Advertising for Business Free Essay
Today advertising surrounds us almost everywhere, even when we do not expect. It is very hard to imagine large, medium and even small businesses, which operate without the use of advertising techniques – hardly such a firm is able to stay on the market. Advertising budgets of companies are growing year by year, together with the volume of advertising market as a whole.
The three communication theories are:
- The theory of eight hidden emotional needs;
- Intensify and downplay theory
- The theory of selectivity in media.
The first one is based on the eight most important emotional needs of a person. Among them are: emotional security, reassurance of worth, ego gratification, sense of power, sense of roots and immortality. The second theory is based on two major principles that are in the name of the theory. The third theory is based on selective attention, perception and memory. The most widely and actively used one is the first theory. The marketing campaigns of most successful companies are based on the human emotional needs. They use various combinations of the needs to influence the consumers’ desire and stimulate their buying activity.
Advertising is one of the most developed applications of communication theory. An American expert N. Postman calculated that on average, a young person has seen about 1 million of commercial advertisements by the age of 20. The advertisement sphere became the main source of education and development of young people. The advertisements do not just convince people to buy, but form a model of the world. Advertising teaches three things: all problems are solvable; all problems can be solved quickly, and all problems can be solved quickly with the help of appropriate technologies. That is, all problems can be solved if the advertiser would suggest any technology to help in various spheres of life – in love, career or family life.
Marketing communication is the process of transmission of a product data, service or idea to influence the consciousness and behaviour of the target audience. Within the marketing communications process, management refers to the promotion of goods and services at all stages: before the sales at the time of purchase, during and after the process of consumption. Marketing communication system should be developed individually for each target market segment and contain not only the mechanisms of information transmission to the target audience of buyers, but also the feedback function of the buyer with goods and services. Such feedback analysis allows assessing the effectiveness of investing in a marketing campaign. Marketing campaign can be considered successful only if it has achieved its goals. Once the target market and its characteristics are defined, it is important to define the main aims for the audience. The most common purposes of marketing communications in the commercial sphere include: achieving brand awareness, winning the consumers’ attention in relation to the trade mark, informing the audience about products and services, achieving the situation when the target consumers prefer products and services to similar products of competitors, persuading of consumers to purchase products or services with the help of creative promotional ideas.
Companies with their own strong advertising departments can also use advertising agencies to promote products and expand the market. Creative and technical specialists who work in the agencies are able to perform advertising functions better and more efficiently than regular employees of the company. In addition, agencies bring outside perspective on the challenges the company faces, as well as enriches the advertising methods because of the diverse experience gained in the process of working with different clients and in various situations.
The advertising agency is based on four divisions. Creative department is engaged in the development and production of advertisements. The department of advertising means is responsible for the choice of means of advertising and placement of advertisements. Research department studies the characteristics and needs of the audience. Commercial department is dealing with the commercial side of the agency. Advertising agencies as participants of the advertising process perform the following basic functions. They carry out relationships with the media, placing the orders with them and monitoring their implementation. They create advertising products on the basis of the orders from advertisers. They develop plans of complex advertising campaigns and other promotional activities, using the potential of both creative and technical specialists. They provide calculations that help to plan the budgeting of advertisers for the media. Perform the function of collaborating with printers, studios, advertising mills and other external experts.
There are core factors that the companies should consider while choosing the advertising agency. First of all the company has to decide on several important points of their advertising strategy they include the target audience that should be addressed, the key messages that the company intends to introduce, the key objectives that have to be achieved and the budget set for the advertising strategy. The company has to consider other major factors like the size of the agency, size of their clients, specialty and philosophy of the agency, their timely approach and expertise in specific field of the company’s interests, recommendation from a marketer or a colleague, quality and content of the agency’s website and many other factors.
There are three regulatory bodies that monitor and control the work of advertising agencies and promotional activities.
Advertising Standards Agency (ASA) regulates the advertisements to be honest, legal, truthful and decent. They are responsible for advertisements in newspapers, cinema, pop-up advertisements, banners, outdoor posters, TV and radio as well as all kinds of sales promotions.
Office of Communications (OFCOM) regulates the UK’s telecommunication sphere, broadcasting and wireless communication. This organization is independent and makes sure that companies follow the rules set for them and regulate the fairness of competition between companies in these industries.
Office of Fair Trading (OFT) was created to protect consumers’ interests all over the UK. They specialize in encouraging the businesses to work competitively and to follow the consumer laws. They make the companies to improve the practice of trading. They lead market studies and make sure that the consumers have all the required skills and information to make the right choices to make the best market decisions.
Advertising currently exists everywhere: on the Internet, in print media, radio, television, billboards, providing a significant impact on consumer choice of products. The advertisements placed in media are the most effective because they attract the largest number of potential buyers. Advertising is primarily an economic phenomenon. It affects both producers and consumers of goods and services. Advertising plays an important role in developing trends and expanding the production of goods, promotes employment in the manufacturing sector of the economy of various countries. Advertising helps the consumers to make the best buying decision, providing them with information about the product. In the derivation of new products to the market, the usage of advertising opportunities provides an effective tool of communication with consumers. Advertising is one of the main sources of funding for all types of media. Advertising revenue may be up to 60% of the content of magazines, 70% of newspapers, and about 100% of the time of television and radio programs. Advertising supports increased competition by allowing the companies to extend their range of products. It also helps to expand markets, promote the accelerated capital turnover than increases the efficiency of the economy as a whole.
At the same time, advertising appeals not to reason, but to the senses. It is aimed to influence the human facilities intelligently. The psychological influence of advertising is immense, as it uses the principal rules of human psychology in the process of its creation. The people experience the leading emotions that were meant to be evoked by the particular advertising campaign and force people to feel what they need to experience in order to force them to an active buying of the determined products.
Depending on the goals and tasks, there are different types of advertising. Informative advertising is the type of advertising that has the following tasks: narrative about the novelty or new versions and new applications of an existing product. Advertising is informing consumers about the change in price of the product. It brings the explanation of the properties of consumer goods and description of the services provided. It can make a necessary correction or clarification of misconceptions about the product, and scattering concerns of consumers. It influences the formation of the image of the company. Persuasive advertising has the following tasks of formation of preferences of prestige brand image. It can produce encouraging switch to the promoting brand. It brings efforts to change consumer perception of certain properties of the product. It urges consumers to buy the goods without delay, to meet with a salesman, get acquainted with more complete information about this product. Reminiscent advertising is designed to achieve the following objectives: suggestion and a reminder to the consumer that the product may soon be in stock, a reminder of where to buy goods, an attempt to keep the information about the product in the memory of the consumer during the off-season and to provide an ongoing support to awareness of goods and services for a long period.
The brightest example of effective use of advertisement with all its functions and applying the leading creative ideas is Coca-Cola Company. The advertising campaign of famous brands is based on the communication theory that is based on the eight hidden emotional needs. The leading emotional colouring is directed into sense of roots, reassurance of worth and selling love objects. The company used the reactions of real people in its advertisement videos what produced a significant emotional effect upon the watchers and immensely stimulated the sales of this product. Coca-Cola uses a number of creative ideas that were not used before by other companies that determined its success in the market of the most purchased products all over the world. The advertising strategy of the Coca-Cola Company penetrated not only minds but the souls of people all over the world and made people to be willing to buy it no matter what.
In order to become a memorable brand in the eyes of the target audience, the company needs to form a unique corporate identity, which includes the same structure and a creative component of representative materials from business cards to promotional products. Developing creative style and creative strategy is a case that should be entrusted to professionals. Once the strategy is developed, it will be the foundation on which the company can base and use it for working on any project. The company can decide whether developing creative design for promotional products, or start looking for creative ideas for television and print advertising. Most importantly, creative techniques will help to make the brand recognizable, distinct from its competitors, and more beneficial.
The major ways of working with an advertising agency include making sure that the agency understands the strategy of the company and the idea of the selected product promotion. Besides, the advertising agency has to develop and present several variants of advertisement projects that they will distribute in all the necessary spheres of influence. The company has to decide on the best project and to agree on the intensity and the size of the advertising campaign. Moreover, the agency has to provide the results of advertising campaign and its effectiveness so that the company to be able to evaluate the results. This will also allow seeing what projects work 100% effective and which ones are not that effective and require some changes.
The main objective of any promotional items is to attract the attention of potential consumers. In the era of active development of the advertising market, everything is full of advertising. It is not easy to stand out from the masses and make advertising attractive and memorable. Creative design will help the company not to waste money by printing numerous flyers. Creative ideas in television commercials are a necessity. Today, when commercials take up a significant part of the airtime, replacing one after the other, only the professionally creative product can reach its target audience, and not get lost among the flood of promotional products.
The first creative aspect to be introduced in an advertising agency includes some extraordinary website design like the virtual excursion or exhibition of the products that will simultaneously allow the consumers to order the items they like. The second aspect is the developing of personal blogs of the company’s leaders that would allow the visitors to communicate with them and ask questions as well as get the answers, this will help the company to become closer to their consumers and get more trust. The third aspect to be introduced in an advertising agency is to make a more personal oriented advertising strategy that would meet the requirements and the interest of the largest number of people for example making numerous pictures of smiling people in the street (with their consent)and using them in the advertisements.
BTL is a major component of marketing communications; the reason for such high efficiency of BTL marketing is the fact that it is directly aimed at the target audience and is carried out mainly at the point of sales that is the exact time when the potential customers make a decision about the purchase. BTL technology is used to maintain the brand image, to increase awareness of the product or information about the new product, for its positioning in the market, for attracting new customers, and to stimulate sales promotion.
BTL technologies are effective, as such advertising draws the consumers’ attention to the distinctive properties of the product. Thus, BTL advertising almost brings the consumer to the decision of purchase. In terms of efficiency, there is a particularly different BTL technology such as a “gift with purchase”, this tool is able to increase the level of sales in each outlet in 50%.
Maximum results of any advertising campaign can be achieved in case of complex application of ATL and BTL. However, it is important to note that BTL is a versatile technology. The tools of BTL actions include: exhibitions, direct mail, POS (place of sales), promotion of resellers, promotion among consumers, direct marketing, special events, promo-actions, leafleting, branding parties, animated promo and much more.
Promotions are usually held directly on the sales spots. The company and its goods are usually advertised by promoters that offer visitors a sampler of goods and inform customers about the company as well as promote the product. In carrying out such actions, method of “get a gift” is often used. Similar events are held to promote sales, to distribute information about a new product, or to function as a reminder of an existing product on the market.
The main advantage of BTL technologies is that they are aimed directly at the target audience and influence the visitor at the time of making a purchasing decision. Conventional promotions are often used to promote a new product that hits the market. Such actions can be used effectively to promote the goods, but not services. Most often, this tool is used to promote foods, and they use arranged tasting what is also actual for promotion of a line of cosmetics. Animated promo actions differ from ordinary by participation of professional promoters – actors; they require more creativity when used for an existing product on the market in a competitive environment where companies need to stand out among competitors. Animated promotions are used effectively to promote children’s food, since children respond positively to such manipulations. During promotions, POS materials play an important role, as they allow consumers to attract visual attention and form a first impression of the product.
Leafleting can be considered as one of the most widely used components of promotion, but many marketers distinguish this method of product promotion as a separate element of BTL techniques. The essence of this method lies in the distribution of brochures or booklets, promoting the goods. This tool of BTL techniques can be used at exhibitions and in stores or even in the street. Promoters can wear items of clothing with company labels or name of the product. This method is equally effective for promoting products and services. The target audience is the middle class of consumers which makes the most significant part of consumers in general. Such technique is not good for promotion of luxury goods, as they are not advertised in such a way. Such techniques can be used to promote products in the line of cosmetics, food, appliances or electronics. These techniques are equally effective for promoting any type of goods or services to middle price segment.
For the promotion of luxury goods, such technology as direct mail is used. It consists in sending information to the potential consumers via electronically based mail, meaning that it is not necessary to spend money on unnecessary advertising.
To promote products and services of higher price segment, such techniques as branding parties, special events, and the already mentioned method of direct mail are used. Such techniques are often used to promote the company as a whole or to highlight the line of new products. It can be a network of branded stores or beauty salons, cars, branded jewellery and other luxury goods. The same technology can be used to promote tourism services or design company services.
The special quality of BTL technologies is that they can be combined in different ways and thereby adapt to any brand. In addition, for companies’ producers of alcoholic beverages or tobacco companies, BTL is the only way to communicate with potential customers. Therefore, BTL technologies are widely used and appreciated in the field of marketing and advertising.
Planning in marketing should provide systematic, balanced linking of organizational objectives and the company’s potential to the production and sale of products with the objectives of the commercial behaviour of consumers towards these products. The purpose of planning is to decrease business risk by reducing the uncertainty of the future results of business communications, and to concentrate resources on selected priority areas of the company’s actions. As a rule, the marketing budget makes 1 – 5 % of the expected or achieved sales or 10.25% of the profits.
The effective plan of advertising campaign should be developed in the following sequence:
- Analysis of marketing situations.
- Defining advertising goals.
- Defining the target audience.
- Determination of the advertising budget.
- Definition of advertising funds.
- Creation of advertising messages.
- Evaluation of the results.
Advertising campaign can be discussed and analysed according to the following criteria:
- Increased engagement;
- Usage of social media as market research;
- Usage of location-based marketing techniques;
- Focus on quality content.
Recognisability of advertising is the indicator that determines the amount of time it takes for the consumer to recognise the product. The less time it takes for the consumer to recognize the brand, the higher the efficiency of the communicative technology. Memorising of advertising is the main quality indicator. The criterion is a direct correlation to the level of brand awareness intention to buy the product. Common method of this study is a survey of potential consumers. Attractive force is the basis of assessment, according to which a successful creative solution has the following characteristics: it is surprising, is correlated with advertising strategy and has rich emotional colouring. Agitation power of advertising is the ability to change the behaviour of the consumer advertising with respect to the brand. It consists of four main properties: subjective importance of the theme for the consumer, the plausibility of the advertising message, and the uniqueness of the advertised product integrity.
Over the past ten years, advertising technology has transformed. What was previously effective, no longer produces the desired effect.
The effectiveness and popularity of print advertising is no longer the same. The major campaign in the fight for the buyer now moved to the Internet. Consequently, the major advertising budgets, new advertising technologies are now based there. To win, it is important to adopt online advertising technology. The main advantage of Internet based advertising technology is that advertising budget is significantly lower than similar offline advertising campaign. The effectiveness of online advertising technologies is higher than that of usual methods. One more effective advertising technology should be mentioned. It is a TV advertising campaign. To reach the central channel and place an advertisement, the company needs an impressive advertising budget. With the given limited budged for an advertising campaign, it is important to plan the program of advertisement and to divide the financial part. The lower cost of advertising of the same direction is using advertisements on local television channels. This will be of the same level of effectiveness with more advantages, as the prices are lower and require less advertising budget. This approach makes sense in case of localization of the business. And yet, if to use the same money for advertising on the Internet, it is evident that the company can get more satisfying results.
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