Advertising and Promotion

A Report on Importance of Advertising and Promotion in an Organization

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Gen Advertising is referred to any “paid form of promotion” and is the key practice of “above line promotion”. In eral, the advertising is defined as paid and controlled messaged in media whereas promotion involves free or paid marketing activities, like sponsorships and sales. The main goal of company’s products or services promotion and advertising is to attract the customer’s attention as well as subsequently persuade them to make purchases from the firm. Similar to other business areas, advertising comprises setting of clear objectives and goals. Here, in the below report there is a discussion of several issues of marketing environment facing by managers of different industry type. Moreover, after completing the whole research reader will find appropriate solutions regarding manager’s responsibility in organizing productive advertising campaign as well as the methods of developing relationships with distinct customers of various sectors.

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1.1 Communication process for advertising and promotion

Promotion and advertising are central part of our economic and social systems. In the multifaceted society, advertising has developed into an important system of communications for both businesses and customers. The ability of promotional programmers and advertising makes the target buyers at level of marketing. It also provides feedbacks to the organization regarding its products or services situations in the market that are launched newly. Advertising is composed and structured, nonperson information communication. Generally, it is paid for and influential about ideas, services or products.

The promotion process is done for newly introduce products to the competitive marketplace by providing additional value, sales are accelerated by promotions. Hence, it is a very useful tool for new commodities to be targeted in the market. An organization can often make use of promotion in combination with advertising to influence customers. (Fine, 2015). Communication process for advertising and promotion are explained as below:

Direct Marketing

The most costly as well as effective process to communicate the promotional message directly in the market. The physical presence of marketers of product and services help to increase the effectiveness of message for brand building very quickly.


The modern approach to penetrate the market specifically if the target audience is among young generation. Various medium of communication tools like blogs, ads, videos, and website can be utilized for advertising purpose.


This medium is used to target the large number of audience, thus there is huge demand for TV advertisements.

Print media

The aggressive process to influence customers by using posters, newspaper advertisements and flyers / stickers etc.

1.2 Organization of industry

The below given are some associations that are responsible for the advertising and promotion activities organization in Europe:

  • EACA – The European Association of Communications Agencies developed for the mission of representing media agencies, agency association and full-service advertising in the country. The EACA aim is to encourage effective and honest ads with high professional standards by acknowledging the advertising contribution in the market of free economy. Also, it work for promoting close co-operation in between advertisers, media and agencies in the advertising bodies of Europe.
  • EFSP – In the year 1980, European Federation of Sales Promotion was founded. This forum is developed for regions across Europe to meet, work together and exchange ideas. It aims to increase companies’ reputation in the market as well as to promote the standard of European industries sales. This also sustains activity of two key areas, such as annual awards and lobbying.
  • PMC – The Promotional Marketing Council is an association through which sales promotion of European sectors represents including agencies, suppliers and clients. Member nations are Spain, France, Germany, Portugal, Netherlands, Belgium, UK, Italy, Netherlands, Austria and Ireland. The membership of this association accounts for a projected 80 percent of sales promotion of country’s businesses.
  • Apart from above associations, there are various types of advertising organizations, which are explained as under:
  • Generalized advertising organizations: To carry out normal advertising activities like logo designing, naming the brand etc.
  • Specialized advertising organizations: assigned for advanced advertising tasks such as managing public relations, campaign management etc.
  • Interactive advertising organizations: to deals with internet and TV advertisement.
  • In-house advertising organizations: Advertiser own and operates in-house agencies for ads.

1.3 Regulations of promotions

The marketing sector of UK has acknowledged the necessity for reliance in advertising when it established the system of self-regulatory advertising for non-broadcast ads in 1961. After that, the self-regulation system of nation has supported to ensure that advertising remains honest and responsible as well as attract customers on continuous basis. Further, on 4 March 2003, the 11th edition of British Code of Sales and Advertising Promotion was introduced. This code purpose is to sustain in the most flexible and best possible manner, the marketing communications integrity in both trade and customers interests.

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In UK, advertising is controlled by a combination of practice codes as well as legislation. There are two codes of advertising that are developed, examined and revised through two commissions, such as BCAP (Broadcast Committee of Advertising Practice) and CAP (Committee of Advertising Practice). In these, BCAP deals with broadcast advertising rules while the CAP deals with non-broadcast sales promotion, direct marketing and advertising. Moreover, through ASA (Advertising Standards Authority) these are applied wherever necessary (Holland, 2013). Later 28 February 20111, regulations and rules of broadcasting have been hassle-free to permit placement of product, i.e. paying to have services or good referred or included to – in certain kinds of TV programs (Huds, 2015).
The regulations provide clear guidelines for involved parties such as advertiser, media supplier, advertising agency, etc. to ensure they follow the law and also educate them for the rights and obligations of individuals who handle advertising activities. Formal enforcement actions are also exercised to regulate promotions and advertisements. It include to identify issues like misleading message or misinterpretation of messages to control flow and effect of promotional messages within legal framework. Moreover, self-regulation also is an important legal provisions which used to govern advertising communications in UK. There are following areas of regulations which are largely associated with sales promotion and advertisements.

  • The Contract Law
  • Consumer Protection Laws
  • 1987 consumer protection act
  • 1964 trading stamp act
  • 2000 regulations for misleading advertisements
  • Copyrights
  • 1993 lottery act and other amusement regulations

1.4 Current trends and impact of ICT on advertising and promotion

In advertising the current trends are in relation to technology implication for communicating message of brand to mass audience. The current trends of advertising are use of wireless communication plus globalization. Due to such new movements, the process of advertising has become more complex. Now advertisers are not only required to consider creative commercial aspects but also need to evaluate profitable manners pf reaching as well as communicating with consumers. Furthermore, interactivity with visions has open novel doors for the advertisement prospect. Mobile and internet connections via call centers makes it simple to communicate message of brand with target audience (Marsh and O'Connor, 2007). Besides this, corporates have agreed on the fact that revenue generate from new advertisement methods are more in comparison to tradition media. Further, IMC (Integrated marketing communication) is one more innovative movement in the approach of ads. It combines all messages of marketing communication, which send eventually a single message that promotes the goals of brand (McAllister and West, 2013). A dilemma is postured by globalization on the following:

  • How valuable will ads standardization?
  • How much constancy is required for reaching customers?
  • Whether to concentrate on local or global advertising?

In addition to above, the ICT (Information and Communication Technology) made revolutionary trends and changes in the process of marketing. It also has good scope, i.e. expansion of market through social media and internet facilitates break through boundaries plus faster communication in cost effective manner. It is a simple approach of targeting audience and is seen as extremely interactive, anywhere, anytime marketing. The rapid growth in globalization and ICT, further the improvement in tactical method to globalized buyers’ market led international firms utilize the opportunities at worldwide level. Thus, they can use such opportunities with the promotional campaigns and advertising framework and can sell locally along with thinking globally (O'Guinn, Semenik and Allen, 2012).

2.1 Advertising role in integrated promotional strategy

At McDonald’s, effective advertising and promotions are integrated into its international policies. One of these strategies include promotional offers of organization for several items like concert tickets, internet cards, caps, international trips, T-shirts and CDs. The company does such promotion by collaborating with other corporations including MTV, Sony, Coca-Cola and General Motors. In addition to this, for children painting contests are also undertaken by McDonald’s. The advertising tactics of restaurant had been concentrated on creating a family comfort image. Instead of being a regular fast food chain that offers quality meals, McDonald’s aims to appeal to marketplace by creating a restaurant image where families can enjoy, relax and get together (O'Guinn and, 2014).

Besides, print ads and television commercials, the organization also makes use of several promotional offers as well as internet for the purpose of advertising. The IMC strategy is used by restaurant to optimize functions of every promotional media. It enables interactivity that in turn facilitates the counter flow of information. With the help of IMC, organizations in fast food sector, like McDonald’s would be able to combine core policies with other communication types to attain more advantages of marketing and good effects of business (Pilbeam, Rodseth and Singh, 2008).

2.2 Role of branding in strengthening business

The process of branding includes developing a unique image and name for a commodity in the minds of customers by advertising campaigns along with a constant theme. The main goal of branding is to create differentiated and significant presence in market, which can attract plus sustain loyal clients. For instance, at Coca Cola sales are perfectly improved by adopting effective branding strategies. It shows that organization increase price of its offering exactly when the target customers are ready to accept the improved prices. The confidence in company’s service/product is encouraged by branding. The branding should reflect by use of name and logo to increase the value of brand. Moreover, it should be communicate clearly by name and service/product. At Coca-Cola logo and its colour combination use for organization’s branding. Furthermore, the identity of firm must be consistently applied across every media, i.e. it’s positioning on screen or page should be remain aware across all material of marketing (Smith, 2013).

2.3 Advertising creative aspects

In advertising the creativity demands a proficiency to write slogans and words for ads, graphic artists for laying out the visuals, strategy transformation into actual advertisements and hence expressive as well as creative talents is needed to generate effective ads. The place where great ideas developed or visualize and campaign comes together in known as creative department. The main part of such unit is art directors and copywriters. They work with owners of business and dig out business issues of brand. Then production department continues with media planners and convert the idea into reality. To the creative brief, an art director responds by communicating moods or ideas visually. The skill, innovative and creative talents along with adequate knowledge bases the overall success of ads. The innovative promotion consists the features of creative person, situation and process as well as creativity rules include producing the goods relevant to target buyers and putting it into centre of commerce.

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For instance, 55 advertising agencies has been organized by Samsung throughout the globe and utilized the people creativity from distinct parts of world to make products branding in local market. Organizations should understand that particular ads should not only suit internationally but locally too plus must be developed within the prescribed law.

2.4 Working with advertising agencies

There are four essential rules that should be followed by companies to operate and keep smooth connection using advertising agency, they are:

  • Setting objectives – The description for all ads have to be very apparent in between an organization and advertising agency. The firm should make certain objectives to be fulfilled by advertising assistance by broadcasting message and attracting target audience (Stafford and Faber, 2005).
  • Covering budget – The organization itself and advertising agency must together make the choice of total budget to be incurred in broadcasting ads.
  • Stay in contact – There should be an excellent plus regular communication in between ad agency and corporation regarding what further promotion is needed to attract mass customers.
  • Setting definite timelines – Both company and agency should mutually decide period of starting and finishing every tasks related to ads publications (Abrahams and, 2012).

3.1 Below-line-promotion of cosmetic company

Below the line promotion is a type of non-media ads and even non-media communication. The following are its primary techniques:

  • Awards and competition – It is an element for boosting brand awareness in target customers. This can be used to enhance provision period sales and ensure products usage within very first time buyers
  • Price promotion – It can be undertake through discount for normal marketing worth on a product or providing various items at common cost of one.
  • Cash payments – Through this scheme somebody get a cash after posting a purchasing proof to the manufacturer.
  • The below-line-promotion is employed by NIVEA, as NIVEA FOR MEN held events of football at a level of grass-roots by its partnership with Power league for developing positive relations with males. It has supported the organization is building strong brand affinity for the product and has improved sales too (Eagle and Brennan, 2007).

3.2 Other techniques of above promotions

The following are some other methods of below-line-promotions used by organizations:

  • Money refunds to unsatisfied customers with products;
  • Offering coupons to clients;
  • In the form of rewarding offers providing incentives to frequent users;
  • Point of sales display;
  • Loyalty gifts (Hill, 2006).

4.1 Formulating budget for promotional strategy

The overall plan of marketing is a dynamic document that stress on getting marketing tactics to life, attending as roadmap for performing activities of marketing and executing marketing policies. It is process including following multi-steps:

  • Developing a company’s strategy and ensuring that adequate connections are made among such tactic and activities of marketing planning (Lawlor and Prothero, 2008).
  • Analyzing business environment for understanding market, competitors, industry and other influences.
  • Performing market profiling enables an organization to determine market segment, overall demand and target buyers. Moreover, competitors and industry analysis along with evaluation of buyers types assists in forming possibilities of demand as well as forecasting results (Lee, Yun and Haley, 2013).
  • The mix of marketing that considers a set of activities, which harmoniously come together for bringing and sustaining the commodity to market.
  • Marketing programs budgeting so that corporate strategies and decided goals of sales can be achieved.

There are several methodology available to budgeting the activities of marketing. However, to complete the budget an organization have an integrated professional policy, i.e. an approach of Operating Budget. The particular approach is most adequate idea of budgeting for creating budgets of promotions related to company’s sales (Leonidou and, 2011). The below are three steps to follow budgeting:

Step I

Here, at first step only the overall cost for promotions combining every type of marketing activities, such as marketing medium and production cost is required to be calculated.

Step II

At this step costing is done as well as transactions are have to be made among ad agency and organization.

Step III

It is the last step following the primary step of promotions. At this step all costing during the premiere should be compared with panned budget. If costing goes beyond the planned then marketing manager is required to review the budget, else the former budgeting should carry on (Low and Mohr, 2000).

4.2 Promotional plan for new car

In order to have an integrated plan for the promotion of new car “cricket”, the structure is devised to be followed for converting likely customers to get aware about its specification and inspiring them to purchase the same. For having appropriate visibility of brand, an integrated plan of promotion must be executed. The key motive of incorporated advertising is to convey effectively the trendy side plus swiftness of Cricket (Mortimer, 2008).

Super Re-launch for best public relations

This re-launch will be globally extend, by developing a buzz for car. The launch will cover headlines and front page. Firstly, the anticipation will be created by launching strategy, which can be done by forming an ad through a car that is hidden under a wrap gift. Further, there will be virtual countdown for the launch in television. The ambassador contact for launch will be a youth icon or stylish sports entity. After completing formal launching activities, a rally of Cricket will be led by ambassador where the future possible clients and old customers will participate.

Media Promotion

TV Advertising

The media advertising will concentrate on ease and quickness of care for the use of housewives and women of age group 25 to 35. The advertisement would portray an individual who reveal the modernism attitude.

Sponsorship of TV Program

Cricket will be sponsor for Splitsvilla and Roadies show, as the reality shows are viewed by most of the young population and hence will successfully promote the car.


The Company will tie up with producer to feature the Cricket as being driven by heroine in movie (Lee, Yun and Haley, 2013).

Social media

Blogs, twitter, Facebook can be used to promote the car as well as gain more credibility.

Print media

The car will be targeted to magazines like Vogue that carry content for females throughout the world. With the help of strong marketing plan, Cricket can become one of the fashionable assets of females at global level.

Online experience

Cricket can establish a superb web page with panoramic outer and inner view of car along with its 3D image.

Road shows

Road shows in educational institutions, colleges and corporate offices through specific offers will surge the positive insight of car (West and Prendergast, 2009).

4.3 Integration of promotional techniques into promotional strategy for Dairy Milk Chocolate

A budget of typical sales advertising covers approx. 70% of overall promotional budget for consumer sales. Also, it is seen by several big players (like Dairy Milk) as brand differentiator. For Dairy Milk business typical marketing activities is used in sales promotion to add product value for attaining decided objectives. The main purpose of promotional tactics is to encourage buyers for making quick decisions of buying to enhance sales. Promotion integration is to provide customers with an opportunity to win a prize. Dairy Milk uses different activities of promotions, such as organizing circus event at summer season for attracting new customers and evaluating product additions.

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Promotional tools like discount offers should consider market demand and also consumer responses towards such pricing strategy. Sometimes, such discount offers may create negative perception towards the Dairy Milk Chocolate quality so the message should be communicated effectively that the consumer conflict due to misinterpretation can be avoided.

4.4 Techniques for measuring campaign effectiveness

There are various ways given by many authors to measure the campaign effectiveness:

Pomerance recommended to measure effectiveness in the five headers of Sales, Profit, Communication, Attention and Persuasion. (Wheatley, 1969)


by comparing net income after 1 month of making promotions and before promotions, promotion effectiveness can be evaluated by the increase in profits.


the more number of clients engaging with sales or support team means those clients interest has been increased after effective promotions.


influencing new clients can be evaluated by measuring percentage increase in the number of new clients.


Comparing sales volume for the period i.e. before and after promotion.


By measuring increase in the number of website traffic, and product queries.

Steiner’s model 'predictive measurement of advertising effectiveness’ proposed to recognise different stages of buying behaviour (Awareness, Knowledge, Liking, Preference, Conviction and Purchase) and appropriate measures for every stage.

Kotler suggested to measure the two direction of campaign effectiveness – communication effect and sales effect.


The above report concludes that advertising and promotional strategies are dynamic as well as creative force to communicate with target customers. Therefore, the activities should be designed in harmony with organizations resources and requirements of market. Moreover, every activities must stress on attainment of common objective to build profitable relations with clients through effective or honest communication.


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