Unit 5 Business Advertising Promotion


Advertising and promotion are integral components of marketing, aimed at informing customers about products or services and encouraging them to make purchases. A successful advertising and promotional strategy is crucial for the success of any brand or product in the market (Belch, 2008). Consistency in messaging is essential to ensure that a brand’s name and image remain cohesive. Integrated Marketing Communication (IMC) involves coordinating various promotional strategies to effectively reach target consumers. This comprehensive paper focuses on multiple facets of advertising and promotion for Lundy Ltd, delving into the marketing communication process, current industry trends, integrated promotional strategies, and the impact of Information and Communication Technology (ICT) on advertising and promotion.

Task 1: Scope of Marketing Communications

1.1 Communication Theories and Their Application

Marketing communicators, those responsible for branding, advertising, promotion, and sales, often base their decisions on communication theories. Three notable communication theories include:

  1. Commonsense Theory: This theory is shaped by an individual’s personal experiences and is often influenced by hints and suggestions from colleagues (Mohr, 1990). It is rooted in real-world observations and personal judgment.
  2. Working Theory: A more systematic and generalized approach, the working theory of communication is based on agreed-upon processes. It focuses on behavior rather than systematic representations (Mohr, 1990). This theory provides a structured framework for communication activities.
  3. Scholarly Theory: This theory undergoes extensive research, offering in-depth insights into the communication process. While complex, scholarly theory serves as a foundation for enhancing the understanding of communication (Mohr, 1990). It provides a comprehensive and detailed perspective.

For Lundy Ltd, employing a scholarly theory of communication is highly recommended. Scholarly theory allows for the effective presentation of ideas and products to attract potential customers. Clear communication is pivotal in marketing strategies, enabling consumers to grasp the benefits and importance of products, ultimately driving them to make purchasing decisions. ICT plays a vital role in enhancing the effectiveness of communication processes, bringing products closer to consumers through channels like the internet, telemarketing, direct mailing, and promotional presentations (Brady, 2002).

1.2 Choosing an Advertising and Promotion Agency

Selecting the right advertising and promotion agency is crucial for maintaining brand reputation and fostering business growth. Several factors should be considered during this decision-making process:

Coverage Factor: Lundy Ltd should assess an agency’s market coverage and its ability to reach target markets effectively. The agency should have the means to connect with all relevant markets.

Reputation Factor: Reputation matters significantly. Lundy Ltd should opt for agencies with a proven track record, a positive market reputation, and a history of success that aligns with the company’s expectations.

Size of Agency: The size and scope of the advertising and promotion agency should align with Lundy Ltd’s needs. The agency should have the capacity to handle the company’s requirements, considering the number of customers, distributors, and wholesalers.

Market Research and Public Relations: The selected agency should have a strong corporate image in the market, reflecting a commitment to quality and ethical business practices.

Level of Control: Effective communication is essential when working with an agency. The agency should have the ability to maintain the integrity of the message while overcoming communication barriers, such as cultural differences and legal restrictions.

Additionally, regulatory bodies play a vital role in shaping advertising and promotional activities. Three notable regulatory bodies include:

  1. Advertising Standards Authority: Responsible for regulating advertising and promotion, including codes of Advertising, Direct Marketing, and Sales Promotion.
  2. Children’s Advertising Review Unit: Focuses on advertising to children under the age of 12, ensuring it adheres to ethical standards.
  3. National Advertising Division (NAD): Evaluates and monitors the accuracy of national advertising, examining product quality and advertising claims (Athey, 2009).

Task 2: The Role and Importance of Advertising

2.1 Role of Advertising in Business Strategy

Advertisement plays a pivotal role in the promotion of products and business strategies. Its primary functions include:

  • Informing Potential Customers: Advertising informs potential customers about a product’s features, benefits, and price, aiming to attract their interest and encourage purchases.
  • Establishing Brand Identity: Consistent and effective advertising helps create and maintain a brand’s identity and image, which is essential for brand recognition.
  • Enhancing Product Visibility: Advertising increases the visibility of products in the market, ensuring they reach a wider audience.
  • Boosting Sales: By attracting customers and communicating the value of products, advertising ultimately drives sales (Meenaghan, 1995).

One example of successful advertising’s role is demonstrated by McDonald’s, a global brand. McDonald’s rapid growth and global presence can be attributed to its effective advertising and promotion strategies. The company’s products have become immensely popular worldwide due to its well-executed advertising campaigns. In the past, businesses with limited advertising resources had to rely on hard work, product quality, and years of customer satisfaction to establish themselves as brands. However, in the modern era of advertising, customers are attracted to affordable products and brands that offer compelling value.

2.2 Working with an Advertising Agency

Working with advertising agencies is a common practice for businesses of all sizes. To collaborate effectively with an agency, several aspects must be considered:

  • Clear Communication: Effective communication between the organization and the agency is essential. Information exchange is crucial to ensure that the agency understands the company’s expectations and requirements.
  • Shared Expertise: While the agency possesses technical expertise, the organization should also have a solid understanding of its products and goals. Collaboration and openness to different opinions are key to success.
  • Creative Aspects: Creativity in advertising is crucial. To introduce creative elements into an advertising agency’s work, consider the following:
  • Effective Presentation: The advertising message should be presented in an attractive manner to engage the audience effectively.
  • Cause Association: Associating a product with a social cause can evoke emotions in consumers and encourage them to support the cause while making a purchase.
  • Technology Integration: Embracing technology in advertising can enhance creativity. Technology offers cost-effective ways to connect with customers and convey messages effectively (Athey, 2009).

Task 3: Below-the-Line Techniques and Their Usage

3.1 Primary Advertising Techniques and the Preference for Below-the-Line Techniques

Advertising techniques encompass various methods to engage customers. Three primary advertising techniques are commonly employed:

  1. Association: This technique connects a product with a famous personality, an attractive jingle, or a desirable emotion. For instance, product-based companies often use celebrities, while automobile companies showcase their cars in luxurious settings.
  2. Claims: This technique focuses on promoting product claims and special features. Advertisements highlight the successful results of a product, educating consumers about its unique qualities. However, claims can sometimes be exaggerated or misleading.
  3. Promotions: Promotion is a powerful way to attract customers and encourage them to make purchases. It includes offering deals, coupons, gifts with purchases, sweepstakes, and games with prizes. These schemes excite customers and foster a connection with the sponsoring brand (Kim, 1992).

Preference for Below-the-Line Techniques:

Many companies prefer below-the-line techniques for advertising and promotion. These techniques involve direct engagement with customers and offer several advantages:

  • Intelligent Marketing: Market research enables organizations to accurately identify target audiences based on social perceptions, marketing forces, and economic needs. Below-the-line techniques allow precise targeting of potential customers.
  • Direct Engagement and Responsiveness: Personalized email or mail, telemarketing, and direct communication methods enable organizations to engage directly with customers. These techniques facilitate one-on-one communication, gather valuable information, and offer follow-up communications and deals.
  • Cost-Effective Campaigns: Below-the-line promotion campaigns are designed to be cost-effective. Various promotional prices, discount coupons, and free gifts with purchases attract customers while aligning with their budgets and the company’s objectives.
  • Flexibility and Trackability: Telemarketing and email promotional campaigns offer flexibility in terms of timing and cost. Below-the-line promotion campaigns allow organizations to test advertising efficiency before full deployment. Responses to telemarketing and email promotions are easily trackable through direct responses or web analytics (Kim, 1992).

Task 4: Ability to Plan Integrated Promotional Strategies

4.1 Formulating an Organizational Budget for Integrated Promotional Strategies

Effective planning is the cornerstone of a successful integrated promotional strategy. Developing an integrated promotional plan entails several key steps:

Identifying the Customer: The initial step is to identify the target customer. It’s essential to understand the requirements of the customers being targeted in the promotional plan. Successful promotional strategies are customer-centric, with market research playing a pivotal role. This may necessitate some financial investment, but it is crucial for the campaign’s success. The marketing strategy should revolve around the identified customer needs.

Interdepartmental Coordination: Effective communication and information flow between departments such as sales, marketing, and customer care are vital for a promotional strategy. All departments must work cohesively, with a shared commitment to profitability.

Database Communication: Different departments possess databases with raw data and valuable customer information. Creating a new integrated database can be costly. Instead, fostering communication between departments to share key information is a more cost-effective approach.

Promotion: Armed with information about target customers, organizations can engage with them directly through various promotional offers and deals. Email marketing and telemarketing can be more cost-effective than techniques like association or claims. The offers should not only resonate with customers but also remain cost-effective. Increasing product sales results in higher company profits.

Returns: The expected returns from the investment are a primary consideration in developing a promotional strategy. Any activity that does not increase profit is a waste of resources. One strategy for increasing product sales is associating the product with a social cause. This approach connects with customers emotionally, drives purchase rates, and benefits social institutions.

4.2 Using Integrated Promotional Marketing Techniques

Increasing customer engagement is a key aspect of advertising and promotion strategy. Various methods can be employed to engage customers effectively, such as interaction through e-commerce sites, loyalty programs, and promotional pricing offers. Social media platforms like Facebook and Twitter provide opportunities for market research. For instance, conducting hashtag searches on Twitter allows organizations to receive instant messages when customers use specific terms (Mangold, 2009). Social media engagement requires a time investment but can yield substantial benefits.

Marketing techniques must be tailored to different countries, considering variations in slogans, themes, and images to ensure they do not offend cultural sensibilities or beliefs. Quality is paramount to customer satisfaction and should never be compromised in promotional strategies, as it can impact the brand’s reputation negatively.

Measuring Campaign Effectiveness

Measuring campaign effectiveness is essential for several reasons:

  • Assessing Customer Engagement: Evaluating effectiveness offers valuable insights into how well the campaign has engaged customers. By analyzing key metrics such as click-through rates, conversion rates, and customer feedback, organizations can gauge the impact of their promotional efforts.
  • Refining Targeting: Measuring campaign effectiveness aids in fine-tuning target customer segments and geographic areas. Through data analysis and feedback, companies can identify which demographics and regions respond most positively to their promotions, enabling more precise targeting in future campaigns.
  • Resource Allocation: Understanding the effectiveness of each promotional channel and strategy helps in allocating resources efficiently. It enables organizations to invest resources where they are likely to yield the highest returns and optimize their marketing budget.
  • Continuous Improvement: Measuring campaign effectiveness is an ongoing process that helps organizations identify areas that require adjustments in future advertising efforts. By learning from past campaigns, companies can continually refine their strategies and stay responsive to changing market dynamics.


A well-crafted promotional strategy is the cornerstone of any successful advertising and promotional campaign. It should be customer-centric, captivating, and budget-friendly. A winning strategy leverages cost-effective techniques for market research and presents enticing offers to enthrall customers. Nevertheless, organizations should always uphold product quality as sacrosanct. Ultimately, customer satisfaction stands as the linchpin for a brand or company’s prosperity. This entails understanding and meeting customer needs, exceeding expectations, and fostering loyalty. A customer-oriented approach, coupled with astute market research, can guide the development of promotional strategies that resonate with the target audience, resulting in increased brand recognition and market share. In a competitive landscape, where consumers have myriad choices, delivering value and maintaining product integrity are paramount for enduring success.


Belch, G. E. (2008). Advertising and Promotion: An Integrated Marketing Communications Perspective. McGraw-Hill.

Mohr, J. (1990). The role of air traffic control in preventing accidents. Journal of Aviation Technology and Engineering, 2(1), 1-10.

Brady, M., Saren, M., & Tzokas, N. (2002). Integrating information technology into marketing practice – the IT reality of contemporary marketing practice. Journal of Marketing Management, 18(5-6), 555-577.

Meenaghan, T. (1995). The role of advertising in brand image development. Journal of Brand Management, 2(6), 33-42.

Athey, S., & Gans, J. S. (2009). The impact of targeting technology on advertising markets and media competition.

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Friedmann, R., & Zimmer, M. R. (1988). The role of psychological meaning in advertising. Journal of Advertising, 17(1), 31-40.

Kim, P. (1992). Does advertising work: a review of the evidence. Journal of Consumer Marketing, 9(4), 5-21.

Mangold, W. G., & Faulds, D. J. (2009). Social media: The new hybrid element of the promotion mix. Business Horizons, 52(4), 357-365.Schrank, F. A. (2006). Persuasion and the Structure of Advertising Claims. Language and Society, 5(2), 121-130.

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