2011

Investigating the Role and Importance of Advertising

Outcome 2, Unit 18, Advertising and Promotion, BTEC Higher National Diploma
The document covers the different types of advertising and its use and purpose for the marketers. Thus, it clarifies the role and importance of advertising

Asus DISTINCT Report Seller (DRS) 1/1/2011

BTEC Higher National Diploma in Business NQF Level 5 Unit Name: Advertising and Promotion
Unit No. : 18 Unit Type: H2

Prepared By:
Author Name Tawfiq Fayed About the Document The Author prepared this document to fulfill the above unit of the HND course requirement. Contact Information Cell No# +88 01717 16 88 86 E-mail: Tawfiq.bt@gmail.com

Note: This Document Covers the Outcome 2.0 of Unit 18: Advertising & Promotions

Outcome 2: Investigate the role and importance of advertising explain and demonstrate how advertising can be designed to differentiate, remind, inform and persuade evaluate appropriate uses and applications for advertising in two given situations evaluate the role, organisation and functions of agencies in the advertising process

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Assignment brief Scenario This is a two-member group assignment where every group has to complete three tasks as outlined below: Task 1: Explain and demonstrate how advertising can be designed to differentiate, remind, inform and persuade. First you have to define and explain the purpose of differentiation, reminder, informative and persuasive advertising with example. Second, you have to come up with four different business/product scenario and design four advertising message to fulfill the required four objectives (e.g., to differentiate, to remind, to inform, add to persuade)

Task 2: Evaluate appropriate uses and applications for advertising in two given situations. Consider a business scenario where the company wants to create curiosity and a good flow of word-of-mouth (WOM) among the prospective customers before launching the product. Suggest one kind of advertisement to use for this situation and justify the application of this ad for the given situation. Consider a business scenario where the company sells the products which are harmful for human body (e.g. tobacco). Suggest a specific type of advertisement that could be used to generate some positive publicity among the community members. Justify the application of this ad for the given situation.

Task 3: Evaluate the role, organisation and functions of agencies in the advertising process The answer to this question should cover all theoretical aspects of role, organization, and functions of ad agencies in the advertising process.

Note: This assignment covers UNIT 18 Learning Outcome 2.0

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Investigating The Role and Importance of Advertising

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11. 07. 2011 Khan Md. Raziuddin Taufique Assistant Professor Faculty, Business School BAC, a concern of British-American Education Group

Sir, In compliance with the fulfillment of the requirements on the subject Advertising and Promotion, the proponents would like to present the proposal entitled Investigate the role and importance of advertising in accordance with your instructions. We hope that this proposal will meet your approval.

Very truly yours, Tawfiq Fayed, Nizamuddin

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Unit Name: Advertising and Promotion

Unit No. : 18 Unit Type: H2

Prepared By:
Name ID No.

Tawfiq Fayed

01-02-10035

Nizamuddin

01-02-10043

Prepared For
Khan Md. Raziuddin Taufique Assistant Professor Faculty, Business School, BAC.

Date of Submission: The 11th July 2011

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Contents
Acknowledgment ...........................................................................................................................................................8 Executive Summary .......................................................................................................................................................9 Task 1 .......................................................................................................................................................................... 10 Introduction............................................................................................................................................................. 10 Types of Advertising & their Purpose .................................................................................................................... 10 Designing Advertising Messages Based on the Business Scenarios ....................................................................... 17 Business Situation 1 ........................................................................................................................................... 18 Business Situation 2 ........................................................................................................................................... 20 Business Situation 3 ........................................................................................................................................... 21 Business Situation 4 ........................................................................................................................................... 23 Conclusion .............................................................................................................................................................. 24 Task 2 .......................................................................................................................................................................... 25 Introduction............................................................................................................................................................. 25 Teaser Advertising and its Application in the First Business Scenario ................................................................... 25 Justification of Teaser Advertising for the Given Business Scenario ................................................................. 25 Advocacy Advertising and its Application in the Second Business Scenario .......................................................... 26 Justification of Advocacy Advertising for the Given Business Scenario ............................................................ 27 Conclusion .............................................................................................................................................................. 27 Task 3 .......................................................................................................................................................................... 28 Introduction............................................................................................................................................................. 28 Advertising Agency and its Types .......................................................................................................................... 28 Organisation of the Ad Agencies ............................................................................................................................ 28 The Centralized System ..................................................................................................................................... 28 The Decentralized System.................................................................................................................................. 29 The Role & Function of Ad Agencies .................................................................................................................... 29 Conclusion ................................................................................................................................................................... 29 References ................................................................................................................................................................... 30

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Acknowledgment

This work would not be possible if almighty Allah would not give us effort. So, we are grateful to Almighty Allah. Through the whole assignment we have used a huge range of information that is available in books and online. Without these information and resources, it would not be possible for us to prepare the assignment.

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Executive Summary

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Task 1
Introduction
Advertisement is a great tool for the marketers to promote their products in the market. For many years, the marketers have been trying to get the attention of the customers. And, on the basis of the marketers need, advertisement has been developed, and created its new forms. That is called the advertising process. Thus, today we can see many types of advertising in the media. There are four different types of advertising those are often used by the marketers to advertise their products in the media. And, these very common types of advertising are differentiation, reminder, informative and persuasive advertising. These four types of advertising are actually classified by their goals and objectives; the purpose of a marketer to advertise a specific product in a specific situation. Task 1 of the given assignment has been asked to define and explain the purpose of those four different types of advertising. We will discuss each of those advertising type with example in the below.

Types of Advertising & their Purpose

We have already known about our discussion topic of task 1 that is four different types of advertising differentiation, reminder, informative and persuasive. Purpose of each of these advertising types is different from another. Marketers use these advertisings based on the situation and purpose. So, it is clear to us that every single of these advertisings has its own definitions and purpose. Lets go in details about these advertising in the following. 1. Differentiation its a type of advertising that actually differentiates a specific product comparing to other products that it has some distinct or uniqueness, and communicates it to the customers. It can be communicated through print, television, or electronic media.

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Purpose In the competitive market, there may be many products of similar categories. Say for instance, you can experience more than twenty alternatives for a soap product. It means, there are twenty different soap brands in the market. In such situation, for the marketers it is really needed to differentiate their product so that it can be identical to the customers. And, marketers often do that. But, only differentiating the product doesnt actually the final responsibility. This differentiation should be communicated to the customers. And, to communicate it to the customers, marketers use differentiation advertising that actually focuses the unique or distinct features that the product has. Thus, customers find something new on the product. Example A very good example of differentiation advertising can be a print media advertisement of MG Midget Sports car (Figure 1.1) by British Motor Corporation (BMC) in 1961. In this advertisement, BMC had introduced a sports car that is Mg Midget, and that was actually a lowest priced true sports car in the market as it is said in the advertisement MG Midget. High-flying fun. Low-flying price tag. In the advertisement, they focused the features why and how they are different from the other sports car brand in the market. We can figure out three distinct features that has made this advertisement differentiation advertising Rider can fly with it by paying a little; even can save money on gas. The lowest priced true sports car. Feel for the road that makes it joy to handle in driving.

Other than these above differentiating features, we can also find out available features from the advertisement. In this advertisement, the purpose of the advertiser was to focus the cost effective issue of this sports car. And, by this advertisement they had been able to communicate it to the customers. Therefore, we can say that this is a very good example of a differentiation advertising in print media. Page 11 of 30

Figure 1.1: Shows an example of differentiation advertising Page 12 of 30

2. Reminder This is a type of advertising that is actually used by the well-established companies. It helps to remind the audiences and readers, or the customers about a specific brand that we have been there. Purpose Marketers of a well-established brand often want to let their customers know that we have been in the market beside you from the very beginning; we exist, and still serving you. One of the major intentions of this kind of advertising is to focus the brand name rather than any product promotion. Again, by time new generations are coming. It is also the responsibility of the marketers to communicate or make their brand familiar to the young generations. And, for this they can also use reminder advertising. Example An example of the reminder advertising can be the following print advertisement of Brac Bank Ltd. (Figure 1.2). In this advertisement, they didnt try to promote any specific service. They have just mentioned their existence beside the customers in the market for long ten years. In the very beginning of the advertisement they have written ABICHOL ASTHAR 10 BACHOR ; it means 10 YEARS OF STAND-STILL TRUST

It signifies their existence beside the customers with trust and uninterrupted service. Thus, this advertisement has successfully implemented the message of reminder advertising.

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Figure 1.2: Shows an Example of Reminder Advertising. Page 14 of 30

3. Informative - It is a kind of advertising that is usually used for general purpose of informing any product or offer. Purpose Marketers use this type of advertising for informing their customers about any changes or any new features of the products. Sometimes, if any new products launches, marketers use this advertising.

Figure 1.3: Shows an Example of Informative Advertising

Example The above figure 1.3 is an example of informative advertising where IFIC BANK, informs their customers about their specific service that is MORE MONEY. And, for more information they have given a contact number also. Therefore, this advertisement clearly fulfills the requirement of an informative advertising.

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4. Persuasive It is a type of advertising that actually persuades or convinces the audiences with its languages and, often the customers get attracted by it.

Purpose - Marketers use persuasive advertising to convince the customers to buy their products. In most of the cases it has seen that marketers use this kind of advertising for the application type product; I mean a product that is applied for physical concern or beauty. In the markets, we can see a lot of fairness increasing cream, and we also see their advertisements those are really persuasive. But, for other products marketers also use persuasive advertising. Example In figure 1.4, we have given an example of persuasive advertising. In the advertisement a LASIK CENTER of a hospital is convincing the readers of print media

Figure 1.4: Shows an Example of Persuasive Advertising to get a Lasik for their eyes. If we see the language of their advertisement, it will get clear to us that why it is a persuasive advertising. It has written in the advertisement that Page 16 of 30

CHOSHMA CHARA VALO DEKHTE CHAN?

LASIK KORUN
The message actually means that DO YOU WANT TO SEE BETTER WITHOUT THE GLASSES?

DO LASIK
The message of the advertisement signifies that if anyone wants to see better without glasses that means without any extra hassle or burden, he should do a Lasik for his or her eyes. And, this Lasik can only give him or her better vision than any other treatment. So, by implying this message in this advertisement towards the people, the marketer is actually trying to persuade them. Thus, this advertisement fulfills the appeal of a persuasive advertising. So, the above discussion has told us a lot about the given four advertising types. But, we have other issue to discuss that is actually asked in the second part of task 1. It has been asked to design four advertising messages for four different business situation considering the objectives of four given advertising type. Lets do it in below.

Designing Advertising Messages Based on the Business Scenarios

In this part of task 1 of the given assignment I will discuss about an imaginary company that is actually well-established and operates globally. I have given an imaginary name also, and that is CONCARE. It has a huge number of product lines. It actually produces personal care or toiletries type products. It has food & beverage type products too. Among the personal care products it has two very renowned brands. One is a soap brand, and that is SQUASH; its been in the market for 20 years, and a very popular brand of CONCARE. Page 17 of 30

Another very renowned brand from personal care product of CONCARE is COLOGNE; it is actually a deodorant. Other than these two brands, CONCARE has many other brands from personal care and food & beverage products. In this part of task 1, we will actually show you how CONCARE uses four different types advertising in different situation.

Business Situation 1
We have already known about SQUASH. Its a very popular soap from concare. But, in recent days SQUASH is facing huge competition from its competitors. A number of soap brands are now available in the market. Consumers are getting more options in case of buying soaps. Moreover, other soap brands are relatively low priced than the SQAUSH. As a result, sales figure of SQUASH is decreasing day by day. The management of SQUASH has decided to differentiate their product. And, according to decision it has manufactured a soap that has some added features that is not available to other soap brands like it has used animal fats and milk that makes the soap a real soft one as well as rose extract along with other natural elements that doesnt only take care of skin but gives a relaxing bathing experience. It has demanded that it understands the extra skin care that is not available in the other soap brands. Now, at this situation, SQUASH wants to focus their soap brand as having some distinct or unique features from the competitors, and, they also want to communicate this message to the customers. So, I am here to suggest them an advertising message that fulfills the objective of differentiation. Advertising Message to Differentiate It has become clear for us to understand the differentiated features of SQUASH as I have showed a sample advertisement in figure 2.1. The image that is shown below, gives us the message. The message is

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SQUASH extra care doesnt only take care of your skin; it also gives you a truly relaxing bathing experience The message signifies that there are many soap brands in the market. They can give you the total skin care, but not the relaxing, fleshing, and monotony removing bathing experience. Only SQUASH Extra Care gives you that extra benefit. And, this extra benefit, I mean the cool -

Figure 2.1: Shows an Example of Differentiation Advertising of SQUASH EXTRA CARE SOAP

relaxing bathing experience is the distinct feature of SQUASH brand that makes it different from others in the market. This message is clearly focused in the advertisement, and it has also mentioned the ingredients that actually make a person relaxed after bathing with SQUASH Extra Care soap. Justifying the Evidence of Differentiation of the Given Advertising Message The given advertising message fulfills the objective to differentiate as it provides Extra added feature of relaxing bathing experience Page 19 of 30

A comparison towards the other soap brands in the market Two different alternatives (taking care of skin & relaxing bathing experience) in the sentence, one is common for all soap brands, another is different that only goes with SQUASH.

Business Situation 2
The second business scenario is also related to the SQUASH. In the first scenario, we have seen that they were facing problem from the competitors for not having any distinct features in their soaps. But, the management of SQUASH has appeared in a different situation. They have identified that promotional activities like advertising in print & TV media are not been applying at a good frequent rate. Though the sales figure is not been affected by it, the management of SQUASH realized that customers may think that their companys business is not going too much good. To remove this type of thinking from customers mind, and also to focus their brand instead of promoting any distinct product, the management has decided to publish an advertisement in the print media to remind the customers that we have been there beside you in the market. Now, in this situation I have designed an advertising message that actually fulfills the objective of reminding the customers. Lets see the message in the below.

Advertising Message to Remind We have mentioned it earlier that SQUASH is been in the market for 20 years long. Its really a great achievement for any company to exist and successfully running the business for so long time. As SQUASH is an old brand and renowned one, and serving people for 20 years, I have designed the advertising message in a way so that their existence for long time can be expressed. So, the message is

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One Brand, One Name. For 20 Long Years, We Let You Think About One Name in Bathing & Beauty Care of Your Skin. We Are Grateful to You, And The Society For The Support We Got From You In This Long Run. Hope To Continue The Same In Future Too.

SQUASH
A CONCERN OF CONCARE

Justifying the Evidence of Reminder of the Given Advertising Message The above advertising message that I have made, fulfills the objective to remind because it has expressed their existence for long time in the market their gratefulness towards the customers and the society the brand name rather than focusing the product Thus, we can ensure that this message really fulfills the objectives of reminder advertising.

Business Situation 3
The first two advertising messages that I have created, was for SQUASH. Now, CONCARE has launched a new product that is actually an insect killer spray. And, its a different brand of CONCARE. It has got a brand name, and that is INSELARY. Now, the management wants to inform the audiences or customers about its insect killing power and other features. I have designed an advertising message to inform the customers or readers of the print media. The message is given below.

Advertising Message to Inform Page 21 of 30

FROM NOW, YOU CAN SPEND MORE TIME IN OTHER HOUSEHOLD WORKS!!! BECAUSE,

INSELLER INTRODUCES AN EFFECTIVE INSECT KILLING SYSTEM.

No more outrage of Insects. Get INSELLER, Kick out the Insects. ----- INSELLER
A Product from Concare

So, it can easily be understood from the above advertising message that it is an informative advertising message of INSELLER. We can see that it has said about introducing a product that kills insect. So, this is to inform the customers. Justifying the Evidence of Informative Advertising of the Given Message The above advertising message that I have made fulfills the objective to inform because it has expressed their launching in the market. their product type that is insect killing the product name Thus, we can ensure that this message really fulfills the objectives of informative advertising.

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Business Situation 4
In the scenario earlier, we have said that CONCARE has food & beverage products too. It has got an energy drink product that is VINER. To increase the sell, management of VINER has decided to publish a persuasive advertising that actually convinces the customers. So, lets look at the advertising message below. Advertising Message to Persuade 2 Hours of Journey, 8 hours of Monotonous Work A Meeting is called by the Boss. I am attending. I can even attend a sport event after that. Because, I have VINER. ------ David, a Corporate Manager. HE HAS VINER.

Do You Have Too?

Get it; drink it if you want the same ENERGY!!!

ONLY DRINKING A VINER

ENERGY DRINK WILL STIMULATE EACH OF THE CELLS IN

YOUR BODY, AND WILL MAKE YOU EVEN FRESHER AND STRONGER FOR HOURS LONG.

----- VINER Energy Drink

A product from Concare

So, the message is clear to everybody. The above advertisement is convincing the customers by attracting them to have this energy drink. They have demanded that only a VINER can give you such energy that you can work, run, and travel for long hours without any tiredness.

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Justifying the Evidence of Persuasive Advertising of the Given Message The above advertising message that I have made fulfills the objective to persuade because it has expressed a message from the user of this product that is actually an evidence. the influencing words like he has VINER. Do you have too? the convincing words like get it; drink it if you want the same energy Thus, we can ensure that this message really fulfills the objectives of persuasive advertising.

Conclusion
Finally, it can be said that we have covered the every single points in defining and describing the purpose of the given four types of advertising that are differentiation, reminder, informative, and persuasive advertising. Moreover, we have shown the use of this four advertising types in four different situations. We have design and applied the advertising messages in the different scenarios. Therefore, requirements of task 1 have been achieved.

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Task 2
Introduction
Marketers air or publish advertisements basically to attract the customers. But, really they are needed to be concerned about the type of advertising and its effectiveness. They should know when and how, what type of advertising should be used. Advertisements must be applied in an appropriate manner to attract the customers. Task 2 of the given assignment is actually concerns with the issue of appropriate uses and application of advertising in two given business scenario. Lets proceed with the first business scenario of task 2.

Teaser Advertising and its Application in the First Business Scenario

From the first business scenario, we have already known that a company is going to launch a new product, but before launching it, they want to create curiosity and a good flow of word-ofmouth among the prospective customers. From the heading of this paragraph you may already have understood that I am suggesting the teaser advertising for this business scenario. Before justification of this advertising type, we should know what actually teaser advertising is. Teaser advertising is also known as mystery ad. The purpose of this advertising is to build curiosity, interest, and/or excitement about a product or brand by talking about it but not actually showing it.

Justification of Teaser Advertising for the Given Business Scenario

From the above we can see that the purpose of the company and the purpose of the teaser advertising are matched. So, it can be easily understood that teaser advertising is appropriate for

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the given business scenario, although I am justifying its application for the given business scenario in detail We know that teaser advertising is something that doesnt show the product but gives an idea about it by talking. So, if the company of given scenario use this ad, it will talk about their product, but not showing it, and obviously this will create curiosity among the customers. So, the first purpose of the company is fulfilled by teaser advertising. Again, the company is looking for creating a good flow of word-of-mouth. If the company can use the teaser advertising effectively, obviously customers will talk for it. Thus, a good flow of word-of-mouth will be created. Therefore, the second objective of the company is fulfilled by the teaser advertising. And, lastly, in the given business scenario, the company is going to launch a new product. The teaser advertising is also basically used for launching a new product.

Therefore, it can be concluded that teaser advertising is the appropriate one for the purpose of the company in this given business scenario. But, the company should be careful about the effective use of it. They need to really careful that they should not keep waiting the customers for so long from not showing the product.

Advocacy Advertising and its Application in the Second Business Scenario

In the second business scenario, it is said about a company that sells harmful products like tobacco. It has been asked for an advertising type that could help to generate some positive publicity among the community members. From the heading of the paragraph, you have already got that I am going to suggest the advocacy advertising for the given business scenario. Page 26 of 30

The purpose of advocacy advertising is to encourage the society towards good deeds, or to prevent or aware the society from anything bad. Say for instance, Say No to Drugs- it signifies that the publicity of this statement is towards the society so that people can aware of this.

Justification of Advocacy Advertising for the Given Business Scenario

The purpose of advocacy ad is to advice the society about good deeds. If producer of harmful company use this type of advertising rather than the product, it will ultimately make a publicity of the company brand. It is not possible for a company like tobacco producer to advertise their products in general form. Because, it is related to the ethics. That is why the company should use a different way of advertising, and that is advocacy advertising. It will generate positive publicity for the company.

Therefore, advocacy advertising is the appropriate one to use in a business scenario like this.

Conclusion
Finally, it can be said that task 2 of the given assignment has been told us about two exceptional types advertising and its application in two different business scenarios.

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Task 3
Introduction
In advertising world there are different media, agencies and organisations are related. Each of this agencies, organizations and agencies has its own role there. However, task 3 of the given assignment has asked to evaluate the role and function as well as the organisation process of the advertising agencies, not all the percipients in the advertising process. Therefore, in this task we will only discuss about the advertising agency.

Advertising Agency and its Types

Generally, by the name of ad agency, we mean about the outside firm that is specialized in the creation, production, and/or placement of the communication messages. Moreover, this type of agency also may provide other services related to the marketing and promotion. Another type of advertising agency that we can name is in house agency. This specific type of agency is run by any large organisation. This type of agency has the limited involvement in the advertising process that means they have low involvement in creative aspects of advertising. These roles will be more cleared in the next paragraphs.

Organisation of the Ad Agencies

There are different systems of management or organisation process of ad agencies. Different ad agency adopts different organisation system. Lets see some of the popular

management/organisation system of ad agencies.

The Centralized System

This is type of management system that is followed in in-house ad agencies. In this type of system, the advertising manager controls the entire promotions operation, including budgeting, coordinating creation and production of ads and other related issues. Page 28 of 30

The Decentralized System

This is also type of organizing system that is followed by in house agencies. This is suggested for typical large organisations those who have many products. For each product or brand, there is a brand manager. Departments are divided as manufacturing, research and development, marketing and so on.

The Role & Function of Ad Agencies

The functions performed by the ad agencies might be conducted by the clients themselves through in house or out house agencies. Functions of ad agency vary from the type of agency. For example, the function of in-house agency and the function of out-house agency differs from one another. The out-house agency mainly specialized in creative aspects of ads anything related to advertising process. The persons worked in this type of agencies are highly skilled. On the other hand, persons worked in in-house agencies are not skilled enough and they are not the expertise of creative aspects of advertising.

Conclusion
The above discussion has clarified the role, organization and function of ad agencies in advertising process. Therefore, things such as in-house agency or out-house agency and their role and functions are cleared to us now.

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References

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