Saturday, November 16, 2019
Advertising and Promotion Essay Example for Free
Advertising and Promotion Essay Introduction: Advertising and promotion are part of marketing which are very important. Without advertising and promotion the company cannot communicate the message of their product to the target customers. Through advertising the organisations use mass media to communicate the message to a large group of people. This can also be said as above the line promotion. Below the line promotion includes when the organisation is directly involved such as direct mailing and telecommunication. The assignment has been done on extensive research work to find out the various strategies used by organisation for advertising and promotion. The advantages and disadvantages, the competitive edge, etc. Requirement 1: 1.1 Advertising as we know is when there is the usage of paid announcement through media specially to bring in to attention of the people the knowledge of some product or service. Any medium that can take a message from an association to a potential purchaser can be utilized for promoting. Obviously, the most well known media are TV, print (daily paper, magazines, and so on.), radio, and the Internet. TV is well known in view of its vast range, however it is additionally exorbitant. The 2012 Super Bowl was viewed by in excess of 111 million individuals, and organizations that needed a 30-second business amid that game paid a normal of $3.5 million. The communication process involves the following: Source Ã¢â¬â A source is likewise alluded to as an sender. The sender has a message to pass on to others. The sender can be anybody from a brand specialist (in a significant company, for example, Nike or Budweiser) to a businessperson in a more diminutive association. Now and again, famous people are utilized to underwrite items and go about as an issue for the item. It is constantly vital to verify that the source is solid and reliable. An immediate source can be a sales representative conveying a message around an item. A indirect source utilizes a well known open figure to attract thoughtfulness regarding an item. Encode Ã¢â¬â The source encodes or makes an interpretation of thoughts into a message. Case in point, a brand director chooses to promote another item. Message Ã¢â¬â After characterizing the target advertise, the advertiser outlines a viable message that will accomplish the communication objectives. Recipient Ã¢â¬â The beneficiary is the individual or gathering with whom the sender endeavours to impart thoughts. Advertisers need a reaction, the responses of the recipient, in the wake of being presented to the message: for instance, a customer getting the message about the new item. Translate Ã¢â¬â The recipient deciphers or translates the message. For a message to be decoded by a beneficiary the way it was expected by the sender, the sender and receiver need to have regular encounters. As such, a recipient may not interpret a message the way it was proposed to on the off chance that her background and experience vary significantly from the senders. A marketer has to be sensitive to the intended audience. Noise Ã¢â¬â Noise meddles with or upsets compelling correspondence. This can incorporate a poor TV or radio signal. Feedback Ã¢â¬â Feedback is checking and assessing how precisely the expected message is consistently gotten. This is possible by directing statistical surveying. Basically, this includes inquiring as to whether they have seen the message, on the off chance that they review the message, and what their attitude was towards the product. There are various channels that companies uses in order to communicate their goods or services to customers in the market. BMW for instance uses BMW website, magazine, newspaper, trade shows, billboard, etc. (Elearningportal.com, 2013) 1.2 Promotion is a part of the marketing business. Basically, if marketing can be considered as the methodology of bringing an item or service to the consideration of purchasers, marketing is the selection of methodologies to keep the product or service in the personalities of buyers and stimulateÃ continued demand for it. In marketing sales, distribution and target market are closely linked with promotion and advertising. There are a few potential roads of actions that the marketing group can use. Advertising may emphasize in one or more media stations, including TV, film theaters, print media, for example, daily papers and magazines, and online entries. Organizations might likewise distribute posters, announcements and pamphlets to promote their items. An product or service is liable to have one sort of notice for its dispatch, and may have diverse adverts that constitute the ongoing promotion campaign. These later adverts may specify grants that the product or service has won, or confirmation of past sales success It is the centralized system that runs the organization of advertisement and promotion. There are different level of hierarchy who work together to make this industry successful. The organization includes advertising and marketing managers, directors, sales agents, staff from finance department, etc. The media works very closely with the advertising and promoting. There are agencies that are in charge of the production of these advertisements and their distribution. There are also collateral service providers. For instance for BMW there are artists, painters, photographers, directors, who support the advertising. (Kotlar et al., 2005) 1.1 Assess how promotion is regulated (P1.3) The regulation of activities of promotion relies on the risks and likely effect of marketing. In some cases the company may withdraw their promotional campaign as because it may have potential risk, instead of doing good, it could bring about more catastrophic events (Bagwell, 2007). Formal authorization activities are likewise instrument for managing promotions. Analytical work is carried out to recognize if there is a marketing issue being overlooked. They may concentrate in deceptive message, error of message, adequacy of pages and profit on promotional investments. On reading the case study of BMW it is seen that they changed and strengthened their promotional approach in 2005 after a research study on extravagance auto purchasers. The promotional activity transformed its regulatory directionsÃ to assemble new brand picture. In the wake of finding that their message is not being accurately seen by purchasers BMW strengthened and enlisted another notice org in May, 2006. Who supplanted the organizations overemphasis on performance driving in the course of recent years with the idea organization of thoughts Thus regulatory tools are connected to control the stream and impact of promotional activities. . 1.4 The universe of promoting and advertising is changing and the patterns of the business are extending, adjusting and developing as customers change. The key is to staying on top of things and using an alternate level of considering products, groups, organizations and promoting channels accessible. Mobile Marketing :Yes, this trendy expression was thrown around a considerable measure in recent years yet itÃ¢â¬â¢s at last turning into a need, being put into improvement and being advanced. Publicizing on cell phones is going to increment exponentially not long from now as cell phones keep on becoming a top technique for correspondence between buyers. Regardless of what industry, the measure of the business or different components, mobile advertising specialists will be looked for after more than ever. Interactive Banner Ads : Individuals hear the expression, banner advertisements and flinch. They are a bad dream for buyers and advertisers. Customers scorn that they take up the page and advertisers cant get individuals to click on them. Be that as it may, what everybody knows is that they are an extraordinary source of product placement Ã¢â¬â right in the middle of your target marketÃ¢â¬â¢s website.. What were starting to see is that advertisers are making banner of things their intended focus group needs to see and needs to recall. Basically, organizations are making their advertisements the feature story. As opposed to controlling buyers to their sites, they utilize interactive marketing segments to make these promotions shareable by means of social media. Local Advertising : Local advertising, in short, portrays promoting that purchasers arent altogether mindful that they are generally presented to on the grounds that it is flawlessly incorporated into how individuals use specific mediums. tricky for advertisers to attempt to evaluate how to discretely make their advertisements would appear to be a piece of the substance on the page the client is survey, yet imaginative promoting has truly taken off in this business sector and its fame is expanding exponentially among the promoting and advertising industry. Brands Look beyond Fans and Likes: This point is about understanding the motivation behind diverse social networking outlets, discovering which ones suits their target group best and realizing what purchasers use it for. At last, organizations understand that piece of the overall industry cant be measured by the quantity of preferences on a Face book page or supporters of whatever other social media. Organizations are using collaboration, correspondence and content sharing. (Infinitee, 2013) Requirement 2: 2.1 We all know that marketing is a broad subject; advertisement is just another element of it. We have discussed before that advertising is closely connected with media. There are different types of advertisement which severe different types of purpose in the process of communicating message via media to potential target markets. Marketing being broad has various tools apart from advertising such as public relations, direct marketing, digital marketing, promotion, etc. The various forms of media which are used for the purpose of advertisement are T.V, radio, newspapers, magazines, internet, SMS, etc. In order to pass on the brand message it is very important to choose the appropriate media. When the intention is to reach out to large group of people it is perfect to use advertising. Role of marketing can be interpreted as use of appropriate strategy is vital for marketing mangers to get the right message to the right customers using tools such as promotions, product price and distribution. In order toÃ determine the most productive and effective communicational vehicle, it is necessary to understand the importance of the promotional strategy. In order for advertising to be a effective tool for a promotional strategy, it is necessary to understand the characteristic of the potential customers and hence a series of steps needs to be carried out. Following are some: Segmentation: In order to make communication via advertising more effective it is essential to divide the customers in to different groups. If it is unknown to whom the message is intended to, it may not get any response at al. Once it is known who the advertisement message is intended for, there needs to be further drilling to know more. In this scenario the marketers go in for research and surveying, etc. Targeting: In order for advertisement to get the best response it is necessary to know that communication is being made to the right segment. Targeting plans should closely be related to marketing objectives. Other important steps include positioning and messaging. 2.2 Branding is more than simply a business trendy expression. It has turned into the must of selling in the new economy. On the off chance that the old promoting mantra was, Nothing happens until some individual sells something, the new rationality could be Nothing happens until someone brands something. Ã¢â¬Å"in its most straightforward structure, a brand is like a name. It is the name appended to an product or service. However it may be, brand is more related to the physical aspects of products or services: for example, color, image, status, quality, etc. It plays physiologically in the minds of the customers, gives them a perception of the product or service. In short, a brand offers the client a certification and then delivers on it. You might infer, then, that if you build a powerful brand, automatically it becomes possible to make strong marketing programs. Nonetheless, on the off chance that you cant persuade customers that your product is deserving and worthy of purchasing, no other measures such as fancy packaging or public relations will help to achieve sales goal. Successful branding programs are characterized by good quality product and services accompanies by good customer service which boosts the functioning of the entire organization. 2.3 When it comes to creativity in advertising, it basically means what to say and how to say it. The message in the advertising is very important. Thus, what to say is the message that will be passed on to the potential clients. How to say it on the other hand is basically the appropriate format that is to be used for the message. There are many creative specialist who are hired in the organization who deals with the creative aspect of advertising. Most companies these days pass on the work of the creative aspect of the advertising to advertising agencies. These agencies either hire specialists or has their own team of specialists. There are various steps which are involved in the creative design process which is also used by BMW. Following are the steps: a) Decision regarding objective of advertisements. b) Gathering of necessary information customers, products and competitors. c) Production of brand new ideas by creative specialist. d) Approval of these ideas by the managers of marketing and advertising. e) Coming to decision regarding the content of the message, message format, layout, etc. f) Testing and final check before the launching of the advertisement. The message in the advertisement has to be appealing to the desired customers. Ad appeal can be of many different types. It usually depends on what kind of message is the marketers most are focusing on. For instance they may want to say how high quality the product is or how low priced it is, etc. (Mukesh and Ranju, 2011) 2.4 Projects initiate in one department and when their work is done, it is passed on to the next. Organizations these days intentionally hire advertising agencies in order for the advertising work to be more promising and strong. Four Tips to Working Successfully with Your Advertising Agency Once the agency of choice is selected by the business, it is necessary to know how you would expand that relationship. How would you function adequately with your organization group to guarantee your advertising project is the best it can be? Consider these four tips for an effective orgÃ customer relationship. Set clear objectives. Plot what achievement looks like at each stage as your org creates your promoting arrangements. Without clear objectives, it is difficult to judge the adequacy of promotions, outlines, mottos, or any piece of your campaign. Make certain your office is mindful of what you would like to perform with your system and characterize a particular estimation of achievement, whether regarding new clients, call-backs or strict deals. Cover the budget bases. Nothing jeopardizes a positive vendor relationship like squabbles over cash. Work with your advertising agency to set a particular plan for each one piece of your promoting campaign and in addition a general plan for advertising your business. Likewise, audit individual assessments for particular plan and printing tasks, office promoting commissions and managerial expenses. Establish specific timelines. Make sure you and your group are mindful of the proposed timetable of dispatch for your advertising program and additionally transitional dates for improvement paving the way to dispatch. React immediately when your office needs data from you to execute components of your fight, and catch up rapidly with sealing and asked for amendments. (H. Montgomery, 2011) Requirement 3: 3.1 Any techniques which are intended directly for the customers and are well within the control of the customers can be called as below the line promotions. Below the line promotion includes techniques which are creative and interesting meant for the targeted customers. BMW has used various below the line promotions to gain many customers. a) Public relations: ThisÃ involves various public activities. In order to get the attention of political partiesÃ¢â¬â¢ worldwide and general public, BMW has created and donated to many charities. Activities as such has given them wide recognition, which is apart from the recognition they get from quality cars which they produce. b) Direct marketing: This is a form of marketing where the customers are reached out directly through flyers, leaflets. BMW does take part in this kind of direct marketing but not to a large extent. They usually do this when they represent them self in trade fairs and exhibitions. c) Internet: Internet as it does not need much introduction has become widely popular in the last decade. Internet is used to mainly use to reach out to various target groups. BMW has cars which vary in class, sizes, color and prices. Different customers have different preference. Internet is used as a medium of promotion to reach these messages to different target groups. It is also a medium to get feedback from clients. d) Events: Events include exhibitions and trade fairs. In these kind of events products are directly showcased, where the people can try the products or services and gain detailed knowledge about it. This is method of providing immediate good perception of the product or service in the mind of potential customers. e) Promotional campaigns: Companies includes certain number of individuals who widely participate in promoting the company. They usually design and execute campaigns. (Businesscasestudies.co.uk, 2013) 3.2 Following are other techniques which can be used as below the line promotional techniques: Door to-Door Marketing Door to door promoting takes selling to an personal level, and this is a standout amongst the most well-known manifestations of below the line promotion. This procedure obliges profoundly prepared sales staff that knows how to construct customer relationship and can walk that barely recognizable difference of being tenacious without being irritating. Most door to door promoting campaigns allows the person doing it some commission on the sales, so forthright expenses can be kept low and salesmen have more motivation to make sales. Most common door to door promoting is in the case of insurance companies. Exterior Location Marketing Exterior location marketing includes driving enthusiasm to an event or sale through the key utilization of employees set outside the area. Ordinarily, these systems incorporate sandwich-board style promotions or actually sprucing up the employee in an outfit to attract more attention on the location. These workers may remain nearby the street, getting the consideration of passing drivers. While this system is not frequently utilized, it can be helpful for small organizations, restaurants and car dealers. Thus, dealers dealing with BMW cars can be provided with incentives to do such activities to increase their sales. Email Marketing Email marketing can likewise be a manifestation of below the line promoting if your organization directs the campaign all alone. You are speaking specifically with the buyer through this manifestation of promoting and can steer them to a point of arrival where they can take in more about what you are putting forth. This thus provides for you the capacity to measure campaign effectiveness. Email promoting is for the most part economical, and results can be great if the email rundown is focused on fresh and follows double opt-in guidelines Double opt-in refers to the process where consumers have to confirm their subscription to an email list before emails can be sent to them. (K. McFerlin, 2014) Requirement 4: 4.1 Surviving in the market is not easy for the company. For companies to be prosperous they have to continue to attract and serve targeted customers within their budget. Hence budget for promotional strategy is very important. Following are some of the steps involved in the process of formulation of appropriate budget for promotional strategy: a) Observing market climate: Market can be unpredictable at time. Trends move in and out very quickly. CompanyÃ¢â¬â¢s market department has their eyes like eagles on theÃ market. They are always on the look for the that little gap which they can fill in. They are always looking for windows of opportunity. Not observing the market climate can leave them way behind, furthermore not having a appropriate budget estimation. b) Evaluating brand weakness and strength: This is important as because no brand is perfect. Even sometimes when a brand is created by the best of marketing managers, it may not be accepted well by the public or targeted groups. Hence, not keeping anything set in mind, marketers are always looking to find those weaknesses which they can improve on. c) Creating competitive marketing strategy: What sets your product, service and organization separated from your competitors? What quality do you give and how is it not quite the same as the plan B? Competitive strategies is about characterizing how youll separate your offering and make esteem for your business sector. Its about cutting out a spot in the competitive scene, putting your stake in the ground, and winning mindshare in the commercial marketplace Ã¢â¬â being known for a certain something d) Up to date plans: As the name suggests, plans are necessary to be on time rather than behind time for the estimation of appropriate budget. e) Getting feedback: One of the most important thing as without feedback companies cannot know where they stand. (MarketingMO.com, 2014) 4.2 An promotion plan diagrams the limited time instruments or strategies you want to use to achieve your promoting goals. To the new or unpractised advertiser, the promotion plan may be mixed up as the whole promoting arrangement on the grounds that it plots where most of the advertising plan will be used. It is, nonetheless, only one part of the advertising plan there are extra procedure and arranging segments portrayed in a marketing plan. You may decide to incorporate the accompanying components in your promotion plan: The significant segment to your Promotion Plan is the portrayal (or posting) of the planned promotional tactics you plan to use. Anticipated expenses for the year. Estimate your expenses as precisely as could be expected under the circumstances. Demonstrate the Relationship between the Promotional Tactics and Marketing Objectives Show the Relationship between the Promotional Tactics and Marketing Objectives Refer to or list again relevant objectives from the Marketing Objectives section of your marketing plan and point out how you will accomplish them using the promotion plan (Smallbusinessnotes, n.d) And appropriate promotional plan for BMQ product would incorporate the following: a) Define specific objective b) Distribution plan and targeted customers. c) Creating a theme to make it unique. d) Creating a supporting message with the product. e) Most important of all hiring a professional promotional consultant. 4.3 The integration of promotional techniques such as price incentives for a business or product must focus on the needs of the market, the condition and elasticity of demand, need for price incentives, and consumer responses towards price incentives (Dimitropoulos, 2012). A luxurious product such as BMW may use promotional technique of focusing on research and development for innovating new product features. Setting high prices also positions the product and represents it as a status symbol in consumerÃ¢â¬â¢s mind. Thus the integration of promotional techniques such as setting high price, branded entertainment, high performance, exclusivity eventually formulates an overall promotional strategy. However if not communicated properly or if the techniques are conflicting the brand message will be misinterpreted by consumers. Overemphasizing or underemphasizing features or overlooking the actual consumer needs should be avoided (Terence, 2010) An appropriate plan for the integration of promotional techniques for BMWÃ has the following steps to be incorporated: a) Assess the marketing communication opportunities for BMW. For example understanding the needs of the target market b) Determining the mode of communication that is going to be used for BMW. Example using intermediaries or selling products directly in BMW show room. c) Determine promotion mix. Gathering resources for sales promotion, adverting and publicity. d) Developing promotional budget. Gathering financial resource to afford the plan. e) Determining campaign effectiveness. Using various tools, like project appraisal techniques, analysis of the situation, etc to understand the viability. 4.4 Promotion is not a definite science. Theres no exact approach to measure the achievement of a promotion campaigns. You cant, for instance, decide what number of sales cash are created by each one promoting cost used. However there are strategies that will provide for you a harsh thought of whether your promotions are hitting the imprint. Verify you have clear promoting goals. You may need to help business generally, however your destination ought to be more particular: to increase sales of a new product or service, to assemble attention to your organization, to increase volume amid a certain time period, or to stretch your business in a specific market. To evaluate the viability of your promoting campaign, you can monitor sales, new clients, demands for information, telephone request, retail location activity, site movement, or navigate rates. Utilize these strategies to gauge the force of the promotion campaign A straightforward approach to tell if your campaign is working is to track retail activity by tallying the individuals who enter your store. Bear in mind to monitor activity before you begin the promotion campaign, so youll have a premise for correlation. Whats more ask new clients how they came to know about the business. (Smallbusinessnotes,n.d) References: a) Kotler, Veronica, Saunders (2005). Principles of Marketing:. 4th ed. London: Prentice hall. 34-56. b) elearnportal. (2013). Marketing Communications Process. Available: http://www.elearnportal.com/courses/business/advertising/advertising-marketing-communications-process. Last accessed 25/11/14. c) Infinitee. (2013). 5 Advertising and Marketing Trends for 2013.Available: http://www.infinitee.com/advertising-and-marketing-blog/bid/62829/5-Advertising-and-Marketing-Trends-for-2013. Last accessed 25/11/14. d) Mukesh and Ranju (2011). Advertising and sales management. New Delhi: V. K Enterprise. 55-67. e) H. Montgomery. (2009). Tips for Working Effectively with an Advertising Agency. Available: http://www.brighthub.com/office/entrepreneurs/articles/52999.aspx. Last accessed 25/11/14. f) Business case studies. (2013). Using promotion to campaign for public services. Available: http://businesscasestudies.co.uk/unison/using-promotion-to-campaign-for-public-services/below-the-line-promotio n.html#axzz3K7hwVrCA. Last accessed 25/11/14. g) K. McFerlin. (2014). Examples of Below-the-Line Advertising. Available: http://smallbusiness.chron.com/examples-belowtheline-advertising-10099.html. Last accessed 26/11/14. h) MarketingMO. (2014). Competitive Positioning. Available: http://www.marketingmo.com/strategic-planning/competitive-positioning/. Last accessed 26/11/14. i) Smallbusinessnotes. (n.d). Promotion Plan. Available: http://www.smallbusinessnotes.com/marketing-your-business/promotion-plan.html. Last accessed 26/11/14.
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