The Role and Importance of Advertising - an investigation

BTEC Higher National Diploma in Business

NQF Level 5

Unit Name: Advertising and PromotionUnit No. : 18

Unit Type: H2

Prepared By:

Author Name About the Document Contact Information

Tawfiq Fayed The Author prepared this

document to fulfill the above

unit of the HND course

requirement.

Cell No# +88 01717 16 88 86

E-mail: [email protected]

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 TaufiqueAssistant 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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ContentsAcknowledgment............................................................................................................................................................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




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. Let’s go in details about these advertising in the following.

1. Differentiation – it’s 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 doesn’t 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.

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Figure 1.1: Shows an example of differentiation advertising

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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 didn’t 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.

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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 –

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“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. Let’s 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; it’s been in

the market for 20 years, and a very popular brand of CONCARE.

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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. It’s 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

doesn’t 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 doesn’t 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

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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.


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 company’s 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. Let’s 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. It’s 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.


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, it’s 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

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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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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, let’s 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. Let’s 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-of-

mouth 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 doesn’t 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.

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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. Let’s 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.

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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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The Role and Importance of Advertising - an investigation

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