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 organizations 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 brands 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, dont 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 brands 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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