The Impact of Advertising on Consumer Behavior

This assignment delves into the multifaceted impact of advertising on consumer behavior. It examines various aspects, including the ethical considerations surrounding advertising practices, the effectiveness of different promotional strategies employed by marketers, and the significance of integrated marketing communication (IMC) in building brand equity. Students are expected to analyze scholarly articles and industry case studies to understand how advertising shapes consumer choices and perceptions.

ADVERTISING AND PROMOTION

Table of Contents
INTRODUCTION......................................................................................................................1
TASK 1......................................................................................................................................1
1.1 Communication process that applies to advertising and promotion................................1
1.2 Organisation in the advertising and promotions industry to the Amazon management. .2
1.3 How promotion is regulated in the UK............................................................................3
1.4 Current trends in advertising and promotions, including the impact of ICT...................3
TASK 2......................................................................................................................................4
2.1 Role that advertising could play in an integrated promotional strategy for the Amazon 4
2.2 How branding could be used to strengthen a business such as Amazon.........................4
2.3 Identify and review of the creative aspects of advertising in the context of Amazon.....5
2.4 Various ways of working with advertising agencies........................................................5
CONCLUSION..........................................................................................................................6
REFERENCES...........................................................................................................................7

INTRODUCTION
In present business scenario, it is essential to take constant use of advertising and
promotion for achieving organisational objectives and influence customers to purchase goods
from an organisation. This can be done through communicating all the benefits of particular
product in the market to reach the ultimate customers. If the required objectives are delivered
to customers and if consumer starts buying from company then there are chances for an
organisation to sustain in a market for a longer period. Due to this, management develops
unique and effective strategies plus techniques to attract their leading customers and gain
their loyalty towards company. The following paper defines various advertising and
promotional techniques adopted by Amazon to market their products in UK. The below
report is divided into two parts. First part explains about wide scope of marketing
communication and state the ways for how communication process operates including
various role and importance of advertising in an organisation. Second part of this report
includes a presentation which defines various below-the-line techniques and its usage in an
organisation including integrated promotional strategies for Amazon.
TASK 1
1.1 Communication process that applies to advertising and promotion
In advertising and promotion various types of communication processes are applicable.
The main purpose of communication process is to give response to different queries and
questions of applicants and to influence them towards a company. There are total nine
features whose combination completes a communication process which includes sender,
message, encoding, decoding, receiver, media, and feedback (Thackeray and et.al., 2008). In
communication under Amazon, every element is active and work together to accomplish the
process of communication. Amazon in this case is termed as sender because the company
send information to their target customers. There is a need to first encode the message of a
company as their tagline such as “priming us to never leave the house”. The tagline itself
clearly shows its meaning as purchase the required items sitting at home and the tagline is
promoting online business which is a main characteristics of Amazon.com (Belch and Belch,
2003).
There are different channels for communication and to deliver the message of company
such as by using external sources including billboards, internet, tradeshows, campaigns,
magazines, newspaper, etc. The viewers and listeners are the message decoder and customers
are the receiver of message in communication process. In this context, company will
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definitely get the positive response from the receiver such as customers and sales plus
revenue will be increased. Further, in case of improper disturbance in proper encoding and
decoding of messages, sometimes the message is delivered to their customers wrongly
(Chaffey and et.al., 2009). In order to solve such issue in communication process, company
should use a dynamic kind of communication where different activities are integrated such as
advertising, online short films, promotion package, trade show materials etc.
1.2 Organisation in the advertising and promotions industry to the Amazon management
There is a centralized system under organisation of promotion and advertising industry.
There are two different managers in organisation in this industry such as marketing and
advertising managers. These managers work along with different executives of different
departments for example purchase agents, sales agents, innovative directors, and members of
financial staffs. Under the industry of advertising and promotion there are five types of
organisations working. Starting with the advertisers and clients which is Amazon in present
case. Next one is advertising agency whose function is to develop and broadcast the
advertisement which Amazon wants to advertise. Such agencies are hired by company to
promote their ads in the market (Clow, 2007).
Further, media companies help in providing a way to reach the potential customers by
delivering the message. Media is a way through which information is provided to receiver or
viewer. But for effective functioning of media planner, proper advertisement is developed in
innovative manner and transmitted so that the message reaches to ultimate target customers.
The basic objective of media is to become an effective tool for big companies to
communicate the information of company to their clientele base (Fantoni, Hoefel and
Mazzarolo, 2014).
The other kind of organisation in promotion and advertising is specialised advertising
organisation. Such organisations have expertise and specialised features in particular field of
advertisement and provides their specialised services in that particular area. Services offered
by specialised organisations includes public relation firms, sales promotion agencies, agenda,
and websites. These agencies provide unique services in their own filed of operations. Last
are the services providers who provide collateral services in this industry. These agents work
as support factors in promotion and advertisement (Fitzgerald, 2001). These includes
directors, photographers, writer, self-employed freelancer, song writers, artists, etc.
All these above organisations in this field work together for achieving mutual objective
to develop and present an advertisement for marketing and promoting the activities of
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business. The basic objective behind the advertisement is to develop a position image of
brand among the customers in the market and increase total sales of the company (Shah and
D'Souza, 2009).
1.3 How promotion is regulated in the UK
A range of legislation codes and practices controls the advertising programs in the UK. There
are a number of regulatory bodies in the country, which controls advertisements and other
promotional activities to protect people from fraud and fake practices of companies. These
regulatory bodies have the authority to take steps against the fraud of companies. The
following are some important regulatory bodies:
Advertising Standard Authority (ASA): In U.K., it is a self-regulating controller to advertise in
all over media. Moreover, it proactively works on complaints and takes necessary actions in
against of harmful, misleading and offensive ads, direct marketing and sales promotion
activities. In addition to this, the particular regulatory body imposes that before submitting
and distributing any kind of marketing communication, marketers should have documentary
evidence to prove themselves in front of advertising regulatory authorities (Mack, 2015).
Bar Standards Board: The particular controller was introduced in 2004, it runs separately the
regulatory activities related to promotions undertaken by business organizations. Moreover,
the Bar Standards Board ensures about product reliability and quality, as well as makes it sure
that all informations used in the promotion of a commodity is consistent with its actual
features and characteristics (McCabe, 2011).
Committee of advertising practice (CAP): It is an independent regulatory body, which
develop a range of non- broadcast and broadcast advertising codes that is further
administered by the ASA. The CAP also upgrades such codes and provides necessary support
to ASA in its successful execution in the advertising campaigns. The particular regulatory
body offers authoritative guidance and advice to the industry on ethical campaigns
development by complying with standard rules and regulations. These all are done with an
aim to ensure that advertisements runs by UK organizations are decent, truthful, honest and
legal (Mazzoleni, 2014).
1.4 Current trends in advertising and promotions, including the impact of ICT
Current trends in advertisement in recent times mainly includes technical implications
of delivering and communicating the message of company to their leading customers.
Wireless communication is the latest running trend in advertising. Advertisers according to
current trends are no longer only required to think about innovative aspects of advertisement
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but also require to analyse and implement profitable manners of delivering the information
and communicating with the customers to provide them further required information
(Integrated Marketing, 2012). Moreover, in field of advertisement and promotion, mobile
communication and contacting consumers through call centres has made it very easy for
advertisers to convert their messages and convey to consumers. Other than this, Integrated
Marketing Communication is one another recent trends in advertising industry. This method
conglomerates all the messages and deliver to customers in a sense that provides a bunch of
information in order to promote and convey basic objective of brand (Shimp, 2010).
In addition to above, the consequences of ICT (Information and communication
technology) is very significant in advertising and promotion of Amazon for increasing the
value and loyalty of brand. In this regards, management of Amazon should produce at least
five short films to be uploaded on their official websites and internet in order to promote
brand image and advertise their products available for sale. Moreover, Amazon can use
different other entertainment option to poke customers and attract them towards the company
(Soni and Upadhyaya, 2007).
TASK 2
2.1 Role that advertising could play in an integrated promotional strategy for the Amazon
There is a significant role of advertising in the success of Amazon and promoting its
brand image. Also, it is a reason behind enhancing reputation of company. It is a vital section
in an integrated promotional strategy of a company. Advertising is also considered as a great
tool for promotional activity and in this manner various ads assist communicating purposes
with prospective clients. For example, marketing manager of Amazon can implement
business to business public relation events. This helps company to approach various business
customers and their assistances in order to promote and convey the message of company. For
the effective results, company should organise three preview events to provide an opportunity
to customers and media to visit the site of Amazon (Carrigan and Szmigin, 2000).
The main aim of personal relation campaign is to engage and combine business,
sponsors, and advertising media. It also provide various secured features and opportunities
for business to come in front of media and speak about the available opportunity to grow in
association with Amazon. If the campaign goes effectively beneficial then it would enhance
the interest among customers and attract them towards the features of company. This PR
campaign should also include its coverage in television. Newspaper, and magazines (Crosier
and Erdogan, 2001).
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2.2 How branding could be used to strengthen a business such as Amazon
Branding refers to creating an image and loyalty among the customers, and different
stakeholders of company. It is a sum total of value of an organisation including all products,
services, people, culture, positioning, and advertising in respect of marketing. Brands make
customer’s decision easy to buy any particular product or services from others because
through its name it delivers various unsaid information to their customers which helps them
in choosing a product. Basically, customers prefer higher brand as they know about different
features and objectives of company. Hence, in order to attract customers and influence their
buying decision, it is significant for Amazon to create strong branding (Delorme and Makeig,
2004).
High brand of Amazon helps company to encourage trust and confidence of their
prospective clients. It not only influence customers to buy from Amazon but also other
stakeholders and third party to get associate with Amazon. This will overall improve the
value of an organisation both in name and equity form. With the help of high branding,
Amazon can also increase the prices of their offering without having influence on the demand
of a product
(Funk, 2013).
The short films of Amazon and its webpage can contain the brands name which are
available on Amazon. Moreover, branding helps company to keep itself separate from
competitors and promote their products in the market. It also create permanent clientele base
for company and increase overall profitability of the company (Gilbert and Jackaria, 2002).
2.3 Identify and review of the creative aspects of advertising in the context of Amazon
Creativity is the most significant and important aspect of advertising. It creates more
attention of customers towards the offering of company and develops positive attitude
towards advertisement. Highly creative advertisement influences customers and make them
ready to buy product from Amazon. Also, it is important for Amazon to get amazed by the
creativity of company. As people demand new things every time it is difficult to motivate and
encourage people through promotional campaign. Hence, as a result there is high need of
creativity (Koudelova and Whitelock, 2001).
There are three factors which are essential to make advertisement creative. Firstly, a
creative process which enables company to attract customers and make them buy their
products and services. Second role is of creative people, who possess high imagination and
ideas to influence customers with their creativity. The last one is creative situation, which
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refers to create a situation of developing a creative ads. When all these factors are integrated,
it results in a successful and creative advertisement which helps company to increase their
sales and overall profit (Madhavaram, Badrinarayanan and McDonald, 2005).
2.4 Various ways of working with advertising agencies
Almost every company uses various ways to offer premier products and services to
their customers in different markets. But in order to do so they has to get involve into highly
creative advertisement. It is also significant for company to make good relation with the
advertising agency with whom company associate to develop their organisation
advertisement (Peitz and Valletti, 2008). There are many different ways of working but the
effective one are explained as follows:
 Know your customers – It is very significant for company to undertake market research
first and identify different aspects such as who are their target customers, what are their
preferences, what are their demands etc. Advertising agency also encourage company to
know their customers first. Though it is a costly process but it gives benefit to company in
long run (Szmigin and Carrigan, 2000).
 Technical – The advertisement that is required to be developed should be technical enough
to offer some practicality out of the whole scenario. In this regards, advertising agencies
have expertise and they know the best way to conduct and develop an advertisement
which shows the main objectives of a company in short ads (Steenkamp and et.al., 2005).
 Having liaison - Every people has different perspective with which they judge the
advertisement presented by an agency. This makes is difficult to make any final decision.
In this regards, it is recommended to agencies to appoint any firm with which they can
directly work for developing an advertisement. The final decision will be mutually of
these two organisation and it will eliminate unnecessary confusions (Quester and
Thompson, 2001).
CONCLUSION
The above report concludes that in order to sustain in today’s highly competitive
market, it is essential for company to get involved into advertisement and promotional
activities. Also, it is concluded that firm have option to select and develop any particular
strategy and utilise them effectively. The results of such strategy will influence both an
organisation as well as customers and third parties also. With the increasing new trends in the
market, advertising and promotion industry is also offered an opportunity and threat both. In
order to compete and overcome threat present in the market, Amazon should carefully choose
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an advertising channels and act according to the changing needs and technology in the
market.
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REFERENCES
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