Assignment on Theoretical Understanding and Practical

Application of Advertising and Promotion in Business

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Table of Content








Sl
No.
Particulars Page
No.
1.1 Explain the marketing communication process that applies to the advertising and
promotion of business.
2
1.2 Provide an explanation of how the advertising & promotional industry is
organized.
4
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 integrated
strategy for the promotion of a business or product
10
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
11
2.3 Review the various creative aspects of advertising 12
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.
13
3.2 Identify some techniques used in below the line promotion that are not regarded as
primary and you have not discussed in 3.1; last above give your evaluation of
these techniques.
18
4.1 Select and follow a process that is appropriate for the formulation of budget for an
integrated promotional strategy
20
4.2 Taking an initial budget of 16000 explain how you would use it to carry out the
development of a promotional plan
22
4.3 Provide a plan for how you would integrate promotional technique into the overall
promotional strategy for any chosen business or product.
22
4.4 Select and apply the techniques that are appropriate to measure the effectiveness
of a particular campaign.
24
Reference 26
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Essay Task 1: The Scope of Marketing Communications
1.1 Explain the marketing communication process that applies to the advertising and
promotion 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.
Sender is typically the company that produces the product.
Example: Clothing manufacturer

Encoding involves communicating the message in understandable terms for the consumer. In
some companies, this person is identified as the Marketing Manager.
Example: Marketing Manager at the clothing manufacturer

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

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

Response is how the customer reacts to the message. Will the customer purchase the product?
Example: Customer goes to the store and purchases the new product

Feedback measures 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. It
involves some key decisions about who the customer is, how to contact them, and what the
message 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 of
any communications message. Without knowing the customer well, getting response from
customer 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. Targeting
For advertising, targeting is the process of communicating with the right segments and ensuring
the best possible response rate. The methods used in targeting the audience must relate to
marketing plan objectives.
3. Positioning
Positioning is the process of developing an image for the company or product. This can be
achieved 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 influence
the target groups. Advertising objectives should be directly linked to the marketing plan, and
tend 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 process
which are called - push and pull. These two types of promotional strategies are mainly used
to get distribution channel members excited about a product.
Push When a company uses a push strategy it relies on the companys sales force to Push the
product through the distribution channels to create consumer demand for the product. For
example, a snow blower manufacturer may provide incentives to retailers to encourage them to
push their brand over competitors products.
Pull This type of promotional strategy relies on heavy advertising to create consumer demand for
the product. For example, after heavy advertising, customers visit retailers and ask for the
specific 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 in
offices all around the world. But, however large or small the agency, there is a basic structure
that 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 account
directors, 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 good
account services team is essential to a good advertising campaign. A solid creative brief is one of
the main duties of account services.
Account Planning
This department combines research with strategic thinking. Often a mix of researchers and
account managers, the account planning department provides consumer insights, strategic
direction, research, focus groups and assists helps keep advertising campaigns on target and on
brand.
Creative
This is the engine in an advertising industry. It's the lifeblood of the business, because the
creative department is responsible for the product. And an ad agency is only as good as the ads
the 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 also
bring 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 is
usually part of the production department. Everyone within creative services reports to the
Creative Director. It is his or her role to steer the creative product, making sure it is on brand, on
brief 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 said
that 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 space
required for a successful advertising campaign. This includes TV and radio time, outdoor
(billboards, posters, guerrilla), magazine and newspaper insertions, internet banners and
takeovers, 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 the
client 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. During
the creative process, the production department will be consulted to talk about the feasibility of
executing certain ideas. Once the ad is sold to the client, the creative and account teams will
collaborate with production to get the campaign produced on budget. This can be anything from
getting original photography or illustration produced, working with printers, hiring typographers
and 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 and
deadlines 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-Regulation
Self regulation is done by by:
a) Advertisers and Agencies
b) Trade Associations
c) National Advertising Review Board
d) Media

Appraising Self-regulation

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

Concerns over self-regulation
a) Time needed to resolve complaints
b) Budgeting and staffing limitations
c) Lack of power or authority
d) 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 Commission
Jurisdiction over broadcast communications; radio, television, telephone, and telegraph
industries



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Food and Drug Administration
Authority over labeling, packaging, branding, ingredient listing, and advertising of packaged
food and drug products

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

Bureau of Alcohol, Tobacco & Firearms
Enforces 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 and
local laws and regulations

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

Regulation of other sales promotion

Contests and sweepstakes
Cannot be classified as a lottery
Cannot be required to give up something of value to participate (consideration)

Premiums
Cannot misrepresent their value
Must take care with special audiences (kids)

Trade Allowances
Must 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 of
real-time bidding and programmatic approaches, by both media owners and advertisers, have
been 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 marketplaces
and 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 the
way in which people use that platform.
The growth in use of the Facebook Exchange (FBX) in 2013 has led to experimentation in the
form of Sponsored Stories and Suggested Posts, which relate to the users interests and
activities on the platform. Insurance company Standard Life experimented with native
advertising on Facebook and reported a 100 per cent increase in clickthrough rate compared with
standard targeted ads.
3. Video advertising
Video was huge in 2013, especially for YouTube which, according to Nielsen, reaches more US
adults aged 18-34 than any cable network. YouTube receives more than 1bn unique visitors
every 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, and
videos 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 video
adverts 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 targeting
and retargeting. Improved cleansing and segmentation of data, and increased targeting options
from Facebook, LinkedIn and Twitter are allowing advertisers to target the user in intelligent
ways, increasing clickthrough rates and conversions.
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In 2014, technologies will start to improve for matching up the consumer journey from online to
offline, 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 advertising
relevant 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 with
Posterscope. Increasing smartphone use is again having a major impact on the potential of this
technology. Through owned apps, businesses are able to collect a large amount of data on
consumers, 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 tablets
now account for a majority of their site traffic.
This meant an increasing focus on mobile marketing strategy. 60% of businesses are now
implementing strategies for integrating mobile into their broader marketing campaigns. The past
year also saw Google making mobile a priority in its Hummingbird update, which looked to
accommodate the fact that more searches are being conducted, and more content consumed, on
smartphones.











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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:
Promotion can defined as the coordination of all seller initiated efforts to set up channels of
information and persuasion in order to sell goods and services or promote an idea. While implicit
communication occurs through the various elements of the marketing mix, most of an
organizations communications with the marketplace take place as part of a carefully planned
and controlled promotional program. The basic tools used to accomplish an organizations
communication objectives are often referred to as the promotional mix. Traditionally the
promotional mix has included four elements: advertising, sales promotion, publicity/public
relations, and personal selling. Each element of the promotional mix is viewed as an integrated
marketing communications tool that plays a distinctive role in an integrated marketing
communications program. Each may take on a variety of forms. And each has certain
advantages. The importance of advertising as part of an integrated strategy for the promotion has
been explained below.

Advertising is defined as any paid form of nonpersonal communication about an organization,
product, service, or idea by an identified sponsor. The paid aspect of this definition reflects the
fact that the space or time for an advertising message generally must be bought. An occasional
exception to this is the public service announcement (PSA), whose advertising space or time is
donated 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 of
individuals, often at the same time. The nonpersonal nature of advertising means that there is
generally no opportunity for immediate feedback from the message recipient (except in direct-
response advertising). Therefore, before the message is sent, the advertiser must consider how
the audience will interpret and respond to it. Advertising is the best-known and most widely
discussed form of promotion, probably because of its pervasiveness. It is also a very important
promotional tool, particularly for companies whose products and services are targeted at mass
consumer markets.

More than 200 companies each spend over $100 million a year on advertising in the United
States. There are several reasons why advertising is such an important part of many marketers
promotional mixes. First, it can be a very cost-effective method for communicating with large
audiences. 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 households
reached is around $14.27 Advertising can be used to create brand images and symbolic appeals
for a company or brand, a very important capability for companies selling products and services
that are difficult to differentiate on functional attributes.

Another advantage of advertising is its ability to strike a responsive chord with consumers when
differentiation across other elements of the marketing mix is difficult to achieve. Popular
advertising campaigns attract consumers attention and can help generate sales. These popular
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campaigns can also sometimes be leveraged into successful integrated marketing
communications 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. Brands
convey a uniform quality, credibility and experience. Brands are valuable. Many companies put
the 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 the
employees working for the business. Without distinct brand identification, the product is
unrecognizable and the customer has no recollection of experience or a reason to buy. The brand
is the true essence of the company in distinction and how it sells. Therefore, it is important to
develop a brand and strategy early in the product life so all marketing efforts can be focused on
supporting the brand and a common goal. The Importance of branding as a tool to strengthen a
business is explained below with the example of Disney.
The Disney Brand concept started in 1923 by Walt Disney. After many success in the respective
field, Walt Disney's Disneyland opened in 1955 after several years of intense planning. This
dream 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 to
create a park where children and adults could have fun together. Some of the first attractions
included fly with Peter Pan, Wild West with Davy Crockett and the Mad Hatter tea party. Using
memories to evoke thoughts and feelings towards his brand, the Disneyland theme park became
very 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 the
customer. Many of their commercials use familiar concepts such as all girls want to be
princesses, which princess or character are you? More recently, their promotion efforts have
been catered towards celebration, asking the viewer "What will you celebrate?" It ties in with
their brand image of timeless and the importance of family. The Disney Company continues to
use its heritage and the characters that Americans fell in love with years ago as their main
branding 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 are
explained below:

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

The creative person
This relates to the personality traits of creative people who are responsible and central to this
process.

The creative situation
In 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, the
challenge seems to be getting that first big break into an ad agency's door. There are many ways
to overcome that barrier and land a job at an advertising agency.
1. Intern
Agencies look at interns as potential employees. Interning will help to get "in" to the agency. It
will also create the ability to work in various areas. If someone speaks up and let the agency
know 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 Position
It would be nice to walk right into a corner office with a view, plop down in your leather chair
and 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 agency
and working their way up. Getting in there and learning everything possible will help to gain
valuable experience which can be used to get a job somewhere else.
3. Freelance
If someone is interested in being a copywriter or graphic designer, freelancing can be considered
as a way to get into the business. Coming up with own rates, own campaign to advertise ownself
and approaching small businesses and even agencies are all tools one can use in agency job hunt.
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4. Creating SPEC ADS
One might think that he can do better than a major automaker's print ads running in the favorite
magazine. Or local barber shop's newspaper ads might need some reworking. SPEC ADS are
known in the industry as work one have done by own. It's basically pretend copywriting or
graphic design but if someone have no published work, it's vital to showing own talent.
5. Contact Radio and Television Stations
Many radio and TV stations have employees who specifically write commercials. They may also
produce certain types of shows for the station. This is a great opportunity to get started in the
business.
Since most radio and TV stations don't pay very much for these types of positions, there's both a
high 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 an
agency.















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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. Coupons
3. Rebates
4. Promotional Pricing
5. Trade-In
6. Loyalty Programs
Door to Door Selling
Door-to-door is a sales technique in which a salesman walks from one door to another trying to
sell a product or service to the general public. A variant of this involves cold calling first, when
another 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 at
home.
Typically, products sold door to door will be of the same variety that can be purchased at large
discount stores. The products accounting for the largest share of direct-sales revenue includes
cleaning supplies, cleaning equipment, magazines, and home improvement products. The largest
of 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 purchasers
price savings or other incentives when the coupon is redeemed at the time of purchase. Coupons
are short-term in nature since most (but not all) carry an expiration date after which the value
may 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 the
coupon (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 in
several 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 savings
in 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, is
generally required to obtain a rebate. Also, the marketer may ask those seeking a rebate to
provide 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 accepted
by the retailer), receiving a rebate only guarantees value if the customer takes actions. Marketers
know that not all customers will respond to a rebate. Some will misplace or forget to submit the
rebate while others may submit after a required deadline. Marketers factor in the non-redemption
rate 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 to
coupons. For instance, rebates are a popular promotion for automobiles and computer software
where 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, as
known 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 of
this technique can lead customers to anticipate the reduction and, consequently, withhold
purchase until the price reduction occurs again.
As we will see in a later tutorial, promotional pricing is also considered within the framework of
the Price marketing mix component. More on of this technique will be provided in that
discussion.
Trade-In
Trade-in promotions allow consumers to obtain lower prices by exchanging something the
customer possess, such as an older product that the new purchase will replace. While the idea of
gaining 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 the
customers 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 frequent
purchasing 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 of
frequent-filer programs. Loyalty programs are also found in numerous other industries, including
grocery, pizza purchasing and online book purchases, where they may also be known as club
card programs since members often must use a verification card as evidence of enrollment in the
program.


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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 a
purchase 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 paying
for 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 a
business 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 and you 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 more
directly and which are more within the organisations control. Below-the-line promotions
include different and interesting ways of connecting with targeted groups. Some non primary
techniques of below the line promotion has been explained below using the example of
UNISON. UNISON used a variety of different below-the-line promotions to develop its Million
Voices campaign.
Public relations
PR helps to create a positive environment through various publicity activities. To get the
attention of political parties, the union also created melting ice-sculptures of a school crossing
patrol 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 in
all walks of life. They enable people to identify with the issues in discussion. These media are
often expensive.
With these broad and often mass media it is sometimes difficult to target specific audiences. It is
sometimes harder to get immediate feedback from these forms of media to evaluate the
effectiveness 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 a
range of different leaflets and factsheets for different targeted audiences. For example, some of
these were targeted at Members of Parliament, while others were directed towards union
members 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 public
services and sign up as supporters.
Internet
This has become an increasingly important and measurable way of reaching different target
groups of people. It also allows for elements of interactivity by providing an opportunity for
users to express their views and provide support. For example, UNISON placed videos on
YouTube 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 in
public services.
The website featured an interactive map which allowed users to click onto their postcode to see
how 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 well
known celebrities. This level of endorsement helps to increase the publics awareness.
Events
In the business world, promotional events might include exhibitions and trade fairs. UNISON
has undertaken a number of events in support of the Million Voices campaign. These include a
march in London to protest against cuts. In the West Midlands a week of intensive campaigning
took place across the region which visited every hospital in the area. At the end of the week a
rally 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 a
stall and gazebo in the town centre while it was busy with Christmas shoppers. Members were
overwhelmed 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 union
and its campaigns. Much of the below-the-line activity involves members of the union
communicating face-to-face or in one-to-one situations with union members or the general
public.
Nearly 35,000 people across the UK have chosen to take on an official role within their local
UNISON branch and others are elected to take on roles at regional and national level. These may
be at branch, regional and national level. UNISON provides the promotional tools and materials
such 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 rm
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 at.
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 rms) 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 xed 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-sales
expenditures.
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) dening the communications objectives to be accomplished, (2) determining the
specic 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 is
shown below. Note the relative size of advertising and sample expenditures. The sampling of
drugs to doctors by salespeople is a substantial amount of the promotion budget. Sampling is an
important 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 been
metoften via marketing research.
Research can also provide important insights into whether the firm attained its
distribution 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 its
effect on the sales and also brand recall factor. The mathematical equation for measuring the
effectiveness 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/
Marketing by Roger Kerin, Steven Hartley and William Rudelius
Marketing Management (14th Edition) by Philip Kotler and Kevin Keller