M2
Unit – 9 (Creative Product
Promotion)
BTEC National Diploma In Business Level 3
The Date
Author: Your Name
Your Teacher
1
,Unit 9: Creative Product Promotion M2
Unit 9 Creative Product Promotion
To:
From:
Date:
Ref:
On completion of this unit I should:
1) Know the constituents of the promotional mix.
2) Understand the role of promotion within the marketing mix.
3) Understand the role of advertising agencies and the media.
4) Be able to create a simple promotional campaign.
Task 3:
a) Explain the advantages and disadvantages of using professional agencies in ensuring
promotional success.
1.0 Terms of reference
In this report I have been asked explain the advantages and disadvantages of using
professional agencies in ensuring promotional success. I will use the Internet, Moodle and my
Business Textbook to collect information for this report.
2
, Unit 9: Creative Product Promotion M2
The advantages and disadvantages of using
professional advertising agencies and in-house
teams to McDonalds
In-house advertising is a system of product or service promotion that is executed by
members of that product’s or service’s organisation rather than an external advertising
agency. The extent of these internal and external advertising functions varies; some
businesses attend to every aspect of the advertising process internally, while others maintain a
partial dependence on outside agencies. McDonalds for almost 30 years now prefers to
employ external advertising agency, for instance its recent Christmas campaign was
promoted and advertised by Leo Burnet’s group. But eventually both: internal and external
advertising employment has its advantages and drawbacks.
2.0 Advantages
McDonalds in-house team
Organisations that choose to market their own products usually establish an in-house
advertising department, depending on the size, budget, and advertising goals of the business,
this department can range from a single employee to a full team of market researchers, media
buyers, and creative professionals. The functions of an in-house advertising department can
also vary depending on the needs and capabilities of the firm.
The primary benefits of in-house advertising to McDonald’s promotional campaigns are the
control it affords and the savings it can allow. Unlike outsourced advertising agencies, those
that operate internally maintain sole authority over the way their product is presented. Unlike
using an advertising agency, in-house advertising department allows McDonalds to control
and encompass everything from a product’s packaging to the places its advertisements are
seen. Moreover, creating an advert in-house allows the McDonalds to avoid high financial
expenditures for employment of another company, which is charged by outside agencies.
Another advantage of having internal advert agency to McDonalds rather than external is
privacy marketing strategies secrecy, in other words: all the marketing strategies objectives
and aims are kept within the organisation, which makes McDonald’s competitors unfamiliar
with its promotional campaign, which in turn gives a competitive advantage.
McDonalds professional advertising agency
Despite those advantages offered by in-house team, in many cases advertising agencies can
be far more cost effective overall for established businesses like McDonalds due to the
advantages they can offer.
Typically, well-established brands look to specialist agencies for their creative advertising
needs and appoint them based on their pitching prowess. Businesses often feel more
comfortable and confident in choosing an agency with a proven track record of success and
3