Advertising and Promotion Strategies: A Business Report

This report provides a comprehensive analysis of advertising and promotion strategies in business, with a focus on the communication process, the organization of the advertising and promotion industry, and relevant regulations. The report examines current trends in advertising and the impact of Information and Communication Technology (ICT). Task 2 delves into the role of advertising within an integrated promotional strategy, creative aspects of advertising, branding, and how businesses work with advertising agencies. The report uses the Walt Disney company as a case study, exploring their promotional plan, budget formulation, and techniques to measure campaign effectiveness. The report highlights the importance of branding, creativity, and understanding the target audience to achieve successful advertising campaigns. The analysis includes the use of various advertising mediums, regulatory frameworks, and the evolving landscape of digital advertising.

ADVERTISING AND
PROMOTION IN BUSINESS

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1 ..........................................................................................................................................1
1.1 Communication process applied to advertising and promotion ..........................................1
1.2 Organisation of advertising and promotion industry ..........................................................1
1.3 Regulations of promotion .....................................................................................................2
1.4 Current trends in advertising and promotion and impact of ICT..........................................2
TASK 2 ...........................................................................................................................................3
2.1 Role of advertising in an integrated promotional strategy....................................................3
2.3 Creative aspects of advertising .............................................................................................4
2.4 Ways of working with advertising agencies.........................................................................5
TASK 3 ...........................................................................................................................................5
Covered in PPT...........................................................................................................................5
TASK 4 ...........................................................................................................................................5
4.1 An appropriate process for formulation of budget ...............................................................5
4.2 Development of promotional plan for Walt Disney .............................................................6
4.3 Planning of integration of promotional techniques into strategy..........................................7
4.4 Appropriate techniques that measure the effectiveness of the campaign .............................7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Advertising and promotion in a business defines where business stands. It is a way of
building company's image in the market by attracting more customers. These are the components
of promotional mix and plays a vital role in attainment of business goals. The Walt Disney is a
highly popular enterprise that facilitates entertainment to family members by its television
production and live action films. Firm is constructing reliving elements of experience and
nostalgic fantasies. Company gets popular for its character Mickey Mouse. Promotional
strategies are important elements for an organisation to effectively communicate with customers.
Enterprise is adopting different ways to retain its customers as well as attract new one. Also
changed customer behaviour may impacted business in huge way. Disney company is adopting
below-the promotion and above-the promotion technique to make recognizable identity in
market.i Thus, having one of the successful brand image today.
TASK 1
1.1 Communication process applied to advertising and promotion
The main motive of communication process applied to advertising and promotion is to
attract more customers towards company. It is a way of giving and exchanging information with
customers. It includes all elements such as sender, information, encoding, decoding, receiver,
media channel and feedback. Effective communication is the life blood of any organisation.
Disney is also engaged in adopting advertising and promotional strategies to create their brand
value. Some of their hit movies created a wide impression not only on children but on adults too.
It is leading producers and providers of entertainment in the world (World Health Organization,
2013). Also, getting response from customers is also vital for any organisation and company has
achieved this target also.
1.2 Organisation of advertising and promotion industry
The organisation of advertising and promotion industry are group of members for
promotion of business (Organisation of advertising and promotion industry. 2017). Such
organisation works with the coordination of other departments. They have four departments
which are as follows:
Account management- It helps in establishing relation between agency and clients. It
includes director, planner, executive and manager.
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Creative department- Such department is responsible for creativity in advertisement and
promotional strategies.
Media department- It basically consists of media research, planning and adopting media
buying. Walt Disney is focusing more on media research to make their own values in the market.
Production department- It monitors perfect delivery of strategies formed to gain more
customers.
1.3 Regulations of promotion
The promotional activities in UK are regulated in various manner. The common two of
them can be described as follows-
Broadcast regulations- Broadcasting regulations are very important for an organisation
like Disney. Walt Disney is broadcasting reliving elements of experience and nostalgic
fantasies. They have to consider before broadcasting anything.
Consumer law- There are requirements that advertising must meet. Different consumer
laws are there to prevent consumers from any kind of exploitation of their interests. It also
prevents them from use of misleading description of products and services.
Thus, these are regulatory tools applied to control the effect of activities undertaken in
promotion.
1.4 Current trends in advertising and promotion and impact of ICT
There are various ways of advertisements available for an organisation. As technology is
innovating, trends are also changing. It is one of the dynamic profession and globalization has
made a severe impact on trends. Internet and mobile communication make it easier to interact
with target audience. YouTube advertising is one such trend where many companies like Walt
Disney are giving consideration. Also, advertising through World Wide Web is cost considerable
and very popular these days. E-mail advertising is also building its own requirements for
company. The impact of information and communication technology has played a crucial role in
building a strong brand image of Walt Disney. They are broadcasting their own channel for
children and adults. The use of interactive media is their key to success.
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TASK 2
2.1 Role of advertising in an integrated promotional strategy
Advertising is the creation of goodwill in market. It is the most important for business or
product of Walt Disney. Any business organisation wants to expand its business by the way of
increasing sale of its products and services. But cost is justified by revenue generated from such
sales. For creation of brand image in the market, advertising plays a vital role. Advertising serves
as a tool for reaching consumers world-wide by television, radio, newspaper, etc. . It is also used
to have personal relationship with customers. Usually, cost incurred in such task is less and thus,
it is one of the best mediums to promote goods and services. Role of advertisements can be
explained by the following points-
Creating awareness- It definitely creates awareness about company as well as its
products and services. Walt Disney is very popular today because of its advertisement strategies
being adopted.
Impression- Advertisements can made a meaningful impression on existing as well as
new customers of company. It helps in attracting more adults and children towards their
products. Thus, it has a key role to play.
Regularly reminding customers- Any advertisements if regularly come on television or
radio, it will definitely remind customers about them. Thus, it is one of the most important tools
of promotional mix.
Competitive edge- Advertisements helps in building a brand image of company. Walt
Disney is one of the highly recognizable brands because of its strategies adopted. Innovation and
creativity obviously helped them a lot.
Influences perception- It changes the perception and attitudes of people about products
and services being offered. Appreciating customers will make their attitudes being positive.
However, there is availability of substitutes that may hinder such processes.
2.2 Branding and its Uses to strengthen a business
Branding is said to be attribute of products or services that connects organisation with
target customers. It is component like image, slogan, or a symbol attracting customers towards
company. Walt Disney have their own symbol that makes them different from others. Its main
motive is to differentiate an organisation from its rivals present in market. It is a way to build
own image in market. It is making an organisation to connect to population of investors,
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employees, suppliers, customers. The psychological component of brand image is connected
with feelings, sentiments, thoughts and beliefs of target audience, where company serves.
Disney's purpose is to develop a feeling with services and products that make it unique. It is most
important aspect of advertisements that defines offerings of company to its target audience.
Retaining and attracting customers towards brand is impossible without branding. The brand
image of Disney is highly recognizable by their symbols itself. It always have a high influence
on business. It overall defines product development. The company get en edge over its rivals by
creating an innovative products offered to target audience. It strengthen products by building
long term relationship with customers and making them loyal towards their products and
services. Thus, branding defines successfulness of company (Vakratsas and Ambler, 1999).
2.3 Creative aspects of advertising
Any advertising will get successful with its creative and innovative aspect. Walt Disney
is successful today because of their infamous character Mickey Mouse. If a company advertise
something unique and innovative that differ them from their competitors, it will surely lead
business towards success. It reaches numerous number of customers thus, creativity in theme is
essential. The environment is highly dynamic, to tackle with the same and to gain advantage
creativity aspect is needed to be considered. It is application of such strategies that impact
customers perception and make them buy their products and services. It will definitely induce
target audience. Creativity is an art as how company is attracting customers towards them
(Steenkamp, et. al. , 2005). Commercial artist, layout designer and Copywriter plays a vital part
in making products creative. Disney is also got popularity because of their innovative movies
such as avengers assemble, and captain America. If something unique gets popular in market, it
will last for considerable long time. However ideas to be interrelated with demand and needs,
also market condition determines the same. Creativity of such exceptional ideas are difficult to
be implemented. Disney worked on their character Mickey mouse and thus, get highly popular
among all children and thereafter adults. There involves three steps of process such as collecting
requirements and data, processes of thinking and verification of same (Quester and Thompson,
2001). The message should give promising values to target audience and cooperate with the
brand message of the same. A successful advertising campaign used these strategies to create
their recognizable identity. It always have a[positive impact on customer of business
organisation (Poon and Jevons, 1997). Walt Disney is also famous its creative magazine.
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Children and even adults like to read their magazines consisting of mickey mouse story and
Jokes. Online magazines are making huge success in market. They also use strategy of using
billboards for advertisements. It is also called as hoardings and typically found alongside busy
roads in UK. This method of advertisements and promotion is quite popular and attract eyes of
numerous people. Their character Mickey mouse is popular today because of such creative ideas
implemented effectively by Walt Disney.
2.4 Ways of working with advertising agencies
Ways of working with advertising agencies defines an organisation standing in market.
Selection of an agency is vital and depends on evaluation of facts that which agency serve an
organisation in effective manner (Mela, Gupta and Lehmann, 1997). Anyone who is working
with agency needs to know some of the act of working these are as follows-
Knowing their needs- Organisation should know they want first, to have long lasting
relationship. They are required to know what an agency will produce and how much cost will be
incurred for the same.
Importance to value- Obviously branding is way more important than price. Disney
have their own brand value in market today and incur huge money to made so. Thus, a successful
organisation in world.
Research- An enterprise should never assume that they are aware of customer's
perception. New trends and substitute availability will definitely influence their thoughts. Market
research always needed to know target audience.
Business decisions- the decisions are always needs to be taken by considering every
elements of business. Disney main focus is on different groups such as children, adults and they
have made their huge influence on them ((Low and Mohr, 2000)).
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TASK 3
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TASK 4
4.1 An appropriate process for formulation of budget
For retaining and attracting more customers towards products or services of company, it
will need various promotional strategies. However, cost consideration is of utmost importance
for application of suitable promotional strategies. For such purpose Budget plays a vital role.
While preparing budget, following considerable points must be kept in mind-
Marketing Environment- Environment in which business is operating is dynamic.
Dealing with such environment is not an easy task. Promotional strategies are formed keeping
environment in consideration. Technological innovation, political, social and economic
environment always influences business organisation. Disney always develop their strategies
keeping environmental factors in mind to achieve their set targets.
Evaluation of brand image- Brand image defines positioning of an enterprise in terms
of its rivals. It is connection of customer's feeling with products or services offered. Assessment
of brand image and working to improve the same is always necessary.
Marketing strategies- what strategies a firm need at a given situation is must be known
to a manager. The strategies and plans are build in accordance with budgets and cost that can be
incurred in such tasks (Low and Mohr, 1999). A plan is one which describes what is needed to be
done and how.
Up to date plans- Budget is prepared keeping in mind all aspects of plans. Up-to date
plans are required to tackle business rivals present in market. For example- how much
expenditure to be incur in advertisements needs to be decided (Jedidi, Mela and Gupta, 1999).
Effective implementation- A plan is of no use if implementation is not effective.
Effective implementation is adopting such technique that will make plan more suitable in given
circumstances.
Feedback- Feedback from internal customers i.e. employees and external customers
plays a vital role. Disney always take feedback from their employees to possess positive
environment of working.
Internal information- Internal information of Walt Disney plays a crucial role in budget
formation. The internal information is of utmost important as the functioning of various
department should be effective. These information may be related to sales and marketing
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department, financial department etc. The expenditure incurred in promotion of products and
offerings of business is also needs to be considered.
External information- The external environment in which organisation is working is
dynamic and difficult to handle. PESTEL and SWOT analysis can be one of the best way to deal
with the same. The PESTEL analysis can be explained as under-
Political factors- The political factors are needed to be considered. The government
frame guidelines related to rules, regulation and freedom given to any organisation working in
their country. Walt Disney is well known of all such factors thus, one of the most popular
organisation.
Economic factors- The economy is one which enterprise is going to serve. The inflation
rates, employability and interest may have huge impact on any organisation.
Social factors- Social and cultural factors consist of people living in society. The cultural
in which they are dealing with. Cultural factors needs to be given emphasise to build up their
movies and reliving experience to better satisfy target audience.
Technological factors- the technology is impacting business in huge way. New
technologies are innovated and impact on broadcasting of their movies and reliving experiences.
Walt Disney have their research team to deal with such factors.
Legal factors- The legislation is of utmost importance. Obeying procedure of government
is important. Thus, in budget formation process these factors are needed to be considered and
given first priority.
4.2 Development of promotional plan for Walt Disney
The plan that are to be developed need due considerations. Walt Disney prepared plan
depending on their promotional strategies. The plan is formed according to brand image of
product. It sets goals and objectives to be achieved in given frame of time. It provides budget to
an organisation. It is done by keeping a consideration of what kind of image a business is making
in the minds of target audience. Walt Disney develop different plans for various set of
segments , it can be either for attracting children of different ages, teenagers and adults too.
Walt Disney gets famous for its character Mickey Mouse which attracted attention of many age
groups. Also their movies became vary popular in market. In the development of promotional
plans, knowing your target audience is must (Hackley and Hackley, 2017). A business
organisation is obviously working for its audience only. Knowing their requirements and
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providing same offerings will lead them towards success. Also features of products and services
needs to be informed by way of promotional activities. If a company will not provide features of
their products or services, nobody will able to recognize them. One of the last step is to prepare
budgets and allocation of funds. Appropriate techniques and methods needs to be adopted to
deliver messages through promotional activities.
4.3 Planning of integration of promotional techniques into strategy
A company may adopt several promotional techniques like price incentives or Prize or
gift to promote their sale of products or services. These techniques must focuses on the
requirements of market conditions, elasticity of demand, and responses of target customer
towards those techniques. These promotional techniques are of utmost importance for an
organisation like Disney (Cravens, and Piercy, 2006). Walt Disney is promoting their products or
services by giving emphasise on market research and thereafter facilitates innovation. However,
lowering products price just to achieve sales targets in short run may hinder from development of
brand image. These all influences customer behaviour towards products and services. Thus, these
all promotional techniques are integrated together to form promotional strategies. The techniques
can be brand image, pricing policy adopted by an organisation, high performance etc. If
communication is not effective and techniques adopted are not creating value to company. They
should have availability of alternative plans (Belch, and Belch, 2004). Sometimes information
shared is also misinterpreted by consumers. Promotional techniques can be advertisements, sales
promotions, direct selling or public relations. Social media is now a technique available to
promote products or services offerings. Whatever technique adopted by Disney to promote their
new comic book, it must able to increase sales and generate revenue for the company. These
techniques are dynamic way to communicate with target audience and getting benefit in the form
of increased sales, brand image and loyal customers.
Advertising- It is one of the best tool of delivering information to target audience.
Television, radio, radio are main sources. Walt Disney has used such tool of promotion to create
their brand value. Their character Mickey mouse is recognized because of their advertising
strategies.
Public relations- Creation of positive image for target audience can be one of the main
motive of public relations. It involves methods such as press releases, involvement of community
etc. Successful public relation program will help business to gain goodwill in market.
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Sales promotion- Promoting sales is an important aspect. Every organisation want to
enhance its sales. It is an incentive tool to drive short term sales. Consumer incentives includes
samples, coupons etc. There magazine sales can be increased by use of such strategies.
4.4 Appropriate techniques that measure the effectiveness of the campaign
Measuring effectiveness of promotional techniques is of utmost importance for an
organisation. A techniques adopted for promotion must be assessed by way of communication to
target audience, profit generated, sales revenue, and attention attracted. Any promotional
technique needs to be evaluate from time-to-time (Anselmi, 2000). For example- Effectiveness
of online campaign of You tube is measured by number of viewers. Effective advertisements
have influence on sales of products or services. Also pre-testing and post testing campaign helps
in knowing effectiveness of such promotional techniques. Pre-testing is basically consider the
testing of ads before running them. To evaluate their attractiveness, it also generate opportunity
to reduce or eliminate any irrelevant information. While post testing is done after ads running.
To know their effectiveness to attract their target audience. These both campaign evaluates
strengths and weak points both in pre and post phases of launching communication campaigns.
Their main purpose is to enhance effectiveness of marketing promotional strategies. The
appropriate technique to measure effectiveness of campaign can be describes ad follows-
Awareness- Any campaign that is done needs to create awareness among target
audience. The features of products or services must be recognizable by an organisation. These
have severe influence on customers. As a result company can able to retain its existing customers
as well as attract new one. For example- Disney is known by its Mickey Mouse today, just
because of brand awareness it created.
Inquiries- Company should know number of inquiries received during campaign period.
One of the method is to ask for sources (Abraham, and Lodish, 1990). Consumer inquiry form
can be a kind also. It is really plays a key role in evaluation of techniques adopted for promotion
of products or services.
CONCLUSION
By this report, it has been concluded that advertising and promotion are vital for any
business organisation working in a dynamic environment. Advertising and promotion is an
element of promotional mix and decides organisation standing in terms of its rivals. It is needed
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to promote sales of product or services. It creates brand image of an organisation. It always has
long lasting impression on customers. Most of customers buy products for once, thereafter search
for alternative options. Hence, promotional team role is really important for any organisation.
Walt Disney organisation is the popular enterprise provides entertainment to family members by
its television production and live- action films. They are using different promotional technique to
make their brand image. Disney company is also engaged in developing reliving elements of
experience and nostalgic fantasies. The firm is highly recognizable by its infamous character
Mickey Mouse. Firm is known for using different promotional techniques which involves both
above and below-the-line methods. Thus, one of the most successful organisation in market.
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REFERENCES
Books and Journals
Abraham, M.M. and Lodish, L.M., 1990. Getting the most out of advertising and
promotion. Harvard Business Review. 68(3). pp.50-1.
Anselmi, K., 2000. A brand's advertising and promotion allocation strategy: The role of the
manufacturer's relationship with distributors as moderated by relative market
share. Journal of business research. 48(2). pp.113-122.
Belch, G.E. and Belch, M.A., 2004. Advertising and Promotion: An Integrated Marketing
Communications Perspective,(6 Th. New York: NY: McGraw-Hill.
Cravens, D.W. and Piercy, N., 2006. Strategic marketing (Vol. 7). New York: McGraw-Hill.
Hackley, C. and Hackley, R.A., 2017. Advertising and promotion. Sage.
Jedidi, K., Mela, C.F. and Gupta, S., 1999. Managing advertising and promotion for long-run
profitability. Marketing science. 18(1). pp.1-22.
Low, G.S. and Mohr, J.J., 1999. Setting advertising and promotion budgets in multi-brand
companies. Journal of Advertising Research. 39(1). pp.67-67.
Low, G.S. and Mohr, J.J., 2000. Advertising vs sales promotion: a brand management
perspective. Journal of Product & Brand Management. 9(6). pp.389-414.
Mela, C.F., Gupta, S. and Lehmann, D.R., 1997. The long-term impact of promotion and
advertising on consumer brand choice. Journal of Marketing research. pp.248-261.
Park, H., Rodgers, S. and Stemmle, J., 2011. Health organizations’ use of Facebook for health
advertising and promotion. Journal of interactive advertising. 12(1). pp.62-77.
Poon, S. and Jevons, C., 1997. Internet‐enabled international marketing: a small business
network perspective. Journal of Marketing Management. 13(1-3). pp.29-41.
Quester, P.G. and Thompson, B., 2001. Advertising and promotion leverage on arts sponsorship
effectiveness. Journal of advertising research. 41(1). pp.33-47.
Steenkamp, et. al. , 2005. Competitive reactions to advertising and promotion attacks. Marketing
science. 24(1). pp.35-54.
Vakratsas, D. and Ambler, T., 1999. How advertising works: what do we really know?. The
Journal of Marketing. pp.26-43.
World Health Organization, 2013. WHO report on the global tobacco epidemic, 2013: enforcing
bans on tobacco advertising, promotion and sponsorship. World Health Organization.
Online
Organisation of advertising and promotion industry. 2017. [online]. Available through
<https://www.ukessays.com/essays/marketing/the-organisation-of-the-advertising-and-
promotions-marketing-essay.php> [Accessed on 20th November 2017].
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