ADVERTISING AND PROMOTION IN BUSINESS

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ADVERTISING BUSINESS

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PROMOTION

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ABSTRACT................................................................................4 SCENARIO................................................................................. 4 INTRODUCTION.........................................................................5 TASK -1 SCOPE OF MARKETING COMMUNICATIONS......................5 1.1COMMUNICATION PROCESS APPLIES TO ADVERTISING AND PROMOTION IN SAMSUNG .........................................................6 1.2 ORGANIZATION OF THE ADVERTISING AND PROMOTION INDUSTRY................................................................................. 6

1.3 AN ASSESSMENT OF HOW PROMOTION IS REGULATED...........7 1.4 RELEVANT TRENDS IN ADVERTISING AND PROMOTION AND IMPACT OF ICT..........................................................................7 TASK 2. THE ROLE AND SIGNIFICANCE OF ADVERTISING............8 2.1 THE ROLE OF ADVERTISING IN INTEGRATED PROMOTION STRATEGY FOR A BUSINESS OR PRODUCT...................................8 2.2 WHAT IS BRANDING AND HOW IT STRENGTHEN A BUSINESS OR PRODUCT.................................................................................. 9 2.3 A REVIEW ON CREATIVE ASPECTS OF ADVERTISING................9 2.4 THE WAYS OF WORKING WITH ADVERTISING AGENCIES........10 CONCLUSION........................................................................... 10 WORKS CITED.........................................................................10

Abstract
An illustration of communication process applied by Advertising and Promotion Industry and the steps to organize it, besides that explains how the promotions are regulated. Moreover explains the current trends in the industry with the impact of ICT, and the role of advertising in an integrated promotional strategy and explained with how branding used to strengthen a product or business. Finally it reviews the creative aspects of advertising and examines the ways of working with advertising agencies.

Scenario
The Samsung Company deals the quality products of mobile devices, T.V, audio, video, camera, computer, print solutions, home appliances, memory storage and accessories. The Samsung Company comes up in the market with the strategy of repossession. The current position comes

up with cheaper price and quality than competitors of Sony and Mitsubishi. Samsung focused on price over quality, such as a lower price than very top names. They made the name Samsung as quality and build a strong brand name than Sony by the year 2005 and increases profit from $2.2 billion to $ 24.7 billion in 2001.

Introduction
The Advertising and Promotion strategy has a significant part to reposition organizations to higher levels such as branding a product or business. The communication process dynamically works in advertising and promotional campaigns. The creative aspects of advertising help to branding and strengthen business and product.

Task -1 Scope of Marketing Communications

AMA (1960) - "Marketing is the performance of business activities that direct the flow of goods and services from producer to consumer or user." The marketing communication influencing the day to day life of people in each and every moment in different forms, the marketing communication media should vary, besides that the electronics, IT and communication technologies and other forms like newspapers, sign boards, magazines even mouth advertisements may influence every moment. The existence of organizations depends to influence people by marketing communication techniques and competing with competitors and reached to customers by offering goods and services from the manufacturer to users. According to American Marketing Association (2004), Marketing is an organizational function and set of processes for creating, communicating and delivering value to customers and for managing relationships in a way that benefits both the organization and the stakeholder The marketing communication is set out as an organizational function consists of processes to create communication with the users and managing the relationship with them for the benefit of the organization and stakeholders. According to Kotler (2000) - "A societal process by which individuals and groups obtain what they need and want through creating, offering, and freely exchanging products and services of value with others." The marketing communication is a public oriented process of creating the needs and wants, moreover to offer and exchange products and services of value to others. The nature of the marketing communication is, it is an economic function, the legal process of ownership transfer, system of interacting business activities and managerial function and social process. In addition it is a philosophy based on consumer orientation and satisfaction with objectives of profit making and consumer satisfaction. The scope of marketing communication consists of identifying the needs and wants of consumers, the study of consumer behavior, production planning and development, pricing policies, distribution, promotion, consumer satisfaction and marketing control.

1.1Communication Process Applies To Advertising and Promotion in Samsung

Refers to (Business dictionary, 2013), the communication process is, The sharing of meaningful information between two or more people with the goal of the receiver understanding the sender's intended message. In business, the effectiveness of a company's internal and external communication process has very often been important to its overall success..

Source.www.slideshare.net/.../marketing-communication-process-889.

According to Kotler,Marketing is the process by which an organization relates creatively, productively, and profitably to the marketplace. 2) Marketing is the art of creating and satisfying customers at a profit. 3) Marketing is getting the right goods and services to the right people at the right places at the right time at the right price with the right communications and promotion.

Advertising and promotion are the significant part of the economic system. It is structured and makes the audience experience with dimensions of communication, marketing, economic and social. Promotions are adding value to the purchase price and promoted with advertising tools. The advertising strategy implemented by the advertising agency and generates audience experience. Therefore communication needs audience and the audience experience interconnected with tools, media, message and people and processes. Samsung repositioned its products upward and since 1997 change image by manufacturing more upscale products with top of the line offerings also focused price over quality through discount chain stores. Samsung labeled the products right there with the quality and change of image supported by advertising and promotion. Samsungs 55 advertising agencies consolidated into one and $900 million spent on the global IMC in 2002 and out of that $70 million spent in U.S including a 65 foot electronic billboard in New York and high profile presence at Olympic Games in Salt Lake City.

1.2 Organization of the Advertising and Promotion Industry

Promotion is the part of marketing business and marketing is the process of audience awareness by adopting strategies to maintain product or service awareness to customers and generate continued demand. Promotional activities linked to sales, distribution and focused markets and

groups. The various ways of actions can be used for promotion such as, advertising, publicity, face to face, sponsorships and staff structuring. The organizations of advertising and promotional industry formed for not only the motto of exchange ideas and work together but also enhance reputation. Besides that promote standards, lobbying and arrange an awards for recognition. Moreover maintain professional standards, cooperation between other advertising bodies and sales promotion. (HUDs, 2013 ) Instead of broadcasting advertisements, sensing using ICT to break the boundaries by website, Internet Advertisements, online stores and social media.

1.3 An Assessment of How Promotion is regulated

The brand building is vital to the competitive market and advertising has an important role to build the brand. Advertising has many responsibilities and it accuses of encouraging materialism and consumption of stereotyping, unnecessary purchase, using sex to sell, taking advantage of children, manipulating behavior, contributing to downfall of value system. Therefore the regulatory bodies are established to control and monitor the advertising system. The advertising regulation is the laws and rules defined to advertise the products in a particular region in different aspects, likewise advertisement placement, timing and content.
(e-NOTES MBA, 2013) The Advertising Standards Authority (ASA) established in 1962 by the Advertising Industry and responsible for regulating the content of advertisements, promotions and direct marketing in the U.K. by affecting the advertising code. In November 2004, the communication regulator, Ofcom contracted out day to day responsibility for regulating T.V and Radio advertisements to ASA. The advertising codes created by CAP (Committee of Advertising Practice and BCAP (Broadcast Committee of Advertising Practice), ASA council adjudicate complaints. Office of Fair Trading (OFT) has right to fine and Ofcom is co-regulatory. The online paid and nonpaid advertisements and U.K based websites also come under non-broadcast CAP code. The ASA is independent and protects customers and also it reflects U.K and EU laws. (ASA, 2012) The main organizations in advertising and promotion Industry in EU are1. EFSP- The European Federation of Sales Promotion 2. EACA- The mission of the European Association of Communication Agencies 3. EFSP- European Federation of Sales Promotion 4. PMCE- Promotion Marketing Council of Europe

1.4 Relevant Trends in Advertising and Promotion and Impact of ICT

The Information and Communication Technology is a vital part of life and business. In marketing it used for to generate audience experience or awareness. The media in ICT include internet, television and mobile phone and also gain an edge over non ICT promotional materials of brochures, posters or billboards due to advantages in promotional material. The ICT made revolutionary changes and trends in marketing. It has wonderful scope such as, Market Expansion through in Market Expansion through the internet and social media allows faster communication and break through boundaries and it is Cost Effective, Easy Approach to Targeted Audience also Extremely Interactive and Any Time, Anywhere Marketing.

The rapid progress in ICT and globalization, besides the enhancement in strategically approach to globalized consumer market let global companies use the opportunities globally. Therefore utilization of those opportunities with the framework of advertising and promotion campaigns and they think globally and selling locally. The Samsung coordinated 55 advertising agencies globally to communicate with audience by strategically planned and developed plans and generated audience experience by various tools, media, people and process and messages.

(The Advantages of Using ICT, 2013)

Task 2. The Role and Significance of Advertising

Advertising is the prime method to communicate with people. It helps to inform people about the available products and different useful products. It includes the mass population and using different media with a variety of techniques and methods to suit the advertising strategy. The objectives of advertising consist of trial, continuity, brand switch and switching back. Besides that the advertising is vital to the competitive business atmosphere and also vital to the producer, traders, customers and advertising agencies. Advertising helps customers to collect information, select right product with the right price and quality and it helps producers and sellers to increase sales and understand competitors to plan to competency level. It benefits all those who involved with the process including society that it prevent illegal and malpractices in the society. (Management Study Guide , 2013) Samsung planned to become the market leader in electronics brand with strong brand name than Sony by the year 2005 and introduced low end products in the U.S. Samsung possess a position of 5th in patent rights behind IBM, NEC, CANON, and Micron Technologies. The change of image with the slogan Digit All: Every ones Supported and price on quality made Samsung Samsung means Quality. The change of image supported change in advertising and promotion with a $900 million global IMC with55 advertising agencies globally. The continuous improvement and advertising strategy also reflected in the turnover and profit.

2.1 The Role of Advertising in Integrated Promotion Strategy for a Business or Product
Refers to American Association of Advertising Agencies, integrated marketing defined as, Synergic Approach to achieving the objectives of a marketing campaign

through a well coordinated use of different promotional methods. It is framed in a unified force together with the aspects of marketing communication. The tools for integrated marketing communication are public relations, advertising, personal selling, direct marketing and sales promotion.
The integrated promotional strategies have significance to achieve the sales targets. The effective communication development consists the following of:-

Decide the target audience and stick with them. Determine the communication objective with category need, brand awareness, brand attitude and brand purchase intention. Design message with getting attention, hold interest, generate desire and obtain action, moreover it has rational, emotional and moral appeals.

Choose the media and type of communication channel like personal or non-personal.

Selection of message communication. Co-ordination of feedback.

source

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personal

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non-personal

There are factors to fix the communication mix such as type of product or market like a push or pull strategy, readiness stage of buyers, product life cycle stage and organizations market rank.
Advertising has a significant role in an integrated marketing system in real

applications. The recent practices and developments in social media, design thinking and impacts globalization made advertising more significant. Integrated marketing strategies benefits from a mix of the advertising tools, it spreads the message to the audience and it confirms the message reached into the audience. The traditional marketing and public relations effort to draw upon the dynamic power of online communication including social media.
Samsungs advertising strategy reveals the benefits and importance of advertising, because Samsung builds the its products as branded items gradually and made products

with quality and spent for advertising and generated result in turnover and profit. Those changes supported by advertising and promotion.

2.2 What Is Branding And How It Strengthen a Business or Product

Refers to (Business dictionary, 2013) branding is, The process involved in creating a unique name and image for a product in the consumers' mind, mainly through advertising campaigns with a consistent theme. Branding aims to establish a significant and differentiated presence in the market that attracts and retains loyal customers. The definition points out that the branding process consists of a unique name, advertising campaign, with a theme, branding, difference in presence and attracts loyal customers. The revolutionary period of Samsung goes through these steps, such as, the strategy of Samsung defined for that, to be a strong brand name than Sony by the year 2005. To build the brand name, Samsung focused on price over quality and sold lower price than toped names, besides that build the name equal to quality. To achieve the change of image has supported by advertising and promotion. The success in branding created an image and difference in presence attracted the loyalty.

2.3 A Review on Creative Aspects of Advertising

The creativity in advertising demands a higher skill to write the words and slogans for advertisements, graphic artists for to layout the visuals, transformation of strategy into real advertisements, therefore creative and expressive talents required to produce effective advertisements. The creative department is the place where the campaign comes together and great ideas generated and visualizing. Copywriters and art directors are the main part of it. They work with business owners and dig out the brands business problems. Then continues with media planners, production department turns the idea into reality. The art director responds to the creative brief by communicating ideas or moods visually. The knowledge, skill as well as creative and innovative talents bases the success. The creative advertising consists the aspects of the creative process, creative person and creative situation and the creativity rules are, produce the product relevant to customers, promise to

customers, dont let it stand alone, moreover put the product into a center of commerce. (Zeepedia.com, 2013) Samsung organized 55 advertising agencies all over the world and utilized the creativity of the people from different parts of the world to branding the products locally. The advertisement should suit not only internationally but also locally, besides that it should be within the law prescribed. The local advertisements required local knowledge to influence the customers. Samson succeeded to coordinate the agencies throughout the globe and utilized their artistic and creative both globally and locally.

2.4 The Ways of Working with Advertising Agencies

The custom of working with advertising agencies is working with clients to develop and sustain the product or brand that both they together serve with consumer awareness and insight through creative and innovative media delivery skills. The brands are more than a product or service, because once the brand created it has a separate entity than mere products. (MBA Knowledge Base, 2013 ) Refers to (MBA Knowledge Base, 2013 ), A product is something that is made, in a

factory: a brand is something that is bought, by a customer. A competitor can copy a product; a brand is unique. A product can be quickly out-dated; a successful brand is timeless.
Therefore the role of advertising agencies is to take part the transformation process of

product or service to brands by positioning the offering to consumers the benefits and role of the product, besides that communicate the brands unique personality.

Conclusion
To recapitulate, the advertising and promotion plays a significant role in the sustainability of the organization and it can use its creativity and innovative skills for transforming mere products to a brand. Therefore the absolute aim of the advertising and promotion activity is brand creation.

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