Ethames Graduate School Shamim Ahmed Mojumder Table of content| Page Number| Requirement 1| P 1. 1| Explain the communication process that applies to advertising and promotion. | 3| P 1. 2| Explain the organisation of the advertising and promotions industry. | 5| P 1. 3| Assess how promotion is regulated. | 7| P 1. 4M 1| Examine current trends in advertising and promotion. How has the ICT impact the above organisation’s advertising and promotion. | 9| Requirement 2| P 2. | Explain the role of advertising in an integrated promotional strategy for a business or product decisions. | 13| P 2. 2| Explain branding and how it is used to strengthen a business or product. | 14| P 2. 3M 2| Review the creative aspects of advertising strategy. Evaluate whether the strategies are appropriate to address successful advertising campaign. | 17| P 2. 4| Examine ways of working with advertising agencies. | 19| Requirement 3| P 3. 1M3| Explain primary techniques of below-the-line promotion.
How are they used in an integrated promotional strategy for a business or product? | 22| P 3. 2| Evaluate other techniques used in below-the-line promotion. | 24| Requirement 4| P 4. 1| Follow an appropriate process for the formulation of a budget for an integrated promotional strategy. | 27| P 4. 2| Carry out the development of a promotional plan for a business or product. | 28| P 4. 3D 1| Plan the integrated of promotional techniques into the promotional techniques. Using critical reflection, evaluate the recommended promotional techniques. | 30| P 4. | Use appropriate techniques for measuring campaign effectiveness. | 33| D 2| Assume you are the Marketing Director of any business, how would you take the responsibility for managing and organising activities of your business in the context of the advertising and promotion? | 35| Reference list| 36| Requirement 1 P 1. 1 Communication is a two way process by which participants construct and exchange information that can be interpreted for reaching a mutual understanding. Organisations attempt to create and sustain dialogue with their various audiences.
To make a dialogue to happen in the first place, all participants need to transmit information to each other and each participant needs to be able understand that information. Organisations need to communicate with their audiences for a variety of reasons. One of the important reasons is to persuade their audiences on the basis of overt and subtle, reward and punishment, and influence them by using symbols, training and indoctrinating in various ways so that persuasion does not seem to be exaggerated (Fill, 2002).
BMW (Bayeriche Motoren Werke AG) a German automobile company founded in 1916, for an example wishes to communicate with its customers regarding its new car, launched in market. The organisation wants to send a message to the customers saying its new car’s features and benefits. It will have to go through the communication process to have the message delivered and understandable to the customers. A model of the communication process is given below. Receiver Decoding Encoding Realms of understanding Realms of understanding Source Channel Message SignalSignal Feedback
Noise Noise Illustration: A model of communication. The model of communication given above is inspired by the Communication Model of Shanon (1948). The elements of the communication process are described below. Source and Encoding: An individual, organisation or body who has a need to send a message to its target audiences, is represented as the Source in this model. The source selects a combination of appropriate words, illustrations and/or music to represent the message that is to be transmitted. The message has to be put in such a format that the receiver can understand it.
The process of formatting the message is called Encoding. Message-encoding is a very important stage in the communication process. It will depend on encoding that how much the message will be successful in convincing the receiver. Any inappropriate information included in the message can lead to misunderstanding and misinterpretation by the receiver. Organisations spend a lot of money and time on market research to understand the needs and demand and the extent of the understanding of their consumers (Fill, 2002). Signal and Channel:
Encoded message has to be put in form of signal that is capable of being transmitted. Channel is the means through which the message is to be transmitted to the receiver from the source. Channel can be personal or non-personal. Non-personal channel is may be mass media advertising which can reach a large number of audiences at a time where personal channels such as face-to-face contacts and word of mouth communication can be much more effective and influential and that’s probably because these communications are more flexible and can change with the circumstances.
Decoding, Receiver and Realms of Understandings: After receiving the message the receiver(s), the target audience interprets the message and converts into thought. This process is called decoding. There are few factors that influence and impact this process namely, experiences, perceptions, attitudes, behaviour and values of both source and receiver. It is more likely to have a successful communication if the source and receiver understand each other or have some common ground in the realms of understandings.
Before any organisations go for any advertising they research the realms of understanding of their target consumer and figure out an appropriate way to deliver the message otherwise there is a possibility of misunderstanding and misinterpretation which might fail the objectives of the whole advertisement campaign and create a bad image. Feedback: The way how a receiver might react after interpreting the message is feedback. The receivers might have a number of reactions and these reaction may vary from extremely positive to extremely negative.
A receiver might make a phone call to make a complaint against the organisation that sent the message or they can even become so convinced that quickly go and buy the product. This is result of what the source has done throughout the process and how much successfully completed the communication. Noise: There are some factors that can impact and influence on the delivery process of the message or feedback, in another word, there are factors that prevent receivers from receiving the message for an instance, the telephone rang when receiving the message or someone started talking or coughed etc. ometimes inappropriate encoding can prevent the receiver to receive the message. These factors are represented as noise in the communication model. Mallen (1977) adds noise is ‘the omission and distortion of information’, and there will always be some noise present in all communications. These noises can only be kept at a minimum level to accomplish a successful communication. In conclusion, organisations strive to survive and to do well in the market by all means and that is why they keep no stone unturned to get through to the customers.
The better the organisations make communications with their customers the more customers consume or use their product and the more revenue they generate hence the more successful they become. P 1. 2 Advertising is a form of communication by which organisations promote their goods and services to their audiences intending to persuade them to purchase or consume their products or take some actions upon their goods and services or ideas.
Using advertising and promotion an organisation aims to draw peoples’ attention towards their products and services, inform the features and benefits of their products and influence them to believe that those features and benefits would meet their needs and demands. By advertising, organisations basically force the audiences psychologically to consume or use their products. Organisations advertise and promote their goods and services using their personal or non-personal means or channels. Personal means include face to face communication, make a phone call directly to the customers, sending letters or emails etc.
On the other hand, non personal channels are external organisations that do the advertising as well as other marketing communications on behalf of them and charge for it. Here comes the advertising and promotion industry. The organisations of the communication industry are called agencies. There are many types of agencies that specialise on different fields of marketing communications. Advertising agency, marketing agency, creative agency, media agency etc are the principal ones. The functions of these agencies vary from one to another depending on the services they offer.
The role of an advertising agency is planning and constructing advertisement-campaigns and broadcasting them into different media. They may hire an external creative agency to do the creative part of the campaigns; some advertising agencies have their own creative department. There are independent media agencies available in the industry as well which deal only with broadcasting advertisements and other promotional activities through different media effectively and efficiently. Marketing agencies do market research which includes product research, target market’s needs and demands etc.
Based on the market research report given by the marketing agencies the actual advertising are constructed in such a way that suits the market and that will help the companies to meet their aims and objectives. Types of agencies: The agencies can be categorised based on the services they offer. The agency-types and their structures are described below. * Full-service agencies: Full-service agencies are the most common type. These agencies offer a full service to their clients. They deal with everything that is required to advertise and promote the products.
For an example, WPP is a full-service advertising agency which is considered to be the world’s largest advertising company in terms of revenue and offices around the world. It is based in London, UK. (Wikipedia, 2011) The advertising industry has grown so rapidly in the UK as well as all around the world and it is anticipated to continue to grow. There are hundreds of advertising firms or agencies available in the UK. WCRS an advertising agency based in London, UK, founded in 1979, creates and broadcasts advertisements in the UK.
Organisations willing to do advertising hire them and they do the advertising on their behalf and they charge for it. They have been working for big organisations like the BMW, the Sony, Transport of London, the Sun, the Sky, the Santander, and the Royal Marines etc. Their recent works include BMW advertisement by the title of “It’s Only A Car”, “Fairy Tale” for the Sky Broadband, “Santander Switch” for the Santander Bank etc. (WCRS & Co, 2011) * Creative shops: Creative shops often refer to hot shops which are formed by derived members of full-service agencies, offering specialised services based on different wants of their clients.
Their creative approach is flexible to meet particular wants of their clients. (Fill, 1999) * Media agency These are independent agencies that provide services involved with media such as planning, buying monitoring clients media related purchase and schedules. Full-service agencies have their own media department to deal with these matters. The Carat is the largest independent media agency in the UK. There are big media agencies available in the market as well which are owned by other creative or full-service agencies. For an instance, the Zenith Media work under the Saatchi & Saatchi. IBID) * A la carte: Different agencies work together, offering a customisable service to their clients to meet their different needs. Clients want a flexible service being aware of the changing needs under different marketing conditions. Full-service agencies, Hotshops and Media Independents provide an integrated service, known as a la carte to the clients. In late 1980’s the J Walter Thompson and Ogilvy and Mather grouped up with the WPP to meet clients’ different needs and to create a competitive advantage. (IBID) To sum up, advertising industry is a fast growing industry.
Where there is a need of advertising campaign there is a need of advertising agency. Successful advertising agencies are those who can keep up with time as everything changes with time and using minimum resources generate maximum outcomes. P 1. 3 Any promotional activities take place in the UK is regulated by several regulatory bodies. Organisations that are promoting their products have to comply with the legislated rules and regulation given by these regulatory bodies. Some of important rules are given below. Consumer Protection From Unfair Trading Regulation:
The Department for Business, Enterprise and Regulatory regulates these regulations. The practices which organisations are not allowed to do are given below in bullet points. * Doing misleading practices for example, providing false or deceptive messages or skipping any important information. * Using any sales techniques that involve harassment, coercion or undue influence. * Claiming false credentials. * Displaying a fake trust mark, quality mark etc. * Claiming false endorsement approved by public or other relevant body in code of conduct. * Practicing Bait Advertisings. Displaying a particular good or service will be available to purchase for a very short time in order to force customers psychologically to purchase the product at that point of time, without giving sufficient time to make a choice or they will be deprived. * Selling a good or service that is illegal and making an impression that it is legal. * Not being able to deliver what has been promised etc. (Office of Fair Trading, 2008), Sales of Goods Acts: The Sales of Goods Act was passed in the UK parliament in 1893 and some few minor changes took place in 1979.
This act regulates the contract of buying and selling goods. The basic points are: * What is said about a product must be true. Organisations cannot give misleading information to customers. * Providing satisfactory products which include, the products are safe to use and are under good working conditions. * When serving a customer a product, it has to be fit with customer’s needs. (Legislation. co. uk, 1979) Distance Selling Act: Distance selling refers to selling through internet, mail, over phone or fax etc. Any company distance selling must comply with the followings. Give the customers or potential customer some information prior to the order such as name, address, product information, price information including taxes, delivery charges, refund policy etc. * Give customers a confirmation saying all the necessary details such postal address where customers could return products etc. * Give customer at least seven working days to return items. (Office of Fair Trading, 2007). Customer Credit Act: This act was first passed in the parliament in 1974 and later it was amended in 2006.
This act allows the Office of Fair Trading or OFT to interfere in the relationships between debtors and creditors. Debtors, lending money to any borrowers must have a valid license issued by the OFT. There are several laws on how debtors can trade with creditors. Any unfair trading can lead debtors being fined and/or imprisoned. Creditors, lending more than ? 25,000, can challenge debtors’ unfairness in court. (Newaz, 2010) Data Protection Act: Date Protection Act was first introduced in 1984 afterwards, it was amended a couple of times in 1987 and 1998.
This act is all about how to handle consumers’ identifiable information by the traders. My main points are given below: * Data cannot be used for any other purposes except the purpose it was taken for. * Data must not be handed over to a third party unless the consumer agrees with such action. * Consumers have the authority to access to their data unless the data involves any criminal investigation. * Data should be erased or updated after a certain period of time. * Data should not be handed over to a party outside the EU etc. (Newaz, 2010).
To summarise, any activities by any traders taking place, are continuously monitored by the United Kingdom regulatory bodies. Traders who do not comply with the regulations properly may face legal implications such as fine and/or imprison. P 1. 4 and M 1 The style of advertising and promotion changes from time to time and it depends on the trends of media to great extent. Media also changes as the time goes. It is contemporary with time and place. The way advertising and promotion were used to be done in early days for instance in 1990’s, is not the same as we do in the present days.
The traditional media for advertising and promotion such as TV channels, radio stations, newspapers, magazines, billboards, direct mail, phone call, vouchers, leaflets etc. are still in use in the marketing communication world but some new media have been added to the list in the recent years that have been proven more effective in terms of cost and benefit compared to the traditional media. Media Fragmentation: Advertising world is experiencing major changes in the media. A huge range of media or means of communications is available to choose from.
Media fragmentation emerges the increasing choices of media and upward difficulties to get through to target market. Current trends in advertising and promotion: * Ambient Media: Ambient media refers to non-traditional media which can be used in addition to traditional media or can be used as an alternative to the traditional media. It started being used in the UK around 1999. Ambient media can be proven as effective as the traditional media but its main drawback is it can only attract a small segment of the market. So it is suitable for niche marketing (described in details below). Some of the examples of ambient media are given below. Back of receipts e. g. car parking receipts. * Body of airport and rail station trolleys. * Hot-air balloons. * Shopping bags. * Beer mats. * Litter bins etc. * Outdoor Advertising: It is also known as Out-of-Home advertising. This kind of advertisings is placed in public places, coffee shops, motorways etc. Outdoor advertising focus on the customers while are out of home and on the move such as going to work or going out on weekends etc. * Digital-Out-of-Home: It refers to LED Screens, Kiosks, Jukeboxes etc that are placed strategically in different places where people would go or walk pass. Non-Digital-Out-of-Home: It includes bulletins, bus and train advertisements, taxi advertising, walls capes etc. * Internet based media: Ever since internet technology invented, established and taken place new doors of opportunities opened for advertising and promotion. Advertising and promotion witnessed a new era of the media world. Traditional media such TV channels, radio station, newspaper etc. allowed organisations to reach to their audiences easily. Now organisations find it even easier to get through to their target audiences with the help of internet technology.
Advertisers send their message to the customers and potential customers through social networks and blogs i. e. Facebook, Tweeter, Youtube etc. adverts are also being placed on websites’ Popup windows, Flash, banners etc. Now-a-days adverts are also seen on search engines such as Google Search, Yahoo! Search, Bing etc. Using the data of customers’ website-visit-logs or search-logs organisations can identify the needs and demands of customers in an individual level and promote their products on the basis of customers’ needs and demands.
These advertising techniques have been successful so far. An article of Wikipedia shows, in the last three quarters of 2009 advertising in internet media had increased by 9. 2 percent where as the traditional media such as TV, radio, magazines and newspaper experienced a decrease of -10. 1 percent, -11. 7 percent, -14. 8 percent, and -18. 7 percent respectively. BMW does a lot of advertisings on internet. For an instance, BMW (South Africa) broadcasted a video on Youtube called “BMW Defining Innovation”, promoting BMW brand name and its open door to innovation. BMW South-Africa, 2006) * Niche Marketing: Marketing concentrating on small and specific audience group intending to promote specific products that would meet the specific needs and demands of that particular group is called the Niche marketing. Organisations promote their products after analysing the customers’ geographic, demographic and psychographic needs and demands. For instance, the BMW Z4 sDrive35is is two seated convertible car. BMW’s target customers for that car would be people who are single or do not have children, earn ? 40,000 annum, and sporty minded.
A ? 18,000 annum earning, family person would not buy this car and promoting that car to that particular person would be a waste of time and money for BMW. Promoting the products to the right customers on the right time on the basis of needs and demands is the aim of niche marketing. (CarandDriver, 2009). In 2001 when BMW launched its product New Mini in the market, they targeted only single people who had enough disposable incomes. BMW said the new Mini was “for individuals who were not interested in following the crowd”. (Teachmebusiness, Unknown year) * Crowdsourcing :
This is a very new idea of advertising and promotion cum marketing, has been developed recently. Organisations sometime invite general people to accomplish, perform certain tasks for example the Apple invited people to guess the specifications of its upcoming product iTablet. By this open call to people the Apple would not only get information about public expectations and opinion of their new product but also inform the customers that Apple is going to launch a new product by the name of iTablet and make them believe how important they are to Apple which will psychologically force the customers to try the product.
This open call to people or crowd is called crowdsourcing (Arthur, 2010). The BMW Innovative Lab used crowdsourcing to improve their telematics, online services, driver assistance system and to get new innovative ideas (Basson, 2010). ICT impact on BMW: ICT stands for Information and Communication Technology. ICT has led BMW’s advertising as well as other promotional campaigns to the next level. Some of the bullet points of the impact are given below. * Website: Through BMW’s website potential customers can view features and benefits of their desired cars.
From customising the cars to placing an online order, everything is now possible only in few clicks on computer. BMW has a website called BMW TV in which video footage for each and every car is available which let the customers to have a more detailed and deeper look. * Video Conferencing: Internet based video conferencing allows the management to hold long distance meetings. If the CEO from Munich for example wishes to have a meeting with Executives in India, they do not necessarily have to fly to India. They can do it over internet. It can save a lot of money and time. Email: Official letters now can be sent in seconds from one branch to another or even an invoice from dealers to customers. It made communication more convenient and quick. Direct email to existing customers informing about new cars that have been launched, shows that BMW is giving priority to them which helps create a brand loyalty. Using collected data of potential customers, the products can be promoted to new customers as well. * Mobile Telephone: Text messaging and voice calls brought an extra facility to organise an individual level communications and promotion.
On the other side, stuff within the company can be in touch with each other which are time and cost effective. To conclude, the means of communications between organisations and their audiences have changed enormously over the last few years. Considering the cost and benefit of advertising and promotion and the necessity of communicating with customers effectively the organisations have gone beyond the traditional means or media to reach their goals. Requirement 2 P 2. 1 Advertising is one of the most effective ways to reach a huge number of audiences at a time.
Organisations apply various kinds of promotional activities to inform their potential customers about their products; remind their existing customers and differentiate their products with competitors’ products in order to persuade the customers to purchase and keep using their products. Among the elements of promotion, advertising is one the most important ones. Advertising has been proved very effective in reaching customers and very persuasive. The main objectives of advertising are: * To inform customers about the goods and services offered. * To encourage them to purchase. * To remind the existing customers. To inform where the goods and/or services are available to purchase. (Fill, 1999) The principal roles of advertising as promotional strategy are given below. Draw attention: Advertising’s one of main roles is to draw attention of the potential customers as well as the present customers that what the advertiser company has to offer. Advertisers make the advertisements in such an attractive way that when it comes to customers’ sight they subconsciously get curious about it and mentally get forced to look at it carefully and eventually they learn the features and benefits of the product which has been advertised.
This becomes very helpful when a company is just getting started or an existing company is launching a new brand or product. (IBID) Increase sales: Successful exchange of information of product’s features and benefits with customers leads to an increase in sales especially when business is quite. Every business has a good and bad time. After Christmas sales period, in January and February many businesses become quite. But advertising using right promotional tactics can overcome this. (IBID) Competitive advantage: Through advertising, advertisers differentiate their products with competitors’ products which have similar features and benefits.
Advisers try to give customers reasons why should they choose their products instead of other products available in the market. Advertising helps to retain new customers and customers who are currently consuming competitors’ products. (IBID) Advertising in marketing mix: Firstly, advertisings bring a product of a company to public’s attention. Secondly, it helps to speed up sales at a quite business time for example after in holiday period the demand of books, pens other stationary products goes down. At such time appropriate advertising can help to increase the sales to some extent. Third, through advertising a company can create or mprove a good image of it in public mind. For example, the British Petroleum or BP had a bad time after the oil split in the Gulf of Mexico. Using appropriate advertising they recovered their image. Finally, advertising is a very good tool of inducing customers to purchase goods and services offered. Conclusion, advertising does matter in a business. Advertising and sales of company have positive correlation between them. The better advertising a company does the better sales takes place. P 2. 2 Brand refers to a design, sign, symbol or words that carry identity of a company or even of a product of company.
Every company uses a unique design, sign or symbol for itself and for its products to differentiate it from its competitors. Doyle (1989) states that “the name, symbol, packaging, and design or some combination, which identifies the product of a particular organisation as having sustainable differential advantage”. Fill (1999) adds that “branding is a method by which buyers differentiate among similar offerings and associate certain attributes with a particular brand. ” BMW and BMW owned Mini and Rolls Royce for example have unique logos which carry their brand names and characteristics.
Source: Respectively, www. thecarconnection. com, www. cartype. com, www. hicars. org. Objectives of successful brand are as follows: * Connects with the customers emotionally * Motivate and force the customers psychologically * Build loyalty among customers * Confirms product credibility * The purpose of branding: The advantages as well as the purposes of branding are summarised below. * High brand equity: The concept of brand equity is underlying in the relationship between a company and its customers which establishes by the trade of a product under the name or brand of that company.
A company providing good quality products and satisfying the customers over a period of time can lead the customers to trust on the company and its products. Trusting a company or brand means when customers have to make a choice they can straight away choose the brand they trust on, this reduces their decision making time and associated perceived risks and that because they know how exactly the characteristics of the products are. In this way, a good brand wins not its customers’ trust but also its shareholders’ investments. Brand thus is the most valuable asset of company.
Brand equity or intangible goodwill is fifty percent of company’s total asset but some companies’ brand equity is as much as seventy percent of its total value such as Coca Cola. (Whalley, 2010) * Product awareness: It is necessary to create awareness of a product among the potential customers through advertising, distinguishing packaging etc in order to make the product visible and stand out of other products. (IBID) * Premium pricing: Good brand helps to retain a premium price of a product. Premium pricing by good brands does not create any suspects in customers mind.
For example, the price difference between BMW cars and Tata cars is huge. Even if the quality of Tata cars was comparable with BMW cars, they would not be able to price their cars as BMW does. That is because customers would trust on BMW brand name even though the price is higher than other cars. (IBID) * Competitive advantage: Good brand reduces customers’ decision making time. In the 21st century, people do not much time spend on thinking on shopping so if they find a brand that they trust on, they will go for it as they believe that’s the right product for them. (IBID) * Relationships:
Relationships build up between customers and a good brand when customers purchase their products and repeat their habits. Customers see it not as company owned by somebody else but they see it as their brand, a part of their lifestyle and personalities. * Branding strategies: There are four types of brand name strategies seen and they are as follows: * Individual names: Individual name brand refers to the names of the products which are established and well-known themselves without producer companies’ name, and whose good or bad image does not affect company’s reputation.
The General Mills, an American food product manufacturer is a well known brand, produces thirty seven well known products which have their own identity such as, Betty Crocker, Yoplait, Colombo, Totinos, Jono’s, Pillsbury, Green Giant, Old EI Paso, Haagen-Dazs, Cheerios, Lucky and Wanchai Ferry. (Newaz, 2010). * Blanket family brand name: All the products that are produced by a company are named after the company’s name. These products are affected by the company’s image or can affect it. Products under a family brand name are often judged by the standard of the producer company.
Family brand name decrease the necessity of advertising to some extent for a particular product. A soup and soup related products producer, Campbell Soup Company’s all the products comes with the company brand name. For example, Campbell’s Carb Request Soup, Campbell’s Chunky Soup, Campbell’s Gravies, Campbell’s SpaghettiOs Pasta etc. (Nawaz, 2010) * Separate family names: Separate family names strategy refers to a product establishing its own separate identity at the same time maintain company’s corporate identity.
Alternatively, a company can name its different types of products different family or series names even though they all are under the same parent. This strategy can benefit the both, the company and the product if it works out in the market. Sears have different names for its product types for example, for appliances, Kenmore; for tools, Craftsman etc. * Company brand name combined with individual brand name: This strategy is somewhere in between individual and blanket family branding strategy. In this strategy all the products of a line have a common company name but have separate name of each product as a second title.
Kellogg’s all the products have the common name, Kellogg’s Nutri-Grain but every product has its own separate name because of the diversity of flavour and characteristics between them. For example, Kellogg’s Nutri-Grain Muffin Bars, Gronola Chewy Bites, Minis etc. (Newaz, 2010) While managing brands, companies can increase their goodwill using the following strategies: Line extension: By adding a new feature to an existing product, create a new version and extend the line. For an example, Asics Running shoes added new versions of its successful product, Nimbazz Gel by adding different colours and changing the shoe laces a bit.
Brand extension: Already successful brand name can be used to add new brand by the same name. Virgin records extended its brand name to Airlines, Mobiles, and Trains etc. Multi branding: Successful brands can start new brands in the market. Unilever Ltd started numerous brands throughout the world after being successful with their soup brand in the UK. New branding: after successful branding, organisations may want to launch new brand in the market where similar product are already available. (Learnmarketing. net, No Date) To sum up, Brand is an intangible asset of a company and it impacts on company’s every sphere.
Right selection of branding strategy can influence on company’s success to a great extent. P 2. 3 and M 2 Advertising campaign is all about creativity. Creativity refers to creating such a unique and appealing advertising that is capable of persuading customers. The role of creative advertising is to get customers’ maximum attention and make the brand name memorable. BMW, The Ultimate Driving Machine is an example of creativity, how a brand cannot be easily forgotten. Advertising has two dimensions, Communication Brief and Creative Brief.
Communication brief includes positioning, targeting, messages etc where creative brief refers to advertisement designs, visuals, copy writing etc. Communication brief Targeting and Positioning are the main elements of the Communication brief. Position refers to a marketing strategy that intends to establish a brand, make it noticeable and take up a distinct position with the competing brands in the market. Positioning is done by clear market targeting and creating differential advantage. Targeting is a whole separate section of marketing. It involves choosing target market to which the products are to be offered ased on target market’s needs and demands. Creative brief: * Advertisement designing: Advertisement designing means creating the message which is to be delivered. It comprises constructing the message content for example choosing a slogan based on company’s aim and objectives, choosing a way or make a format for the message. Advertising agencies usually have a separate creative team, in some cases, they hire an external creative agency. Designing advertising has a deliberately structured step by step process. * Identifying the aims and objectives of the campaign. Gathering information about the product, customers and competitors. * Generating ideas. * From many new ideas, narrowing down to most potential ones and getting approval from the advertiser company on the one which is to be chosen final. * Putting contents of the message together in chosen message format and creating advertising copy (AD-Copy is discussed in detail below). * Testing the advertisement before launching it. (Trehan and Trehan, 2008) Young, J. (1992) proposed a model for generating creative ideas which led advertising to the next level. The model is given below with the short explanations of its elements. Copy-writing: Copy writing is basically transforming the information gathered about the advertiser company and their goals, the product which is to be advertised, target market or audiences, competitors, the campaign-objectives and the time and place of advertising, into the actual advertisement. Who writes the copy is called the copy writer. Copy writing varies from print-advertisements to broadcast-advertisements. Print advertisement usually includes headlines, sub-heads, illustrations, brand logo, slogan and/or identification-marks, colours, closing ideas etc. Broadcast adverts can be either on Television or radio.
Radio adverts comprise voice and music whereas Television adverts contain audio, video, gestures, demonstrations, facial expressions, music, lyrics etc. Television adverts involves directors, script writers, choreographers, graphic-designers, animation-designers and models. (Trehan and Trehan, 2008) In conclusion, an advertising-campaign’s success is lying down on its creativity. Giving customers something exceptional but consonant with reality in order to make customers at the product, force the customers mentally to know more about it and try it out, is the sign of creative thus successful advertisement.
P 2. 4 Advertising is the most important and most integrated sector of marketing. It is unimaginable to organise an advertising campaign without having it done by a specialist advertising agency. The way an agency works is described below. Structure of an advertising agency: Like other organisations an advertising agency forms structure to operate successfully. An advertising agency has main four departments. * Account Service Department: The account service refers to account management department works in establishing and maintaining relationships with its clients.
This department works as a connector between the agency and its clients. Its responsibilities include: * Researching clients business and profit goals, brand specification, marketing problems and objectives of advertisement. * Learning the client’s budget and if they have any rough idea how they would the advertisement. * Keeping in touch with clients and keeping them informed throughout the advertising process. Making sure clients are satisfied. * Dealing with media schedules for example, getting approval from censor board and media. (Drypen, n. d. ) * Media Department:
This department’s duty is develop a media plan to reach the target audiences effectively at possible lowest price. They deal with media companies and buy time or space of media i. e. newspapers, TV channels, internet social networks etc. The amount of client’s money spent on advertising depends to great extent in media department. * Creative Department: This department consists of creative personnel who are responsible for creating and performing the advertisements. They form the ideas, decide the theme and construct the advertisement by adding headings, subheadings, bodies or shooting with models.
They make a rough copy of the advertisement and show it to their clients if any changes to be made or anything to be added etc. The success of the advertisement depends on this department to a large extent. (Drypen, n. d. ) * Production Department: This department turn the thought of the creative department in to reality. They construct the actual advertisement using all equipments needed. Agencies hire those equipments instead of buying them. Production hire casts directors where needed to convert the creative ideas of creative departments to a “ready to go” commercials. Selection of agency:
Companies, wishing to advertise their products, go through a step by step selection of advertising agency process. According to Smith and Taylor (2002) the steps are * Identify problems or requirements: Companies identify and determine the requirements and set goal of the campaign which is to be met. * Create a pool list of potential agencies: a list of potential agencies is made by watching the advertising campaign they have undertaken. Advertising managers and marketing managers of a company analyse leading advertising agencies work and past campaigns thoroughly to make the list. Credential pitch: some companies ask the advertising agencies to submit their credentials before proceeding to brief. Credentials should include current and past campaign that they have undertaken, agency-profile, agency work format, members etc. * Submit brief: the brief varies from company to company. But the least elements a brief should include are 1. Situation: company’s overall position including the market, channels, segment and target market, competitors, market share, current and previous campaigns etc. 2. Objectives: the main objectives of the campaign as well as the overall goal of the company. . Strategy: company’s marketing mix and target market strategies. 4. 3Ms: Men/Women: the final decision maker, posts and role of people who correspond with the campaign, Money: budget of the campaign and Minutes: timetable for selecting the agency and launching advertisement. * The pitch: client companies invite the shortlisted agencies to make a sales pitch which includes research on clients’ market, media, structure and personnel within the company etc. The pitch involves great deal money spends on doing so. The pitch is an opportunity for the agencies to show their creativity, uniqueness and attractiveness.
This is where the advertising agencies advertise or sell themselves. The ABM, one of the best agencies of 1980’s, hired a Scots guard bagpipe band of 60 members to play the Honda Jingle, “Believe in freedom, believe in Honda” in Norwich Street, London, while they were presenting a pitch to the Honda. * Analysing and choosing an agency: after analysing agencies activities throughout the pitch as well as agencies charging policies and other activities, the client company make the decision of choosing an agency. Agency remuneration: Agencies’ remuneration can be in three ways. Commission: Recognised agencies traditionally get 15% discount from media for instance, TV Channels while the agencies charge the agencies the full price. For example, if a ? 10 million TV advertising campaign is being held, the TV channel would charge the agency ? 8. 5 million after 15% discount but the agency would charge the full amount, ? 10 million. So the agency makes ? 1. 5 million commission. * Fees: Relatively smaller agencies do get commission but they charge a fee for the work they do. It could be monthly, quarterly or annually.
Fees depend on the amount of work they undertake and how much the clients are likely to spend on media in which the agencies do not get any commission. * Pay-by-result: New, young and establishing agencies sometimes choose to offer their services on a pay-by-result basis. Positive result will earn them fortune when negative will do the opposite. Sometimes results are beyond the control of agencies. For example, the product-quality, distribution process or pricing strategies are not right then agencies are unlikely to help companies pick up sales. (Smith and Taylor, 2002). Requirement 3
P 3. 1and M 3 Below the line promotion is communication with public that is done by organisations through their personal means or channels over which the organisations have direct control. Using below the line promotions organisations communicate with their specific target audience intending to establish a relationship. Below the line promotions include Sales Promotions: Sales promotions are techniques applied to persuade customers to purchase or try out goods or services in order to increase sales. Sales promotions are usually initiated for a quick and immediate sales increase.
Sales promotions cover a large area of marketing communications. According to Smith and Taylor (2002), sales promotion can be categorised into three categories. 1. Customer promotions: such as gifts giving gift cards, vouchers and premiums to the loyal customers, giving points on the basis of purchase etc. 2. Trade promotions: special terms, distributing free stuff with brand name on them such as pens, diaries etc, organising competitions and reward the winner etc fall in to this category. 3. Sales force promotions: include incentive and motivation schemes. Companies apply push and pull strategies to increase their sales.
Push strategy refers to convincing the intermediaries to push or force the customers tactically to purchase the products whereas the pull strategy means creating a demand in target market of the products by featuring the products such a way that meets the customers’ needs and demands so the customers will pull the products from the manufacturers. Public Relations: Smith and Taylor (2002) define public relation as “the development of and maintenance of good relationships with different publics”. The public refers to all the groups and individuals with which a company is interrelated.
The public includes employees, shareholders or investors, suppliers, intermediaries, government or regulatory bodies and most importantly the customers. There are two types of public relations or PR. Product PR or marketing PR and Corporate PR. By product PR, companies promote their products or brands whereas by corporate PR the companies promote themselves. Public relations are undertaken not only intending to increase sales but also to encourage skilled people to apply for jobs in order to get good employees, get approval from regulatory bodies to open new firms or factories etc.
Loyalty Schemes: Loyalty schemes refer to rewarding the loyal or regular customers by which companies create an interest among the customers to keep purchasing goods or services. Some companies give points for purchased products which have value to buy products. Gifts to the customers are also included in the loyalty schemes. Sponsorship: Sponsorship is one of the best ways to promote products as well as company brand names. Sponsoring event, consorts, sports team and players etc allow companies to promote their brands. For an example, BMW sponsored USA Olympic teams.
BMW had organised a motor show in Paris last year to introduce its new car from BMW X3 series. Through this BMW introduced its new car alongside promoting its existing cars. The video footage of the road show has been broadcasted on their own website, called BMW TV which contains audio-visual footages of the products they have to offer for other potential customers. (BMW TV, 2010). Direct Marketing: Direct marketing is communicating with customers individually rather than as a group or having them visiting to the company or its showrooms.
The Direct Marketing Association, UK suggests direct marketing is “the distribution of information, products or services through any advertising medium that invites the individuals to respond directly to the advertiser”. Direct marketing includes * Direct mails to customers’ doors * Direct telephone calls to customers * Door-to-door marketing etc. (Smith and Taylor, 2002) Product Placement: Placing the product in to different popular TV serials, interviews, debates, movies etc is a very good way to place the product in to customers’ mind. For example, BMW placed its car on the James Bond movie, The World Is Not Enough.
They also put their cars in different TV shows such as the Top Gear. Merchandising: Merchandising refers to displaying the products in showrooms. A survey shows one third of the USA customers’ purchasing decisions are made in store by merchandising. Using different tools and devices eye-catching merchandising can stimulate sales increase at a large extent. Merchandising tools may include * Leaflets * Stickers * Posters * Racks, shelves and stands * Spotlighting system * Visual displays * Window displays and so on. (IBID) Advantages of below the line promotions: * Can draw high customer attention. Message can be customised with the situation * Message is adaptable with selling environment and circumstances. * Two way communications allows more flexibility and interactivity. * More potential to establish new relationships. * Opportunities of closing the sale at anytime. Disadvantages of below the line promotions: * Can be very expensive depending on which method is chosen. For example, placing the brand name on a movie can be costly. * More employees have to be employed to accomplish a project. * Message can only be delivered to a limited number of audiences etc.
To summarise, promotion is one of most important elements of marketing and inevitable for today’s business world. As there it has both advantages and disadvantages, it is promoter organisations’ duty to figure out the best way to reach the customer. After analysing the cost and benefit of promotional activities they have to choose which way they can go for. Whichever way is chosen their ultimate target is to increase the sales and generate more profit. P 3. 2 Below-the-line promotions cover a big area of promotional activities that are done by organisations’ personal means.
The major techniques have been discussed in the previous section. The additional techniques include corporate communications, exhibitions, word-of-mouth and personal selling. Corporate Communications: Corporate communications are carried out to basically improve two elements of an organisation. These are corporate image and corporate identity. Corporate image indicates the public point of view towards a company or how the company is perceived by the public whereas corporate identity means how a company presents itself to the public.
The public does not only mean the customer but also a company’s employees, potential employees, government and regulatory bodies and competitors. (Yeshin, 1998) Exhibitions: Exhibition is the idea of bringing the whole market under one roof where the products are demonstrated to the customers, intermediaries as well as to the competitors. In an exhibition product purchasing decisions become rather easier to make as face-to-face communications take place alongside on spot trials. Exhibition is a unique way to enhance and strengthen relationships and open new doors of opportunities.
To organise an exhibition, it is very important to plan everything beforehand. The benefits of a successful exhibition can be summarised as below. * Product launch: an exhibition is the best place to launch a product to the market. This is the only place where the buyers, resellers, retailers, competitors and so on come on one platform. What else would be any better place to start a product? * Buyer database: an exhibition gives an opportunity to meet numerous buyers at the same place which allows the company to collect buyers’ information and build up the buyer database. Exhibition is probably the most efficient way to build buyer-database. Relationships: exhibitions do not only allow companies to demonstrate their products but also let them communicate with potential buyers and develop new relationships. * Information: a lot of people do not buy or even try out products other than the ones they usually use. They are afraid to try a new or unknown product because they do not have the knowledge about the product. An exhibition is a perfect way to educate the potential buyers about the products and/or services offered. * Feedback: exhibition is where buyers and sellers face together. While demonstrating a product, some queries may rise.
Two way communications allow buyers to submit instant feedback to the sellers which helps to set mind whether or not to purchase the product. * Instant sales: as discussed above, two way communications let customers consult and discuss about products’ features and benefits deeply. If a customer has any doubt, it can be overcome very easily. So it results in making on spot purchases decisions. (Articles Base, 2010) BMW organises and take part in a lot of exhibitions. It mostly launches its new vehicles through exhibitions. Such as BMW Z4 sdrive35is was launched in an exhibition in Paris. They also take part in races such as Formula 1.
Word-of-mouth: Broadly speaking, word-of-mouth refers to any sort of conversations about an organisation, its product and/or services and its employees. Mostly the conversation is related with complaint, appreciations, endorsement and goods and services of an organisation. No advertisement or any promotional activity would be more effective than a friend or colleague suggesting or criticising a product. Word-of-mouth is often referred as WOM does not necessarily to be used as a separate tool of marketing communications but it can be used to stimulate other tools such advertising campaigns, direct mailing, sales promotional activities etc.
Or alternatively it can be generated from these tools. WOM is mostly influenced by two additional matters of products or services. * Quality: it concerns with products’ features and benefits whether or not meeting the customers’ needs and demands. Whether the value of the products is good against the price is to be paid. * Customer care: before-purchase, during-purchase and after-purchase assistance provided by the member of stuff of an organisation. (Yeshin, 1998) Requirement 4 P 4. 1 A budget refers to the planning of a company’s financial matters namely, its expenditures and incomes.
The purposes of budgeting can be summarised as (1) predicting a certain programme’s or campaign’s expenditures and revenues. For example, creating a rough model of spends and incomes of an advertising campaign. (2) Measuring a company’s actual financial ability against the prediction or forecast and acting to enable the financial operations. Budget determination: Budget determination includes a number method to choose from. Organisations analyse the different methods and their possible outcomes before determining the one they want to go for. The available methods are given below. * All-we-can-afford:
This method often refers to Arbitrary Method, probably because it is sort of unplanned. How much a company can afford for its promotional activities, the budget is determined on the basis of that. * Percentage-of-sales: This is the most popular method used by organisations. A company determines how much to spend for the next promotional activities for a period of time, is a fixed percentage of the sales of last period. If the company’s sales figure increases, its budget for the next promotions also increases. In opposite, if sales go down, they cut down budget for next period. * Competitive-parity:
Some companies budget their promotions on basis of competitors’ budget. This method of budgeting is called the competitive-parity method. To stay in the market companies adopt their expenditures with their competitors. For example, if the Audi, competitor of BMW, starts spending twice as much as they did the last period, then BMW is also likely to increase its budget to stay in the competition. * Objective and task: Every company has an expected result for a series of promotional activities undertaken. Setting the budget for the desired outcomes refers to objective and task oriented budgeting. * Computerised-modelling:
There are computer software available which is able to create a model of budget based on past budget data and outcomes. It basically gives a rough idea of what was sales figure for how much money spent. Costs and benefits: Cost-benefit analysis involves with two main matters, (1) assessing a particular project or programme from every possible angles, (2) making appropriate financial decisions against it. For every programme, organisations analyse different aspects and choose most appropriate method of budgeting. In 2002, BMW used to number one luxury car manufacturer in terms of sales but over the years it has gone down to number five.
At the same time, its budget for promotions for example, advertising has also been decreased. A study shows, about $150 million was spent on promotions in 2004 where in 2005, it had decreased to $60 million. BMW is seemed to be following the Percentage-of-sales method of budgeting. (BMW Innovation, n. d. ) P 4. 2 A promotional plan involves with all kinds of communications that take place between a company and its various audiences such as its customers. While developing a promotional plan, a company must understand and analyse its situation. Here, situation refers to a company’s overall position in the market at a certain point of time.
The company then determines its objectives and goals against its position and develop a promotional plan for a chosen target market. Situation analysis and objectives: SWOT analysis is often considered as an alternative term for situation analysis. It refers a company’s strengths, weaknesses, opportunities and threats. This analysis has been adopted from military strategies. It is very important to identify these elements so that appropriate course of actions can be taken to make the best of strengths, maximise the opportunities, overcome weaknesses and mitigate threats.
BMW’s strengths are, it’s the best luxury car manufacturer, it has huge influence over its customers and its customers are seemed to be loyal, its average plants for example Spartanburg can manufacture 250 to 300 different model-cars per day etc. Weaknesses include, even though it manufactures vehicles worldwide but still it is perceived as German company not a global car manufacturer, it is too attached with its traditional bound. Opportunities, it can step up from being a German car company to a global automobile manufacturer by having the title of the first European car manufacturer planting outside the Europe.
Threats, its competitors growing very rapidly, namely, Lexus has become number one selling car in USA whereas BMW used to the number one before. Upon identifying a company’s situation and its various elements it now has to set objectives and goals. BMW sold 260,000 cars in the USA in 2004 and it aimed to sell 275,000 cars in the following year. As a course of action, it had to bring changes to its promotional plans such as increasing budget, adding new means of promotions etc. (BMW Innovation, n. d. ) Promotion-planning tools: Different marketing communication experts have given many views and techniques on planning a promotional strategy.
Some of important and most followed ones are discussed below. * AIDA: Strong (1925) suggests that promotion-planning should have these basic elements. These elements are (1) Attention: before making any sort message sharing it is inevitable to get the audiences’ attention in the first place. (2) Interest: upon getting their attention it is important to sustain it by keeping them interested. It can be done in several ways such as, listening to their problems, giving possible solution, demonstrating how the solution works rather than verbally telling them and make them feel that they are part of it and get them involved actively. 3) Desire: when they start listening, it’s time for the promotion-planner to make desire in their minds not for what they want but for what the planner wants them to do. (4) Action: in this stage, it is time to offer the goods or services to them as their needs have already been revealed and needs have been exaggerated to desires. It is important to react on how they act for example, if they are making a sign of wondering of what is the after sale-service of a particular product, and then appropriate information relating after sale-service should be delivered to them which solves the problem. DAGMAR: It stands for “Defining Advertising Goals for Measured Advertising Results”. Colley (1961) argues that promotions should be carried out through four steps. (1) Awareness: making customers aware of the existence of the products. (2) Comprehension: going deep with products to show how they meet the needs and demands. (3) Conviction: persuading them and creating necessary and unnecessary desire so it will help to proceed to the next level. (4) Action: offering the product such a way that it cannot be refused.
Media selection and budget for promotion depend on the target market and company’s aim and objectives. A company must choose a medium through which it can reach its target market. The media varies from target market to target market. For example, Ferrari and Tata do not have the same target market so their ways of reaching their customers are different. In addition, their costs of marketing are also different. BMW may form its promotional mix in such as way that its 60% of promotions is advertising, 20% each for sales promotion and personal selling.
P 4. 3 and D1 Planning an integrated promotion technique is a matter of consideration of the overall marketing communication aspects. The important aspects that are needed to be discussed are given below. Positioning: Position refers to a marketing strategy that intends to establish a brand, make it noticeable and take up a distinct position with the competing brands in the market. Lancaster et al (2002) argue that “product positioning is the act of designing the company’s product and marketing mix to fit a given place in the consumers’ mind. Companies research market and target segments and decide whether to compete with competitors by producing a product which has similar features and benefits as the competitors’ products or to add something extra and gain the next level. There are two sides of positioning that fall into broad positioning. These are re-positioning and de-positioning. Re-positioning: it involves changing a good’s or service’s existing identity to adopt with market environment and/or compete with competitors whereas de-positioning refers to changing a product’s existing identity in order to lower the competitors’ products’ position in the market.
Fill (2009) proposes that a product can be positioned by applying either of three positioning strategies. These strategies are known as 3Ps strategies. * Pull strategy: This strategy is a consumer-oriented strategy. Companies create messages and pass over directly to the end user-consumers mostly by advertising-campaigns to increase awareness and establish desire about the offered products so that they come enquiring about the products to the closest distribution channel network for example to retailers.
The retailers consequently show interest about the products to their above source of the channel network such as wholesaler, distributors and finally to original manufacturer or the producer company. A model of the pull strategy is given below. Producer Retailers Wholesalers Supply chainPersuasion (e. g. through mass media) Customers Demand chain Illustration: A model of Pull-strategy. * Push strategy: This strategy specially applies on Business to business marketing. The goods or services purchased from the producers by organisations rather than end-users or consumers.
The buyer organisations add value to the products and sell them to another party and through the chain, the products reach to the consumers at last. Manufacturers use promotional techniques like personal selling, sales promotions etc to push the product to the buyers. The products get pushed throughout the supply chain and reach the final users. Producer Wholesalers Retailers Purchase-stimulation Supply chain Customers Illustration: A model of Push-strategy. * Profile position strategy:
There is a third group of stakeholders that have a particular interest over a company, they need to know how the company is running but they are not interested in buying its goods or services. This group includes government or regulatory bodies, economic analysts, trade unions etc. As a necessity, a special type messages need to be sent to them either as information or as a form of response. A good position in this particular group will earn company benefits in terms of legislative matters. Importance of PR: PR stands for public-relations. What PR is all about is discussed in the 3. 1.
Public relation is not only maintaining relationships with customers but with government and regulatory bodies, surrounding communities, stakeholders such as investors, employees etc, intermediaries such as agents, dealers etc. The importance of PR is given below. * Any approval needed fro