Marketing Strategies: Advertising and Promotion Report for Morrisons

This report provides a comprehensive analysis of advertising and promotion strategies, focusing on the case of Morrisons. It begins by outlining the scope of marketing communications, including the communication process, key organizations in the advertising industry, and the regulation of promotions. The report then evaluates the role and significance of advertising within an integrated promotional strategy, analyzing branding applications and creative aspects. Furthermore, it assesses below-the-line methods and their applications in integrated strategies. Finally, the report discusses the planning of integrated promotion strategies, covering budget formulation, promotional plan development, and the integration of various promotion methods to measure campaign effectiveness. The report underscores the importance of understanding advertising and promotion in achieving business objectives and highlights the impact of ICT on advertising trends.

ADVERTISING AND PROMOTION
STUDENT’S NAME:
STUDENT’S ID:
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Table of contents
Introduction......................................................................................................................................3
Overview of the company................................................................................................................3
LO 1 Scope in the field of Marketing Communications..................................................................4
1.1 Process of communication in the field of Advertising and Promotion......................................4
1.2 Organisation from the advertising and promotions industry.....................................................5
1.3 Assessing the ways of regulating the promotion and advertisement.........................................6
1.4 Trends relevant to advertising and promotion including the impact of Information
Communication Technology (ICT) on advertising..........................................................................6
LO2 Analysing the role and significance of advertising.................................................................8
2.1 Describing advertising’s role in integrated promotional strategy for a product or business.....8
2.2 Analysing branding and its application to strengthen a product or business.............................8
2.3 Monitoring advertising’s creative aspects.................................................................................9
2.4 Evaluating methods of working with agencies of advertising.................................................10
LO3 Evaluating below-the-line methods and their application.....................................................11
3.1 Describing primary methods of below-the-line promotion and its application in integrated
strategy of promotion for a product or business............................................................................11
3.2 Analysing application of other methods in the procedure of below-the-line promotion.........12
LO4 Planning integrated strategies of promotion..........................................................................12
4.1 Following proper procedure of a budget’s formulation for integrated strategy of promotion 12
4.2 Doing promotional plan’s development for a product or business..........................................13
4.3 Creating integration of methods related to promotion into the strategy of promotion for a
product or business........................................................................................................................14
4.4 Application of proper methods for measuring the effectiveness of campaigns.......................15
Conclusion.....................................................................................................................................15
Reference list.................................................................................................................................17
Introduction
Advertising and promotion play significant roles in the world of business organisations. The
primary goal of advertising and promoting a business organisation or a product is to grab the
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attention of the public. When people become aware of the products or business organisations, it
helps those organisations in gaining popularity. Advertising and promoting companies also help
in addressing the target group about all the products. The main aim of the company is to
understand the importance of advertising and promotion. For the study, Morrisons is selected
which is a popular retail organisation of the UK. In the first section, marketing communications'
scope is discussed and in the second section, advertising's importance and role are evaluated. In
the third section, the methods of below-the-line are analysed and in the last section, integrated
strategies of promotion's planning process are discussed.
Overview of the company
Morrisons is considered the fourth largest supermarket chain in the UK. It was founded by
William Morrison in 1899. The headquarter of the organisation is situated Bradford of the UK.
Andrew Higginson is the Chairman and David Potts is the CEO of Morrisons. The organisation
started its journey as a butter and egg stall in Bradford. Gradually, it became one of the most
popular retail companies in the UK. According to the financial reports of 2017, Morrisons
generated revenue of £16,317 million, operating income of the organisation is £468 million and
net income is £305 million. As par the annual report of 2016, there are 498 superstores in
England, Scotland and Wales. According to the annual report, approx. 132,000 employees work
in the British organisation (Purani et al. 2013, p.44). The organisation is listed in London Stock
Exchange and in the month of June 2015, the market share of Morrisons was 11%.
Figure 1: Company Logo of Morrisons
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(Source: www.groceries.morrisons.com, 2017)
LO 1 Scope in the field of Marketing Communications
1.1 Process of communication in the field of Advertising and Promotion
Advertising and promotion are the two terms used in Marketing field for the communication
purpose. Advertising is what we see through our eyes or what we hear through our ears which is
openly sponsored by a company or businesses to sell their products. Whereas promotion is an
element of marketing mix. Promotion deals with awareness of a particular company’s brand or
product among the consumers(Khang, 2016, p.555). These two terms advertising and promotion
are used for communication with the customers. The communication process in marketing are
many. Marketing the process when goods from raw materials are converted and then these goods
flow from the company to the customers hands. The communication that is used to transfer these
goods and value to the consumers are in different forms. It could be electronic gadgets, IT,
newspaper, through billboards , magazines or even through mouth advertisements. Through this
way the manufacturer is able to offer their services to the consumers.
As per Fill (2016, p.127), the communication process in marketing involves sender, receiver,
message , encoding, decoding, response from the receiver, feedback and the media channel. Here
we know who the sender and the receiver are, the are the manufacturer and users. Here we take a
UK based company named Morrisons which is one of the largest supermarket in Bradford, UK.
So the manufacturer will be the Morrisons. The message will be when Morrisons make some
kind of promotions through billboard , banners, social media site, etc. about their products.
Media channel they used was online advertisements along with offline ones. And the receivers
are definitely their customers. And after using their products what the users will give is response
or the feedback. Noise that existed in this communication process was the competitors that they
faced during the marketing period.
1.2 Organisation from the advertising and promotions industry
An agency or organization that provides services to clients for creating an effective and target
oriented ad campaign aimed to show the positive sides of a company in the eyes of its users. The
agency that do ad campaigning are independent organizations who are specialized in creating
new marketing ideas , advertisements and using new promotional tools(Barton and Behe, 2017,
p.103).
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The few UK based advertising organizations that provide a quality full advertisement campaigns
and promotional ideas are: WPP plc,D&AD, Bartle Bogle Hegarty, Mullen Lowe group, Abbott
Mead Vickers BBDO, Thinking Juice,etc.
The advertising and promotion organizations fall into some categories. They are:
a. Organizations that involves in only normal task like the designing of logo marketing of
brands fall into generalized ones.
b. Organizations that involves to do greater advertisement like the entertainment part,
financial, industrial, etc. are the specialized ones.
c. Some organizations try to convince or to attract every single person through their
advertisement, hence therefore they are known as in House advertising organizations.
d. Last comes the most important type of organizations that bring the most amount of users
through their promotion. This includes promotion and advertisement through social
media sites like facebook, linkedin, twitter, youtube, google, etc. these are known as
Interactive organizations.
These are the most important organizations mainly that do marketing strategies like advertising
and promotion(Kaul et al. 2016, p.180).
We must look into some factors before selecting an Ad agency:
● Location
● Size
● If the agency working for your business rival
● Agency image
● Facilities provided by agency
● Service charge
● Creativity and innovative ideas
● Previous record
● Experience of the agency
● Staff quality
So the advertising agency should not be chosen hurriedly.
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1.3 Assessing the ways of regulating the promotion and advertisement
Advertising in the United Kingdom is controlled and regulated using the codes of practice and
legislation. The two codes of advertising are CAP(Committee of Advertising Practice) and the
BCAP(Broadcast Committee of Advertising Practice) (Tham et al 2017, p.120).
Promotion of the services and products is finished in few steps. They are:
a. A promotional stage that is carried out before the product is set in the market. This stage
involves users suggestions which is collected by the organization and is applied when the
product is launched. This is known as pre- development stage.
b. Promotions that are carried while making of the product are known as product starting
promotions. This is the main stage of promotion. It will tell the organization if the user
will be attracted towards the product or no.
c. Promotions which are carried during the making of the product but along with it involves
the offers which will boost the sales. These promotions are oriented towards the offers
but also it can be any up to date regarding any discharge of a product. Theses are known
as offer oriented promotions.
1.4 Trends relevant to advertising and promotion including the impact of
Information Communication Technology (ICT) on advertising
Presently the trends in UK are mainly focussed on media. Mainly the advertisements and
promotions are to obtain new users along with it keeping the old users happy with the product.
Promotions over online like the social media sites or the company’s official website bring the
most quantity of clients(Mayo and Marks, 2016, p.127). It will help the clients to see the brand
new merchandise along with the exciting features .
Effect of ICT on advertising and promotion are:
● Today’s generation advertisement is done through various ICT media’s such as
telephonic conversations, email and anything by internet. But due to the misuse of this
impacts is going through the merchandise promotion.
● Internet has made advertising more targeted towards particular set of audience. Also
internet advertisers like google adwords and adsense have made very for anyone to
publish ad’s.
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● Internet comprises contextual ads on search engine result page also known as SERP,
blogs,social media marketing, email marketing, etc. in short all types of digital
marketing.
● Internet has given new direction to advertising. One who uses internet for advertising
purposes has direct impact on the investment what an advertiser does. We can customize
our own adverts the way we want(Riggins and Weber, 2016, p.157).
Also it's everyone's belief that what sees more, sells more and internet has made just made
advertisements visible to everyone's eye more. So therefore we can see how ICT has impact on
the marketing.
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LO2 Analysing the role and significance of advertising
2.1 Describing advertising’s role in integrated promotional strategy for a
product or business
As opined by Holm et al. (2016, p.25), advertising and promotion are important parts of a
business organisation. Nowadays, integration of different components of promotional strategy
has become essential. Integrated promotional strategy takes benefit of the combination of media
and several communication tools for spreading messages. When marketers combine different
tools, they make sure the target group of people is properly reached. Integrated promotional
strategy takes the power of both efforts of public relations and traditional advertising. They also
use new and effective online tools of communications such as social networking sites. Most of
the reputed companies use integrated strategy of promotion to make people aware of their
services or products, therefore lines between public relations and advertising have removed.
Effective promotional strategies give supreme importance to consumers. It is very important for
the companies to prioritise consumers, however, this technique is not always properly executed.
Most of the companies concentrate on attracting new customers. It is true that new consumers
contribute to the development of an organisation. Still, it is extremely important to retain loyal
customers because they help the organisation in getting profit (Warshaw et al. 2013, p.46).
Promoting products to loyal customers costs lesser amount of money and it creates more
revenue. Therefore, marketers need to design their promotional strategy around the existing
customers. Marketers have to keep in touch with them and contact them at their convenience.
Marketers need to provide them discounts and offers at the time of festivals. They should also
provide them with the opportunity to share all these information with their friends and family
members.
2.2 Analysing branding and its application to strengthen a product or business
According to West et al. (2014, p.150), a brand refers to a particular term, title, symbol, design
or sign, which is used to classify services or products of a particular company. Brand of an
organisation helps in differentiating services or products of other companies. However, in this
generation, the concept of brand is much more complex. Brand refers to perception when a
customer thinks of an organisation or hears the name of organisation. Good brands help in
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developing positive images of companies in the market. The goal of a good brand is to deliver
the message clearly and confirming the organisation's credibility. A good brand also encourages
the customers in buying their products and it helps in creating loyal customers. It makes a
connection with the organisation's target prospects with all the services and the products.
In order to be successful in branding, one must understand the requirements and demands of the
organisation’s consumers and prospects. If customers start identifying with the brand, it will say
in the minds and hearts clients, consumers and prospects. A good brand can influence the
perceptions and experiences of their customers (Tsai et al. 2016, p.47). A good brand image is
essential for an organisation as the market has become competitive. Therefore, it is extremely
important for an organisation to spend its valuable time in defining, researching and creating the
brand. Brand guides people in understanding a business organisation’s purpose. A strong brand
not just creates a huge number of loyal customers. It also helps in developing loyal employees
who would like to stay and work for the company. The good brand gives them an opportunity to
believe in a motto or a goal set by the business organisation. In today’s world, it is very
important to gain competitive advantage to its competitors. A strong brand gives a company
opportunity to stand out from other business organisations.
2.3 Monitoring advertising’s creative aspects
There are several creative aspects of advertising, which marketers need to explore in order to
make an organisation more popular. Some well-known strategies are layout, brand strategy and
Ad-copy.
Layout:
In many companies, advertising layouts are created using appropriate colours, organised styles,
sizes and graphics for delivering messages to the target group of people effectively. The layout is
basically arrangement of different advertising elements such as text matter, illustration,
company's name and products. An effective advertise should be a combination of both art and
copy. In case of layout, a copywriter remains responsible for writing all the words and art
director stays responsible for creating illustrations (Percy et al. 2016, p.48). However, the layout
should be created separately from copy and it should indicate the type is used, amount of
spacing, illustration’s exact position and the border that is used.
Brand strategy:
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Brand strategy refers to long-term plan for the creation of strong brand to achieve objectives and
goals of an organisation. A proper, well-defined brand strategy has an impact on several factors
of business operations. It directly stays connected to competitive environments, the requirements,
emotions, demands of customers. It is very important because it helps in developing a positive
image of a business organisation. It helps the employees of an organisation in understanding the
purpose and objective of that organisation.
Ad-copy:
Ad copy is a particular kind of content, which is devised to make the reader take action or
respond. It means it is a clickable advertisement’s main text if it is a pay per click advertising.
Many markets use ad copy for spreading their messages to potential customers (Aaker et al.
2013, p.49). They also use the method because make advertisement look convincing, so that
common people feel attracted to them. The purpose of ad copy is to increase profits and
conversion rates. Enhancing conversion rate is the most appropriate method of increasing a
business’s profitability.
2.4 Evaluating methods of working with agencies of advertising
The companies should follow some rules at the time of working with advertising agencies.
Setting objectives:
All the companies should have certain objectives and goals in order to implement successful
advertising and promotional strategies. Companies should communicate their objectives to
advertising agencies properly so that they can work with each other effectively.
Covering budget bases:
This rule should also be maintained when organisations work with their ad agencies. The budget
choices need to be clearly explained to the agencies (De Mooij, 2013, p.41). Employees from
both the companies and the advertisement agencies must know inclusive costs for both the
advertisements and people of every year.
Keeping in touch:
It is very important to develop a good relation between an organisation and its advertising
agency. The companies should stay in touch with advertising agencies and discuss promotional
strategies with them properly.
Creating specific timelines:
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The Proper timeline should also be maintained at the time of implementing advertising strategies
appropriately. The employees of both the companies and ad agencies must discuss with each
other to determine the timelines of advertising campaigns (Hendricks, J.S. and Bonner, p.44).
They need to decide when an advertising and promotional campaign will begin and when it will
finish. Everything related to the timeline should be properly planned before the starting the
project.
LO3 Evaluating below-the-line methods and their application
3.1 Describing primary methods of below-the-line promotion and its
application in integrated strategy of promotion for a product or business
Below-the-line promotion is a strategy of advertising and with the help of this method, products
are promoted various mediums rather than televisions, print, film and billboard. Various methods
of this advertising refer to trade shows, direct mail campaigns and catalogues. This type of
promotional technique is much more focused and less expensive.
Direct mail marketing:
This method of advertising and promotion can be very effective if it is used properly. Direct mail
programmes or campaigns must be designed professionally. Copyrights need to develop
compelling messages, which potential customers cannot avoid. This method of promotion costs
much less than techniques of above-the-line advertising (Blakeman, 2014, p.46). The methods of
above-the-line advertising include radio, press promotion and television which are used by
advertising agencies.
Email marketing:
Email marketing is another effective technique of advertising and promotion. These types of
campaigns are usually expensive. However, the results can be very good the companies can
communicate with customers and potential customers properly. This type of marketing also must
follow double opt-in principles, which is procedure where customers need to confirm
subscription to a list of email before all the email can be delivered to the customers.
Door-to-door marketing:
Door-to-door marketing is one of the most popular forms of advertising and promotional
techniques. To successfully implement this method, the companies need to hire highly skilled
and efficient marketing employees (Young, A., 2014, p.40). All of the marketing employees
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must know how to develop positive relationship with customers and convince them for using
their products. In this case, agents knock on the doors of houses, meet different people and try to
sell their products. If a person shows interest in learning about the products and the companies,
those marketing employees provide them all the important information.
3.2 Analysing application of other methods in the procedure of below-the-line
promotion
There are various other techniques that are used in below-the-line promotions. Some of them
include coupons, gifts with purchase and loyalty gifts.
Coupons:
In this case, coupons are provided to customers when they purchase some products. Sometimes,
coupons are provided to customers when they buy products from online stores. Online customers
always remain interested in acquiring those coupons.
Gifts with purchase:
Customers are provided gifts when they purchase some products from an organisation. Some
companies use this method or technique for attracting children to their products.
Loyalty gifts:
Clients are provided special gifts or vouchers when they purchase certain products or services
from an organisation. This method is extremely easy for keeping regular customers interesting in
buying the products from a particular organisation.
LO4 Planning integrated strategies of promotion
4.1 Following proper procedure of a budget’s formulation for integrated
strategy of promotion
There are various types of techniques for formulating budget. In order to complete budget for
integrated strategy, operational budget approach is very effective. This technique of budgeting is
the most effective idea of budgeting for setting budgets related advertising and promotion. There
are three steps, which should be followed at the time of doing the works related to budgeting.
In the first step, the costs of promotions include all kinds of production and the cost of marketing
medium needs to calculate. In the second step, the costing should be completed and cost
transactions must be made between ad agency and organisation (Baker, M.J., 2014, p.38). The
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