Task 1a. Explain the structure, roll and relationship between parties in the communication industry. Communication industry is a collection of firms that attempt to inform, persuade and remind consumers about the products and services of various organisations.
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It is the voice of the company brands to make relationships with customers by having a feedback from them. In a communication process feedback is as much as important as the message. In this process of communication there are different types of organisations and people that accomplish various tasks to complete this cycle. We can simply them by drawing a structure as follows.
The client is the organisation who needs to sell the products to target audience through an advertising campaign. They are selecting the agencies for that and discussing the plans with them for a better communication. They finance the whole process of advertising and promotions. And also evaluate and control the campaign. There are two types of agencies which are advertising and promotional. They are providing the information about the current market situation to the client organisations to achieve their targets. Advertising agencies are giving concepts and create attractive advertisements for target customers to each and every product.
Promotional organisations are doing various types of promotional activities like sponsoring games and events, street promotion, promotions inside shopping centres etc. And also they are acting as an additional resource to the client organisations by doing all the administration and accountancy for the advertisements and planning, implementing, monitoring and evaluating the procedures for promotions. There are different types of media organisations which are used to provide information and persuade customers to buy products and services.
Nowadays internet, television, radio, magazines and news papers are providing most of the information to customers. When choosing a media for advertising agencies should know the cost, target audience media habits, product and message characteristics for better performance. There are such organisations that are providing extra services to advertising campaigns. Some of them are printing media, promotional gift suppliers, exhibition organisers, coordinators for promotional activities. They are an extra category to support the process and sometimes cover the whole part of the campaign.
Target audience is the most important part of the advertising process which can be mass market, special market or niche market. Client should be very careful when selecting the media and the advertising concepts for the products according to the target market. They can get the feedback from them for the improvements and free publicity from them if it is an attractive and worth product for their money. In this whole process the client and agencies are having a direct relationship to accomplish the tasks. But target customers are having an indirect relationship with client through the media.
And some promotional activities customers are having an indirect relationship through agencies or special service providers. That is an easiest way of getting feedback immediately by evaluating the customer rates. Task 1b. Identify the current trends in advertising and promotion and evaluate their impact. Nowadays the advertising and promotional market is more competitive than past. There are lot of agencies which provide information to customers for their accomplishment of needs. And also more clients are using advertising as a specific way to introduce and promote their products and services.
People are using easy ways to gather information like television, internet, radio etc. And the media is doing a huge task to communicate the people through their advertisements. Most of the clients are doing direct marketing through the internet by direct mailing to all the service users of mail browsers such as yahoo, Google, etc. And also they are using community web sites like My space, Face book, Twitter to promote and advertise their products. Some of the advertisements are coming as pop ups when we are opening another web site or when we are working in another web site.
Some clients are using public places to promote the products. Ordinary billboards are used in special ways such as flashing screens and some parts are coming through the boards to front or side. And also they are using public spaces to show their advertisements such as garbage cans, parking meters, elevators, airline snack packages, toilets, bicycle racks etc. In the shopping centres some promotional campaigns are taking place to persuade customers to their products. And also the name boards of shops are using as an advertising tool.
The clients are providing the boards free of charge with their name on it and pay for the shop owner to promoting their products. The same thing is doing by using public transport services and private coaches also. Nowadays advertisements are very attractive and using less time. And also they are using musical backgrounds to attract customer concern. And also clients are using music videos to promote their products. In music videos we can see some products are showing by the actors and musicians for the purpose of persuading the customers. And also they are sponsoring reality shows like X factor, got talent etc.
Some elide class products are promoting in fashion shows, parties for high class people and some first class shopping malls and hotels because their target market is different than the mass market. From all of these current trends we can recognize the advertising industry is more competitive and target oriented. And also people are having a habit of getting information through the campaigns. Task 1c. Use models to assess the impact of advertising and promotion on customer behaviour. Advertising and promotion is the major key to introduce and remind the products to the customers in a persuading way.
The first model is a simple model that shows the exchange between marketing company and the customer. This simple model of exchange gives the main idea in a market place that information and money flows throughout the procedures. Marketing company promotes the products and services and when the customer gets that information he buys the products which lead the company to get revenue. Simultaneously marketing company get the feedback from the customers which is more valuable for future plans. But this model is not having a higher persuading power among the mass market although it gives the information about the products and services.
If they used attractive advertising campaigns it would be more profitable and it can change the buyer behaviour. The other effective models are response hierarchy models that describe the three mental stages of a human that need to be passed to buy a product. These stages are, • Cognitive • Effective • Behaviour The first model is called AIDA. It describes the desire that build in the customers to purchase the products and services. In this model advertising and promotion is used to make an attention about the products in customers mind and interest in features.
Then a desire is growing in the mind to buy the product. This is an effective way to persuading customers to change their behaviour to buy different products. There is another model in hierarchy called DAGMER. It persuades the customers by giving the awareness of the products and services in a comprehensive way. This is more effective in innovated products that want to be informed entirely to customers. By considering all the models of advertising and promoting the products and services there is a huge impact on customers to choose their day today needs and wants.
As there are multiple choices in the market customers can change their buying behaviour by gaining the information from most attractive advertisements and promotion campaigns. And also it changes the mind of the customer to buy not only their needs and wants but also the luxurious products and services to comfort thier life style. Task 2a. Explain and demonstrate how advertising can be designed to differentiate, remind, inform and persuade. Advertising is a form of presenting and promoting the ideas, goods or services to the mass through several media such as television, magazines, news papers, radio, internet etc.
It is used by business and non profit organizations to communicate their ideas and information about their products, services and events. Most of the organisations doing their advertising campaigns through agents. But some mega companies such as Coca cola, Unilever have their own advertising departments. The advertising process can be briefly explained as follows; [pic] The objective of the advertising process is to fulfil the task of communicating the message to the target market in an effective way. So that advertising companies are used three different ways to design their advertisements. These are; • Inform • Persuade • Remind
The informative advertising is used to give the information about the new products and services to the market. It gives all the features of the products such as price, performance, company details, available places, and so on. And also this design is used to re launch the old products with modern features and services. As an example when a company introduces technical products such as new mobile phones, the advertisement includes all the added features and the operating information. The persuading advertising is used to attract the customers to a certain brand or category of products which has lots of competitors in the market.
These advertisements show the benefits of using the products and services to convince the customers to buy their brands. And they are trying to differentiate their products from the other brands by comparing directly or indirectly. Most of the supermarkets such as Tesco, Sainsbury’s, Asda, and Morrisons are also use these types of advertisements to compare their goods and services with others. The reminder advertising is used to remind the customers about well established products and services to maintain the interest and awareness to do their business smoothly without any failures.
The world famous brands such as Coca cola, Carlsberg, and Sony spend most of their profits for advertising and promotional techniques to maintain their position in the market. Nowadays advertising is used to differentiate the same products in different brands such as milk, yoghurt, chocolate, cosmetics, shampoo, garments etc. And also retailers entered into databases in web sites such as compare. com, confused. com to compare their products with the others and give the privilege to the customer to choose the right product at right price. Task 2b. Evaluate appropriate uses and applications for advertising in two given situations.
Advertising is used in different situations to convey the ideas of clients in different media. In every situation client must use appropriate ideas and concepts and also the media to attract the consumer’s attention for fulfilling the objectives. I. Advertising of changes and novelty When introducing a new product to the market advertising is doing a major role of giving information and attract the consumers to the product as well as adding new features to the existing products. If the products are innovative, inventions or new introduces advertising campaign must be more informative rather than giving confused ideas about the product.
The house hold products such as television, car, radio, IT products, luxury products are fully depend on the attractive advertising. When consumer gets the idea of using the new products they try to change their behaviour to enter the innovative features of new products. In that case company should be careful about the price, distribution and awareness of the product that affects consumer’s buying behaviour. When doing advertising campaign it should be clear and to the exact point for products that available in the market. It also should show the importance and benefits of using the new brand. II. Advertising in competitive markets
This is important to maintain the market share and the consumers’ awareness and preferences in competitive world. And also it helps for producers to stable in the market. This type of advertising is used where many alternative products and brands are existing for same functional situations such as basic needs of consumers. For gain the market share clients use comparison and criticism in their advertisements. Large supermarkets focus their advertisements for comparing the prices of a shopping basket with the competitors. It is more suitable because people are price sensitive and there are no legal issues for comparison.
Other than that competitors use huge promotional campaigns for their declining products through daily news papers, magazines, TV channels as well as their own business premises to maintain and build their market share. Task 2. c Evaluate the role, organisation and functions of agencies in the advertising process. Advertising agency is a service provider to a company that need to sell their products to the market through advertisements or promotions. The agencies are independent from the client and make the plan, create the advertisement, and sometimes do the promotions after doing a market research.
There are several types of agencies in advertising field such as; • Full service agencies This provides a full service to the client such as planning, creating, producing, choosing and buying media for the advertisement. And also sometimes implement the promotional techniques and market researches. It’s providing a combination of all the activities that client doesn’t want to go here and there for achieving the target. • In house agencies Some organisations have their own advertising departments to handle all the activities to create and implement the advertisements.
It’s called as in house and more suitable for worldwide organisations such as Coca cola, KFC etc. • Creative hot shops These agencies are providing the creative ideas and solutions to produce the advertisements and plans for implementing it in an attractive way. • Media independents These are media experts who plan and buy the media for advertisements. They buy the air time from TV, radio and other sources and sell them to clients for implementing their advertisements. • A le carte These agencies are providing service packages to the clients as they can choose the different services from them.
Some includes market research, planning and creating. And some includes the producing the advertisements with them. Advertising agency must complete several functions to accomplish the task of the clients. They have different departments to do the accounting, research, creative planning, and media planning. • Account Management This is the connection between the agency and the client to handle all the decisions regarding the advertising campaign. It’s representing the client’s point of view in the agency and understands the business, marketing needs and build up the strategies to accomplish client’s objective. Creative Team The designing part is being done by creative team. It has the responsibility to generate the ideas, design the concepts and finally make the advertisement as much as attractive to the target market. And also it should be described the client’s need of advertising. For that creative team is consisting of graphic designers, computer programmers, copy writers, audio and film producers and so on. • Researches This is used to assess client’s market situation, customer views and competitors before doing an advertising campaign.
And also they assess advertising concepts in early stage of advertising with selected members of the target market to choose the most appropriate concepts. After implementing the advertisements researches are taken place to measure the success of the campaign and identify the barriers. • Media Planners Media department has two major functions which are planning and buying. They should plan the size, cost structure, time schedules and all the major work of the advertisement. And also buy the best media for the campaign that more attractive to the target market and negotiate the best deals with them.
Full service agencies are dealing with all the functions of advertising. Rather than using a full service agency clients can use creative hot shops for specialist creative ideas. And also media independents for all the media work and so on. Sometimes it gains benefits for the campaign. Task 3. a & b Differentiate between the characteristics and objectives of the various below-the-line promotional techniques and recommend the use of individual techniques in two commercial situations. Below the line promotional techniques are short term, non media promotion which is largely persuaded the consumers to change their buying behaviour.
It can be more effective when pressurized the marketing team to work in a limited budget for a given objective and also cost efficient to communicate with the target market for various products. It is important to promote fast moving consumer goods as well as the industrial products. The most common below the line techniques are; [pic] • Personal Selling Most of the telecommunication networks use this below the line technique to increase the customer base and the market share. They use different types of sales forces to deal with the customers directly. Some are working inside the premises and making contacts via telephone and e-mails.
We can observe their work in last months of a mobile contract period as they trying to keep the existing customers by giving full details about new offers and services and also new models of phones which they can gain free of charge. Some of the sales forces go to the customer and persuade them to buy the products and services. We can see them in big shopping centres, at the bus stops in busy areas, and fun fairs etc. And also pharmaceutical companies use the sales representatives to inform their brands and various medicines to physicians and other pharmacies as a part of personal selling.
Some organisations use to maintain a contractual sales force including agents, dealers, and brokers who get the commission for their sale. • Public Relations Business organisations use this technique to persuade and remind the customers about their products and services. They use several methods according to the target market and the opportunity they can act more powerfully. We can observe in worldwide games such as foot ball and cricket, companies are sponsoring for the matches to gain a huge customer base and persuade them to buy their brand by growing a brand image.
Most of them are sporty brands such as Coca cola, Nike, Adidas, Gillette, etc. Some organisations use exhibitions to display the items and services with full details to attract customers. Most of the exhibitions based on a subject as wedding, art, antique, and so on. In a wedding exhibition we can see all the industries are coming together such as clothing, floral arrangements, filming and photo albums, party ware, make up and cosmetics, food and serving and all the essential event takers.
So it is useful and customers can make choices among all the competitors in a one place and also companies can get more benefits as they can directly contact to the people who interest on their products. • Sales Promotion This is the most common way of promoting the products and services nowadays and customers are attracting to it so much. Most of the products use the method of half price as they want to increase their sales and also they use 3 for 2 method that customer can get 3 goods at the price of 2. All these numerical efforts are using to attract the customers to certain product lines and remain their brand names.
All fast moving and competitive goods are using these types of promotions to get the competitive advantage. And also supermarkets use various methods to increase their sales as a whole. As an example we can see the Club cards in Tesco, Nector cards in Sainsbury’s, Bonus cards in Iceland which customers can collect points over their buying and get benefits such as vouchers, gifts, discounts when they reach to a certain level of points. And also they use the seasonal promotions such as Christmas, summer, Halloween, valentine, to attract the customers by giving competitive discounts. Direct Marketing These types of techniques are used in several organisations to market their product to the target customers in a well organised direct way. When launching new high class products such as jaguar, Aston martin, D & G, they use direct selling as a conference or fashion show for high class people who can afford those products. And also companies use this technique to sell machinery and other equipments to another company by direct appointments and showing the products and usage to a selected range of customers.
Advertising and all these below the line techniques are used in different ways in different organisations as we know the competence is so high and new products and services are coming to the market day by day. The organisations which use all the tactics and strategies to fulfil their objectives can survive in the market without fear of the competitors. All the others are losing their market share and customer base because they can’t compete with the newly developed brands that provide more customer satisfaction.
Advertising and promotion is all about giving the opportunity to the customer to choose the suitable product or service at a reasonable price at the right time. The industry of communication is the way to achieve the customers in their busy lives to inform, remind and persuade them to lead the buying behaviour as they required. So that most attractive and competitive organisations can make the images of customers’ minds by using all these promotional campaigns. | | | | | | [HSBC sRILANKA] | | | Task 4. a Explain the principles and process of campaign management. Task 4 (b,c,d) Develop a promotional plan for a commercial Organisation. Use appropriate techniques. Also include how your campaign’s effectiveness will be measured. Process of Campaign Management • Assess marketing communication opportunities. In this section we are to visualize the expectations of the target market.
This is considered as the most important step of Campaign management. Furthermore we it is essential to identify to whom that we should send our message, whether it is to the current consumers, financial supporters or general public. • Determine your objectives The chosen target market has to be captured by launching promotional campaigns by using short term or long term, deciding the ideal promotional campaign is based on in terms of the behaviors by people who have been integrated in our promotional communication. • Determine your promotional mix
The set up of the promotional mix includes as the centre where we have to create an interest among the buyers in order to make our promotional campaign a success. • What communication channels to use Here we have to identify the market, demand for the product and the environment. We could use sport channels, business channels, internet popup, • Develop your promotional message Developing the promotional message includes content, appeal, structure, and the format; this has to be implemented due to the target audience and the demand for the product or the service. • Develop your promotional budget
Here we have to set up the budget for the whole campaign, this includes all the aforesaid processes and especially the media planning and the mix of promotion that we have implemented will affect to the promotion budget directly. • Determine campaign effectiveness This has to be documented by initialising the copy platform, situation analysis, and timetables. We can gain information from the reactions of the general public (target customers) whether they are satisfied with our product or service implemented by promotion campaign. CONTENT 1. Company Introduction (HSBC) 2. Company Analysis (SWOT) 3. Product Launching (Smart savings account) . Company Strategy (Pull) 5. Budget for the promotional campaign 6. Promotion Mix 7. Media Planning 8. Time table for the promotional plan 9. Evaluation & Measurement HSBC –Sri Lanka HSBC-“Hong Kong and Shanghai Banking corporation” known as the worlds local bank, was incorporated in 1865 in Hongkong as a small bank with limited share holders and with a few customer base in the banking sector. In 19”s the organisation spread their network throughout the world by incorporating the bank in Asia Pacific – (1028 Branches), and Middle East & Africa ( 275 Branches)Europe,( 2598 Branches) and America ( 4692 Branches).
The HSBC became the one of the largest bank in today’s financial sector during the last decades HSBC started their operation in Colombo srilanka in July 1892 & is one of the first banks in srilanka. HSBC has now spread their network everywhere with 24 express banking centres & 14 branches. The premier centre is situated in the heart of the city. HSBC is the number one financial organizations in Srilanka who has the highest capital strength among the private banks. The main competitors of the HSBC are the Standard Charted Bank & Commercial Bank. In addition to that there are number of local government banks…
The SWOT Analysis of HSBC Sri Lanka. The Strength: • HSBC (The Brand name) is a multinational organization • Recognized all over the world. • The employees & the high quality service they provide is strength for the organization. • Banking facilities such as internet banking, 24 hour customer service, phone banking, and international money transfer service. Weaknesses: • Does not have an island wide presence. • All the branches are situated in the city of Colombo • The native language (Mother language) does not use in any documents in the bank day to day activities. Opportunities: Opportunity to approach the untouched markets which are average income people & low income people. • In the existing market all the other banks are offering interest rates under 6% for savings accounts. But the HSBC has the opportunity capture the market by introducing a savings account with a higher interest rate. Threats: • High Competition • The perception & the image on HSBC is not positive among the community. People think it is a risk to invest in a private bank &it is expensive. Most of them prefer to save their money in local government banks. The New Product:- Smart Savings. Product launching date: 14th February 2010 The promotional plan is for the newly introduce saving account which is known as Smart Savings. • “Smart savings account has introduced as a teenage savings account with an attractive interest rate of 8% per annum & the initial deposit required Rs 5,000. • The savings account holders will be entitled for all the facilities which is providing by the bank. Promotional Plan for Launch the “SAMRT SAVINGS ACCOUNT” The Objectives of the promotional Plan. • Differentiate the savings account from what others banks are offering • Remind the “SMART Savings” when they are in the process of searching savings accounts information. Inform about the new product & benefit • Persuade the target group to open the savings account with HSBC. Type of the Campaign • The campaign will run for three months. • Burst Campaign for first two weeks the campaign will run with high frequency parallel with the product launch. • Drip Campaign will run for remain ten weeks with less frequency. The promotional strategy that we are using for this campaign is Pull Strategy. Pull strategy Pull strategy is a part of promotional activity targeting at end consumers. This is persuading the target group by using below promotional mix • Advertising. Sales promotions. • personal selling • Direct marketing Sponsorships. • Public Relations The Budget The setup budget for the whole campaign is Rs 25 million. (? 1=Rs 185. 00) The factors which considered in order to determined the above budget are…. • The objectives of the campaign. • The size of the target audience • Based on previous year budget. & organization performance • Based on competitors activities. [pic] The Promotional Mix Advertising Advertising is the main part of the promotion mix, and it`s uses various media to deliver the message to the customer.
Advertising uses to create awareness. Therefore, they do use many methods of advertising to retain existing customers as well as to get the attention of new customers. HSBC could use different media to communicate their target audience. Such as; ? Television,: ? News Paper ? Bill boards, ? Sports Magazines/Fashion magazines ? Internet. – Advertising in face book/ Yahoo /Google Sales promotions. This is short term method which most frequently used techniques in the market, which mainly concern of quantity of sales of a particular product.
This mainly target to attract the fresh customer base. Examples: ? Free gifts for every account open during first month ? Bank will deposit Rs 500 as an opening amount if any account opens within first 2 weeks. ? All the account holders will entitled for a raffle draw to win a holiday package to Singapore with the best friend ? All the account holders can apply for a student loan for 10% interest rate. Personal selling & Direct mails ? Sales presentations in Colleges ? Sales calls to HSBC existing customers who has teen age kids Public relation & Sponsorships
Public Relations help to tell good things about the organization to their target audience. Effective PR creates an emotional feeling in customers mind & positive image. ? 0. 05% of the profit will contribute to the teenagers in Northern part of Sri Lanka who are affected by the civil war ? Sponsoring for inter school rugby tournaments/Cricket matches/Netball matches Types of Media & Media Planning. Frequency & Reach are the most important factors to be considered when deciding on media. Electronic Media: Advertising in Television: Advertising in sports channels/ Advertising in music channels Burst Campaign: Run spot advertisements every 15 minutes & run detailed advertisement every 15 minutes continuously for two weeks (Between 5PM & 8PM every week days) • Run detailed advertisement in every one hour from 10 AM in the morning till 7 PM on weekends ( For two weeks) Drip Campaign • Run Detailed advertisement every two hours between 5Pm to 10 PM week days for rest of 10 weeks • Run detailed advertisement in every one hour from 10 AM in the morning till 7 PM on weekends ( For the rest of 10 weeks) Radio Advertisement: • Sponsoring for the karaoke singing competition organized by the radio channel Sponsoring for beach parties organized by the Youth radio channel ( Y FM) Electronic Moving Screen: • Display advertisements in moving screens close by the main colleges in the city. Print Media • News papers • Magazines: Fashion magazines & Sport Magazines • Bus advertising • Hoardings & Bill boards Internet: Advertising in face book / yahoo / Google / hotmail |Time Table For The Promotional Plan Of “SMART SAVINGS” | | | | | | W 1 |W2 |W 3 |W 4 |W 1 |W 2 |W 3 |W 4 |W 1 |W 2 |W 3 |W 4 | | | | | | | | | | | | | | | |Initial Research | | | | | | | | | | | | | | | | | | | | | | | | | | | |Evaluation of search results | | | | | | | | | | | | | |& Planning | | | | | | | | | | | | | | | | | | | | | | | | | | | |Pre Advertising | | | | | | | | | | | | | | | | | | | | | | | | | | | |Product Launch | | | | | | | | | | | | | | | | | | | | | | | | | | | |Post Advertising | | | | | | | | | | | | | | | | | | | | | | | | | | | |Evaluation & Measurements | | | | | | | | | | | | | |
Evaluation and measurement of the promotional campaign for the smart saving account The success of our promotional campaign of promoting smart savings accounts for the teenagers, can be measured by achieve the following factors, ? The number of new savings accounts that have been open during the promotional campaign. ? Number of feed backs received regarding the saving accounts. ? Numbers of accounts opening application forms that have been obtain by customers. ? The improvement of the customer based during the promotional period. ? The profit earned by the organisation during the promotional period and it’s contributed for the ultimate profit of the organisation.
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