interpublic group of companies and WPP
group etc. The main function for ad agencies is to plan, create and develop advertisement
based on the selected media type and specific target audience (Schultz & Schultz, 2008). Core
factors which can be included for selection of ad agencies would include functions performed,
audience to which advertisement would be catered to, industry in which these agencies are
dealing and marketing communication area adopted by particular ad agencies. Function
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performed by ad agency would be such as media, copy or art, audience may include the youth
or kids, industries can be such as health, information technology or food & beverage while
marketing communication area chosen by ad agency can be sales promotion, public relations or
direct marketing channel. The three regulatory bodies which are involved in the promotion
regulation would include advertising standards authority (ASA), committee of advertising
practice (CAP) and the office of communication etc. These regulating bodies would regulate
advertisements and promotion by looking into related laws such as sales of goods act,
consumer credit act, distance selling regulation and data protection act. These laws need to be
abided by every advertiser in order to be allowed in the advertisement and promotional area.
Task-2 The role and importance of advertising
2.1 Consider the following: Advertising has played important role (s) as a strategy for
promoting a business or product- Discuss using one global brand as an illustration
Advertisement can be defined as the way of marketing communication which would enforce
consumers to continue or make particular action and advertisement would persuade,
encourage or manipulate and audience in order to fulfill its objective (Beakbane, 2013). The
major functions of advertisement for business would include selling products or services,
persuading consumers to buy products and to provide key information or benefits to the
consumers regarding a particular product or service offered by business. Taking the example of
Coca-Cola, which is one of the biggest brands worldwide and is industry leader in beverage
industry. Advertisement or promotion is one of the key aspects of marketing mix offered by a
business wherein it would establish one way or two way communication with consumers.
Developing promotional strategy is key responsibility for marketing manager wherein with the
help of three steps i.e. segmentation, targeting and positioning overall marketing
communication strategy for the organization would be decided (McCarthy, 2012). Marketing
mix strategies adopted by Coca-Cola would make use of the integrated marketing
communication strategy wherein more than one marketing or advertisement techniques would
be deployed and these would include mass media advertisement (TV, Radio), outdoor
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promotions, social media marketing through Facebook or twitter, sponsorship for sports events
and packaging design for Coca-Cola bottle etc.
Advertisement has played role of strategy for the business organizations in order to enhance
their business by making use of the advertisement tools. For every organization strategic
elements such as target audience, message for communication and benefits for conviction are
developed which forms overall positioning of the organization. Based on the overall positioning
of the organization there would be selection of the marketing communication tools and
selection of each tool would be based on the strategic elements developed for the organization.
Marketing plan developed by an organization would be directly linked to the marketing
objectives which need to be obtained by an organization (Matt, 2009). The marketing plan can
be linked to any of the categories for marketing communication such as inform, persuade or
remind about the product or service offered by the particular business. All businesses might
make use of the advertisement at some point of time in life and the strategic objective behind
all marketing communication would be the same to explore the target audience and target the
audience in order to enhance sale of product or service. Branding helps in developing vivid
image for the company in front of their consumers and audience would formulate certain
expectation from the company such as consumers of Coca-Cola think themselves as trendy
while consuming the cold drink offered by the organization.
2.2 Identify and explain the major ways of working with an advertising agency and highlight
three creative aspects you will introduce in any chosen advertising agency
Advertisement campaigns are about creativity which is to produce unique things so as to appeal
consumers in order to make purchase for the particular product or service. The main purpose of
a creative advertisement would be to make the message and its brand memorable for the
consumers. Example of BMW can be taken for the present context which has been advertised
creatively as the ultimate driving machine so as to make brand memorable (Moskowitz, 2006).
Working with a particular ad agency would include highlighting several key aspects such as
defining agency structure, account planner, role of account handler, method for selection of ad
agency and remunerations. The structure of an ad agency can be mainly divided into four parts
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which are account service department, media department, production department and creative
department. The role of account planner and handler would be to manage particular business
and develops high ROI for the business through advertisement.
Selection of ad agency would include several steps such as identification of the problem for the
business organization, short listing the various ad agencies eligible for the present requirement,
credential pitch, submitting brief, the pitch and analyzing & choosing the agency. Requirement
analysis would be done based on the particular goals for advertisement which needs to be
attained by the particular business organization, based on the prior work experience of the ad
agencies list of potential agencies would be prepared, advertisement agencies would be asked
to submit the credentials and brief is the least element for any advertisement campaign and
includes factors such as situation, strategy and objectives (Elliott, 2010). Businesses would
invite the shortlisted ad agencies to sales pitch which would include media, market and
structure of ad agency. Remuneration for ad agencies can be of three types i.e. commission,
pay by results and fees. Ad agency would get 15% discount from the media such as TV channels
and radio which is obtained from the businesses in form of commission. In addition to the
commission received by ad agencies a fee would be charged by the ad agencies from
businesses. Some ad agencies charge on pay by result basis wherein positive results would get
them fortune and negative results would prove disastrous for these ad agencies.
Task-3 ‘Below-the-line Technique and their usage
3.1 identify three primary advertising techniques which companies use as integrated
promotional strategies to sell their products and examine why most companies prefer the
below-the-line (BTL) technique to the other two types of techniques.
There are mainly three types of primary advertisement technique which is being used as the
integrated promotional strategies for selling products & services of an organization. The three
major promotional activities would include below the line promotion, above the line promotion
and through the line. Below the line promotion would include the niche focused ways of
advertisement and promotion for the business organization, above the line promotional tools
would include the mass media advertisement sources while through the line communication
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strategy would make use of both below the line communication and above the line
communication in order to develop marketing communication wherein businesses can engage
with their customers in continuous discussion and consumers would be able to provide their
feedback so as to enhance the overall product or service offered by the organization (Mick,
2006).
Some of the major tools which are used in the below the line communication technique in a
business organization would include coupons, rebate, sponsorships, demonstrations,
premiums, door to door selling and personal appearances etc. Above the line communication
techniques would make use of the mass media tools such as cinema, TV, radio and poster sites
etc. The marketing tools used in above the line communication would be specific for the target
audience and would depend upon the particular market catered by an organization.
Among the three media types below the line communication is widely used due to its various
advantageous and due to the high effectiveness shown by this media type in business domain.
Some of the major advantages offered by below the line method as compared to above the line
and through the line method of communication would include targeting niche consumer
segment, highly focused in nature, ideal for launching new products as below the line technique
would generate trial for the products, lower costing and maximum response rate as compared
to the above the line communication technique (Benjamin & Baker, 2012).
Cost incurred by business organizations in planning & development for the below the line
communication strategy would be much lesser as compared to the above the line
communication as generally above the line communication would make use of the mass media
channel which are quite expensive in nature. With the help of below the line communication a
highly focused consumer segment can be targeted by the business organization without
wasting the marketing effort on the consumers which are not forming the target segment of
the business organization. Another major advantage which is generally offered by below the
line communication over other methods of communication would be to initiate trials hence it is
most suitable for the new product launch as the new product launch would require customers
to come and trial the product launched by businesses for them. So overall analyzing the cost
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benefit analysis for below the line communication techniques it is advisable to make use of
these marketing communication techniques as compared to above the line and through the line
as these generate better results with lesser costing for the business organizations (Ademola,
2010).
Task-4 Ability to plan integrated promotional strategies
4.1: Highlight the necessary process for the formulation of an organizational budget and using
a budget of £16,000.00 initiate a plan and explain how you will use it to carry out the
development of an integrated promotional strategy for any chosen business or/and product.
Term budget refers to the process of planning for the income and expenditure of an
organization and mainly the purpose of budget for an organization would be to predict about
the income and revenue for an organization along with comparing the actual budget with
expected one. There can be different techniques which can be used for budgeting of a
particular business organization such as all we can afford, sales percentage, competitive parity
and computerized modeling. All we can afford method would be unplanned and based on the
ability of a company to afford for promotional plans. Sales percentage method would
determine the budget of organization based on the certain percentage of sales devoted
towards the marketing activities in organizational context. Competitive parity would include
development of budget basis on the budget developed by competitors (Goldstein & Lee, 2011).
Computer models can be used in order to develop the budget looking into the return which
would be obtained to the organization from marketing promotion activities.
For the present context budget of £16,000 would be allotted and this technique can be named
as the all we can afford business model. Development of communication plan would involve an
organization to understand the requirement for communication which would be done between
an organization and its customers. Company need to understand the situation such as
company’s overall position in the certain time frame. Company would develop the marketing
plan in order to attain organizational goals. Based on the situational analysis and SWOT analysis
overall position of the organization would be analyzed in order to understand the need for
marketing communication of the particular organization. Based on the objectives promotional
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planning tools would be implemented wherein message, media type and particular consumer
segment to be targeted need to understand by the business organization.
4.2: consider the following identified integrated promotional marketing techniques (IMT):
- Increase engagement;
- Social media as market research;
- Location based-marketing techniques;
- Focus on quality content;
You are required to use these identified IMT techniques to discuss and analyze how you can
build a promotional campaign strategy for a business or/and product and state four needs for
measuring campaign effectiveness.
Integrating marketing technique campaign used for the organization would describe the unique
selling composition to the consumers of the organization. There can be various marketing and
communication plans which can be developed for an organization but the major element for
the marketing communication technique would be its focus. Focus of the organization should
provide the unique selling composition to the consumers of the business organizations (Dacko,
2008). Advertising recognizes the media which will best suit the organization and their
customers. The selection of media type for the particular advertisement campaign would also
depend upon the budget which has been allocated by the business organization and decision
would be made in accordance to that.
The selection of various integrated marketing technique by a business organization would be
based on the different technique and some of the popular IMT would include techniques such
as focus on quality content, location based marketing technique, increase engagement and
social media & marketing research. Increasing engagement with the consumer segment of an
organization would be one of the most important technique used by business organization
wherein with the help of promotion and advertisement consumers are being engaged in the
continuous communication wherein feedback would be received from the consumers so as to
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enhance the viability of products & services for the particular consumer segment of the
organization (Dev & Don, 2005). Social media in present age has evolved as one of the major
technique for marketing research wherein high numbers of consumers are available on social
media from where a business organization would obtain information pertaining to particular
customers. Location based marketing technique would be deployed in order to develop
marketing program based on the consumers residing into particular geographic locations and
these marketing efforts would be highly focused in nature (Adcock & Halborg, 2001). Quality
content would be used by the business organizations in order to provide information to the
consumers based on the particular product or service.
Conclusion
In present context advertisement and promotion activities have been analyzed for the business
organization wherein interns at Lundy Ltd have been asked to prepare response for the four
tasks given above and based on these evaluation would be done for the interns. From the
above analysis scope of marketing communication has been evaluated for the business
organizations along with highlighting importance of marketing communication. Finally, below
the line communication and ability of an organization to plan promotional strategies have been
highlighted in the present paper.
References
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