Advertising and Promotion Report: Communication, Industry, Trends

This report provides an in-depth analysis of advertising and promotion strategies, using Next PLC as a case study. It begins by examining the communication process in advertising and promotion, outlining key elements such as sender, message, and receiver, and how they apply to Next PLC's marketing efforts. The report then explores the organization of the advertising and promotion industry, including the roles of advertising agencies and marketing managers, and discusses the current trends in advertising and promotion, especially the impact of ICT. Furthermore, it assesses the regulations governing promotional activities and how Next PLC adheres to these standards. The report delves into below-the-line promotion techniques, such as direct mail and email marketing, evaluating their effectiveness. It concludes by highlighting different techniques used in below-the-line promotion and their impact on sales and brand image.

Advertising and
Promotion

INTRODUCTION
Nearly everyone in modern era are influenced by some degree such as advertising and
other forms of promotions. The companies which belongs from whether private or public sector
have learned that ability to communicate efficiently and effectively to target their audience.
Advertising and other forms of promotional activities are used by organisations to sell their
products and services as well to increase the awareness (Bakken and Simpson, 2011). Present
report is based on Next Plc which deals in footwear and home products. The objective of this
company is to deliver longer term returns to shareholder with the help of combination of
sustainable growth in earnings per share. NEXT believes that these objectives can be achieved
by continuation of following strategies which has been applied by them such as; improving and
developing of product range, focusing on customer services and satisfaction levels.
In this assignment, communication process has been discussed which applied to
advertising and promotion. In addition to the part of publicity in combined promotional strategy
in context to Next plc. Further, different ways working of advertisement agencies is explained. In
last appropriate techniques has been used for measuring campaign effectiveness in regard to
organisation.
TASK 1
1.1 Communication process applied to advertising and promotion
Communication is process of transacting data, information or ideas from a sender to
receiver while using communication channel. Advertising and promotion are playing vital role in
organisation which helps to organisation in making strong relation with customers. A
communication process model in advertising and promotion involves some elements and these
are sender, encoding, message, receiver, response, decoding, and feedback. In case of Next Plc
company, few elements of communication process are applied (Carragee and et. al., 2011). The
manager is sending message to their customers through sender. The message which is sent to
customers are in form of decoding and this contain meaningful message to them. On other side,
promotion process used by organisation in introducing new goods and services in market.
Through this company is offering coupons, rebates when purchases have been done by
customers. By offering an additional value it also accelerates the sales of company. So, this tool
is considered as an effective tool for organisation in which they can promote new product for
1

customers. In this, manager is communicating message to customers in the form of radio,
newspaper, direct marketing.
The cited firm is making their advertisement and promotion after conducting a market
research. They are conducting market research for analysing customer demand, buying
behaviour like attitudes, beliefs, culture towards product and services (Advertising and
Promotional Communication, 2016). Then after that they are determining that which marketing
strategy is good for them in advertising and promoting new product and services in competitive
market.
AIDA and IMC model involves attention, interest, desires and action. In attention,
company need to pay attention of customers by offering them different services at discount rates.
Interest, product and services should be according to needs to customers so that they can be
engaged be recipient engaged. Desire, it states that products and services can resolve the issues
which are provided by organisation. Action, it is final step where organisation have to take action
while implementing new policies so that they can deal with various issues. These model also
deals with advertising, promotion, personal selling where managers can make more effective
promotional technique.
1.2 Organisation of the advertising and promotions industry
The organization of advertising and promotion industry consists of advertising and
marketing managers, innovative directors, agents, and financial staff members. The advertising
and promotion industry includes advertiser, advertising agencies, specialized marketing
communications, interactive agencies, and collateral services. The organisation for advertising
and promotion in the firm is based on centralized system consisting of production, finance,
marketing (marketing research, advertising, sales and product planning) research and
development and human resources controlled by president (Clark and Phillips, 2014). And
decentralized system includes product management and marketing services consisting of brand
manager advertising department and market research. The company works with creating brand
image while advertising organizations offers way to achieve its goals. It generates an atmosphere
so that the company's message can spread to its potential clients. Specialized marketing
communication service organization are expertise in areas of advertising and promotion and
provide services in their relative field. Collateral services are provided by artists, directors,
printers, photographers, writers, free lancers, etc. which supports in the advertising.
2

Next plc has also hired a team of centralized system for advertising and promotion which
included advertising agencies, sales and product planning, creating impressive and imaginative
staff members, specialists or experts in the field of marketing so that it results in effective
advertising and promotional strategies for increasing customer traffic by attracting and
influencing them for buying the product. All these work together for achieving a common goal,
communicating the brand message and to create a positive and remarkable impression among the
customers.
The main participants who are involved in advertising and promotion industry are mainly
head of marketing departments. They are making lots of efforts in order to satisfy the needs of
customers and attracting them towards firm. In Next plc company higher authority of marketing
department are doing lots of efforts in order to attract more customers with the help of some
promotional tools and techniques.
1.3 Assessment of how promotion is regulated
The regulations have an important role in governing the advertising and marketing
communication. These regulations of promotional activities are an impact of promotion. These
contains high risk factors which are used by the firm to include or exclude contents in the future
projects. The company can also use various enforcement actions preventing violation of rules,
laws, etc. On the other hand, broadcasting regulations are also to be kept in mind which
describes some of the products and services banned from being advertised over media. This is
because of presentation of misleading messages, misinterpretation of messages, return on
promotional investments (Corcoran, 2013). The regulations and other controlling tackles are
applied to switch the flow and effect of promotional activities which also implement directions to
build new brand image.
Next plc controls the advertising by following the code of practice and legislation in
order to prevent cheating people by fake publicity, fraudulent act, misrepresentation of facts
regarding the products, etc. Theme based work is done to identify the error if there is a market
issue being ignored. The company follows the compliances framed by the regulatory authorities:
Advertising Standards Authority (ASA): Acts on complaints and takes action against
misleading, damaging, or aggressive advertisements, sales promotions and direct marketing.
Bar Standards Board: separately runs the regulatory functions on promotional
activities, ensuring quality and reliability of product are consistent with promotional activities.
3

Committee of Advertising Practice: Creates various broadcast and non-broadcast
advertising codes revise them and enforced and administered by Advertising standards authority.
Office of Fair trading – In this authorities are responsible for defensive their customers
interest throughout the UK. For this organisation also have to perform their duties in appropriate
manner. They have to serve only those product and services which are beneficial for customers
and keep them happy for a long period of time.
Big Creative Education Apprenticeships – In this expertise of marketing are
conducting programmes for promoting the brand name of large or small organisation. They are
also making contribution in developing and increasing awareness of their products and services
which are provided by firms.
1.4 Current trends in advertising and promotion and impact of ICT
The current trends in advertising and promotion has adopted technology to communicate
about the brand and spread message to the audience (Davis and et. al., 2011). With the changing
scenario in technology and taste of customers, firms are also changing its strategies and style of
advertising. They are focusing on the technology other than traditions. So the company is
developing techniques which are suitable according to the environment and preferable to the
customers. ICT stands for information and communication technology, a modern way on which
communication and promotional activities are dependent. The company follows it to survive in
the competitive market, increase profit and value of the business. ICT is speedy, creative, less
time consuming and visible at large. It can be called as an impact of globalization and wireless
communication which helps in thinking about the creative aspects along with evaluating ways to
reach and communicate with the customers. ICT works with internet, e-commerce, emails and
other websites. Now a day’s consumers get more influenced while visiting the company's
website from where they could gather details about the products and buy them. This is
considered as an effective and easy way to communicate with the customers.
The effect of information and communication technology in Next plc advertising and
promotion has difficulties in success of brand (Dix and et. al., 2012). It has used web pages
presenting about its products (clothing, footwear and home products) promoting its brand, media
sources in their official web pages, glimpses of their promotional activities, and using interactive
media. Their official web pages, glimpses of their promotional activities, and using interactive
media.
4

Nowadays, there are many techniques which are using by organisation as well as
customers. For example, nowadays, use of smartphones has been increased rapidly and it became
for firms also to promote their brand name with the help of this tool. Further, large organisation
is also making customer relation with their customers while providing them online services to
customers. for example, cap facility i.e. UBER is it a free app where person can book cap to
travel form one place to another.
TASK 2
Covered in PPT
TASK 3
3.1 Primary techniques below-the-line promotion
Below line promotion involves in promotional techniques where organisation aim is to
target new customers directly. In this organisation can promote the goods and services with the
use of mediums other than radio, televisions, print. There are some types of below-the-line
advertising such as; direct mail, search engine marketing, trade show and catalogues. Next plc
company can use this method in convening message to customers in different ways. Public
relation is a strategic communication which builds mutual relationship between enterprise and
customers. It is an effective tool in which organisation is spreading information with customers
and helps them in making strong relation with them (Eastman and et. al., 2012). In below-the-
line sales promotion technique is also used by organisation. In this techniques, manager is
offering different kinds of services to customers through distributing coupons, gifts, broacher.
These all will also help them in increasing the sale as well as profit of company. But organisation
is also focus on direct means of communication such as direct mail and e-mail which often target
high number of customers. Following are some techniques which help to organisation in
promoting their sales;
Marketing through direct mail – Manager can convey message to their customers about
new product through mail also. These message are so professional and information that
customers cannot ignore them.
Email marketing – It is considered as below the line marketing strategy. When an
organisation wants to run their own campaign, then they are using email to communicate with
5

target customers. While using email marketing, it also saves time of organisation as well as less
expensive for them.
Door-to-door marketing technique – This is not so much effective marketing
technique where organisation can sell their products person to person (Esposito and Fitzpatrick,
2011). It is popular form of message in below-the-line.
3.2 Evaluating other techniques used in below-line promotion
There are also some other techniques which can use by organisation in more effectively
ways. Following are some techniques in which company can promote their products and increase
the awareness.
Price promotion and discount – These are used when manager are offering product to
customers at discounted price. These are used by organisation when they want to increase their
sales as well as profits but it is also giving negative impact on brand image of company.
Coupons – This is considered as versatile way by providing goods and services at
discount rate. In this, it generally maximises redemption rate of products (Farrelly and et. al.,
2012). It will be beneficial for organisation when they are introducing new product in market but
they have to also make sure that they have sufficient coupons to distribute.
Gifts with purchase – It is also an essential technique which can be used by
organisation. In this manager are giving gift to customers when they are purchasing product from
them. Through this they can attract more customers and satisfy their needs.
Competition and prize – It gives an opportunity to organisation to set the prices of
products and services in such a way in which they can beat their competitors. Along with this,
they have to provide rewards or prize to customers to keep them happy.
Point-of-sale displays – It is near to be considered as sales promotion. Next plc company
are trying to draw customer attention towards new goods. It includes dummy packs, display
packs, stands, posters or banners. This can attract to those customers who is doing window
shopping.
Loyalty programmes – Next plc company can also conduct programmes for customers
who believes on them. It will aid them to increase number of customers and attract new ones.
6

TASK 4
4.1 Appropriate process for formulating budget
Making budget for integrated promotional is very for organisation. Budget should be
made by expertise in order to use funds in appropriate manner and implement plans of financial
during year (Hanafizadeh, 2012). It helps to enterprises in carrying out promotional activities in
more effective way. But it is responsibility of finance manager that funds should be properly
utilised when they are integrating promotional strategy. This will beneficial for Next plc to
focusing on marketing strategies in order to accomplish with the objectives. The following are
process which is considered in formulation of budget plan.
 They have to formulate strategies and have to make sure that there should be linkage
between company and marketing strategy. The strategy should be formulating on the
basis of goals and objectives which has to be achieved by Next plc.
 Afterwards, analyse environment in which they have to target customers. Moreover,
identify their competitors which influence on their strategies which has been adopted by
them.
 Now carry out market profiling which help to organisation to identify market segment. It
will aid to organisation to target different customers (Hänggli and Kriesi, 2012).
 The funds should be also used in accordance to this which fulfils the demands of
consumers.
 After profiling of market, they have to implement budget plan according to need of
organisation. The plan should be considered all activities which are conducted by
organisation.
 In last, evaluating plans which has been implemented by organisation and take
appropriate actions if problems are facing by employees.
Company is having so many techniques in which they can promote their brand name and
attract customers. For example, they can provide services on discount to attract more customers
towards it. In this middle class people can also enjoy the services which are provided by
company. Further, special offer is also another technique. In this customers are providing special
services to their special customers to keep them happy.
7

4.2 Promotional plan for business product
Advertising and promotion are playing essential role in making appropriate promotional
plan for developing organisation product. Promotion is a method which is used by organisation
to promote their sales and convey important message to their stakeholders. Following are plan
which is used by organisation Next plc.
Advertising – It is popular form of marketing communication which can be used by
organisation to attract large number of customers. Advertising of product can be done through
audio or visual means (Keane and et. al., 2011). For example, Next plc company is offering
electronic product to customer, then they are using different tools of advertisement such as
television, radio, newspaper and many more.
Packaging – In current scenario, there are many marketers who is not paying attention to
the quality of packaging of goods. If there is an attractive an innovating packaging of goods, then
manager can easily sale products to customers. A well-packaged of goods does not carry out
brands but is also creating emotional link with customers.
Social media – When organisation has to convey message to mess of people about new
or existing product or services, then this can also choose by company. It is an effective tool of
media where so many users are active on social media sites.
Sales promotion – It is a short term incentive which encourage to organisation to sale of
purchase products. It can be done through discount, coupons to attract customers (Liu and et. al.,
2011). It will be beneficial for organisation for a particular point of time to generate large
amount of profits.
Promotional plan of company for introducing new product are as follows:
 Firstly, manager has to analyse the market in which they have to find that how many
customers are there who are ready to use these services at existing process.
 Secondly, identify the target market where they can target potential customers to sell their
products and services.
 Now, develop potential objectives so that they increase the brand awareness and provide
valuable market information to new customers.
 Here, they have to develop some promotional mix technique in which they can attract
customers. For example, advertising, public relation, direct selling and many more.
8

 Select the promotional techniques that which will be beneficial for them. In last, manager
has to analyse the results whether they have targeted potential customers or not. It can be
also done through sales revenue, repeat purchase of products and many more.
4.3 Plan integration of promotional techniques into promotional strategy
Advertisement plays an important role in the success of any product. Advertising plays a
role of integrated promotional strategy for effective advertising. The main ways of promoting the
brand are traditional advertising, sponsoring of events, online promotions, local promotions, etc.
the promotional strategies include expansion of business and target market, building strong brand
image, research and development, innovation of new products, etc. The integration of
promotional techniques focuses on needs of the market, condition and demand of the market,
need for price incentives, and consumer responses towards price (Macfadyen, 2016).
Achievement of a marketing objective is required by a variety of integrated strategies which
provides information to consumers about the products. The strategic part focuses on making
plan, organizing things and creating a schedule for delivering the specific marketing approaches.
The integrated promotional strategies are not only result oriented but are cost effective too. This
allows company to increase its market share with understanding the customers’ needs and setting
a budget for effective implementation.
Next plc may use promotional technique are also focusing on research and development
so that firm can innovate additional features in its product, setting a benchmark as status product
for customers. Addition of publicity methods includes setting high price, branded entertainment,
high performance, formulation of overall promotional strategy (Marshall, Pronovost and Dixon-
Woods, 2013). The company can also adopt such strategies by which the demand and supply of
the products can be balanced in the market, and also evaluate customer’s responses towards the
price for the relative product.
For example, company is using sales promotion techniques in which they can sale their
product at discount offer to attract more customers. They have to properly follow the plans which
are made by higher authority in order to implement appropriate strategies. They can also done
advertising with the help of television because there are so many customers who are inspired by
ads which are given on advertise on T.V.
9

4.4 Appropriate techniques for measuring campaign effectiveness
Campaign is one of the important tools among promotional activities. The campaign
effectiveness can be measured in terms of communication, profits, sales, persuasion, and
attention of consumers. The company can measure the advertising effectiveness in order to know
the actual results after the implementation of the plan (Okazaki, Li and Hirose, 2012). The
effectiveness can be measured by:
 comparing the sales,
 analysing the number of people registered
 conducting survey about the people visiting the campaign
 counting number of coupons collected and distributed
 taking feedback from the customers
 analysing the feedback and planning next step of promotion.
Next plc can use the following techniques for measuring campaign effectiveness:
Planning the campaign and tracking it: the company should plan and implement the
marketing campaign. And once it is planned effectively, the company should opt for the methods
to track its effectiveness.
Define the channels to be tracked: the company should divide its marketing derived
traffic into sub groups which are termed as channels (Ursache, Blair and Raver, 2012). The
commonly referred channels are:
Direct: these are the channels in which the customers are directed by the other parties to
the business.
Referral: these are the channels in which the customers are directed through site by third
party and it does not require use of search engine, or social media site.
Email: in this the customers are made aware about the products of the company through
emails sent by the company.
Paid: these are the customers obtained as a result of paid services which includes print
advertisement in newspapers, magazines or an ad content on a website.
Defining the marketing data to be measured: the third technique is to measure the
return on investment a company gets from marketing campaigns (Techniques for Measuring the
Effects of Advertising Campaign, 2013). The different ways by which the company can generate
data with specificity are web content, conversion of initial contact to actual customers, individual
10