Questions:
Task 1
1.1 Explain the communication process that applies to advertising and promotion?
1.2 Explain the organisation of the advertising and promotions industry?
1.3 Assess how promotion is regulated?
1.4 Examine current trends in advertising and promotion, including the impact of ICT?
Task 2
2.1 Explain primary techniques of below-the-line promotion and how they are used in an integrated promotional strategy for a business or product?
2.2 Evaluate other techniques used in below-the-line promotion?
Task 3
3.1 Follow an appropriate process for the formulation of a budget for an integrated promotional strategy.
3.2 Carry out the development of a promotional plan for a business or product.
3.3 Plan the integration of promotional techniques into the promotional strategy for a business or product.
3.4 Use appropriate techniques for measuring campaign effectiveness.
In order to achieve the set goals, it’s expected that the business organizations need to take the support of advertising and promotion in order to catch the attention of the customers and then they should persuade them towards purchasing from the companies (O’Guinn, Allen and Semenik 2010). In order to do, companies need to communicate about the benefits related to the offered products and services to the customers. If the company is successful in influencing the thinking of the customers about the products and are even able to develop the curiosity through applying the effective promotional and advertising activities, then only they can go a long way (O’Guinn, Allen and Semenik 2010). Therefore, companies need to use the different techniques, measures as well as strategies for creating the different position through achieving the attention of the audiences and try to motivate them to purchase the goods of that firm (O’Guinn, Allen and Semenik 2010).
1.1 Communication process applied in advertising and promotion
In the light of the promotion and advertising, Communication is considered as the message and it associates with the media that is used in communicating with the targeted market (Belch and Belch 2000). The most effective is considered as communication, and it’s noted that there are more people who are actually convinced over having the effective process of communication, which applies towards the promotion and advertising (Belch and Belch 2000). Due to that many theories are facilitating in this process, which are:
Packard theory of the 8 hidden requirements: This theory was developed in the year 1957. This theory started with the advertisements, whose aim is to give satisfaction about the basic needs of the customers (Belch and Belch 2000). Sometimes its noted that persuasion is effective in cases where messages are directed towards the hidden emotional needs. The given emotional needs relates to, reassurance of worth, emotional security, outlet creativity, selling of different love objects, sense of power, gratification of ego, ranks, sense of roots, as well as immorality (Belch and Belch 2000).
This method is considered as very simple model in the persuasion. This model describes two opposite as well as basic patterns that are similar in the situation of persuasive (Belch and Belch 2000). In order to intensify, it’s expected that persuader should enhance the importance of particular elements in order to make the person more serious. It’s true that downplaying is referred as opposite of the intensification (Belch and Belch 2000). It could be undertaken by using the similar but either reversed of the techniques. Along with this diversion, confusion and the omission methods could be applied (Belch and Belch 2000).
The theory of media richness- This theory was introduced by Robert and Richard in the year 1984 (Belch and Belch 2000). This theory is mainly used for evaluating the richness of particular communication like rank and media. It mentions that the richer, media of personal communication is more effective in case of communicating about the personal issues (Belch and Belch 2000). This theory is measured as per the understanding about the clearness and the time.
The promotional and the advertising industry implies that the business contribute the other businesses in carrying out the activities of promotion (Brassington and Pettitt 2001). In the present time, there are many companies that try to assign the work to the promotion as well as advertising industry instead of doing it themselves (Brassington and Pettitt 2001). As the activities of promotion are significant for any company, the companies need to select the industry of advertising and promotion in wiser manner. The basic factors that could be considered in selecting the advertising industry are:
Goodwill- The advertising companies need to have the enough goodwill, and the new industries are not preferred, as its good to be safe then to take risk (Brassington and Pettitt 2001).
Knowledge- The advertising companies should hold the required knowledge, and even they should have the good experience and hold the ability to understand the issues of clients.
Return- It’s true that advertising might be costly; therefore it should be wisely calculated that the company could gain more in investment, and the return should be higher than the invested amount (Brassington and Pettitt 2001).
Creativity- The industry that is selected need to be creative and people should understand and like the presentation that could attract the people towards the advertisements.
Technology- The advertising companies should hold the ability to make use of advanced technology and then accordingly they should advertise with the help of popular media (Brassington and Pettitt 2001).
In the UK, the advertising is actually controlled through the code of practices as well as legislation. In order to prevent the people from cheating through the fake publicity, there are many regulatory bodies working in the UK that tries to regulate the advertisements and various other activities of promotion (Fill 2012). They hold the authority to undertake the actions if they explore any kind of fraud activities (Fill 2012). There are three major regulatory bodies such as:
Advertising Standards authority- It’s the independent regulatory body for the advertising industry and its working across the media. This body act as the proactive and complaint the checks in order to take action against the misleading, offensive or either harmful advertising, direct marketing or sales promotional activities (Fill 2012).
Board of abs standards- It was set up in 2004, and its run separately by the help of regulatory functions over the promotional activities (Fill 2012). It tries to ensure about the reliability as well as quality of the product and view about the information and advertising that could be sued in promotional activities.
Advertising practice committee- This body is the self regulatory and it creates different non-broadcasting as well as broadcasting codes that are actually administered through the authority of adverting standards (Fill 2012).
In order to keep pace with the changing technology and the taste, organizations have started to change their perception and the advertising style. Now there is more stress given on the technology instead of traditions (Kotler, Keller, Goodman and Torben 2009). So the organizations are trying to create the new techniques, which are more appropriate in the present environment and is also preferred to the customers. Information and Communication Technology (ICT) is considered as the modern way of communication (Kotler, Keller, Goodman and Torben 2009). The activities related to promotion and communication is entirely relied over the technology.
In order to keep pace with the time, and to exist in the competitive markets, the business companies are getting more interested in applying the modern technology of the advertising and the communication process (Kotler, Keller, Goodman and Torben 2009). As it has become very easy to consume less time, with more creativity and becoming more popular among the public, it is significant to make use of popular ways of both promotion and advertising. It’s noted that ICT actually works with the help of websites, internet, e-mail and e-commerce (Kotler, Keller, Goodman and Torben 2009). Through the help of the current products, details are stored on the websites. People select and purchase from it, which is easy way to communicate with the customers. Therefore applying the development of technology in both promotion and advertising has become the trend in the entire world (Kotler, Keller, Goodman and Torben 2009).
Advertising through television- Although it is noted that advertising over the television is quite costly, there are many companies who has selected the television as the key channel to advertise their goods (Hackley 2010). Over the trend in advertising and the ads shown in television is recruiting the stars in advertisements. It has supported to increase the effectiveness of the ads, as it has made audiences to feel more fashionable and has also supported in enhancing the product guarantees that has also increase the products sales volume (Hackley 2010).
Internet and the websites- In the present time, accessing the internet has become cheaper as compared with past (Hackley 2010). Therefore, internet has become the easiest channel for communicating with the customers and advertising done through the internet has become quite popular in present time. The companies can easily select the websites that has huge viewers for advertising their products (Hackley 2010). ICT development has permitted to have the mass ways to interact with the customers.
Social networking sites- It’s noted that social networks has become very popular and has brought the various advantages for the online advertising companies (Hackley 2010). As the internet community is built through the help of social network that gather many people’s share interest, ideas and their thinking. The present generation using the social networks is mentioned to use the MySpace, YouTube, Twitter and the Facebook (Hackley 2010). It’s noted that since 2009, Facebook has become increasing phenomenon in sharing the information. Therefore, there are many companies that are making use of Facebook as the effective way to promote and advertise their products (Hackley 2010).
2.1 Primary techniques of below-the-line promotion and its use in an integrated promotional strategy in business
Below is the given technique of marketing that refer to the marketing technique for short term in order to generate the urgent reply through the customers. It covers up various techniques like incentives and the cash from the buyers towards the products (Balmer and Gray 2003). Therefore, communication strategy is more direct, and this technique of marketing covers up gifts, coupons, and discounts in order to buy the products. Below the line technique of promotion covers up the promotional strategies that support in meeting the demands of customers in better way (Balmer and Gray 2003). It also covers up different ways towards connecting with the targeted customers. This technique is undertaken through the organization and its mention below:
Direct mail marketing- Through this technique companies can make the attractive message in order to inform the customers about the newly launched products. This technique should be informative, which couldn’t be ignored by the customers (Balmer and Gray 2003).
Marketing technique of Door to Door- This type of marketing helps in selling out the products by moving from one person to the other. It is considered as popular way of communication in the below the line technique of advertising (Balmer and Gray 2003).
Marketing through exterior location- It implies the ways towards driving the interest towards the sale or an event. It covers up strategies that are used by the employees outside their location (Balmer and Gray 2003).
Email marketing technique- It’s the popular form of line marketing. It is done when the company runs the campaign on their own they can use email marketing technique for promoting their products (Balmer and Gray 2003).
It’s important that the companies need to be creative, which help in formulating the promotional ideas towards development. There are various techniques that are used in the line promotion (Barney 1991). There are certain techniques that could be used in below the line production such as individual selling, rebates, policy trade, use of coupons, programs of loyalty, building loyalty, pricing as promotional technique, offering free goods, discounts, offering sponsors, selling goods with premium and free sampling (Barney 1991). The use of these techniques of promotion relies over the variation in circumstances and occasions.
Below the line promotional sale is considered as the short term incentives that aim towards the customers (Barney 1991). Through the increase in pressure over the team of marketing for achieving the objectives of communication effectively might limit the budget, and for that there is a requirement to explore effective as well as efficient cost ways towards communicating with the targeted markets (Barney 1991). This has lead towards the shift by the media based on advertising.
In different context, below the line sale promotion is considered as delay in the incentives towards purchasing, or either express in cash and even holds the short period of time (Barney 1991). Below the line promotional technique make use of the conventional ways in comparison to the particular channels of advertising in order to promote the services and products that are also above the line strategies (Barney 1991). They might cover up the activities like sales promotion, direct mail, as well as public relations in which the fee is set is agreed. Below the line technique of advertising stress over the direct ways of communication that includes mostly direct mail or either e-mail by making use of targeted name list in order to increase the rate of response (Barney 1991).
Other better as well as effective below the line technique is Ssop Intercept. It includes the trained personnel sales, in which the young women’s are usually deployed in the retail stores, which are near to the targeted products (Barney 1991). All the young women tries to convince the customers in order to visit the shelves in order to have better aspects of the brand that could be compared with the other one. Along with this, above the line technique is more effective within the targeted group and its challenging to explain (Barney 1991). If it’s noted that targeted group is specific, it is more advisable to apply the below the line promotional technique for attaining the cost effectiveness and efficiency. The technique of below the line tries to ensure about the brand and also highlights the products features (Barney 1991).
3.1 Process for the formulation of a budget for an integrated promotional strategy
In make the budget gets connected with the promotional strategy; this practice is important for the companies (Belch and Belch 2001). Budget is considered as the financial plan that is formulated for certain time. The promotional budget supports in carrying out the effective activities of promotion. In order to be careful and follow the particular process it’s important to formulate the relevant budget for the integrated strategy of promotion (Belch and Belch 2001). This process includes: choosing the objective and defining the goals, determining the upcoming challenges, budget implementation as per the plan, and evaluating and controlling the budget. In order to complete the budget it’s important to have the professional strategy that includes three steps:
The complete cost if the promotion is analyzed that includes the various types of marketing done in production, along with cost of marketing medium that needs to be calculated (Belch and Belch 2001). In the next step the costing ought to be completed along with the transactions that are made among the organization and the advertising agency. In the last step all the cost done throughout the premiere is expected to be compared with the planned budget (Belch and Belch 2001).
Promotion is considered as the method for expanding the sale of both products and the services in informing the customers, people and the stakeholders (Cravens and Piercy 2006). It’s noted that in each business there is a requirement to develop the promotional plan in order to survive in the present market (Cravens and Piercy 2006). Basically, there are many companies that permit to have similar steps:
Advertising- It’s the popular way of conducting the marketing communication through which the customers could easily informed about the services and the products that could be selected over the competitors (Cravens and Piercy 2006).
Promotion of sales- It relates with the activities and short term incentives, which tries to encourage the sale of both product and service.
Public relations- It tries to deliberate sustained and planned for the efforts in order to set up as well as maintain the mutual understanding among the public and the organization (Cravens and Piercy 2006).
Social media- It inform the mass of people about the products, and from that companies select the mass advertising media (Dwyer, Schurr and Oh 1987).
Developing the first look- It’s true that first impression is important at this stage. The first step through the promotion tries to develop the thrilling images of the business and of the items in the minds of the customers (Dwyer, Schurr and Oh 1987). It’s basically carried out through the short texts like coming soon. This is undertaken for attracting the customers towards the products (Dwyer, Schurr and Oh 1987).
Picture the looks- Only in this period of time, the product picture ought to be presented before the public. These pictures are expected to be exciting as well as lucrative, that attracts the customers (Dwyer, Schurr and Oh 1987).
Make the organization ready and brochures of product sale- The companies need to come up with the first step of development (Fill 2005). It’s important that the companies need to produce the brochure of sales through the products and it’s important that products and individuals should ship at the nearby store (Fill 2005).
Other promotions- Other promotional support includes the company’s website, cards, and catalogues. These concepts are important for the organization to get set in the minds of the customers (Michael 2000).
Promotional plan monitoring- Through following the steps, the promotional work actually works and examines the feedback from everyone that is expected to be taken out and handled with full attention (Balasubramanian 1994).
Promotional techniques are mainly used for attracting the customers. The needs of the organization are to actually design the activities of promotion for the purpose of spreading the brand name (Babin and Thompson 1996). In order to sell the products, organization makes use of various techniques of promotion but with the similar goal. It’s expected that the organization require planning the integration of the techniques of promotion and trying to convert them into the promotional strategy for using them in effective way (Babin and Thompson 1996). They might adopt the certain ways like, including themselves within the general community, building the informative website, organize the conference as well as seminar programs and depict the presentation of the services and activities, and make the researched within the targeted markets (Babin and Thompson 1996).
Campaign is significant in the promotional activities. It helps in organizing and boosting the sales promotion of specific items (Advertising Age 1999). Organizations need to measure the effectiveness of the campaign for the purpose of understanding whether it has happen as per the plan. There are different ways to measure this: analyze the people that have shown their interest, compare the sales, analyze the feedback and the plan for next promotion, interact with customers to understand their response about the campaign, undertake the survey over the people who visit the campaign, and count the coupons that are collected and distributed. In order to determine the effectiveness of the campaign, there are five heading that need to be check (Ailloni-Charas 1984).
Profit- After each five weeks, the company’s net income collected after the promotion should be drawn in order to contrast by using the organizational profits, before the promotion (Lee 2008). When the profits including the promotion are higher it means that the promotions are effective, else the promotions includes various unwanted impacts.
Sales- The sales include the promotion that needs to be compared with the rate of sales before the promotion. The rate of sale collected after the promotion is high. However, the basic facts for checking over here is that when the rate of sales is high following the promotional activities. If this is true then the promotions are quite effective and when it’s not that, the promotions are not effective (Pickton and Broderick 2005).
Communication- If the clients have contracted the customer support of the company in comparison to prior of the promotion, it implies that the clients hold the point of interest towards the products of the company by the promotion.
Persuasion- It’s noted that persuasion starts with how much clients are convinced before the promotion. This could be checked through how much clients have followed the promotion. When the new arte of customers in last weeks is high before the promotion, then the promotion should be undertaken to influence the new clients (Pickton and Broderic 2005).
Attention- If one explores that more people are visiting the sites, and then it’s certain that the promotion was quite effective in attracting the customers. When the customer arte is stable, then the promotion is quite enough for gaining the attention of the customers (Pickton and Broderic 2005).
Conclusion
In order to become successful in the prevailing competitive world, the significance of both promotional and advertising activities could be explained in the words. It is explored by this report that it’s only on companies to select the relevant strategy and apply them in proper manner. Through the outcome will impact not only the company, rather it will also impact the third party. Through applying the new ideas and the opportunities, it’s expected that new dangers might also occur. In order to overcome all this, companies need to select the strategy and act accordingly.
References
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Brassington, F. and Pettitt, S. 2001. Principles of Marketing. Sage.
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