George Samuel Wijaya 1

APPLYING PROMOTIONAL TECHNIQUES FINAL ASSIGNMENT

by

George Samuel Wijaya

Applying Promotional Techniques (APT)

Meriwati Djajakustio, MSi

ATHE – LBIS

Jakarta, Indonesia

29 July, 2019
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Final Assignment

Task 1 – 1.1

Aims of Promotion in Business

1. To Stimulate Product Demand: In accordance with Wroblewski (2019), a

right and attractive promotion will give a huge impact on the customers that

stimulate the demand of products as the result. This became the main purpose

or aim of promotion in business since market promotion efforts can turn

potential buyers into an actual buyer. Commonly, this type of strategy is used

during the product life cycle to increase sales which eventually a product will

reach its saturation point.

2. To Inform Consumers: Introducing new products or services requires you to

use informative tactics to educate consumers by providing the information

they need about features, quality, performance, price, product availability, and

where they can purchase it, ‘informative advertising is the category that

makes the most sense to use when you have a complex product or service,

and you want to educate your customer.’ (LaMarco, 2018).

3. To Persuade Consumers: Persuasive promotion holds an essential role in

business intending to change buyer’s attitude and convince them to purchase

the products or services in line with Wagner (n.d.). It can be done in various

ways such as through products demonstration, offering a free trial, offering

bonuses, showing the distinction and benefits of the products or services, and

showing the positive reviews from satisfied customers.

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4. To Remind Consumers: Reminding the consumers through promotion is an

effective way to build a strong relationship and to keep the customers loyal to

the brand. Keep in touch by sending a direct personal email, encouraging

them to give feedback, keeping them updated, and being consistent with the

brand’s visual are the methods that the firm can use to remind the customers

of your brand in proportion with Lister (2019).

5. To Build Reputation and Image: According to Spacey (2015), reputation and

image of a brand or a firm is formed and determined by the promotional

efforts. There are several important things that must be considered in building

the reputation and image of a brand or company that consists of improving

the quality of a product or service, maintaining brand recognition and

awareness, being an authentic and trustworthy company, and focusing on

customers’ experience with the brand.

6. To Face Competition: Promotion allows the company to face competition

effectively in the market with a similar product or service by direct or indirect

comparison. It is actually related to a persuasive promotion where the

company needs to persuade and claim to the customers that its brand is

superior over the others. Consequently, it will affect customer preference and

break their loyalty with the competitors,

‘Competitive advertising is an effort by at least one company to create a

contrast between its product and the same or similar product offerings by

competitors. By establishing a contrast for the consumer and trying to

influence the consumer's buying choice, this company hopes to obtain a

larger market share.’ (Bianca, n.d.)

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Corporation Identity Advertising

Corporate identity advertising is a type of advertising by an organization that

attempts to establish or improve its reputation and image on the specific audiences in

consonance with Bhasin (2017). This type of advertising is completely different from

consumer advertising which focuses on promoting products or services, while corporate

identity advertising is focusing on improving the organization’s image by sundry ways.

Advocacy advertising is one of the ways that help the organization to deliver point of

view messages in order to influence the perception of society towards the organization in

a good way.

According to Stewart (2014), it has numerous advantages such as it creates a

positive image of the company, increase the trustworthiness, boost employee morale,

enhance the goodwill, and it helps the firm to build its identity instead of relying on the

brand or product. However, it has a few disadvantages at the same time suchlike it is

extremely expensive, difficult to measure the efficiency, and consumers do not like this

kind of advertisement. Google is one of the examples of a company that is using

corporate identity advertising by emotional storytelling which influences the perception

of its audience towards the company,

‘Google’s Reunion ad is a stunning corporate storytelling example of how brands can

escape all preconceived notions their audience might have of them and deliver a message

that hits you right in the gut. It starts with a man in India explaining a childhood friend to

his granddaughter – he and the friend hadn’t seen each other since India and Pakistan

became separate countries and they were forced to leave each other. The granddaughter

is moved by the story and uses Google to track down the friend and arrange a reunion
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and…well, I would say more, but I’m getting choked up just writing about it. Watch it

for yourself.’ (Barbour, 2016)

Task 1 – 1.2

How the Success of Promotional Campaign is Measured?

Measuring the successfulness of a promotional campaign is the most crucial stage

in advertising, which is the only way to observe how the advertisement has performed,

reached its target, and achieved its goals. Nevertheless, based on CPXi (2018), not every

promotional campaign can be measured accurately due to some factors such as different

definitions of viewability standard that depends on each type of company, ad fraud that

caused by bot traffic will affect and show the result of incorrect amount of views in the

campaign, and false assumption of the reason why the audience took another step after

seeing the advertisement which it can be caused accidentally.

In concordance with Juneja (n.d.), measuring the effectiveness of a promotional

campaign can be done in 2 main forms that consist of sales effect and communication

effect. Sales effect means the difference in sales volume itself which generated by the

advertisement and it helps the firm to determine the ideal advertising budget, while

communication effect means the extent to which the audience understands the message

and it helps to tell the firm if the message is actually working. In addition, a firm can use

various types of test to measure the effectiveness of a promotional campaign that

includes exposure, attention, understanding, attitude change, and behavior or action.

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Task 1 – 1.3

How Promotional Activities are Regulated?

Regulation of promotional activities are usually established by the government

which holds an important role with the purpose to protect the society from the unethical

advertisement or false advertisement by prohibiting some contents that might influence

the society in a negative way. Sale of Goods Act, Trade Description Act, Advertising

standards authority are the examples of regulation that is in effect in UK.

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References

https://www.marketing91.com/corporate-advertising/

https://blog.marketresearch.com/corporate-advertising-advantageous-or-just-too-

controversial

https://ozcontent.com/blog/best-corporate-storytelling-examples/

https://bizfluent.com/info-8168435-promotional-objectives.html

https://smallbusiness.chron.com/informative-advertising-mean-23213.html

https://smallbusiness.chron.com/information-persuasive-promotion-marketing-plan-

65807.html

https://www.wordstream.com/blog/ws/2016/11/10/customer-loyalty

https://smallbusiness.chron.com/examples-competitive-advertising-12671.html

https://simplicable.com/new/brand-image

https://cpxi-asia.com/viewpost/5-reasons-why-your-digital-advertising-metrics-are-

inaccurate

https://www.managementstudyguide.com/advertising-effectiveness.htm