BMW Advertising and Promotion: Communication, Trends, and Techniques

This report provides an in-depth analysis of BMW's advertising and promotion strategies. It begins with an introduction to advertising and promotion, focusing on the AIDA and IMC communication models. The report then examines the communication process, outlining elements such as sender, receiver, encoding, decoding, and feedback. It delves into the organization of advertising and promotion, detailing the roles of account handling, the innovative department, media departments, production, and public relations. The report also explores how promotion is regulated, covering self-regulation, federal, and state regulations. Current advertising trends, including the impact of digital media and social media, are discussed, along with various advertising techniques. The report covers primary below-the-line promotion techniques such as sales promotion, public relations, and direct marketing. Finally, it analyzes the process for formulating a budget, developing a promotional plan, integrating promotional techniques, and measuring campaign effectiveness.

Advertisement and Promotion

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Communication process........................................................................................................1
1.2 Organization of advertising and promotion strategy.............................................................2
1.3 How promotion is regulated..................................................................................................3
1.4 Current trends........................................................................................................................4
TASK 2............................................................................................................................................5
2.1Covered in PPT......................................................................................................................5
2.2 Covered in PPT.....................................................................................................................5
2.3 Covered in PPT.....................................................................................................................5
2.4 Covered in PPT.....................................................................................................................5
3.1 Primary techniques of below the line promotion..................................................................5
3.2 Evaluate other techniques used in line promotion................................................................5
4.1 Appropriate process for formulation of budget.....................................................................6
4.2 Development of promotional plan........................................................................................7
4.3 Plan integration of promotional techniques into promotional strategy for a product...........8
4.4 Appropriate techniques for effectiveness of measuring campaign.......................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Advertising refers to control as well as paid messages in media whereas promotion
involves paid along with free marketing activities which includes sales and sponsorships.
Advertisements assist in promoting products and services of firm to target audience by using
different media like TV, magazines, cinema, online etc. as it provides encouragement to
purchase products (Funk, 2013). If business entity is using classic advertising strategy which
assist in demonstrating a need along with problem of potential service user and they are having a
duty that they have to offer best products so that they can resolve issues. Present report is based
on BMW which is a manufacturing company which produce luxury vehicle, motorcycle as well
as engine. At present stock price of business entity is approx. €80.64. In below mentioned report,
discussion on communication process which applies to advertising and promotion (Promoting
and advertising your business, 2017). Along with the current trends in advertising and it also
includes impact of Information Communication Technology.
TASK 1
1.1 Communication process
In BMW, managers have to adopt appropriate communication process for marketing
whether it is advertising and promotion. AIDA or IMC models of communication can help
company in making their communication process more advanced and provide them base
structure. AIDA focuses on setting target market, attracting people, creating interest etc. whereas
IMC model assists about the different communication mechanism that needs to be applied as
well as working in team as a unified force. There are certain elements which considered into
communication process, are mentioned as below:
 Sender: People who covey their message so that they can transfer essential thought as
well as information with other individuals, is known as sender.
 Ideas: It is related with conversation and may consists suggestions, attitude, orders and
so forth.
 Encoding: Communication may be theoretical as well as intangible. It may also comprise
various factors like images, words and so on. When all these symbols are converted, then
it is called as encoding process (Moodie and Hastings, 2010).
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 Communication channel: Individuals who are interested in conversation, have to select
method through which they want to share thoughts and information. It may be formal as
well as informal.
 Transmitter: There is a device that is needed for transmitting information, it is generally
sending informations at longer distance. Transmitter helps in sending information at
longer distance.
 Receiver: People who receive any message or to whom matter is transferred, is known as
receiver. It is essential for them to understand information properly, so that they can
attain desired goals and objectives in an effective as well as proficient manner.
 Decoding: An individual who obtains any message or may be symbol from any
communicator, they try to change it in a way, thus, he or she can understand the meaning
properly.
 Feedback: It is essential because with its assistance receiver can ensure that he or she
received the message appropriately.
There are various advantages of communication process, are mentioned as below:
 It may aid to reduce conflict with association.
 Employees can easily understand about their duties as well as responsibilities.
 Staff members can complete their work with more effectiveness (Hanafizadeh, 2012).
 Along with this, workers can easily share thoughts and suggestions with their managers.
 Employer can also implement decision in time.
Some disadvantages of communication process are as beneath:
 Surroundings can affect the message, such as noise.
 Different culture may also influence thoughts and information because various people
never understand other languages.
1.2 Organization of advertising and promotion strategy
Advertising as well as promotion industry have four fundamental divisions and they are
account taking care of, innovative administrations, media department along with manufacturing
or products and services of BMW.
Record handling: It makes a connection between organization and customer which shows
the interests of service user, displays enthusiasm of firm while meeting and conversing with
clients, and in charge of growing and searching new business. Record director, account
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organizer, account supervisor and account official are some of the key part players of record
handling (Yang and et. al., 2010). For example BMW has hired marketing officials for
maintaining records of marketing that works with accounts department so as to formulate the
total expenditure report on marketing of a product.
The innovative department: They are responsible for making plans, thoughts and
something completed art for publicizing, promoting, writing and other advertising materials. It
respond to client requests and needs and liaises with other provider like picture taker, artists,
website designers, writers and film makers. Marketing specialist and director executive group
deliver the underlying idea of ad and do the imaginative brief.
Media department: The manager of BMW has to utilize outer consultancy for the media
prerequisites. Media office comprises of Media look into, media arranging and media
purchasing. Media look into tries to achieve target client successfully, media arranging is in
charge of media blend and timing to pick up the client's advertising goals, media purchasing tries
to use client's cash all the more adequately utilizing arranging abilities. For ex. Media managers
plays a vital role in managing the media reports about the product. There media briefings are
well planned and presented to highlight the USP of the product.
Production area: It guarantees the ideal conveyance of work of art at its proper goal by
the deadlines. It is the wellspring of authority providers and materials. There is a movement
division which screen the exercises to guarantee idealize conveyance. For example Production
manager plays the key role in increasing the production as requirement.
Public relations: This department is used for making the relations with public in terms of
informing them about the company plans as well as its new launches.
There is some other office in this association like advertising, marketing should have
done directly to consumers etc (Hawkes and Lobstein, 2011).
1.3 How promotion is regulated
For attaining success in competitive market, staff members of BMW have to do
advertisement and promotion and should be regulated in a appropriate manner. When they do
promotion this will assist in delivering correct information about products which they are
manufacturing for their consumers. It includes three ways such as:
Self-regulation: Industry or firm who are doing advertisement of their products and
services do self-regulation so that they can maintain or increase trust along with confidence of
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service user as well as limit of government interference. Own regulation should be done by
different business entities, advisers as well as agencies. Media's along with firms are doing
effective mechanism with support of government intervention. When employees of BMW using
self-regulation then it is time consuming and also need high budget along with staff. In this they
are having lack of authority and power (Okazaki and Taylor, 2013).
Federal regulation: There are distinctive regulations which includes freedom of speech,
expression etc. Trade commission helps in making various laws and unfair practices which are
not related to law. FCT is necessary as it aid in doing regulation of promotion and saves
consumers from injury. It diminishes the possibility of company making any wrong practices to
lure customers as well as selling incapable products.
State regulation: The person who are doing advertisement for company have to follow all
laws and regulations whether it is state as well as local. In competitive market, there is one
agency that is National Association of Attorneys General has been evolved with price of car rent,
airfare as well as nutrition promotion and advertising.
There are some other sales promotion regulations which includes contests as well as
sweepstakes, premiums along with trade allowance.
Regulatory authorities: There are some regulatory authorities like ASA, OFT,BCAP,CAP
and OFCOM that ensures the effectiveness of regulations and legislations. These regulatory
bodies ensures that consumers are not mislead with fraudulent activities and wrong marketing
information. Their code of advertising practices reflects legislation in many ways.
1.4 Current trends
When managers and employees of BMW describe a trend then this will increase choice
along with the consumption of media which having distinctive channels such as web and mobile.
For instance, TV channels, radio, magazine, websites etc. Media fragmentation helps in
increasing difficulty at a time when they are reaching to target audience (Sethuraman, Tellis and
Briesch, 2011). When company using modern method of advertising then this will reduce
adoption of traditional technique. They can also use search engine optimisation as it is a process
which having an adverse effect on visibility of website along with webpage which assist in
attaining unpaid results.
There is different type of advertising which BMW can use which includes television,
radio, online, press, mobile billboards as well as online advertising and promotions. Internet as
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well as other devices are modern techniques which BMW is using rather than traditional
advertising which are Television, radio and newspaper.
Use of social media for the promotion purpose by posting promotional videos or pics. It
helps to get instant reaction of the people on the product or services.
Digital advertising is the important and essential method for doing advertising of product
of BMW. It helps them in reaching to their target audience and it also requires less money.
Managers can attract large number of consumers and from any location. Along with this they
have to collect feedback which will assist in identifying areas so that more develo0pment can be
done.
If BMW is doing advertising by World Wide Web is very popular and also cost effective.
When employers doing online advertising then this will aid in creating awareness and also assist
in learning different things.
They can also use consumer relationship management which will help manager of BMW
in maintaining relationship with consumers when they are delivering or offering services or
products to consumers and this will aid in reaping goals and objectives of firm (Joshi and
Hanssens, 2010).
TASK 2
2.1Covered in PPT
2.2 Covered in PPT
2.3 Covered in PPT
2.4 Covered in PPT
3.1 Primary techniques for below the line promotion
There are different techniques which employees of BMW is using best tools and methods
for promoting products and this will help in attaining goals and objectives. Along with this it
assists in generating more profits. Distinctive tools and techniques of line promotion includes:
Sales promotion: It is a process of selling products to a target consumer. It is designed by
BMW so that they can attain short term goals as it assists in increasing or building consumer
loyalty. It includes several strategies related to communication activities which assist in
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attempting added value or incentives to consumers, wholesalers as well as retailers so that they
can increase sales (Goris and et. al., 2010).
Public relations: It is a method which helps in maintaining public image of a company.
The staff members of BMW have to maintain relations with a consumer so that they can increase
their sales.
Direct marketing: This is also a method which assist in doing a line promotion. It is a
business of selling cars directly to public. For instance, by doing mail order as well as telephone
selling rather than via retailers. When BMW doing good advertising and promotional activities
then this will help them in boosting their sales and generating more revenue.
AIDA communication model: It stands for attention, interest, desire and action.
Marketers use this for targeting market. It helps to attract consumers, points to ability of
customers to buy products. Marketers know in the Automotive industry that background, colour,
themes would appeal customers to buy these cars.
IMC communication model: This management concept was designed for internal as well
as external communication using online media, social platforms. It helps to work together rather
than permitting each to work in isolation.
There are some other methods which helps in doing promotion of products of BMW
which includes effective communication that consumers provide data to other service users that
this product is good or bad then this will help in promoting product. Along with this it helps in
increasing brand image in competitive market. Moreover, they can use personal selling method
for selling merchandise (Boztepe, 2012).
3.2 Evaluate other techniques used for line promotion
Other techniques which can be used by manager of BMW in doing line promotion and it
assist in selling best and qualitative products and services to their consumers. when they are
using different methods for promotional activity then this will help in raising their sales and
earning more and more profit. There are some tools as well as techniques for promotion and they
are:
Price promotion as well as price discount are when merchandise is offered or delivered at
a discounted price (Eisend and Küster, 2011). If BMW deliver their cars at a best quality and
also at a reasonable price or at a discounted amount so that everyone can afford that and
company will aid in increasing sales.
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Another one is coupons as it is a versatile way of giving discount to consumers and it aid
in maximizing rate of redemption. It is necessary as well as essential that when any service user
wants to purchase new car in competitive market but they have to use correct and specific
coupons.
In addition to this is when purchaser purchase different merchandise in their competitive
market then manager of BMW deliver car as a gift to consumers. This tool can be used by BMW
for promoting products and services.
When firm facing high competition then they can provide offers for cars as prizes or any
type of lucky draw.
Another one is point of sale displays. This will help in luring the customers as they can
see every thing on the screen. This displays can be placed anywhere at the public places and can
showcases beautiful pictures and promotional videos.(Hitchman and Fong, 2011).
Most of big businesses are adopting this promotional method as it is cheaper than media
which is based on promotion and it increases purchasing and advertising.
Online promotions using social platforms, companies websites and other online
interactive platforms.
4.1 Process for formulation of budget
Marketing plan is necessary for firm as it assist in doing best promotion of products of
BMW. It is a dynamic document which focus on bringing marketing strategies so that they can
do their marketing activities as well as they have to implement appropriate strategies. It is
process which includes some steps:
They have to formulate a best and appropriate strategy of BMW so that they can
manufacture best cars and deliver them to their service users. Along with this they have to made
a link between strategy of firm as well as activity planning related to marketing (Hoek and et. al.,
2010).
Manager of BMW have to analyse or evaluate environment in which they have to do their
business in marketplace, industry, competitors as well as other influences of operational activity
of business entity.
Employer of BMW have to carry out their profiles which will aid in identifying and
analysing market segment and target their consumer and offer products according to demand.
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They have to do proper evaluation of industry along with competitors so that they create demand
and according to that results should be forecast.
After that appropriate marketing mix should be considered which is a collection of
distinctive activities which can be done together in producing cars according to demand and this
will assist in sustaining in the market.
Setting up fiscal targets and levels of expenditure compatible with these targets.
Formulating expenditure policies.
Allocating resources according to the set fiscal targets and policies. Hence addressing
performance issue and operational efficiency.
These all activities help in appropriate and correct budget which will aid in increasing
sales and by using corporate strategies which can be attained. This will assist in reaping targets
as well as goals and objectives (Businesses and Franchises For Sale in: Advertising and
Promotions category, 2017).
There are different kinds of budget method:
 Affordable method: Advertising expense budgeting method is based on the fact that what
company can afford on marketing. A person can spend too high or too little according to
its needs.
 Percentage of sales method: Advertising expense budgeting method is based on
allocating a fixed percentage of anticipated sales revenue to advertising.
 Competitive parity method: It is based on the fact that what firm's competitors are
spending on advertisement based on their marketing objectives.
 Objective and task method: This marketing budget is based on the companies objectives
and goals. It is to reflect the desired result.
4.2 Development of promotional plan
There are some steps which helps in development of promotional plan and they are:
Sampling- If their main objective is to make a proper trial of any of their products then
this method would be suitable for them. Mainly the process of sampling is concerned with a low
worth products and to those products which is having extremely visible property which render
them benefits (Funk, 2013).
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Analysing the market: London market size is approx 8 million people where target
market can be made. In which cars can be marketed accordingly.
Developing promotional activities: Raising brand awareness, reinforcing brand
positioning and providing market information about product and services. This also includes
assigning promotional budget which uses methods of allocating budget for marketing which is
mentioned in 4.1.
Selection of marketing mix: There are several marketing mix that can be used for
advertisement purpose. And evaluation of the result of marketing mix is important for checking
the effectiveness of campaign. These can be checked by looking at some indicators.
Coupon- This process which is used in sales promotion is one of the oldest method used
by all the companies to do promotions of their products. This strategy can create problem to a
company by decreasing their brand name, this may help in attracting more and more customers
towards them this will also increase the sale by reduction of the price of product which they are
providing to people.
Loyalty schemes- This is a system in which points are being collected all the time when
customer purchase the products from there store, they can use that points which they had
collected over there at any time they want. That points can be helpful for them to get products on
reduced price according to the scheme. This is known as a frequent buying scheme (Moodie and
Hastings, 2010).
Packaging- Many of the seller do not focus on the package of their products and do not
care about it, they even do not care about brand image or anything else. If any product will have
good packaging then it can be very useful for them to attract more people towards the product
easily because most customers get attracted to a products and buy it because of their packaging
and presenting style, they buy it if they have need of that product or not. So sellers should mainly
focus on the packaging to do effective promotional activities, this will make their work more
easy. This will also increase the brand image of the organisation as well its quality also judged
by it (Hanafizadeh, 2012).
4.3 Plan integration of promotional techniques into promotional strategy for a product
Manager of BMW have to use appropriate and relevant promotional technique which aid
in attracting large number of consumers and on basis of that they have to design or create their
promotional activities which aid in increasing their brand name in competitive market. They
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