Marketing Promotion and Advertising

5/23/2018 Marketing Promotion and Advertising

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Assignment on Theoretical Understanding and Practical

Application of Advertising and Promotion in Business


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Table of Content

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No.

Particulars PageNo.

1.1 Explain the marketing communication process that applies to the advertising andpromotion of business.

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1.2 Provide an explanation of how the advertising & promotional industry isorganized.

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1.3 Provide an assessment on how promotion is regulated 6

1.4 Examine current trends in advertising and promotion 8

2.1 Explain how advertising can play an important role as part of an integratedstrategy for the promotion of a business or product

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2.2 Explain Branding and how it can be used as a tool to strengthen a business orproduct using one global brand as illustration

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2.3 Review the various creative aspects of advertising 12

3.1 Identify and explain the primary techniques of below-the-line promotion; and howthey can play a role as a part of an integrated strategy for the promotion of abusiness or product.

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3.2 Identify some techniques used in below the line promotion that are not regarded asprimary and you have not discussed in 3.1; last above give your evaluation of

these techniques.

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4.1 Select and follow a process that is appropriate for the formulation of budget for anintegrated promotional strategy

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4.2 Taking an initial budget of 16000 explain how you would use it to carry out thedevelopment of a promotional plan

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4.3 Provide a plan for how you would integrate promotional technique into the overall

promotional strategy for any chosen business or product.

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4.4 Select and apply the techniques that are appropriate to measure the effectivenessof a particular campaign.

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Reference 26


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Essay Task 1: The Scope of Marketing Communications

1.1Explain the marketing communication process that applies to the advertising andpromotion of business.

Answer:

Marketing communication coordinates promotional messages delivered through one or more

channels such as print, radio, television, direct mail, and personal selling.

Marketing communications process involves as Sender, Encoding, Transfer Mechanism,Feedback, Response and Decoding.

Senderis typically the company that produces the product.Example: Clothing manufacturer

Encodinginvolves communicating the message in understandable terms for the consumer. Insome companies, this person is identified as the Marketing Manager.Example: Marketing Manager at the clothing manufacturer

Transfer Mechanismis the medium that will be used to transfer the message.Example: Television ad

Decodingis how the customer interprets the message.Example: Customer sees the television ad and keeps it in mind

Responseis how the customer reacts to the message. Will the customer purchase the product?

Example: Customer goes to the store and purchases the new product

Feedbackmeasures how successful the advertising campaign was.Example: Information that customers are responding positively to the message

Marketing communication process applicable to advertising

Deciding on a marketing communications strategy is one of the primary tasks to perform. Itinvolves some key decisions about who the customer is, how to contact them, and what themessage of advertising should be. These questions can be answered using a multistage process,which is equally relevant for all elements of the marketing mix. It includes,


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1.Segmentation

Dividing potential customers into discrete groups is vital in order to increase the success rate ofany communications message. Without knowing the customer well, getting response fromcustomer should not be expected. Segmentation involves identifying the potential customers,how many sub-groups they should be divided into, how do these groups differ etc.

After building up an accurate picture of the customer, it will be easier to get their attention.

2.TargetingFor advertising, targeting is the process of communicating with the right segments and ensuringthe best possible response rate. The methods used in targeting the audience must relate tomarketing plan objectives.

3.Positioning

Positioning is the process of developing an image for the company or product. This can beachieved partially through branding, but it's important to realise that all elements of the

marketing mix combine to provide the full picture.

4. Development of the advertising message

After determining the positioning for brand, it's time to develop the message in order to influencethe target groups. Advertising objectives should be directly linked to the marketing plan, andtend to fit into the following generic categories:

Inform - raising awareness of the brand & products, establishing a competitive advantage Persuade - generating an instant response (usually driving sales) Remind - to maintain interest and enthusiasm for a product or service

Promotional strategies within the marketing communications process

There are two kinds of promotional strategies within the marketing communications processwhich are called - push and pull. These two types of promotional strategies are mainly usedto get distribution channel members excited about a product.

PushWhen a company uses a push strategy it relies on the companys sales force to Push theproduct through the distribution channels to create consumer demand for the product. Forexample, a snow blower manufacturer may provide incentives to retailers to encourage them topush their brand over competitors products.

PullThis type of promotional strategy relies on heavy advertising to create consumer demand forthe product. For example, after heavy advertising, customers visit retailers and ask for thespecific brand.
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1.2 Provide an explanation of how the advertising & promotional industry is organized

Answer:

Advertising and promotional industries include agencies of different shapes and sizes. Some are

small shops having just a few people. Others are giants that employ thousands of people inoffices all around the world. But, however large or small the agency, there is a basic structurethat the advertising and promotional industries.

There are SIX major departments in an advertising agency. These can be split into other sub-departments, or given various creative names, but the skeleton is the same.

These departments are:

Account Service Account Planning Creative Finance & Accounts Media Buying Production

These departments are explained below,

Account Services

The account service department comprises account executives, account managers and accountdirectors, and is responsible for liaising with the agency's many clients. This department is the

link between the many departments within the agency, and the clients who pay the bills. A goodaccount services team is essential to a good advertising campaign. A solid creative brief is one ofthe main duties of account services.

Account Planning

This department combines research with strategic thinking. Often a mix of researchers andaccount managers, the account planning department provides consumer insights, strategicdirection, research, focus groups and assists helps keep advertising campaigns on target and onbrand.

Creative

This is the engine in an advertising industry. It's the lifeblood of the business, because thecreative department is responsible for the product. And an ad agency is only as good as the adsthe creative department puts out. The roles within the creative department are many and varied,and usually include:

Copywriters


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Art Directors Designers Production Artists Web Designers Associate Creative Directors

Creative Director(s)

In many agencies, copywriters and art directors are paired up, working as teams. They will alsobring in the talents of other designers and production artists as and when the job requires it.Sometimes, traffic is handled by a position within the creative department, although that isusually part of the production department. Everyone within creative services reports to theCreative Director. It is his or her role to steer the creative product, making sure it is on brand, onbrief and on time.

Finance & Accounts

This department is responsible for handling payment of salaries, benefits, vendor costs, travel,day-to-day business costs and everything else you'd expect from doing business. It's been saidthat approximately 70% of an ad agency's income pays salary and benefits to employees.However, this figure varies depending on the size and success of the agency in question.

Media Buying

It is the function of the media buying department to procure the advertising time and/or spacerequired for a successful advertising campaign. This includes TV and radio time, outdoor(billboards, posters, guerrilla), magazine and newspaper insertions, internet banners andtakeovers, and, well, anywhere else an ad can be placed for a fee. This usually involves close

collaboration with the creative department who came up with the initial ideas, as well as theclient and the kind of exposure they want. This department is usually steered by a media director.

Production

Ideas are just ideas until they're made real. This is the job of the production department. Duringthe creative process, the production department will be consulted to talk about the feasibility ofexecuting certain ideas. Once the ad is sold to the client, the creative and account teams willcollaborate with production to get the campaign produced on budget. This can be anything fromgetting original photography or illustration produced, working with printers, hiring typographersand TV directors, and a myriad of other disciplines needed to get an ad campaign published.

Production also works closely with the media department, who will supply the specs anddeadlines for the jobs.


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1.3 Provide an assessment on how promotion is regulated

Answer:

Promotion is regulated through Self Regulation Federal Regulation State Regulation

1. Self-RegulationSelf regulation is done by by:

a) Advertisers and Agenciesb) Trade Associationsc) National Advertising Review Boardd) Media

Appraising Self-regulation

Advertisers, agencies and the media view self-regulation as an effective mechanism andpreferable to government intervention

Concerns over self-regulationa) Time needed to resolve complaintsb) Budgeting and staffing limitationsc) Lack of power or authorityd) Self-serving to advertisers and media

2. Federal Regulation

The First Amendment Freedom of speech or expression Commercial speech protected

Federal Trade Commission Act (1914) Created the FTC to help enforce antitrust laws

Wheeler-Lea Amendment of 1938 Amended FTC Act to make unfair or deceptive practices unlawful

Other Federal Agencies That Regulate Advertising and Promotion

Federal Communications CommissionJurisdiction over broadcast communications; radio, television, telephone, and telegraphindustries


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Food and Drug AdministrationAuthority over labeling, packaging, branding, ingredient listing, and advertising of packagedfood and drug products

US Postal Service

Control over advertising that uses mail and ads that involve lotteries, obscenity, or fraud

Bureau of Alcohol, Tobacco & FirearmsEnforces laws, develops regulations, and responsible for tax collection for the liquor industry

3. State Regulation of Advertising

In addition to federal rules and regulations, advertisers must concern themselves with state andlocal laws and regulations

a) The National Association of Attorneys General (NAAG) has been involved with:b) Airfare advertisingc) Car rental price advertisingd) Nutrition and health claims advertising

Regulation of other sales promotion

Contests and sweepstakesCannot be classified as a lotteryCannot be required to give up something of value to participate (consideration)

PremiumsCannot misrepresent their valueMust take care with special audiences (kids)

Trade AllowancesMust be available on proportionally equal term

Regulation of marketing on the Internet

Restrictions have been proposed with regard to privacy including:

Banning unsolicited email, Disclosing marketers identity, Giving consumers the right to bar marketers from selling or sharing personal information Childrens Online Privacy and Protection Act (COPPA) places restrictions on collecting

information from children over the internet


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1.4 Examine current trends in advertising and promotion

Answer:

The advertising and promotional strategies are changing with the course of time. Current trend in

advertising and promotion is explained below.

1. Real-time bidding trends

Investment in online display advertising showed strong growth in 2013. The levels of take up ofreal-time bidding and programmatic approaches, by both media owners and advertisers, havebeen strong. Sixty two per cent of advertisers using RTB saw improved performance as a result.And on the publisher side, almost 60% plan to increase their involvement in private marketplacesand SSPs (supply side platforms) to gain more control over their inventory.

2. Native advertising trends

Native advertising, known by a number of other names including organic advertising or,

sometimes, sponsored content, was a big buzzword in 2013 and this looks set to continue in

2014. Native ads are in formats designed for a specific platform, which take advantage of theway in which people use that platform.

The growth in use of the Facebook Exchange (FBX) in 2013 has led to experimentation in theform of Sponsored Stories and Suggested Posts, which relate to the users interests and

activities on the platform. Insurance company Standard Life experimented with nativeadvertising on Facebook and reported a 100 per cent increase in clickthrough rate compared withstandard targeted ads.

3. Video advertising

Video was huge in 2013, especially for YouTube which, according to Nielsen, reaches more USadults aged 18-34 than any cable network. YouTube receives more than 1bn unique visitorsevery month, to watch more than six billion hours of video.

Between mid-2012 and mid-2013, mobile video advertising grew by 1,260 per cent to 23m, andvideos share of online and mobile display has grown by 50 per cent to 18 per cent. Social is key

for the success of online video advertising, and this trend will continue into 2014. The best videoadverts of 2013 were shared up to 4.3 million times, containing great content that people wanted

to share, rather than overt marketing messages.

4. Targeting

The vast amounts of data available to marketers are increasing the options available for targetingand retargeting. Improved cleansing and segmentation of data, and increased targeting optionsfrom Facebook, LinkedIn and Twitter are allowing advertisers to target the user in intelligentways, increasing clickthrough rates and conversions.


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In 2014, technologies will start to improve for matching up the consumer journey from online tooffline, allowing advertisers to target consumers based on their high street purchasing behaviour,as is currently being attempted by I-Behaviour and Exponential among others.

5. Localised and geo-targeting

Geographic personalisation can allow advertisers to identify and serve personalised advertisingrelevant to the users location. In the US, the mobile network xAd has begun to do this by letting

advertisers re-target ads to people in the vicinity of a brands billboard, via a partnership withPosterscope. Increasing smartphone use is again having a major impact on the potential of thistechnology. Through owned apps, businesses are able to collect a large amount of data onconsumers, and in particular, their location using a smartphones GPS.

6. Mobile advertising

At the start of 2013, more than half of UK smartphone owners said they had never seen an advert

on their smartphone, according to a Mobile Consumer Report published by Nielsen. However,2013 was the year in which many brands finally reached the point where smartphones and tabletsnow account for a majority of their site traffic.

This meant an increasing focus on mobile marketing strategy. 60% of businesses are nowimplementing strategies for integrating mobile into their broader marketing campaigns. The pastyear also saw Google making mobile a priority in its Hummingbird update, which looked toaccommodate the fact that more searches are being conducted, and more content consumed, onsmartphones.


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Task 2: The role and importance of advertising

2.1 Explain how advertising can play an important role as part of an integrated strategy for

the promotion of a business or product

Answer:

Promotioncan defined as the coordination of all seller initiated efforts to set up channels ofinformation and persuasion in order to sell goods and services or promote an idea. While implicitcommunication occurs through the various elements of the marketing mix, most of anorganizations communications with the marketplace take place as part of a carefully plannedand controlled promotional program. The basic tools used to accomplish an organizationscommunication objectives are often referred to as the promotional mix. Traditionally thepromotional mix has included four elements: advertising, sales promotion, publicity/publicrelations, and personal selling. Each element of the promotional mix is viewed as an integratedmarketing communications tool that plays a distinctive role in an integrated marketingcommunications program. Each may take on a variety of forms. And each has certainadvantages. The importance of advertising as part of an integrated strategy for the promotion hasbeen explained below.

Advertisingis defined as any paid form of nonpersonal communication about an organization,product, service, or idea by an identified sponsor. The paidaspect of this definition reflects thefact that the space or time for an advertising message generally must be bought. An occasionalexception to this is the public service announcement (PSA), whose advertising space or time isdonated by the media. The nonpersonal component means that advertising involves mass media(e.g., TV, radio, magazines, newspapers) that can transmit a message to large groups ofindividuals, often at the same time. The nonpersonal nature of advertising means that there isgenerally no opportunity for immediate feedback from the message recipient (except in direct-response advertising). Therefore, before the message is sent, the advertiser must consider howthe audience will interpret and respond to it. Advertising is the best-known and most widelydiscussed form of promotion, probably because of its pervasiveness. It is also a very importantpromotional tool, particularly for companies whose products and services are targeted at massconsumer markets.

More than 200 companies each spend over $100 million a year on advertising in the UnitedStates. There are several reasons why advertising is such an important part of many marketerspromotional mixes. First, it can be a very cost-effective method for communicating with largeaudiences. For example, the average 30-second spot on the four major networks during prime-time network television reaches nearly 10 million households. The cost per thousand householdsreached is around $14.27 Advertising can be used to create brand images and symbolic appealsfor a company or brand, a very important capability for companies selling products and servicesthat are difficult to differentiate on functional attributes.

Another advantage of advertising is its ability to strike a responsive chord with consumers whendifferentiation across other elements of the marketing mix is difficult to achieve. Popularadvertising campaigns attract consumers attention and can help generate sales. These popular


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campaigns can also sometimes be leveraged into successful integrated marketingcommunications programs.

2.2 Explain Branding and how it can be used as a tool to strengthen a business or product

using one global brand as illustration

Answer:

The process which is involved in creating a unique name and image for a product in the

consumers' mind, mainly through advertising campaigns with a consistent theme can be called

branding. Branding aims to establish a significant and differentiated presence in the market that

attracts and retains loyal customers.

Looking out into the world today, its easy to see why brands are more important now than at

any time in the past 100 years. Brands are psychology and science brought together as a promise

mark as opposed to a trademark. Products have life cycles. Brands outlive products. Brandsconvey a uniform quality, credibility and experience. Brands are valuable. Many companies putthe value of their brand on their balance sheet.

Developing a branding strategy for a company is as important to its success as any and all of theemployees working for the business. Without distinct brand identification, the product isunrecognizable and the customer has no recollection of experience or a reason to buy. The brandis the true essence of the company in distinction and how it sells. Therefore, it is important todevelop a brand and strategy early in the product life so all marketing efforts can be focused onsupporting the brand and a common goal. The Importance of branding as a tool to strengthen abusiness is explained below with the example of Disney.

The Disney Brand concept started in 1923 by Walt Disney. After many success in the respectivefield, Walt Disney's Disneyland opened in 1955 after several years of intense planning. Thisdream was created in his childhood when his father used to take him to carnivals, zoos and parks.He wasn't a huge fan of rides and missed out on some of the fun. As a result, Walt wanted tocreate a park where children and adults could have fun together. Some of the first attractionsincluded fly with Peter Pan, Wild West with Davy Crockett and the Mad Hatter tea party. Usingmemories to evoke thoughts and feelings towards his brand, the Disneyland theme park becamevery successful.

Leveraging brands in the theme park industry is important for capturing repeat business and new

customers. Disneyland uses classic fairytales and stories from feature films to draw in thecustomer. Many of their commercials use familiar concepts such as all girls want to beprincesses, which princess or character are you? More recently, their promotion efforts havebeen catered towards celebration, asking the viewer "What will you celebrate?" It ties in withtheir brand image of timeless and the importance of family. The Disney Company continues touse its heritage and the characters that Americans fell in love with years ago as their mainbranding pull and point.


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2.3 Review the various creative aspects of advertising

Answer:

For advertising being creative three aspects are universally most accepted these are the creative

process, creative person and in this perspective the creative situation. These aspects areexplained below:

The creative processIt means receiving most of attention, focusing on mechanism & phases involved during theprocess one partakes in a creative act.

The creative personThis relates to the personality traits of creative people who are responsible and central to thisprocess.

The creative situationIn this situation the criteria & characteristics of creativity are considered to provide workable,acceptable and practical aspects of the situation

2.3 Examine the major ways of working with an advertising agency

Answer:

Working in advertising is rewarding and challenging. But for many people just starting out, thechallenge seems to be getting that first big break into an ad agency's door. There are many waysto overcome that barrier and land a job at an advertising agency.

1. InternAgencies look at interns as potential employees. Interning will help to get "in" to the agency. Itwill also create the ability to work in various areas. If someone speaks up and let the agencyknow own eagerness and willing to learn, then it will help to get the most out of the internship.The experience gained as an intern is invaluable and could lead to a permanent position.

2. Entry Level PositionIt would be nice to walk right into a corner office with a view, plop down in your leather chairand start working with big name clients. Of course, it doesn't work that way in the real world.

Many people have successfully started their career in advertising by taking any job in an agencyand working their way up. Getting in there and learning everything possible will help to gainvaluable experience which can be used to get a job somewhere else.

3. FreelanceIf someone is interested in being a copywriter or graphic designer, freelancing can be consideredas a way to get into the business. Coming up with own rates, own campaign to advertise ownselfand approaching small businesses and even agencies are all tools one can use in agency job hunt.


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4. Creating SPEC ADSOne might think that he can do better than a major automaker's print ads running in the favoritemagazine. Or local barber shop's newspaper ads might need some reworking. SPEC ADS areknown in the industry as work one have done by own. It's basically pretend copywriting orgraphic design but if someone have no published work, it's vital to showing own talent.

5. Contact Radio and Television StationsMany radio and TV stations have employees who specifically write commercials. They may alsoproduce certain types of shows for the station. This is a great opportunity to get started in thebusiness.

Since most radio and TV stations don't pay very much for these types of positions, there's both ahigh turnover and an opportunity for people with little or no experience to break into the field.

6. Work in Sales

There's a big difference between advertising and sales but being an account executive at a car

dealership, for example, can help to bridge the gap between no experience and working in anagency.


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Task 3: Below-the-line techniques and their usage.

3.1 Identify and explain the primary techniques of below-the-line promotion; and how they

can play a role as a part of an integrated strategy for the promotion of a business or

product.

Answer:

Below The Line Promotional Techniques

Following are the different types of below-the-line tools being used for consumer

promotions:

1. DDS (Door to Door Selling)2. Coupons3. Rebates4. Promotional Pricing5. Trade-In6. Loyalty Programs

Door to Door Selling

Door-to-door is a sales technique in which a salesman walks from one door to another trying tosell a product or service to the general public. A variant of this involves cold calling first, whenanother sales representative attempts to gain agreement that a salesperson should visit. Door-to-door selling is usually conducted in the afternoon hours, when the majority of people are athome.

Typically, products sold door to door will be of the same variety that can be purchased at largediscount stores. The products accounting for the largest share of direct-sales revenue includescleaning supplies, cleaning equipment, magazines, and home improvement products. The largestof these would be the home improvement products where item could be new or repaired roofs,siding, new replacement windows, and decorative stone.

Coupons

Most consumers are quite familiar with this form of sales promotion, which offers purchasersprice savings or other incentives when the coupon is redeemed at the time of purchase. Couponsare short-term in nature since most (but not all) carry an expiration date after which the valuemay not be received. Also, coupons require consumer involvement in order for value to be

realized. In most cases involvement consists of the consumer making an effort to obtain thecoupon (e.g., clip from newspaper) and then presenting it at the time of purchase.

Rebates

Rebates, like coupons, offer value to purchasers typically by lowering the customers final cost

for acquiring the product. While rebates share some similarities with coupons, they differ inseveral keys aspects. First, rebates are generally handed or offered (e.g., accessible on the


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Internet) to customers after a purchase is made and cannot be used to obtain immediate savingsin the way coupons are used.

Second, rebates often request the purchaser to submit personal data in order to obtain the rebate.For instance, customer identification, including name, address and contact information, isgenerally required to obtain a rebate. Also, the marketer may ask those seeking a rebate toprovide additional data such as indicating the reason for making the purchase.

Third, unlike coupons that always offer value when used in a purchase (assuming it is acceptedby the retailer), receiving a rebate only guarantees value if the customer takes actions. Marketersknow that not all customers will respond to a rebate. Some will misplace or forget to submit therebate while others may submit after a required deadline. Marketers factor in the non-redemptionrate as they attempt to calculate the cost of the rebate promotion.

Finally, rebates tend to be used as a value enhancement in higher priced products compared tocoupons. For instance, rebates are a popular promotion for automobiles and computer softwarewhere large amounts of money may be returned to the customer.

Promotional Pricing

One of the most powerful sales promotion techniques is the short-term price reduction or, asknown in some areas, on sale pricing. Lowering a products selling price can have an

immediate impact on demand, though marketers must exercise caution since the frequent use ofthis technique can lead customers to anticipate the reduction and, consequently, withholdpurchase until the price reduction occurs again.

As we will see in a later tutorial, promotional pricing is also considered within the framework ofthe Price marketing mix component. More on of this technique will be provided in thatdiscussion.

Trade-In

Trade-in promotions allow consumers to obtain lower prices by exchanging something thecustomer possess, such as an older product that the new purchase will replace. While the idea ofgaining price breaks for trading in another product is most frequently seen with automobile sales,such promotions are used in other industries, such as computers and golf equipment, where thecustomers exchanged product can be resold by the marketer in order to extract value.

Loyalty Programs

Promotions that offer customers a reward, such as price discounts and free products, for frequentpurchasing or other activity are called loyalty programs. These promotions have been around for

many years but grew rapidly in popularity when introduced in the airline industry as part offrequent-filer programs. Loyalty programs are also found in numerous other industries, includinggrocery, pizza purchasing and online book purchases, where they may also be known as clubcard programs since members often must use a verification card as evidence of enrollment in theprogram.


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Trial Generation and free Sampling

Enticing members of a target market to try a product is often easy when the trial comes at little or

no cost to the customer. The use of samples and free trials may be the oldest of all sales

promotion techniques dating back to when society advanced from a culture of self-subsistence to

a culture of trade.

Sampling and free trials give customers the opportunity to experience products, often in small

quantities or for a short duration, without purchasing the product. Today, these methods are used

in almost all industries and are especially useful for getting customers to try a product for the

first time.

Free/Extra Product

Some promotional methods offer free products but with the condition that a purchase be made.

The free product may be in the form of additional quantities of the same purchased product (e.g.,

buy one, get one free) or specialty packages (e.g., value pack) that offer more quantity for the

same price as regular packaging.

Premiums

Another form of sales promotion involving free merchandise is premium or give-away items.

Premiums differ from samples and free product in that these often do not consist of the actual

product, though there is often some connection. For example, a cellphone manufacturer may

offer access to free downloadable ringtones for those purchasing a cellphone.

Contests and Sweepstakes

Consumers are often attracted to promotions where the potential value obtained is very high. In

these promotions only a few lucky consumers receive the value offered in the promotion. Two

types of promotions that offer high value are contests and sweepstakes.

Contests are special promotions awarding value to winners based on skills they demonstrate

compared to others. For instance, a baking company may offer free vacations to winners of a

baking contest. Contest award winners are often determined by a panel of judges.

Sweepstakes or drawings are not skill based but rather based on luck. Winners are determined by

random selection. In some cases the chances of winning may be higher for those who make apurchase if entry into the sweepstake occurs automatically when a purchase is made. But in most

cases, anyone is free to enter without the requirement to make a purchase.


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Demonstrations

Many products benefit from customers being shown how products are used through a

demonstration. Whether the demonstration is experienced in-person or via video form, such as

over the Internet, this promotional technique can produce highly effective results. Unfortunately,

demonstrations are very expensive to produce. Costs involved in demonstrations include payingfor the expense of the demonstrator, which can be high if the demonstrator is well-known (e.g.,

nationally known chef), and also paying for the space where the demonstration is given.

Personal Appearances

An in-person appearance by someone of interest to the target market, such as an author, sports

figure or celebrity, is another form of sales promotion capable of generating customer traffic to a

physical location. However, as with demonstrations, personal appearance promotion can be

expensive since the marketer normally must pay a fee for the person to appear.

Sponsorships

Sponsorship may be an arrangement to exchange advertising for the responsibility of funding a

popular event or entity. For example, a corporate entity may provide equipment for a famous

athlete or sports team in exchange for brand recognition. The sponsor earns popularity this way

while the sponsored can save a lot of money. This type of sponsorship, known as cause-related,

is prominent in the sports, arts, media and charity sectors.

Role of below-the-line promotion as a part of an integrated strategy for the promotion of abusiness or product.

Great for building customer relationship Lower required investment Offers a deep direct reach and the opportunity to connect with customers in an entirely

new way Promotion can be extremely targeted Below the promotion tools are relatively inexpensive Easy to track Better ROI and MROI (Marketing ROI) More effective than the traditional promotion methods One to One contact with the customers Potential for viral marketing Better response rate Highly relevant to the local traditions and culture Customized to the local preferences Easier monitoring of the promotion and budget Easiest and most reliable evaluation of the marketing campaign


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3.2 Identify some techniques used in below the line promotion that are not regarded as

primary andyou have not discussed in 3.1; last above give your evaluation of these

techniques.

Answer:

Below-the-line promotion

Below-the-line promotion involves promotional techniques which aim to reach consumers moredirectly and which are more within the organisations control. Below-the-line promotionsinclude different and interesting ways of connecting with targeted groups. Some non primarytechniques of below the line promotion has been explained below using the example ofUNISON. UNISON used a variety of different below-the-line promotions to develop its MillionVoices campaign.

Public relations

PR helps to create a positive environment through various publicity activities. To get theattention of political parties, the union also created melting ice-sculptures of a school crossingpatrol and a hospital porter which were unveiled at Labour and Conservative party conferences.Press releases and news slots help UNISON to show that cuts in public services affect people inall walks of life. They enable people to identify with the issues in discussion. These media areoften expensive.

With these broad and often mass media it is sometimes difficult to target specific audiences. It issometimes harder to get immediate feedback from these forms of media to evaluate theeffectiveness of a campaign. They may be lost amongst other advertising.

Direct marketing

This reaches individuals directly through, for example, direct mail or flyers. UNISON prepared arange of different leaflets and factsheets for different targeted audiences. For example, some ofthese were targeted at Members of Parliament, while others were directed towards unionmembers working in specific sectors such as the NHS. The campaign also used speech bubble

cards. These were used at events to allow people to fill in their comment in support of publicservices and sign up as supporters.

Internet

This has become an increasingly important and measurable way of reaching different targetgroups of people. It also allows for elements of interactivity by providing an opportunity forusers to express their views and provide support. For example, UNISON placed videos onYouTube and set up pages on the social networking sites Facebook and Twitter. Advertising was


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also placed on Facebook targeted at local users and people who had already shown an interest inpublic services.

The website featured an interactive map which allowed users to click onto their postcode to seehow cuts could affect them, and add their voice to a map of local voices which helped to

demonstrate the level of support for their campaign. This has attracted the support of many wellknown celebrities. This level of endorsement helps to increase the publics awareness.

Events

In the business world, promotional events might include exhibitions and trade fairs. UNISONhas undertaken a number of events in support of the Million Voices campaign. These include amarch in London to protest against cuts. In the West Midlands a week of intensive campaigningtook place across the region which visited every hospital in the area. At the end of the week arally was held and this received a lot of publicity in the media.

Local activity by UNISON branches included the Barnsley local government branch setting up astall and gazebo in the town centre while it was busy with Christmas shoppers. Members wereoverwhelmed by the support as hundreds of people joined the campaign.

Promotional campaigns

UNISON promotional campaigns also benefit from the fact that it is a membership organisation.Within the organisation there is a strong base of people who are active in promoting the unionand its campaigns. Much of the below-the-line activity involves members of the unioncommunicating face-to-face or in one-to-one situations with union members or the generalpublic.

Nearly 35,000 people across the UK have chosen to take on an official role within their localUNISON branch and others are elected to take on roles at regional and national level. These maybe at branch, regional and national level. UNISON provides the promotional tools and materialssuch as leaflets to help branches to run effective campaigns.


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Essay Task 4: Ability to plan integrated promotional strategies

4.1 Select and follow a process that is appropriate for the formulation of budget for an

integrated promotional strategy

Answer:

While it is one of the most critical decisions, budgeting has perhaps been the most resistant to

change. Advertisers use an approach based on contribution marginthe difference between the

total revenue generated by a brand and its total variable costs. But, marginal analysis and

contribution margin are essentially synonymous terms.

Theoretical Issues in Budget Setting

Assumptions:

Sales are a direct measure of advertising and promotions efforts. Sales are determined solely by advertising and promotion.

Factors in Budget Setting

Product Factors Market Factors Customer Factors Strategy Factors Cost Factors

Budgeting Approaches

Top-Down Budgeting

Top management sets the spending budget

Promotion set to stay within the spending limit

Bottom-Up Budgeting

Promotion objectives are set

Activities needed to achieve objectives are planned

Cost of promotion activities are budgeted


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Total promotion budget is approved by top management

Other Budgeting Approaches

The Affordable Method

In the affordable method (often referred to as the all you-can-afford method), the firm

determines the amount to be spent in various areas such as production and operations. Then it

allocates whats left to advertising and promotion, considering this to be the amount it can

afford.

Arbitrary Allocation

In this there is no theoretical basis is considered and the budgetary amount is often set by fiat.

That is, the budget is determined by management solely on the basis of what is felt to be

necessary

Percentage of Sales

Perhaps the most commonly used method for budget setting (particularly in large firms) is the

percentage-of-sales method, in which the advertising and promotions budget is based on sales of

the product. Management determines the amount by either (1) taking a percentage of the sales

dollars or (2) assigning a fixed amount of the unit product cost to promotion and multiplying this

amount by the number of units sold.

Competitive Parity

The managers establish budget amounts by matching the competitions percentage-of-salesexpenditures.

Return on Investment (ROI)

In the ROI budgeting method, advertising and promotions are considered investments, like plant

and equipment. Thus, the budgetary appropriation (investment) leads to certain returns.

Objective and Task Method

The objective and task method of budget setting uses a buildup approach consisting of three

steps: (1) defining the communications objectives to be accomplished, (2) determining thespecific strategies and tasks needed to attain them, and (3) estimating the costs associated with

performance of these strategies and tasks. The total budget is based on the accumulation of these

costs.


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4.2 Taking an initial budget of 16000 explain how you would use it to carry out the

development of a promotional plan

Answer:

Promotion budget (excluding salesforce and public relations) for a pharmaceutical product isshown below. Note the relative size of advertising and sample expenditures. The sampling ofdrugs to doctors by salespeople is a substantial amount of the promotion budget. Sampling is animportant promotion component in this industry.

Promotional Activity Budget (June 2014)

Promotional Material 2500

Sample 5500

Direct Mail 3000

Journal Advertising 5000

16000

Illustrative Promotion Budget for a Pharmaceutical Product

4.3 Provide a plan for how you would integrate promotional technique into the overall

promotional strategy for any chosen business or product.

Answer:

Planning the integration of promotional techniques involves 5 steps which are explained below:

Step 1: Define the audience(s) to be targeted

Three broad ways to segment both consumer and organizational markets: Who the customers are Where they are How they behave


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Step 2: Set the promotional objectives.

SMART (Specific, Measurable, Attainable, Relevant, and Time-bound) Good objectives should include:

A statement defining the target audience. A statement of how some specific aspect(s) of the audiences perceptions,

attitudes, or behaviour should change.

A statement of how quickly such a change is expected to occur. A statement of the degree of change required.

Step 3: Set the promotion budget

The percentage-of-sales method The competitive-parity method The objective-and-task method

Step 4: Design the promotion mix

First, marketers decide which promotion components to use. Second, they choose the specific activities within each component. Third, within each activity they must decide which specific vehicle to employ.

Step 5: Evaluate the results

Involves finding out whether the objectives of the promotional activity have beenmetoften via marketing research.

Research can also provide important insights into whether the firm attained itsdistribution objectives


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4.4 Select and apply the techniques that are appropriate to measure the effectiveness of a

particular campaign.

Answer:

The main purpose in measuring the effectiveness of any advertising campaigns is to evaluate itseffect on the sales and also brand recall factor. The mathematical equation for measuring theeffectiveness of an advertising campaign is:

Advertising campaign effectiveness = Revenue + Return on investment (ROI)

There are various ways to measure the effectiveness of advertising campaigns:

Conducting a survey after the campaign ends Proportionate increase in the sales of that particular product/service More customers calling to a toll-free and prescribed lines Redemption of coupons and vouchers Increased footfalls in the store to purchase product/service Increased click on the companys website


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Reference

http://www.elearnportal.com/

http://advertising.about.com/

http://www.marketing-schools.org/

Marketingby Roger Kerin, Steven Hartley and William Rudelius

Marketing Management (14th Edition)byPhilip Kotler and Kevin Keller
http://www.elearnportal.com/courses/business/advertising/advertising-marketing-communications-processhttp://www.elearnportal.com/courses/business/advertising/advertising-marketing-communications-processhttp://advertising.about.com/od/guidestoadvertisingpr/a/The-Structure-Of-An-Advertising-Agency.htmhttp://advertising.about.com/od/guidestoadvertisingpr/a/The-Structure-Of-An-Advertising-Agency.htmhttp://www.marketing-schools.org/http://www.marketing-schools.org/http://www.amazon.com/Marketing-Roger-Kerin/dp/0078028892/ref=sr_sp-atf_title_1_5?ie=UTF8&qid=1404191438&sr=8-5&keywords=marketinghttp://www.amazon.com/Marketing-Management-Edition-Philip-Kotler/dp/0132102927/ref=sr_sp-atf_title_1_19?ie=UTF8&qid=1404191503&sr=8-19&keywords=marketinghttp://www.amazon.com/Philip-Kotler/e/B0028DGITO/ref=sr_ntt_srch_lnk_19?qid=1404191438&sr=8-19http://www.amazon.com/Philip-Kotler/e/B0028DGITO/ref=sr_ntt_srch_lnk_19?qid=1404191438&sr=8-19http://www.amazon.com/Marketing-Management-Edition-Philip-Kotler/dp/0132102927/ref=sr_sp-atf_title_1_19?ie=UTF8&qid=1404191503&sr=8-19&keywords=marketinghttp://www.amazon.com/Marketing-Roger-Kerin/dp/0078028892/ref=sr_sp-atf_title_1_5?ie=UTF8&qid=1404191438&sr=8-5&keywords=marketinghttp://www.marketing-schools.org/http://advertising.about.com/od/guidestoadvertisingpr/a/The-Structure-Of-An-Advertising-Agency.htmhttp://www.elearnportal.com/courses/business/advertising/advertising-marketing-communications-process

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Marketing Promotion and Advertising