Advertising and Promotion Strategies

Scenario

You have been hired by an advertiser as a consultant to devise the promotional campaign for the product (Please select any product or business of your choice). The advertiser is not sure about the promotional budget therefore he wants you to advise and develop plan of how effectively can he advertise having your expertise. Besides above the line promotion, he also wants to know about the below the line options that can be offered to him by you.

P.7: Differentiate between the characteristics and Objectives of the various below-the-lines promotional Techniques.

Below-The-Line

Promotion can be classified as above the line and below the line promotion. The promotion activities carried out through mass media for example radio, television, newspaper comes under above the line promotion.

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Below the line promotion refers to forms of non media communication below the line promotion are becoming increasingly important within the communication mix of many companies.

In some ways by which companies do below the line promotions are by exhibition, sponsorship activities, public relations and sales promotions.

Sales promotion

Below the line sales promotions are short term and companies target the consumers and it is to achieve communication objectives more efficiently in limited budget with pressure on marketing team to achieve the communication objectives.

An immediate or delayed incentive to purchase, Expressed in cash or in kind and having only a short term or temporary duration. (Hugh Davidson).

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Below are the lines of sales promotion:

Price Reduction

It is known as price discounting and it is done in two ways:

Discount to normal selling price of a product

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More of the product at normal price

Price promotions can also have negative effect on brand reputation or just a short term sales boost.

Coupons

Coupon is a ticket or document that can be exchanged for a financial discount or rebate when purchasing a product coupons are issued by manufacturing companies and retailers and the sources for coupons are through mail, magazines, newspapers, internet, and mobile devices.

Rebates

Rebates are like coupons which offer value to purchasers by lowering the customer’s final cost for acquiring the product. Rebates often request the purchaser to submit personal data in order to obtain the rebate including name, address and contact information is general required to obtain a rebate and sometime marketers may ask additional information such as “reason for purchasing the product”

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Samples:

It is a free amount of a product delivered door to door, sent to mail, picked up in a store, attached to another products.

Premiums (Gifts):

Merchandise offered at a relatively low cost or free as an incentive to purchase a particular product. It can be inside a particular product, or in a package offered.

Public Relations

The point of public relations is to make the public think favorably about the company and its offerings. Commonly used tools of public relations include news releases, press conferences, speaking engagements, and community service programs. But advertisement is closely related to public relations. the goal of advertising is generating sales, while the goal of public relations is generating good will. The effect of good public relations is to lessen the gap between how an organization sees itself and how others outside the organization perceive it. Public relations involve two-way communication between an organization and its public. It requires listening to the constituencies on which an organization depends as well as analyzing and understanding the attitudes and behaviors of those public. Only then can an organization undertake an effective public relations campaign. Many small business owners elect to handle the public relations activities for their own companies, while others choose to hire a public relations specialist. Managers of somewhat larger firms, on the other hand, frequently contract with external public relations or advertising agencies to enhance their corporate image. But whatever option is chosen, the head of a company is ultimately responsible for its public relations.

Sponsorship

Companies and brands use sponsorships to build brand recognition by associating with an event. Companies try to find the target groups who fit within a specified budget and provide sponsorship benefits that suit the company’s objectives. There are various sponsorships which are local, national and international sponsorships.

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Objectives of Sales Promotion techniques:

Many sales promotion techniques used to attract the customers who are using the product for the first time.

It is used for introduction of new products.

Sales promotion can act as an effective customer information gathering tool.

Marketers found that sales promotions are an effective tool for creating interest in a product because creating interest is considered as an important use of sales promotion.

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Some Sales promotion techniques offer the opportunity for customers to try the product for free or at low cost.

Sales promotions are designed in a way to move customers to action or to provide information about product.

Sales promotions are to build product awareness and to maximize the demand.

Objectives of Public Relations:

Public relations objective is to aware consumers about new product launching or to maximize the demand of existing product.

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Public relation can be used to provide customers with more information about a product.

It is also used to build a good image and to maintain a positive relationship with customers.

Objective of Sponsorship:

The main objective of sponsorship is to increase sales.

To aware the customers about a product.

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To reach target markets.

To reach consumer where they live and play.

To build relationship with customers.

To build image.

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P8: Recommend the use of individual techniques in two commercial situations.

Confed School for Professional Studies

Confed is a consultancy which provides information about many U.K universities to the students of Pakistan. It has four branches in Pakistan located in Peshawar, Islamabad, Lahore and Karachi. It provides information to the students who want to study abroad and helps them in selecting their careers. Confed conduct seminars in which that call different student and gave them briefing about different universities in U.K and about the living in the U.K. Besides consultancy business Confed is also offering Higher National Diploma (HND) and classes for ILETS exams.

Recommendations for CSPS to improve their business.

Confed should distribute flyers in different colleges and universities invite them to their seminars. They should specially target the students of FSC, A-levels.

They should give discounts to the student who are applying for the first time and should give them keep the student satisfied.

CSPS should make writing pads, pens, and distribute amongst the students of other colleges and universities.

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In Peshawar every one cannot afford the education in the U.K Confed because it is too expensive. Confed should make their customer realize that if the education is expensive it doesn’t matter later on it has many advantages and benefits. Confed should deliver the advantage that a student will get by studying in the U.K.

Confed should conduct different campaign for example beatifying university town, this will make a good reputation of confed. They should be participating in social activities.

Daewoo Pakistan

Sammi Corporation was established as forest products importer in 1954 but has expanded its business to become a dynamic trading company in Korea. From the 1950’s, Sammi has been challenging the world market with a great emphasis on conforming to international requirements for the timely delivery of top-grade industrial products, such as Stainless steel, Coated steel, Automotive parts, Wood products & various raw material.  

Daewoo is a bus service introduced by Sammi cooperation, Daewoo is a bus service which covers almost all the cities of Pakistan. The journey of Daewoo is very relaxing, comfortable and is always on time. Now a day’s Sammi Daewoo is very popular for traveling in Pakistan. Here we will discuss about three major cities Peshawar, Rawalpindi and Lahore and how can Daewoo improve its services.

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Recommendations

Reservation of Daewoo is made by phone. They should start a service by which there customers can make booking online or through their mobile phones. Sometimes the operator is busy and may not receive call so they should introduce new way of booking of seats on Daewoo that is online booking and through mobile phones. This will save time for their customers and will be much easier.

They should give monthly cards to their regular customers worth Rs 2000 and the fare should be deducting from the card automatically. And should also give them discounts.

They should also give donations to charitable trust. This is very good for overall reputation of the company.

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They should launch VIP busses for the executive class and should make the service different than normal routine. For example the menu should be different.

Bussed traveling from Peshawar to Lahore should take the route of motorway from Peshawar usually the bus passes through noshera which takes a lot of time.

Daewoo should offer snacks in between the journey.

P.9 explain the principles and process of campaign management including (Communication goals, situation analysis, Campaign objectives, Strategies and Budget allocation)

Goals of communication:

The main goal of business communication is to influence, to control our audience’s responses in the way we had intended, so that we can fulfill certain aims for ourselves and our organizations. Effective business communication, of course, results in our eliciting the response we desire both in the short term, such as having our audience obey an order, and in the long term, such as having our audience continue to follow the spirit of the policy. Secondary goals such as self-expression, social relationships, and career advancement also involve producing change in knowledge, attitude, or action. With all these complicated variables going on in the communication process, no wonder communication is imperfect.

Situation analysis

When analysis of the organization as it is at the moment and how it may develop in the future, is important. The analysis has to be executed at an internal level as well as an external level to identify all opportunities and threats of the external environment as well as the strengths and weaknesses of the organizations. There are too many factors internal and external to the firm which includes in situation analysis but some of the important contexts are given below.

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Historical context

Industry analysis

Market analysis

Competitor

Historical context

All situations are unique, it is important to know how the firm arrives at the current situation. For compaign plan we should know about the history of the company including mistakes and success and decision that take in past.

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Industry analysis

In industry some factors affect the character and growth in an industry i-e technology, regulations, economic conditions and social factor. In industry we have to identify that, is there any trend of that product or service? Does customer wants to avail it or not?. We should find out what is unique going on another side. We cannot ignore trends in an industry, no matter in what business we are.

Market analysis

There are different factors that affect decision making. The effect of external environment is unavoidable in all areas of marketing.

There are different types of customer. and Each type o customer have their own attitude towards product and process of decision making so while making campaign we have to keep in eye all of our different types of customers.

Competitors

We cannot ignored competitors strategies while campaign plan. It’s not like to follow each other strategies but have to make different, unique and more effective strategy compare to competitor.

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Campaign objectives

Some of the important objectives of campaign are given below.

New customer acquisition.

Ensure a strong level of public awareness, understanding and support.

Revenue.

It raises the awareness of decision making,

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Cross-selling and bundling

Churn prevention and management

It also helps in feedback. You’ll receive valuable tips, suggestions and leading during your referral interviews

Stimulate the trends of investment etc.

Strategies

Strategy is mechanism by which something is to be done. There are infinite numbers of strategies. Developing marketing campaign can do around these three phases:

Conduct your own market research.

Focus on one or two positions which, based on your research, look like a good fit for you.

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Create a position that’s right for you in a company where you feel comfortable and motivated.

Budgeting

The most important and difficult step or context is budget the funds, time and human resource for your campaign. There are different methods which usually get follow are given below.

Percentage of sales approach is a simple but inexperienced way to deal with issue.

Unit of sales approach that allocates funds on a per-unit base rather than percentage of sales basis.

In the share-of-market approach the activities of key competitors are factored in to the budget setting process.

A funds available approach is used when firms are strapped for cash and need to cover costs and preserve profitability.

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Tasks for P10

For this task you must:

Discuss the importance of integrated and cost-effective campaign.

Use appropriate techniques to develop a cost effective and integrated campaign, consider relative costs of various promotional techniques, product life cycle considerations, strategies that can be adopted by firms, positioning strategies, barriers to integration

The most important factor of integrated is to control of the promotional process allows for more synergy activity among each of the communication program elements. It also helps organization to arrange a convenient for clients to coordinate all promotional efforts with one agency and agencies with IMC capabilities can create a single image for the client. The importance of cost-effective campaign is giving a guild line to marketing department that promotional message reaches you’re intended and targeted audience and also message is understood by audience and the message stimulates the recipients and they take action.

Any communications campaign must have clear, measurable objectives. This is true whether the campaign is designed to communicate product benefits or to support an event. In order to achieve these objectives, a campaign requires careful planning. There are eight main stages to consider, from defining the target market to setting a budget and schedule. (Steel, Jon, 2010)

The most important factor of integrated is to control of the promotional process allows for more synergy activity among each of the communication program elements. It also helps organization to arrange a convenient for clients to coordinate all promotional efforts with one agency and agencies with IMC capabilities can create a single image for the client.

Asses our marketing communication

It is important in this first step to examine and understand the needs of our target market. Our target markets are the students who want to go abroad for their higher studies.

What communication channels will use?

In the beginning we place billboards near the colleges, schools, and universities and the other thing we distribute our pump flits to different students and keep the help desk of Confed in different colleges and universities.

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Objectives

Our objectives in a promotional campaign are slightly different from our marketing campaign. Our Promotional objectives are stated in terms of long-term behaviors people are having been exposed to your promotional communication. These objectives must be clearly stated, measurable, and appropriate to the phase of market development.

Promotion Mix 

In this step we will need to allocate resources among sales promotion, advertising, publicity, and of course personal selling. Don’t skimp on either of these areas. We must create awareness among our buyers in order for our promotional campaign to succeed.

Promotional Message

In this step we will need to sit down with our team and focus on the content, appeal, structure, format, and source of the message. We should keep in mind our promotional campaigns appeal and execution and also objectives.

Product life cycle

Confed overcome the consultant name as ICAS. “ICAS” was the good consultants but it never capture the market instead of this Confed in the start was not that much good then it highly advertise their service and to promote their business more they launch an “HND” which is the good opportunity for the students wants to go abroad and want to study the business. Now a days its in a stage of growth.

confed

Strategy:

Confed standard is good, means they installs the multimedia for lectures, a/c’s to create the better environment for the students, But there is something slightly missing in it that now they have to advertise more and more in these days because in these days admissions are open at U.K and also in Pakistan and the other thing is to create their management effective which attracts the parents.

P.11: present promotion recommendations in the form of a promotion plan

Situational analysis

Daewoo Pakistan service was established in 1997 with a new kind of service for traveling and tourism. They have routes to all over Pakistan by providing the relaxing and refreshing service to their customers.

Company Analysis

Recently they are the largest land travel provider in Pakistan. Daewoo has bus terminal with complete range restaurants, cargo service, and travel service. The main goal of the company is to leave on time and get to destination on time. As Daewoo is an international company but this company has indirect competitors which are private busses and the new Motorway Express which tries to compete with Daewoo.

Customer Analysis

Today customers are becoming sensitive in terms of traveling and food, many people wish to travel safe, comfortable, on time with reasonable price, airlines are providing this kind of service but the price is high, Daewoo is providing the same service which the people of Pakistan wished.

Competitor Analysis

Daewoo Pakistan is the leader in bus service they don’t have a direct competitor but if we consider the indirect competition, there are lots of busses which are trying to get the customers providing a comfortable travel but they don’t have on time delivery and safe travel. About a year ago the new travel service has been introduced by the name of motorway express, but this company is in introduction stage which provides the routes from Peshawar to Islamabad and Rawalpindi.

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P12: Discuss briefly are the criteria for measuring promotional techniques effectiveness.

How would you measure the campaign effectiveness in this scenario?

There are many ways through which we can measure the promotional techniques effectiveness. Different companies use different ways to measure their promotional activities. The companies follow up to measure their promotional techniques are following areas.

• Measuring effectiveness of advertising
• Measuring effectiveness of sales promotion
• Measuring effectiveness of personal selling
• Measuring the effectiveness of advertising

To check the number of enquiries from advertising. If the advertising is strong so automatically the sales of the company will be very good. When the sales are there means that the advertising goals have been accomplished. To check the customer awareness before and after the advertising campaign. Number of request for further sales means that the advertising campaign was very strong and more awareness is there in-between the consumers. Levels of repeated sales also show the effectiveness of advertising. To assess the effectiveness of advertising campaign, you can monitor sales, new customer requests for information, phone inquiries, and response from the retailers.

Measuring the effectiveness of sales promotion

The company must take the feedback of their customers regularly. A sales promotion is constructed to inform customers about the new product. This is possible by advertising in newspaper, and other Medias explaining the product and inviting customers to visit their websites for coupon offers. An activity like this can be measured by tracking the number of people visiting the website. Besides coupons another promotion techniques is price discounting such as 50% discount offer, buy one get one free, reducing cost is a sure way to motivate customers to buy the product.

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M5: Show in which situations do u think your recommended techniques may not work

The recommendation I have given they may not work in the following conditions.

We have suggested that we should distribute flyers in different seminars but because of security reasons usually seminar get cancelled, due to which we can face problems.

It may affect the image of company while giving discounts.

To offer the service of booking Daewoo seats through sms or internet can be costly.

If there are not enough funds so the organization will not be able to advertise their product in a proper manner.

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Lack of human resources resource can be the possible reason of not meeting the required goals.

Lack of communication between the staff can also affect the overall business of the Confed.

The managers of the organization should keep check on the staff. If the manager is not competent the organization can suffer.

If there is political instability the organization might not be successful to achieve its required goals.

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The organization might not have enough funds to allocate them into other activities

M6: Develop the budget for the promotion plan

To develop a budget for the promotion plan is a very technical part. We need to allocate out finances in such a way that we can get full benefit out of it by utilizing minimum finances. A budget planed at the beginning of the year and is followed throughout the year.

As we are introducing a new product which is a mineral water at the beginning it will need lots of advertising so that people come to know about the product. We are going to make our promotional plan as follows:

We will advertise our product in news papers which will cost us about 30,000rs.

We will advertise our product on television by giving a contract to an ad agency to make an attractive ad so that the consumers get attracted to it by watching that ad on the television. This can take about 50,000 to 80,000.

We will distribute free samples to different retailer which can cost about 4,000rs per retailer.

We will make poster, brushers and distribute them in every possible area where people can see then easily. This will also take about 20, 000rs of our finances.

We will hire a bill board in a main area, near traffic signal, so that on red light people can see our advertisement. This will cost us about 50,000 to 80,000 per month.

M.7: Develop the communication goals through DAGMAR approach.

DAGMAR is called (Defining Advertising Goals for Measured Advertising Result)

It is an approach to advertising planning and a method for selecting goals and to use those goals to measure performance. It is intend to create awareness, impart information, to develop attitude.

There are four stages of DAGMAR approach which is discussed below

Awareness: This model is used to aware the customers of the existing brand of a company.

Comprehension: To make consumers understand the usage of the product.

Conviction (Persuasion): to persuade the consumers to buy the product.

Action: To get the consumers to purchase the product.

Characteristics of advertising objectives in DAGMAR approach:

There are four characteristics of DAGMAR approach which are discussed below

Well Defined Objectives: The objectives should be cleared, it should be measurable and specific, and these objectives should be communicated to Copywriters and marketer specialists who develop the advertising message and it will help them to select the specific message for advertisement. Measurable objectives will help for effectiveness of advertisement.

Benchmark and Degree of change sough: Benchmark is to target the audience in communication model. It means to know how many target audience are at the stages of communication model. It is must to know the number of target audience who are at awareness stage and at persuasion stage.

Well defined target audience: The advertising message should well define to the target audience. It is must to know the person involved in each stage of communication. Like some audience are at understanding stage and some are target audience and maybe some are at persuasion stage.

Specified time period: The time period of advertising should be specified for achievement of objectives. Most of companies specify the time period from months to year period it depends on situation and degree of change sought. If a company’s objective is to increase brand awareness than it can be done in short time through mass media. But if objective of the company is increase the understanding and persuasion of branch loyalty than it takes time.

D5: Show how your promotion plan activities will be planned, managed and organized.

We can plan and manage our promotional activities as follow:

We will divide the task amongst our employees so that each and every task is done in a proper manner. Like this there won’t be a burden on one person.

For advertising on television we have to look up in best advertising agency, do that they can make our ad more attractive.

We will gave our products on much more discounted rates then our competitors

We will provide our product to different Hotels, restaurants so that more people consume our product.

Also take feedback from our customer that how we may improve our product.

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