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Q1.1 Explain the communication process that applies to
advertising and promotion of the
newly developed calling cards.
Marketing strategy is immerged from the corporate strategy of an
organization. Marketing
strategy is most likely then changes into a strategic plan to
achieve the organization objectives by
exploiting the market opportunities. Generally the objective f
an organization is to make profit
and its possible only when the organization will be able to
maintain thorough communication
with the target market. Thats why set up and maintains a
marketing communication process is
obvious.
Traditional marketing communications has focused on the creation
and execution of printed
marketing collateral. But in modern time academic and
professional research developed the
practice to use strategic elements of branding and marketing in
order to ensure consistency of
message delivery throughout an organization. Now-a-days, the
communication process always
follows the following steps-
Sender encoding - transmission decoding and then receiver, which
is part of any advertising
or marketing program.
Encoding the message is the second step in communication
process, which takes a creative idea
and transforms the message into attention drawing advertisements
designed for various media
television, radio, magazines, and others. Messages reach to the
customer via different channels.
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The third stage of the marketing communication process occurs
when a channel or medium
delivers the message. Decoding occurs when the message reaches
one or more of the receivers.
Consumers both hear and see television ads. Others consumers
handle and read a coupon offer.
Sometimes obstacle or barriers could have been occurred and
interrupt the process. One obstacle
that prevents marketing messages from being efficient and
effective is called barrier. The most
common form of noise affecting marketing communication is
clutter or confusions.
Generally companies use one or more than forms from the
following fours to communicate with
the market. So we can say that there are four basic forms of
marketing communications. Such as-
Advertising
Advertising is the most viable elements of the communications
mix. It uses the mass media as
television, newspaper, radio, magazines, bus holdings and
billboards. Advertising is particularly
appropriate on sending the same promotional message to the large
and geographically dispersed
markets and large audience. Companies considered it as strategic
marketing tools because the
objectives of the advertisements are only realized in the longer
term.
Sales promotion
Companies use sales promotion as short-term incentives. Some
forms of sales promotions are
free gifts, discount coupons or buy one get one free. Sales
promotion targets either consumers or
the distributors and channel members. Therefore, it is tactical
marketing tool.
Public relations
In an organization contrast public means customers, suppliers,
stockholders, employees, the
government and the general publics. Maintaining public relation
means to keep up a good
relationship with all the stakeholders the objects of the public
relations tend to be border than
other components of promotional strategy. It concern with the
image of the organization rather
than the product or services. Public relation derives an
indirect approach to promoting an
organizations products or services. Thats why companies are
diverting with their promotional
campaign towards to the public relations than to publicity.
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Personal selling
Personal selling is used in both consumer and industrial
marketing and is a dominant form of
marketing communication. Personal selling is an interpersonal
influence conducted on person to
person basis with the prospective buyers.
Advertising and promotional mix for newly develop calling card
as a communication
process
Calling card is product which provides assistance to the people
to communicate at abroad either
independently or by integrating with the local mobile phone
service and BT. To formulate a
suitable communication mix we need to find our target customer
and their nature. So far we
know that calling cards are mostly used by the overseas people
to communicate in their home
country. A large number of UK populations are migrated from
different country especially from
India and south Asia and large number of different ethnic people
lives in east London as Indian
Bengali, Pakistani, and Nepalese and so on. Though people have
so many different ways to
communicate with people at different part because of the
technological advancement but still
most of the people prefer to use calling card because of comfort
ability. So it is a great
opportunity for the newly developed calling card to capture the
market with reasonable
communication and promotional mix. Advertising is the most
powerful component to draw the
attention of the consumers but we have to keep it in mind that
local people hardly use calling
card and it will be totally waste to arrange advertisement in
every single media. Our target
market is Asian ethnic people and the appropriate advertisement
will be Indian or Bengali TV
channels and the newspapers published in their own language. We
can do leafleting to make sure
to reach the every single customer. We know that this market is
price sensitive and they always
expect most utility with the low price, so we can provide double
munities to the user of our card
as promotional offers. Because there are so many others calling
card company running their
business here and competition is very high. In this situation
personal selling will play vital role to
capture the market by making and maintain good relationship with
the card dealers, whole seller
and the retailer. For this purpose we need to recruit and built
a strong sales team with a positive
attitude, aggressive business mentality and high ambition.
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Q1.2 Explain the organization of the advertising and promotions
industry in the UK.
Advertising is a form of communication for marketing and used to
encourage, persuade, or
manipulate an audience to continue or take some new action. Most
commonly the desired result
is to drive consumer behavior with respect to a commercial
offering, although political and
ideological advertising is also common. The most common forms of
organizations which are
responsible for the advertising and promotion activities in UK
are as follows:
Advertising Standards Authority
The ASA is the self-regulatory organization of the advertising
industry in the United Kingdom.
The ASA is a non-statutory organization and so cannot interpret
or enforce legislation. However,
its code of advertising practice broadly reflects legislation in
many instances. The ASA is not
funded by the British Government, but the duty of the
organization is to regulate the content of
advertisements, sales promotions and direct marketing in the UK.
To investigate complaints
made about ads, sales promotions or direct marketing and
deciding whether such advertising
complies with its advertising standards codes. The objectives of
the organization is to make sure
that no marketing communication should be mislead or be likely
to mislead, inaccurate, doubtful,
or overstated.
European Federation of Sales Promotion
The European Federation of Sales Promotion (EFSP) was founded in
1980. It is a forum for
countries across Europe to meet, exchange ideas and work
together. It also enhances the
reputation and promotes the highest standards of the Sales
Promotion industry in Europe. It
maintains two main areas of activity are lobbying and annual
awards.
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European Association of Communications Agencies
The objectives of the European Association of Communications
Agencies (EACA) are to
represent full-service advertising and media agencies and agency
associations in Europe. The
aim of EACA is to promote honest, effective advertising, high
professional standards, and
awareness of the contribution of advertising in a free market
economy. Its also work for
encourage close co-operation between agencies, advertisers and
media in European advertising
bodies.
European Federation of Sales Promotion
The European Federation of Sales Promotion (EFSP) was founded in
1980, and changed its
name to the Promotional Marketing Council of Europe in September
2002 when it became a part
of EACA (the European Association of Communication Agencies).
This organization deals with
the sales Promotion in Europe.
Promotional Marketing Council of Europe
The PMC is an organization that represents the Sales Promotion
industry across Europe
including clients, agencies and suppliers. Member countries are
France, Spain, Portugal, UK,
Germany, Belgium, Netherlands, Italy, Ireland and Austria and
the membership of these
organizations accounts for an estimated 80 % of the sales
promotion business in those countries.
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Q1.3 Access how promotion is regulated in UK.
The UK marketing industry recognized the need for trust in
advertising when it setup the
advertising self-regulatory system for non-broadcast advertising
in 1961. Since then, the UKs
system of self-regulation has helped to ensure advertising
remains responsible. Honest
advertising helps to keep customers coming back. The 11th
edition of the British Code of
Advertising and Sales Promotion came into force on 4 March 2003.
The purpose of the Code is
to maintain the best and most flexible way possible, the
integrity of marketing communications
in the interests of both the consumer and the trade.
Advertising in the UK is controlled through a combination of
codes of practice and legislation.
There are two advertising codes which are created, monitored and
revised by two committees.
These are the Committee of Advertising Practice (CAP) and the
Broadcast Committee of
Advertising Practice (BCAP).
The CAP Code deals with the non-broadcast advertising, sales
promotion and direct marketing.
The BCAP deals with the rules for broadcast advertising. These
are enforced where necessary by
the Advertising Standards Authority (ASA).
Since 28 February 2011, Broadcasting regulations rules have been
relaxed to allow product
placement, paying to have a product or service included or
referred to few selected types of TV
broadcasts. This includes:
films
series made for TV or other audiovisual media services e.g.
video on demand
sports programs
light entertainment shows
However, product placement isnt allowed for certain types of
goods, and its banned completely
in all childrens, news, current affairs, consumer affairs and
religious programming.
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Q1.4 Examine current trends in advertising and promotion,
including the impact to ICT in
the UK.
International calling card service is one of the most important
categories in the delivered
overseas ethnic market markets. It is contributing lots of sales
in recent time through independent
retail, wholesaler and card companies. It is a category
maintaining momentum through creative
marketing and promotions, new product developments with suitable
promotional offers.
The current trends in advertising and promotion activities which
are going at the UK market
thats depends on the following reasons-
Allowing a lots people to enter and live in UK.
Increasing trends of global communications among the
citizens.
Encourage the new generation to think globally.
Increasing tendency to utilize the promotional offers provided
by the companies.
The advertising of different types of calling card service at
the different level of
customers.
The ideas of new advertisement program which takes by the
different advertisement
companies.
The impact of ICT on advertising and promotion are as
follows-
Now a days advertisement is done by the different ICT programs
such as by the
broadcast, by internet. But the misuse of this there is several
impacts is going on the
product advertisement.
There are some impact is create for the change of ICT use at the
advertisement.
For the revulsion of use ICT at the advertisement and promotion
activities are create
new dimension at this sector.
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Q2.1 Explain the role of advertising in an integrated
promotional strategy for the newly
developed calling card.
Advertising really plays a big role in Calling Cards success.
Its advertising has been rather
pervasive as one of the stated goals of communications industry
was to ensure that everyone in
used calling card as an easy and reliable means of communication
in abroad. Advertising for
calling card or cheap line rental to call abroad is now almost
everywhere, especially in east and
north London area where a large number of overseas people
belongs to. The most popular words
in these area at the moment is talk as much as you want anywhere
of the world. About 90% of
overseas people relay on calling card to communicate with their
relatives. Thats why companies
are appending lots of money in advertising and promotion of
calling cards business.
There are five main ways of promoting the newly developed
calling card-
The first one is traditional advertising, like showing
advertisements on TV or
posters.
The second one is the sponsoring of sport events.
The third one is online promotion.
The fourth one is allowing customers use card on a trial
basis.
The fifth one is local promotion held by retailers.
Although the main advertisements in every country still follow
this strategy, especially using the
local stars to attract young customers, Calling card companies
begun to use computer technology
to make cartoon images which matches local culture or just
funny.
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Q2.2 Explain branding and how it is used to strengthen a
business or product. Use suitable
current examples from the real world.
Branding is the building of trust with employees, customers and
stakeholders. In marketing
terms, the definition of branding is the sum total of a companys
value, including products,
services, people, advertising, positioning and culture. Brands
give potential clients a firm idea of
what they are buying before they buy it, making the purchasing
decision easier. Customers trust
strong brands because they know what to expect.
The most important reason is that it can help increase the sales
of Calling Card.
This means that when need to increase prices then the target
audience will be
accepting of price increase.
Branding also encourages confidence and trust in
product/service. Brandings
introduce new products at the newly face at the market level
also its increase the
customers attraction for the new products at the market.
It should reflect through the use of logo, name & stripling
brand values. It
should clearly communicate with name and/or product or service.
Different
famous brand as Nike, Coca-Cola, McDonalds and Pizza Huts
follows this for its
branding such the logo and the color combination of logo.
The identity should be applied consistently across all media for
example its
color and its positioning on a page or screen should remain
familiar across all
marketing material.
If consider partnering with other companies, ensure that the
brand and brand
identity reflect theirs and vice versa.
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Q2.3Review the creative aspects of advertising such product as
calling card.
Pre-paid calling cards allow consumers to purchase credit for
phone calls, which they access via
a PIN printed on a card. Primarily this product is used to make
international calls. This product
has received very little attention from regulators and
academics. Complaints statistics from the
Telecommunications industry Ombudsman (TIO) are usually used to
identify problem products
in the telecommunications market but complaints for calling
cards remain low. A close
examination of qualitative evidence shows that TIO statistics
are a poor indication of consumer
detriment experienced with pre-paid calling cards due to the
nature of the product, difficulty of
lodging a complaint and key groups of consumers who use calling
cards. Noting a lack of
quantitative evidence on calling card advertising, use and
customer service, ACCAN
commissioned this work to explore the consumer experience of
calling cards. Research was
conducted in three stages: point-of-sale use of the product and
complaints mechanisms. ACCAN
commissioned ACA Research, a market research consultancy
company, to conduct market
research, product testing and desk research for this project.
Findings show that consumers
looking to buy a pre-paid calling card are essentially
participating in a lottery. With little quality
information available at the point-of-sale there is a chance
that they will purchase a good quality
card which offers hundreds of minutes of talk time but it is
more likely that they will end up with
a card that offers poor value for money.
Key findings include:
Only 28% cards had any sort of in-store information about rates,
terms and conditions.
Only 17% of cards had easy-to-find information in stores.
94% of salespeople could not give the customer any information
about calling rates,
100% of salespeople could not provide information about terms
and conditions.
40% of cards had significant quality problems including failure
to activate, poor call
quality and instances where the number of minutes provided was
significantly less than
the number advertised.
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No cards actual rate per minute matched the advertised headline
per-minute rate. The
average actual rate per minute was 46.78 cents with an average
of 22.04 cents difference
between the advertised and the actual rate.
This research paints a picture of a market in need of
intervention. The non-compulsory pre-paid
Calling Card Industry Guideline has failed to protect consumers
and sporadic ACCC
enforcement action, while effective in some ways, is
insufficient to ensure that all calling cards
advertise products in a clear manner.
Ultimately, the market should work well not just for consumers
but also for calling card
providers who offer quality products. Currently it is difficult
for consumers to identify some of
the cards on the market which offer exceptional value, sometimes
greater value than online
VOIP products with simple terms and conditions.
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Q2.4 Examine ways of working with advertising agencies in
UK.
Companies work hard to ensure they provide premier goods and
services to their markets. Small
to mid-sized businesses use advertising agencies to help them
relay their messages to the public.
Though outsourcing means using the services of a separate
entity, it is important to foster good
relations with them so the relationship becomes mutually
beneficial.
Be flexible
Know where you want to be, but be flexible in getting there.
Remember why you sought the help
of an advertising agency in the first place. Dont assume you
have all the answers.
Its technical
There is a science behind advertising. How colors collaborate,
words work with pictures, etc.
contributes to the effectiveness of advertising. Understand you
may desire a certain look, but
advertising agencies hold the expertise; they know how best to
advertise for your company.
Have one liaison
You may be accustomed to discussing business matters with
several people or a board. When it
comes to advertising, people host different opinions making it
difficult to arrive at a final
decision. Advertising agencies recommend appointing one person
to work with them directly.
This eliminates conflicting views that discourage agencies from
working with you further.
Know your customers
Successful businesses sometimes assume they know their customers
because their
products/services sell very well. This is a common mistake.
Advertising agencies may suggest
conducting market research to understand how to reach your
customers. This will cost more, but
will be advantageous to your advertising campaign as a
whole.
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Q3.1 Explain primary techniques of below-the-line promotion and
how they are used in an
integrated promotional strategy for a product like calling
card.
The terms below the line promotion or communications refers to a
forms of non-media
communication, even non-media advertising. Below the line
promotions are becoming
increasingly important within the communications mix of many
companies, not only those
involved in FMCG products, but also for industrial goods.
Below the Line uses less conventional methods than the usual
specific channels of advertising to
promote products, services, etc. than Above the Line strategies.
These may include activities
such as direct mail, public relations and sales promotions for
which a fee is agreed upon and
charged up front. Below the line advertising typically focuses
on direct means of
communication, most commonly direct mail and e-mail, often using
highly targeted lists of
names to maximize response rates.
Another interesting and very effective BTL is Sop Intercept.
Trained sales personnel, often
young women, are deployed at Retail Stores, near the shelves of
targeted products. These young
women convince customers visiting these shelves about the better
aspects of their brand
compared with others. This is ideal for new launches as it
generates trials, which if successful
result in repeat sales.
There are so many different calling card services within UK.
Advertising agencies are
responsible for their promotional add. One of their
responsibilities is developing new brands and
extending existing brands. The sustainable growth of the calling
card services system depends on
the ability to work effectively together through collaboration,
mutual support and shared goals.
The system strengths lies in coca cola routes-to-market and our
ability to help the customers
grow their businesses, continually enhancing the value of brands
to both customers and
consumers. In order to continually grow business of calling card
Company needs to be
increasingly efficient in use of resources. Below-the-line
promotions are becoming increasingly
important within the communications mix of many companies, not
only those involved in
individual products, but also for industrial goods.
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Q3.2 Evaluate other techniques used in below the line promotion
for similar product in the
UK market.
To find an appropriate answer for this question we will review
the example of Coca-Cola
advertising strategy in UK. The Coca-Cola Company is not a new
company to achieve the
below-the-line promotion which is target by the company. The
Coca-Cola Companys marketing
department is accountable for the brand development, maintenance
and positioning of all of the
Coca-Cola Companys brands. They focus on all above-the-line
marketing and national
promotions for trade and end consumers through the appropriate
media channels and brand
activation. Coca-Cola Company focuses on understanding the
market, and is primarily
responsible for brand research, consumer research, and pricing
studies. By maximizing the
potential of brands, developing innovative new brands and
introducing Coca-Colas international
brands into UK, they ensure that our products are the first
choice of consumers.
Coca-Cola uses following promotional techniques other than below
the line strategy to promot
their brand-
Green contest
Coca Cola has launched a green contest that is aimed at
promoting environmental sustainability.
Coca Cola Wonder of the World Promotion
Allowed consumers to get the opportunity to win a dream vacation
to destinations such as Paris,
Hollywood, New York, Singapore and Cairo.
The promotion sparked an interest within the public who avidly
collected their Coca Cola caps.
All the promotional tactics of Coca cola aim to shape the
culture of the population to think that
drinking Coca Cola is the way of life.
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Q4.1 Follow an appropriate process for the formulation of a
budget for an integrated
promotional strategy for the calling card.
The marketing plan then, is a dynamic document which focuses on
bringing marketing strategies
to life, serving as a roadmap for carrying out marketing
activities and implementing marketing
strategies. It is a multi-step process, which considers the
following:
Formulating a strategy of company or division and making sure
that appropriate
linkages are made between company strategy and marketing
activity planning.
Analyzing the environment within which you do business to make
sure the
marketplace, the industry, competitors, and other
influences.
Carrying out market profiling, enabling you to identify market
segment, target
customer types, and overall demand. Additionally, analysis of
the industry and
competitors, coupled with analysis of customer types, enables
the creation of
demand possibilities and the resulting forecasts.
The marketing mix, which considers a combination of activities
which come
together harmoniously, in bringing the product to market and
sustaining it while
in the market.
Budgeting of marketing programs so that the appropriate sales
goals and
corporate strategies can be attained.
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Q4.2 Carry out the development of a promotional plan for the
calling card.
Sampling
If objective is to trial the product then sampling is an
effective sales promotion method. Usually
sampling is involved with low value products and products having
highly visible features of
benefits.
Couponing
It is one of the oldest sales promotion strategies and sometimes
couponing makes the product
problematic by cheapening your brand name. Coupon is mainly used
for attracting new
customers as well as to increase instant sales with price
reduction of a product.
Loyalty schemes
It is basically a point based system, where each customer gets
some points on each purchase and
later he can use these points on buying the same products or
other products at a reduced price. To
many marketers, loyalty schemes are also known as-frequent
purchasing scheme.
Packaging or Design
Many marketers do no pay much attention to the quality of
packaging, because they simply do
not understand the psychological and brand image aspects of
packaging. An attractive and
innovative packaging can work like a salient sales man-packaging
does the hooking function to
buyers. A well-packaged product carries not only the brand
values but also create an emotional
link to your prospects. Not that it is only important for
packaging to be eye-catching, aesthetic,
but it needs to protect the product inside with proper
manner.
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Q4.3 Plan the integration of promotional techniques in to the
promotional strategy for the
calling card.
A typical sales promotion budget covers almost 70% of the total
consumer sales promotional
budget. It is also considered as a brand differentiator by many
big players like Coca-Cola Nike,
Apple, and Nokia. For the newly developed calling card business
experts and academics
regarded sales promotion as typical marketing techniques that
add value to a product in order to
achieve specific marketing goals.
The primary purpose of promotion strategy is to induce the
consumers to make a quick buying-
decision in order to create increases sales. Integration of
promotion is to offer customers to take
chance of winning a prize or offering some extra products with
the same price. Sales promotion
and marketing are inter-related but not have the similar
purpose. The Coca-Cola company takes
different promotions activities such as at the world cup
football occurring time also at the
summer season the takes different promotions activities for
achieve the new customers and
evaluate their products computations. The newly developed
calling card company can provide
different offer on the basis of pick and off-pick, Week days and
weekends.
It is advertising which makes a platform for sales promotion
where customers can see the direct
added value of buying your product. On the other hand,
advertising is an intangible promotion of
products to send the marketing message to the customer-base.
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Q4.4 Use appropriate techniques for measuring campaign
effectiveness for the calling card.
This work is conduct with the advertisement and promotion of the
new products which are
introduced at the existing business world. At this work mainly
reflect with the advertisement and
promotion activities of the newly developed calling card. The
major findings of this work are the
process and procedure which are takes for the promotion
activities by the company. Also at this
work discuss about the regulation for the advertising
authorities and how these authority evaluate
this. There was discussion about the new techniques for the
promotion of the new products at the
market. However, with the turn of the millennium, while
international calling card sales were
doing well and it was facing some new challenges especially in
its largest market of UK.
Completing the target of market demand at the company takes the
following steps for advertising
and promotion activities-
New campaign activities at the all market level and for all
customers.
New advertisement takes for the all levels of customers.
Takes different types of new variation of services introduce at
the market with
new advertisement and promotion activities.
Regular monitoring the advertisement and promotion activities at
the market
level.
Ensure the customer about the new thematic promotion and
products
potentialities.
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References
Kotler, p.(2004). Principle of Marketing, Tenth edition, New
jersey; Pearson Education
Inc.
Kotler, P., Keller, K. L., Brady, M., Goodman, M., & Hansen,
T. (2009). Marketing
Management - European Edition. London: Pearson Education.
Porter, M. E. (1980). Competitive Strategy: Techniques for
Analysing Industries and
Competitors. New York: Free Press.
http://ictmt.utem.edu.my/index2.php?option=com_docman&task=doc_view&gid=26&Ite
mid=31
http://swotanalysisexamples.org/porters-five-forces-of-toyota/
www.textbooks.elsevier.com
http://news.bbc.co.uk./1/hi//business/4015831.stm