ADVERTISING AND SALES PROMOTION

1.      Media fragmentation and digital technology have had an impact on the advertising industry in recent years. How do you feel this will impact on advertising campaigns over the next 10 years?

Media fragmentation describes the pattern of increasing the preference and consumption of a variety of media on various platforms, such as web and telephone, even on channels such as more TV channels, radio stations, magazines and more websites. Fragmentation of the media means increased difficulty in targeting target audiences. The word "digital technology" is a very broad term, and given that almost all today relies on computers in one way or another, it encompasses a lot of things.

 In my opinion, while fragmentation may be good for the media consumer in terms of increasing choice, for media owners and advertisers, the increased supply brings much challenge. For media owners, such a challenge means limited capital in terms of both declining viewers and advertisement revenues. Audiences are restricted to media outlets for two reasons: (1) because of the rate of growth in media options for marketers, the total number of potential media viewers remains stable, and (2) the increase in available broadcast hours (due to expanded channels) is disproportionate to the increase in available viewing hours. Media fragmentation and digital technology can impact the advertising company to saves their budget and focus on suitable people to become their ambassador. In the future, the ambassador for brands and products going to be the influencer in media social platform such as Tiktok and Instagram because the wide audience and features to make a live session. Other than that, physical campaigns will be abolish and will be replace with online campaigns.

2.      What are the similarities and difference between advertising and sales promotion?

Advertising and sales promotion are two of the main components of a company, but they are distinct concepts that people sometimes confuse. Advertising campaigns are undertaken to create the reputation of the brand, and the effects become evident as time passes. Sales deals are much more urgent and concentrate on bringing money into the company bank account right now.

Sales promotion is constantly being used to fulfil an ever-expanding list of marketing goals. The marketing goals and strategies of the business affect the production of sales promotion objectives and strategies. Like ads, propaganda is skewed in favor of what is being advertised. Generally, we come across political propaganda, and recognize it as such, based on our own understanding of who is right. Propaganda should prevent prejudice when supporting intellectual, environmental and sociological aspects.

3.      Why are loyalty programs supposed to be effective?

Loyalty initiatives serve a dual function: to enable new clients to hang around after buying their products and services, and to ensure that current loyal clients still feel as if they are respected by your operation. Of course, by setting up a loyalty program, not only do you boost the consumer appreciation of your company, but you also increase the likelihood that current clients will share that joy with others close to them. The more a customer feels like a business, the more likely he or she is to help the company and recommend it to others. This, in turn, continues to be of a word-of-mouth cyclical nature that continues to develop for your company.

By providing a loyalty rewards program, you are undertaking a method of research that will provide you with similar customer information. Through trial and error, you will begin to see the kinds of benefits that drive your clients' desires and rewards that do not yield the same results. This helps you to hone up to the unique incentives that are most valued. Using this information, you can also apply the most sought-after incentives to particular items that you are most interested in sharing with your clients.

As example, Watson have a loyalty program where required the customer to purchase the Watson card and only pay once in a lifetime. This loyalty program give benefit to both parties and keep the customer to loyal with the company and improve the company to serve better for the customer.