Communication process of Aroma Cake House.
Advertising and promotions industry in Aroma Cake House
How promotion is regulated and whether Aroma Cake House is aware of the regulation.
Current trend in advertising and promotion, including the impact of ICT and the current trend that affects Aroma Cake House
This report is assigned to do marketing communications in advertising and promotion in business. In this assessment I have to explain the communication process that applies to advertising and promotion. In this communication process includes the sender or source, message encoding, media channel, decoding, receiver, response or feedback and noise. In addition, I will explain precisely regarding the organization of the advertising and promotions industry. In advertising and promotion industry consist advertiser, advertising and promotion agencies, external facilitators, media organizations and target audiences. All these elements are the mediums for any organization or business to implement the advertisement in order to advertise and promote their products or services. Without the help of those elements, the advertising could not happen. Moreover, when advertisers make advertisements, they should aware with the rules and regulations in advertising. Here, I have to assess on how promotion in Aroma Cake House is regulated. According to Malaysia Code of Advertising Practice, Guidelines to Avoid False and Misleading Advertising and Broadcasting Ethics Code I will mention the important part that this company should aware in advertising. Lastly, there are several current trends in advertising industry occur in Aroma Cake House. I will explain regarding media clutter, new media, sales promotion and impact of ICT towards this company. In other to enhance the business performance through advertising, I would like to suggest to Aroma Cake House by using pay-per-click advertisement on Google Search Engine. Google will advertise this company so that when user type ‘Aroma Cake’, Aroma Cake House will be on top of the homepage. Other than that, I suggest to Aroma Cake House to make discount coupon for UiTM students since they always sell the goods in UiTM on every Tuesday. The discount coupon will be given for those purchases more than RM 20. This activity can increase the sales of Aroma Cake House.
The purpose of this assessment is to study about marketing communications in Aroma Cake House. The aim of this assessment is to know the communication process that applies to communication and advertising. Then, to investigate the advertising agency which is this company used in the meantime how promotion is regulated. Besides, examine the current trends in advertising and promotion including the impact of ICT.
Aroma Cake House has been established on 23rd February 2005 and this company is 100% own by Bumiputera. The founder of this company is Norma Binti Mohd Saleh. This company has been registered under Suruhanjaya Syarikat Malaysia (SSM) and Jabatan Agama Islam (JAKIM) to ensure the ‘Halal’ products produce by this company. In addition, before this company situated in Bandar Universiti it has been established at Taman Maju, Seri Iskandar. Aroma Cake House has 3 employees in order to operate the business assigned for productions.
Communication process of Aroma Cake House.
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Figure 1 (Marketing communication process - Google search)
In advertising and promotion, communication refers to the ways of giving, receiving and exchanging information by writing, visual or speech. It consist sender, message, encoding, media channel, decoding, receiver and response or feedback. The sender or source for this communication process is Aroma Cake House which is a bakery company. This company wants to sell cakes, frozen foods and raw ingredients to bake the cakes. For the message, this company wants to make promotion regarding their goods through flyers, banners, Instagram and Facebook page. They have competitive advantage by providing class of baking cakes and making pastries.
In addition, for media channel Aroma Cake House used online and offline advertisement for business. For offline business, they provide banners and flyers, then for offline business they used Instagram and Facebook page as the tools to promote their goods to the customers. The flyers will be distributed to residents in Seri Iskandar. On the encoding process, they want to inform the residents in Seri Iskandar about their goods by providing the pictures of the goods in the flyers such as promotion for wedding and birthday cakes and free gift such as fondant flower and wedding doll provided for customers.
After the flyers have been distributed to the customers, the decoding process for this communication process is NOFA Aroma Cake as the attraction of the goods on flyers and business card. This company also provides contact number, fax number, E-mail address, Facebook page and Instagram username on flyers and business card. A simple map also provided in flyers so customer will attract with the advertisement and ease them to go to the bakery and purchase the goods.
So, the receiver of the communication process in Aroma Cake House definitely is the customers. By producing flyers, Aroma Cake House distributes it to UiTM students every Tuesday when making sales. The main receiver other than Seri Iskandar residents are UiTM students. When customers purchase goods from Aroma Cake House usually they will give response or feedback regarding the advertisement and promotion. Recently Aroma Cake House gets positive feedback from customers. Normally, customers will repeat purchase after buying the goods from this bakery because they can get good quality of products which is same with the flyers.
Even though this company has made variety of advertisements such as banners, flyers and advertisement through social networks in order to attract more customers but there will be noise occur. This noise can exist is many ways. For this company, the noise they had to face is too many interesting advertisements regarding cakes through Facebook and Instagram since people nowadays always use internet and making offline business. Then, the noise that could be existed when their advertisement is not so creative like other competitors do. These are the barrier and noise for Aroma Cake House to compete with other competitors.
Advertising and promotions industry in Aroma Cake House.
Usually, a company or any organization needs the involvement of advertising industry in order to advertise and promote their goods or products to customers.
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Figure 2 (Structure of advertising industry : Google Search)
Advertiser is the person that places the advertisement in order to get customers. The advertiser of Aroma Cake House is the company itself. They want to promote their goods to customers so they will be a client to the advertising agency. The advertising agency will play the role to assist Aroma Cake House in advertising and promoting the goods. Then, Aroma Cake House used advertising and promotion agency to assist their promotion.
In advertising agencies, there are four types of agencies included such as full-service agencies, creative boutiques, interactive agencies and In-house agencies. According to wisseGEEK.com, “An advertising agency is a company that carries out all or some aspects of advertising production for firms by which it has been hired. Some agencies handle all phases of advertising campaigns, from performing market research and establishing product branding strategies to producing ads and placing them in appropriate outlets. Other agencies specialize in one or more of these functions.” (What is an advertising agency ?: wiseGEEK)
What is the role of ethics/truth in advertising, and how does a social medium affect this role?
In this study, the examination revolves around three main issues which include ethics, advertising and social media effects. Ethics basically refers to moral principles which control an individual behavior with respect to activities carried out. Alternatively, advertising refers to method by which sellers communicate to buyers in the market. The study will look at ethics in advertising as a way to govern communication between buyers and sellers. In addition, the study will examine the effects of social media on ethics in advertising (Ibrahim, 2008). When talking about ethics in advertising, it refers to well defined principles upon which communication between buyers and sellers is governed. Therefore, this implies that ethic is classified as an important tool in the advertising industry. Advertising has many benefits; however, certain points employed don’t match the required ethical norms.
The concept of ethical advertising
According to studies, ethical adverts are those characterized by truth without fake or false claims. Such adverts are considered to be within the decency limits. As for the current advertisements, they are exaggerated and contain too much puffing to lure customers (Kennedy and Abbatangelo, 2005). In such a case, the advertiser is classified to lack the understanding of principles and norms of ethical advertising. In such a situation, the advertiser is not in a position to distinguish correct or wrong contents of the advertisement. In normal practice, advertiser is mainly focused on how to increase sales volumes and attract a larger customers base. In addition, they are geared towards increasing product demand through the use of a well colored and presented advertisement. Advertisers usually claim that products they offer are the best in the market in terms of quality, cost effectiveness among other benefits that customers may derive from the products. In the real sense, most of the adverts made to customers are noted to be containing false information this misleading them and this scenario is referred to as unethical (LaRose, Mastro and Eastin, 2001). To give a good example which explains this situation, consider an advert showing evening snacks meant for small children. In the advert, coloring and gluing are used in order for the product to appear glossy and attractive. In such a case, consumers who watch television may get convinced to purchase the product without thinking twice on whether the actual information about the product is relayed.
In normal practice, there is a direct relationship between ethics in advertising, the advertising purpose and finally the nature of advertisement. Basically, exaggerations made in advertisements are necessary so that the necessary benefits about the product are proved. There is another example. Look at the sanitary napkin advertisements where a napkin was dropped in some river and was in a position to soak all waters from the river. In such a situation, the advertisement was mean to inform customers particularly women that their products are of high quality (Livingstone, 2008). In the real sense, customers obviously know that it is not practically possible for the nappy to absorb all the rive waters, but the advert was acceptable and could not be classified as unethical.
Does Ethics Depend on What One Believes in?
This is true in a number of situations. For instance, in case an advertiser has an advert and strongly believes that customers would comprehend the content and meaning of the advertisement, get persuaded, think and eventually act, this similarly may create a positive impression thus erasing unethical nature of the advertisement (Tavani and Grodzinsky, 2002). On the other hand, in case the advertiser has a traditional believe that customers can be fooled through the use of impractical things such as purchasing a lottery ticket which could make one a millionaire or clicking fingers which could fully furnish one’s home or office, it may not work well for the advertiser. This is referred to as unethical.
Considering a recent issue which was raised by Vetican, it was claimed that there are about three main moral principles which govern advertising. These include Upholding Human Dignity, Social Responsibility, and Truthfulness. Looking at the approach used by big companies, they rarely lie because it is a requirement that points included in the advert must be proved to ad regulation bodies (Tufekci, 2008). In most cases, it is necessary that truth regarding product or service being sold is revealed for the betterment of both the company and the public. Let us consider the following points regarding advertising.
- Pharmaceutical Advertising. Companies in the pharmaceutical industry employ advertising strategy as a way to create awareness. The main point in the adverts which is emphasized upon by advertisers is that medicines cure; however, they rarely give information regarding the side effects or associated risks. This obviously shows that most advertisers talk of positive values while neglecting the negative effects associated with the product.
- Children. The main sellers in product advertisements are the children. The reason is that they have a convincing power to lure buyers to purchase a product. The thing is that in case children are used in ads, they should not be casted handling activities independently, for instance, holding milk bottles, toy playing and teeth brushing. These should be shown when an adult person is assisting them to handle the activities. It is logical for parents to be shown getting involved with their children when advertising certain products and services.
- Alcohol. Up to the current market place, no advertisement has been shown with a person practically drinking the actual liquor. In these ads, the demonstrators usually use sodas and mineral water which pose the actual liquor brand name. For such ads, they are referred to as surrogate adverts. Practically, whether there are alcohol advertisements or not, it is highly possible that loyal consumers will continue drinking alcohol one wau or another.
- Cigarettes and Tobacco. In the real sense, tobacco and cigarettes need not be advertised because people consuming these products are likely to suffer severe health issues and cancer. Practically, such adverts are banned in a number of countries namely Singapore, Finland, India and Norway.
- Ads for Social Causes. Adverts associated with social causes are classified as ethical and should be acceptable among people. Nevertheless, advertisements associated with condoms and pills for contraceptives should be controlled because they exhibit unethical nature. Basically, such activity may compromise the decency and morality particularly in areas where education and knowledge of the product are limited. Based on the approach mentioned above, it becomes vital for advertisers to be responsible for ensuring that ads are self regulated.
How Ethic Advertising Can be Achieved Within a Company?
The management should put in place a well designed code of regulation which includes the legal points, truth, ethical norms, and decency. In addition, they should have a well kept record which tracks all the activities and ensures that those advertisements which are deficit in fulfilling the codes are eliminated (Tyma, 2007). Similarly, all the consumers should be informed about the specific self regulatory codes which have been designed by the company. Attention should be also placed on customer complaints regarding the adverts being used in the media. Finally, it is recommended that transparency is maintained thought the systems of the company.
How Will the Implementation of the Above Facts Affect Advertising Performance?
When the above system is implemented in the organization, the company will take responsibilities of all activities they are engaged in. Similarly, the system will minimize chances of interruptions by regulatory bodies and critics. In addition, these activities will assist in gaining customer confidence thus luring them to develop trust and loyalty on the products. Basically, with rise in the use of social media, the natural aspect is when a correlation is made with respect to individuals using the mode. Given the fact that there are a number of exceptions regarding correlation especially on the data which considers the universal truth, the use of social networking and the behavior of users are two important aspects.
The Perspective of Ethics Resource Center (ERC)
ERC is a non-profit organization based in the United States which is mainly involved in independent research. They monitor advancements on the ethical standard issues both for private and public organizations. For the last two decades, they have managed to produce NBES or National Business Ethics Survey which is freely available to the interested parties in the public. This enables the employees and the public to give their views regarding workplace ethics. According to the ERC president’s view, ERC is classified as the mainly longitudinal study which fully represents the United States workforce views particularly in the business field. For example, one of the latest reports which were produced by the organization managed to explore the relationship between social media and ethics (Foley, 1999). In the current market place, social media has been branded an important component of culture, and the question which people remain wondering about is whether new technology is affecting views of people regarding the work ethics. In addition, the past few years have been characterized by people and companies drawing policies relating to social networking both for workplace purpose and advertising. This now makes it important for the examination to look at the effect of ethics on social networking.