Advertising and Promotion Strategy for New Smart Phone Launch: Report

This report examines the critical role of advertising and promotion in modern business, particularly in the context of launching new products like smart phones. It explores the communication process, the organization of the advertising industry, and the regulations governing promotional activities. The report analyzes current trends, emphasizing the impact of Information and Communication Technology (ICT) on advertising strategies. It details the role of advertising in an integrated promotional strategy, including branding, creative aspects, and the use of advertising agencies. Furthermore, the report delves into below-the-line promotion techniques, budget formulation, promotional plan development, and methods for measuring campaign effectiveness. The IDEAL HOME SHOW is used as a case study to illustrate these concepts, providing practical insights into the planning and execution of advertising campaigns. Finally, the report concludes with a summary of the key findings and recommendations for optimizing advertising and promotional efforts.

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Advertising and
Promotion

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
1.1 Communication process that applies to advertising and promotion......................................3
1.2 Organization of advertising and promotions industry...........................................................4
1.3 Regulation of promotion........................................................................................................5
1.4 Current trends in advertising and promotion and impact of ICT...........................................6
TASK 2............................................................................................................................................7
2.1 Role of advertising in an integrated promotional strategy for business or product...............7
2.2 Branding and how it is used to strengthen a business or product..........................................8
2.3 Creative aspects of advertising..............................................................................................8
2.4 Ways of working with advertising agencies..........................................................................9
TASK 3..........................................................................................................................................10
3.1 Primary techniques of below the line promotion.................................................................10
3.2 Other techniques used in below the line promotion............................................................11
TASK 4..........................................................................................................................................11
4.1 Process for the formulation of budget for integrated promotional strategy.........................11
4.2 Development of promotional plan.......................................................................................12
4.3 Plan the integration of promotional techniques into the promotional strategy....................13
4.4 Use appropriate techniques for measuring campaign effectiveness....................................13
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................15

INTRODUCTION
Advertising and promotion is considered as the fundamental requirement which helps
business to succeed within modern business environment. It is essential for managers of business
to carry out effective promotional activities in regard to improve business or product. In such
competitive era, promotion is necessary for firms to make their product or service popular among
target customers (Boone and Kurtz, 2011). Therefore, adopting advertising and promotion
methods helps business to ensure integrated communication among business and consumers.
There are different methods of advertising and promotion such as online media, print media,
broadcast etc. All these ways helps in promoting business its products or services and helps in
influencing potential customers towards firm.
Further, advertising and the use of below-the-line technique helps in developing an
integrated communications strategy so that company can raise its performance in market. In the
present report, IDEAL HOME SHOW has been undertaken which is an agency that helps in
promoting products or services for businesses. Here, advertising and promotion is been done
regarding launching new SMART PHONES under Technology section. Thus, plan is prepared
for integrated promotion strategy for business or product. It also helps in preparing budget,
creative and media selection that helps in measuring the effectiveness of their plan.
TASK 1
1.1 Communication process that applies to advertising and promotion
Communication is considered as the two way process that helps sender to send the
message to receiver and thus obtain feedback or response. Thus, within the advertising and
promotion it is essential for businesses to use effective communication channel so that potential
customers could be attracted. IDEAL HOME SHOW uses effective communication channel in
regard to promote its Smart Phones product in technology category and uses effective channel so
that sales and profits can be raised (Cheong, Gregorio and Kim, 2014). However, the main
purpose of carrying out communication process helps in delivering message to receiver and thus
gives feedback in regard to resolve the issues. Following is the communication process that helps
in applying advertising and promotion within cited firm such as-
 Sender- IDEAL HOME SHOW sends the message to their customers by using effective
advertising and promotional channel. It helps in encoding the message in the form of its
tag line and thus promotes the Smart Phones in market (Coaching, 2013).

 Receiver- It is another process that helps in carrying out communication channel and
receives the message of customers through different channels such as Facebook, websites
etc (Courtney, 2014). Here, customers play a crucial role in decoding the message and
thus use the information so that it could be communicated in an easy manner.
 Response- It is another channel in the process and that helps in obtaining responses of
clients as the product provided is up to their mark or not (Davis, 2011).
 Feedback- Within communication channel, feedback is one of the most effective channel
as it helps firm to get feedback regarding their newly launched product. Thus, IDEAL
HOME SHOW uses feedback from customers and thus emphasis upon the same in regard
to improve the product so that best quality Smart Phone could be launched in market
(Della Vigna and et. al., 2014).
 Noise- It is the last step and thus states as the noise occurred due to unplanned actions
carried out by certain clients and thus devalue the product from other rivals.
Figure 1Communication process
(Source: Communication Process is Key for a Successful Business, 2013)
1.2 Organization of advertising and promotions industry
Advertising and promotion is a very wide industry and thus it involves various
centralized system that involves different creative and innovative people in order to promote the
businesses in market. It requires such people who are involved in distributing agency and thus
promotes and distributes the products or services of different business to influence potential
customers (Kotler, 2011). For instance, businesses hires IDEAL HOME SHOW as it is an
advertising agency and promotes products of different businesses in the field of fashion,

technology, etc. Thus, cited firm has been hired by Technology Company in regard to promote
its new Smart Phones in market. They adopt effective way of promotion and distribution so that
Smart Phones distribution could be made easier.
The main purpose of hired agency such as IDEAL HOME SHOW is creating unique
brand image of businesses which contacts firm to make their product famous. Company uses
several ways of promotion such as organizing international events and thus launching the
products on such big platform (Madsen and Pedersen, 2014). Thus, IDEAL HOME SHOW aims
to prepare proper budget for advertisement which helps them to satisfy the needs of potential
customers. Advertising and promotion industry is very wide and thus it possesses the objective
of spreading information and knowledge to customers regarding products or services. IDEAL
HOME SHOW involves various creative people within its team and thus it spreads message
regarding new Smart Phone launch in technology category. However, it is essential for
businesses to involve such advertising agency because they possess effective market knowledge
and prepares promotion campaign which helps in communicating the information to target
customers (McDonald, 2007).
1.3 Regulation of promotion
Promotional activities contain high risk of failure and therefore, in such competitive
market it is essential for agencies to undertake certain regulation so that it does not affect any
other rivals. For instance, regulation or promotional activities depends upon the risk and thus it
impacts upon promotion activities of firm. Government makes certain regulation for protecting
advertising campaign launched by businesses in order to protect consumers as well as rivals from
affecting their brand or misleading information provided to customers (O'Guinn and et. al.,
Illustration 1: Features of advertising agency
(Source: Mullin, 2010)

2014). It is essential for businesses to undertake proper regulation activities so that they can
identify the market conditions and then launch new product in market. Regulatory authorities
prepares certain acts such as Consumer Rights Act, Advertising Standards Authority etc. in
regard to regulate the promotional activities of business. UK regulatory authorities help in
regulating and controlling the advertisement and promotion so that any type of fraudulent and
misrepresentation activities affect the business. Following are the different regulation that affects
advertising and promotion business such as-
 Committee of Advertising Practice- Such regulation helps in creating various broadcast
and non broadcast advertising practices and thus carries out the different advertising and
promotion activities so that it regulates the promotion of products or service (Parsons and
Ballantine, 2006).
 Advertising Standards Authority (ASA)- Further, such regulation is independent body
within UK media. Further, such regulation acts on complaints and take action against the
advertising agency that carries out fraudulent action against the media for providing
misleading information (Stafford and Faber, 2005).
1.4 Current trends in advertising and promotion and impact of ICT
Technology plays a crucial role in carrying out effective advertising and promotion
activities. Current trends within advertising and promotion are that businesses heavily rely upon
technology factor and thus it helps firm to enhance customer base. Through adopting innovative
technology such as ICT impacts upon advertising and promotion and thus deliver information to
consumers regarding Smart Phones in market (Sutherland and Sylvester, 2010). Cited firm uses
technology factor that and thus improves its market share by influencing large number of
customers towards Smart Phones. Now-a-days businesses use e-commerce websites for
promoting its products or services and thus popularize the products among youth. IDEAL
HOME SHOW undertakes international event program and thus launches the Smart Phones in
market.
The current trends in advertising and promotion are related to the implication of
technology in regard to communicate with the customers and enhancing brand image in market.
Currently business uses digital channel of promotion and thus promotes the business. IDEAL
HOME SHOW carries out effective advertising and promotion in business and thus reach
prospective customers. ICT needs to be implemented within firm as it assists them to integrate

within marketing communication channel and thus sends message to receiver i.e. clients in order
to improve performance of business (Talloo, 2007). It helps in launching Smart Phones in market
and influence youth towards new product with attractive features so that brand image of
company can be enhanced.
AIDAS model for communication
AIDAS considered as one of the old and most effective model in advertising. Ideal home
show planning to advertising and promoting the launching of new smart phone, here they need to
communicate their advertising to the target customer. AIDAS model is well enough model to
communicate the product to their customers. There are five stages consist in the AIDAS model:
Awareness- This is the first step of AIDAS model, which enforces the customer towards
the product. The awareness about the product is well spread than the product will easily get the
attention of the target customer.
Interest- Customer only buy those product in which they are interested in.It is important
for Ideal home show to spread the interest among the customer towards there product. They can
generate interest of customer through provide product information and special features.
Desire- Without the getting knowledge about the outcome or feedback a communication
process cannot be complete. It is important to figure out that whether the potential buyer develop
a positive or negative opinion about the product.
Action- Action refers to move the buyer towards the product so that they will make the
purchase decision. It can be achieve by giving a buyer choice of hesitation free contact.
Satisfaction- It is important for the proper communication that buyer is satisfied with the
product or not
TASK 2
2.1 Role of advertising in an integrated promotional strategy for business or product
Advertising play a crucial role in order to influence customers towards firm. It is
considered as the integrated promotional strategy for business or product and thus uses different
medium i.e. television, newspaper or internet to influence customers towards firm. IDEAL
HOME SHOW uses effective advertising technique and thus promotes Smart Phones in market

which helps in raising popularity of firm so that sales can be improved (Wong and Merrilees,
2010). Role of advertising within cited agency is crucial and thus it aids in attracting potential
customer base. Following are the different factors that helps in carrying out integrated
promotional strategy for IDEAL HOME SHOW which are described underneath-
 Raises product demand- It is one of the most crucial factors and thus raises product
demand among potential customers. However, it is essential for IDEAL HOME SHOW
to carry out effective advertising and promotion through launching international event
and thus it requires budget in regard to attract customers (Raupp and Ruler, 2000).
 Supporting social values- Further, advertising is also used for spreading social values
and messages to people living in society. Therefore, creative agencies are hired by both
government and businesses to make social messages and thus inform people about the
same (Sivesan, 2011).
 Discloses product information- It is the best way that helps in disclosing the
information of product or service in market. Thus, in regard to launch innovative product
i.e. Smart Phone, company needs to use advertising method through which information
could be shared among target customers (Wong and Merrilees, 2010).
 Competition in market- Further, advertising also helps in developing competition in
market and thus helps firm to sustain for long term. IDEAL HOME SHOW identifies the
competition in market and therefore advertises products or services in market (Shah,
2009).
The integrated promotional strategy will give a better platform to Ideal home show to
promote and advertise the product. For raising the product demand Ideal home show should use a
communication model. Supporting social values will make a positive picture of the Ideal home
show and their product. Disclosing the product which is smart phone will increase the trust level
of the customer. It is important for Ideal home show to identify the competition for the better
strategy development purpose.
2.2 Branding and how it is used to strengthen a business or product
Branding is considered as the process that helps in developing a unique image of business
and thus improves firm’s performance in market. However, through developing branding of any
product or service it helps in influencing potential customer base towards firm. IDEAL HOME
SHOW develops effective branding which helps them to create differentiation image of product

in the minds of customers and thus enhance loyalty among customers (Fourie and Ball, 2012).
Branding helps firm to recall the product or service and thus create unique image as compared to
competitors. IDEAL HOME SHOW carries out branding through organizing international events
for launching any new product or service within different categories such as fashion, technology
etc. There are different ways that helps branding in strengthening the product or service which
are as follows-
 Attaining loyalty of clients- With the help of developing branding within business it
helps in attaining satisfaction among customers. IDEAL HOME SHOW creates loyal
customers through providing them benefits about the new Smart Phone in market (Delre,
2006).
 Enhances level of competition- Further, branding also aids in increasing level of
competition and thus it helps in enhancing sales of firm. Thus, it helps cited advertising
agency to win trust of customers and thus gives tough competition to rivals in market
(Boone and Kurtz, 2011).
 Creating good impact on non-buyers- Trough developing effective branding of
products or services it helps business in creating positive impact on non-buyers and thus
they are influenced to purchase the product (Cheong, Gregorio and Kim, 2014).
 Strong branding affects new entry of competitors- IDEAL HOME SHOW creates
effective branding of the products or services promoted by them which affects the entry
of new rivals in market. It invests heavily in promotional budget and thus creates strong
brand image so that desired results can be attained (Coaching, 2013).
Attaining loyalty of the client will definitely increase the sale of the product which Ideal
home show are promoting. Adequate branding of the company will enhance the competition in
the market which will be helpful in increasing the sales of the firm. Ideal home show should
consider the fact that non buyers mentality can affect the image of the product.
2.3 Creative aspects of advertising
Following are the different creative aspects of advertising which are discussed
underneath-
 Enhancing communication- Advertising is one of the creative aspects adopted by firm
that helps in improving communication among potential customers. Preparing effective
communication brief helps IDEAL HOME SHOW to inform regarding advertising and

promotion to different stakeholders such as customers, businesses, employees,
shareholders etc (Courtney, 2014).
 Creative brief- Further, it is another creative aspect adopted by IDEAL HOME SHOW
that helps in designing the promotional event and thus launches the Smart Phone in
different forms such as visuals, audios etc (Davis, 2011).
 Brand strategy- It is one of the useful technique in order to create effective brand image
and thus make effective use of strategy in regard to influence target customers towards
Smart Phones (Della Vigna and et. al., 2014).
 Online media- Further, it is one of the effective creative aspects of advertising and thus
promotes products or services through online medium as compared to other form of
advertising. It uses Facebook, Twitter, YouTube etc. in regard to promote businesses and
inform target audience about products or services and enhance brand image of firm so
that target customers could be enhanced (Fourie and Ball, 2012).
 Ad Copy- It is another form of advertisement and promotion and thus businesses need to
pay digital channels for promoting their products or services on their websites. Thus
adding certain keywords to products helps individuals when they search for desired
product and thus obtains the same helps in raising market share (Kotler, 2011).
2.4 Ways of working with advertising agencies
It involves different ways of working with advertising agencies which are as follows-
 Merging- It is one of the effective way of working with advertising agency. However, it
is essential for businesses to sign a merging contract between advertising agency and firm
they need to develop an effective advertising and promotion campaign for new product or
service launch in market (Madsen and Pedersen, 2014). IDEAL HOME SHOW is an
effective advertising agency that merges with businesses in regard to develop creative
advertising and thus launches products or services in different categories to influence
target customers. Thus, mergers between such firms help in creating direct contact with
creative people so that appropriate results can be attained.
 Partnership- Cited firm also develops partnership with businesses in regard to
effectively carry out working and thus create advertisement in order to overcome rivals. It
carries out short, middle and long term partnership contract that helps in executing the
business functions (McDonald, 2007). Further, it is essential for businesses to agree upon

the terms and conditions formed by advertising agencies in regard to carry out working
and obtain profits in market.
 Acquisition- It is another method of working with advertising agency and thus promotes
the products or services in market. IDEAL HOME SHOW acquires different creative
people and thus works with them in regard to promote and advertise Smart Phones in
market (Mullin, 2010). Thus, it helps in developing relationship among business and
carries out partnership with advertising agency so that innovative and creative concepts
can be developed in regard to attain brand image in market.
TASK 3
3.1 Primary techniques of below the line promotion
There are different types of promotional techniques i.e. below the line and above the line.
Here, below the line promotional techniques has been used which refers to the form of non
media advertising. Now-a-days they are becoming more useful because of increasing prices of
media based promotions. Following are the different primary techniques of below the line
promotion which are as follows-
 Promotional pricing- It is effective technique that helps in increasing sales promotion
and thus offers short term price reduction. However, it means that when product selling
price lowers, it would directly impact upon the demand of products or services.
 Exterior location- IDEAL HOME SHOW carries out below the line promotion and thus
organizes international event program at exterior location around the world in order to
launch Smart Phone.
 Sponsoring events- Cited agency also sponsors promotional events and thus it helps in
influencing businesses to carry out their businesses with them so that it helps in raising
brand image in market.
 Public relation- Further, carrying out effective promotion and advertising helps in
maintaining public relation so that brand reputation of firm could be raised. However, it
is non paid form of promotion and thus cited firm uses such method in regard to promote
the Smart Phones in technology section. Managers of firm use promotional events and
develop relations with customers in regard to provide them information about products or
services so that success can be attained.
 Direct marketing- It is another form of marketing and thus carry out promotion through