Comprehensive Analysis of Zara's Advertising and Promotion Strategies

This report provides a comprehensive analysis of advertising and promotion strategies, focusing on the context of Zara. It begins by outlining the communication process involved in advertising and the structure of the advertising and promotion industry, including regulations and current trends. The report then delves into the role of advertising in promotional strategies, the importance of branding, and the review of advertising creativity. It also examines how advertising agencies operate. Furthermore, the report explores below-the-line promotion techniques, budget formulation, promotional plan development, the integration of promotional techniques and strategies, and the measurement of campaign effectiveness. Overall, the report offers insights into Zara's advertising and promotion strategies and their effectiveness.

Advertising and promotion

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Communication process that is involved in advertising and promotion...............................1
1.2 Structure of advertising and promotion industry..................................................................2
1.3 Regulation of promotion.......................................................................................................2
1.4 Current trends of promotion and advertising........................................................................3
TASK 2............................................................................................................................................3
2.1 Role of advertising in the promotional strategies.................................................................3
2.2 Strengthening of the business with the used of branding......................................................4
2.3 Reviewing the creativity of advertising................................................................................4
2.4 Manner in which work is carried out in agencies.................................................................5
TASK 3............................................................................................................................................5
3.1 Primary techniques that are used in below line promotion...................................................5
3.2 Other techniques in below line..............................................................................................6
TASK 4............................................................................................................................................6
4.1 Process of formulation of budget..........................................................................................6
4.2 Development of the promotional plan...................................................................................6
4.3 Integration of promotional techniques and strategies...........................................................7
4.4 Measurement of effectiveness of the campaign....................................................................7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
In the competitive environment, advertising and promotion is the main activity that
should be taken into consideration so that all the potential customers can be attracted. It is
important to do this because there are many customers who want to avail the services and
products but are not aware about them (Armstrong and Taylor, 2014). By advertisement the sales
if the company will be increased. In this report the manner in which it should be performed and a
plan will also be presented in this regard in context of Zara. The techniques which are required
so that the measurement of effectiveness can be done will also be discussed in this report.
TASK 1
1.1 Communication process that is involved in advertising and promotion.
Communication is the aspect that should be given great focus so it is required that proper
system should be established. In this the company will be required to inform the customers in
relation to the product offered by them by help of message (Boxall and Purcell, 2011). The
whole process in relation to communication will be involving four major elements which are
receiver, sender, then a message should be there together with the communication channel
required to transmit it. The channel that will be used to transfer the message is known as media.
The message is required to be encoded in symbolic manner which include words, signs but
before this it will be needed that purpose of the message should be clearly understood by the
sender. Then decoding will be done so that sense can be made out of the symbols. it will be
considered as success only when the message in understandable to the receiver and then after
that they will provide their response in relation to it and that will be known as the feedbacks.
There are various factors which should be taken care off as they will affect the process which
will include competition, economic and socio cultural aspects and also the legal framework that
will have to be complied with. The persons to whom the information is to be communicated will
be identified so that promotion can take place in the correct direction. All of these will be done in
the whole process and feedbacks will be asked so that further improvement can be made in it and
marketing can be done in most efficient manner.
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1.2 Structure of advertising and promotion industry.
The structure that is present in advertising and promotion industry is very complex. All
the companies that are involved in this are divided into four categories which will performing
their share of responsibilities. Those four parts are:
 Advertising agencies: These are the companies which carry out the plan that will be
used in promotional campaigns by which the product will be advertised to the customers
(Bratton and Gold, 2012). The suitable channel will be identified by them and then they
will be contacted to buy the required media. The creative work will be performed by
them and all the business strategies will be understood and carried out.
 Client: These are those who needs to promote their product and for that they require the
services of the agencies. For this purpose they can themselves use the service of their
employees in the formulation of the plan or can also hire the agency for it and this will
depend on their wish. The marketing and promotional plan will be integrated by them and
also the campaign that will be undertaken will be controlled so that quality of it can be
maintained.
 Media suppliers: They are required so that the product or the brand can be promoted on
large scale and for that there are various media channels which are present such as
television, newspaper, radio, magazines and many other measures (Brewster and
Hegewisch, 2017). They will be choosing the best channel and by this the revenue of
these media suppliers will be increasing. It can be said that by this more customers will
be attracted and so this will prove to be beneficial for both the channel as well as the
client.
This is how the industry works and these are elements that are included in its structure.
1.3 Regulation of promotion.
In order to regulate the promotion there are mainly three methods that will be used which
are as follows:
1. Federal regulation: In any industry there are many regulations that have been stated
which are to be followed by all (Guest, 2011). They are made by federal trade
commission and it will also be helpful in enforcement of antitrust laws. With the help of
them the consumers will be saved from physical and economic loss.
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2. Self regulation: With the help of self regulation it will be possible for the industry that
the confidence of the customers is maintained and also by this interference from the
government will be controlled. This can be done with the help of advertisers, media and
trade association. But this has some of the demerits which are that it will require time and
also staff will be required in which also0 lot of cost will be incurred.
3. State regulations: There are various laws which are state or local and are required to be
complied with the by the advertisers. In this various regulations are developed by the
authority which will also be including the sales promotions laws like trade allowances.
1.4 Current trends of promotion and advertising.
In the changing world the taste of the customer and the technology keep on changing and
in order to maintain the balance with that it will be required that the views of businesses should
also be changed (Chelladurai and Kerwin, 2017). In order to meet the preferences of the
customers it will be needed that the new and advanced techniques should be introduced. The
modern way that is used by the business is the information and communication technology. In
the current economy the technology is the aspect on which all advertisement, promotion and
communication are depended. So all the business are now focusing on using the advanced
technology as by that they will be able to deal with the competition and also their profits and
value of stock will be increased. The main reasons due to which are being increasingly used by
the organisation are that they are easy to be used and also less time will be consumed as speed
will be fast so it is becoming common among the public. For the working of it internet, e mail
and other e measures will be used and an example of it can be the websites which are now a days
becoming common and on them all the products are available together with the specification.
People will have the option to choose from and then buy so the process will make the purchasing
easier from them.
TASK 2
2.1 Role of advertising in the promotional strategies.
In a business there are various objectives for the fulfilment of which it will be required
that proper advertising should be undertaken. There are certain cost that will be incurred in
relation to the service of advertisement that has taken place. With the help of this the brand
image will be improved and this will be beneficial for the business in the long term. There are
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various strategies that will be used in the business in them objectives that are to achieved will be
specified (Huselid and Becker, 2011). It will be included in it that awareness should be created
so that customers will be knowing about the product and this is promotion. Advertising will also
help in creation of the good impression by which the strategies will be implemented in the most
appropriate manner. It will be required that new services such as trial facility and motivating the
staff to work in proper manner should be used. The needs of the customers should be identified
and satisfied and also their perception should be changed regarding the matters which will affect
the company in any manner.
2.2 Strengthening of the business with the used of branding.
Branding is the method by which the loyalty of the customers is gained and their trust on
the products of company will be established. There are various aspects that re involved in
marketing such as people (Kehoe and Wright, 2013). Product, advertisement and others and all
of them on the combined basis will be known as branding. It is the habit of the customers that
they purchase that product about which they will be having knowledge so it is important to create
good image. In addition to the customers, shareholders and employees will also influenced by
this and this is because the goodwill of the company will be increased by which the trust of them
will be gained and they will be willing to invest more.
According to the general rule of demand it decreases with the increase in the price but
with the help of branding the customers will be willing to pay more amount also for the goods
which will be liked by them. The recognition of brand is done with the help of logo or the name.
With the help of them unique image will be created by which competition will be faced in the
best manner and company will be able to take the advantage of it as there will be some client that
will be made on permanent basis and by this the overall profitability will be increased.
2.3 Reviewing the creativity of advertising.
In the advertising the most important aspect that should be considered is the creativity
and this is because of the reason that by this the attention will be achieved and the customers will
be getting positive views in relation to the product (Scullion and Collings, 2011). As the needs of
the consumers are changing so it will not be easy for the company to attract the customers and
for that good advertising will be required to be done. In this it will be needed that creative
process should be undertaken by which the consumers will be attracted to watch the add and then
it should involve some creative people with the help of whom creative ideas will be introduced
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and lastly such situations should be created by which it will be like the imagination of the
consumers is going to become true.
By undertaking all of them it will be ensured that the promotion that is being done by the
company with the help of advertisement will be able to bring to the firm various benefits by
which the value of it will be improved.
2.4 Manner in which work is carried out in agencies.
Only the provision of the goods is not enough as until the customers will be aware about
the new products how will they purchase them (Barney, Ketchen and Wright, 2011). For this
purpose it is required that proper advertisement should be undertaken and for that service of
agencies will be availed. In order to achieve the benefit good relation will have to be made with
them.
For that it will be needed that flexibility should be maintained so that the purpose for
which the services are taken can be achieved. It should be taken care of that the manner in which
the work should be done by the advertising agency will be correct and the company should not
interfere in between them. Different people will have different opinion and for that it will be
required that conflicts should be removed by appointment of a person who will be working
directly with them. Sometimes research is also to be conducted as by that the views of the
customers will e known and the promotion will be done in the area in which the chances of
attracting them are high.
TASK 3
3.1 Primary techniques that are used in below line promotion.
If the response is generated on instant basis and that too for short duration of time then it
will be known as below the line marketing. There are various techniques that will be used in this
which will include the incentives that are provided to the buyer and seller (Zheng, Yang and
McLean, 2010). Together with them various other benefits such as discount, gifts and all will be
provide to those who will be purchasing the product and by this large number of customers will
be attracted. In this such approaches will be used by which the customers will be approached in
more direct and quick manner. There is always a target group which will be required to be
focused and for that connection will have to be maintained with them.
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All the activities in this will be performed by the company itself and for this the
techniques that will be used will include direct mails will be sent to customers in order to inform
in about the products. The product can be sold by them by going from door to door and this will
be helpful in establishing communication. All of them will be the methods that re covered under
below line promotion.
3.2 Other techniques in below line.
In the process of promotion the main aspect that should be covered is the innovation as
this is the way by which the new ideas will be formulated which will help in attracting the
customers (Decker, Riley and Siemer, 2012). By this additional advantage will be gained over
and above the other competitors that are present in the market. For this there are various other
techniques which are developed. Coupons will be used as by them attentional will be gained but
there sometimes negative impact also of this as it is taken as scheme by the customers. Free
samples will be provided and also discounts will be provided to the consumers and by this the
sale will be increased and then company will be making more profits. Loyalty of the customers
will be gained by launching various programmes and this will be helpful in retaining the
customers in long run.
TASK 4
4.1 Process of formulation of budget.
Budget is required in all the organisations as this is the plan in which it is specified that
what all activities are required to be performed so that the required objective is achieved and also
the amount that should be expended will also be mentioned in it (Tarique and Schuler, 2010).
With the help of the budget that is prepared about promotion, effectiveness will be maintained in
those activities. There is process that will be followed which will include that goals should be
defined and then information in relation to sources of finance will be collected. All these will be
recorded so that challenges can be determined and plan will be implemented and at last the plan
will be required to be evaluated so that the control can be established over the budget.
4.2 Development of the promotional plan.
In order to increase the sales it will be required that promotion should be conducted so
that customers can be attracted and for this it will be required that proper promotional plan
should be made (Farndale, Scullion and Sparrow, 2010). By this the competition will be dealt
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with in the best manner and company will be able to survive in the market. In the plan the focus
will be provided on following aspects:
 Firstly it will be needed that effective communication should be established so that the
details of the product can be provided to all on the timely manner.
 The sales will be increased by undertaking the promotional activities in this department
by providing incentives in short term and this will also be considered to be included in
the plan.
 The establishment of good relation among the public and company is also required and
for that efforts will be made that should be used to develop the understanding.
 If the company requires to promote its product and services on large scale the it will be
needed to use such means of advertising by which this will be made possible such as
television.
4.3 Integration of promotional techniques and strategies.
There are various techniques that can be used in order to establish the brand name and
attract the customers and for this activities will be designed (Romney and Steinbart, 2012). The
main aim will be achieved by using any of the method as it will remain same. In order to achieve
the more effectiveness and efficiency the techniques will have to be converted into strategies and
for this their integration will be needed. Programmes and seminars can be conducted in which
information will be provided and all the general community will be allowed to be involved in it.
The research will be conducted with the help of which target market will be identified and also
the websites will be developed to provide the relevant information and make the process easy for
all.
4.4 Measurement of effectiveness of the campaign.
The sales promotion of any product will be improved with the help of the campaign and it
is needed that proper evaluation should be done in this regard. It is requires because by this it
will be identified tat whether the outcomes which are achieved are proper or not and if any
correction is required to be made in it to increase the effectiveness. For this the sales will be
compared so that it can be identified that how many people have shown their interest. The
coupons that are distributed will be counted and the people who have visited will required to be
researched. Customers will be asked about their reviews and for this feedbacks forms an be used
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so that corrective actions can be made and it will also be helpful in the process of preparation of
new plan.
CONCLUSION
From the above mentioned report it can be concluded that advertisement and promotion
are the important aspect that are to be considered by all the companies so that they can boost up
their sales. By this their profitability will be enhanced. In this there are various techniques which
will be used and are described above. For this proper communication should be maintained and a
plan is also made by which the objectives will be achieved. Budget is also to be made for the
proper completion of the activities.
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REFERENCES
Books and journals
Armstrong, M. and Taylor, S., 2014. Armstrong's handbook of human resource management
practice. Kogan Page Publishers.
Barney, J. B., Ketchen Jr, D. J. and Wright, M., 2011. The future of resource-based theory:
revitalization or decline?. Journal of management. 37(5). pp.1299-1315.
Boxall, P. and Purcell, J., 2011. Strategy and human resource management. Palgrave Macmillan.
Bratton, J. and Gold, J., 2012. Human resource management: theory and practice. Palgrave
Macmillan.
Brewster, C. and Hegewisch, A. eds., 2017. Policy and Practice in European Human Resource
Management: The Price Waterhouse Cranfield Survey. Taylor & Francis.
Chelladurai, P. and Kerwin, S., 2017. Human resource management in sport and recreation.
Human Kinetics.
Decker, D. J., Riley, S. J. and Siemer, W. F. eds., 2012. Human dimensions of wildlife
management. JHU Press.
Farndale, E., Scullion, H. and Sparrow, P., 2010. The role of the corporate HR function in global
talent management. Journal of world business. 45(2). pp.161-168.
Guest, D. E., 2011. Human resource management and performance: still searching for some
answers. Human resource management journal. 21(1). pp.3-13.
Huselid, M. A. and Becker, B. E., 2011. Bridging micro and macro domains: Workforce
differentiation and strategic human resource management.
Kehoe, R. R. and Wright, P. M., 2013. The impact of high-performance human resource
practices on employees’ attitudes and behaviors. Journal of management. 39(2).
pp.366-391.
Romney, M. B. and Steinbart, P. J., 2012. Accounting information systems. Boston: Pearson.
Scullion, H. and Collings, D., 2011. Global talent management. Routledge.
Tarique, I. and Schuler, R. S., 2010. Global talent management: Literature review, integrative
framework, and suggestions for further research. Journal of world business. 45(2).
pp.122-133.
Zheng, W., Yang, B. and McLean, G. N., 2010. Linking organizational culture, structure,
strategy, and organizational effectiveness: Mediating role of knowledge management.
Journal of Business research. 63(7). pp.763-771.
Online
Human Resource Management. 2017. [Online]. Available through:
<https://www.northumbria.ac.uk/study-at-northumbria/courses/human-resource-
management-bahons-uushur1/>. [Accessed on 15th July 2017].
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