Bank

February 4th, 2023

Svenska Handelsbanken Case Analysis

1. Answer to case “Svenska Handelsbanken” No t e b o o k: Cre at e d : 5. Org Control 2012-05-08 10:45 Up d at e d : 2012-05-08 23:31 1. Using the 7S-model, describe what are the elements and the linkages in Svenska Handelsbanken. Which one of the 7 components is vital? Provide arguments for each of your descriptions, and not mere conclusions. 7 S model consists of 7 elements which are Strategy,Structure, System, Shared Value, Style, Staff, Skills. Applying 7S model to Handelsbanken : Strategy : cost-efficiency => “low cost” competition. doing safe investment, avoiding speculation. risk control) international expansion. differentiate with customized service/products, targeting for those “picky” customer concerning about quality of service. use “network effect” for marketing. (use word of mouth to market their products). focus on small / middle sized customers. open branches close to those giant corporates. provide financial support to Nordic companies who expand internationally. Structure: Handesbanken is a typical decentralized (in term of division/geography) company, which consists of many autonomous branches. Those autonomous branches have large amount of control and responsiblity. lat management : The only layers between branches and CEO is a group of 11 regional manager. therefore the hierarchy of whole company is very flat. (add CFO or something else …. ) System : there is no top-down goal setting and annual budgeting. branches compete with each other in term of RoE => league table HRM system => incentive system, employee holdings (Trust company). (put into System or Staff or Share Value, ????? ) Risk control bottom-up product development process. cost management system (both committee and branch manager), ???? Shared Value: (culture) core : customer-oriented. need better wording ?? ) culture of thrift. senor of ownership => from employee level to branch level. people recognition innovation ??? growing people (?? ) Autonomous (structure ?? ) Style : long term orientated customer focused style. (preservative) responsive to customer request. empowerment (share value or style ?? ) Staff : recruit people who has inner drive, self-starting, committed to service. entrepreneurship for the branch manager extrovert/open/out-going Skills: with considerable banking experience. entrepreneurship skill is a must for branch manager. ross-selling skills which one is vital ? (provide evidence) shared value is vital. because it is the internal driver for other six. candidates : strategy, staff, structure. 2. What are the Critical Success Factors (CSFs) for the Handelsbanken’s decentralization approach? Provide arguments WHY these are key – base your answer on examples and arguments from your group’s own business and work experiences and not on ‘copy & paste’ from other sources. People =; entrepreneur. (Christian) responsibility of control cost/earning profit/risk management, down to individuals. local resources and market.

Customer-orientation (Christian, to provide live example) Autonomy (elaine, to provide live example from her own company to support this point). 3. What does this tell us about the key sources for success of ANY decentralized business? empowerment/autonomy (control & responsibility down to branch) foster the competition among decentralized units. use KPI to closely monitor the performance of decentralized units. Shared value amongst all branches. systematic support from head office for all units. (?? ) 4. What are the challenges that Lars Kahnlund faces in this particular organization, in his efforts to drive change and accelerate growth? alance the culture of autonomy and directive approach. =; branch has strong motivation to control its own product and service. =; from perspective of entire company, new competitive products may be also needed. really hard to control the decentralized unit, because there are so many branches out there and structure is so flat. how would he get his strategy executed effectively and efficiently ? how can we keep them in order ? too many culture in different areas, so he needs to take care culture conflicts. resistance from employees is expected. (elaborate on this later, including the perservative culture)

February 4th, 2023

Ch 9 Test Bank

Table of contents

The agency that developed the ‘Jack-in-the-Box’ fast-food restaurants ads created a new ad with the return of a brand image that was remembered by customers from previous years, thereby creating a(n):

A. advertising appeal.
B. creative plan.
C. marketing plan.
D. sales approach.
E. sales presentation.

The advertising appeal refers to the approach used to attract the attention of consumers and/or to influence their feelings toward the product, service, or cause.

AACSB: Reflective Thinking

Bloom’s: Analyze

Difficulty: Hard Learning

Objective: 09-01 To analyze various types of appeals that can be used in the development and implementation of an advertising message.

Topic: Appeals and Execution Styles 2. (p. 293)

A(n) _____ refers to the approach used in an advertisement to elicit some consumer response or influence feeling. The way this approach is turned into an advertising message is the ____.

A. advertising appeal; advertising campaign
B. creative execution style; advertising appeal
C. creative execution style; advertising campaign
D. dvertising appeal; creative execution style
E. brand image; positioning

The advertising appeal refers to the approach used to attract the attention of consumers and/or to influence their feelings toward the product, service, or cause. The creative execution style is the way a particular appeal is turned into an advertising message presented to the consumer.

Bloom’s: Remember

Difficulty: Easy Learning

Objective: 09-01 To analyze various types of appeals that can be used in the development and implementation of an advertising message.

Topic: Appeals and Execution Styles . (p. 293)

_____ is viewed as “something that moves people, speaks to their wants or needs, and excites their interest. “

A. Advertising appeal
B. Execution style
C. Creativity
D. Big idea
E. Needledrop

An advertising appeal can also be viewed as “something that moves people, speaks to their wants or needs, and excites their interest. “

Bloom’s: Remember

Difficulty: Easy Learning

Objective: 09-01 To analyze various types of appeals that can be used in the development and implementation of an advertising message.

Topic: Appeals and Execution Styles 4. (p. 93)

The _____ is the manner in which an advertising idea is turned into a message and presented to consumers.

A. advertising appeal
B. creative execution style
C. rational appeal
D. emotional appeal
E. big idea

The creative execution style is the way a particular appeal is turned into an advertising message presented to the consumer.

Bloom’s: Remember

Difficulty: Easy Learning

Objective: 09-01 To analyze various types of appeals that can be used in the development and implementation of an advertising message.

Topic: Appeals and Execution Styles 5. (p. 93)

An ad for Enbrel, a prescription medicine for people who have rheumatoid arthritis, tells the reader that this drug has proven to work for people who have had little or no pain relief from other drugs. The factual, news like nature of the ad indicates that it is using a(n) _____ appeal.

A. rational
B. product popularity
C. emotional
D. fear
E. refutational

Informational/rational appeals focus on the consumer’s practical, functional, or utilitarian need for the product or service and emphasize features of a product or service and/or the benefits or reasons for owning or using a particular brand.

Difficulty: Hard Learning Objective: 09-01 To analyze various types of appeals that can be used in the development and implementation of an advertising message. Topic: Advertising Appeals 6. (p. 293) Advertising appeals that focus on functional or utilitarian needs and emphasize product features and benefits are known as _____ appeals.

A. informational
B. emotional
C. price
D. inherent drama
E. image

Informational/Rational appeals focus on the consumer’s practical, functional, or utilitarian need for the product or service and emphasize features of a product or service and/or the benefits or reasons for owning or using a particular brand.

Bloom’s: Remember

Difficulty: Easy Learning

Objective: 09-01 To analyze various types of appeals that can be used in the development and implementation of an advertising message.

Topic: Advertising Appeals 7. (p. 293)

Purchase motives, such as convenience, comfort, economy and performance are used as a basis for _____ appeals.

A. rational
B. emotional
C. price
D. inherent drama
E. refutational

Many rational motives can be used as the basis for advertising appeals, including comfort, convenience, economy, health, and sensory benefits such as touch, taste, and smell.

Bloom’s: Remember

Difficulty: Easy Learning

Objective: 09-01 To analyze various types of appeals that can be used in the development and implementation of an advertising message.

Topic: Advertising Appeals 8. (p. 293)

The content of advertising with _____ emphasizes facts, learning and the logic of persuasion.

A. emotional appeals
B. informational appeals
C. transformational appeals
D. subliminal appeals
E. irrational appeals

Informational/Rational appeals focus on the consumer’s practical, functional, r utilitarian need for the product or service and emphasize features of a product or service and/or the benefits or reasons for owning or using a particular brand. The content of these messages emphasizes facts, learning, and the logic of persuasion.

Bloom’s: Remember

Difficulty: Easy Learning

Objective: 09-01 To analyze various types of appeals that can be used in the development and implementation of an advertising message.

Topic: Advertising Appeals 9. (p. 293)

Which of the following statements is true about informational/rational advertising appeals?

A. The particular features, benefits, or attributes that serve as the basis for these appeals are constant across product categories.
B. These types of appeals work well for products but not for services.
C. The particular features, benefits, or attributes that serve as the basis for these appeals vary from one product or service category to another as well as by market segment.
D. The particular features, benefits, or attributes that serve as a basis for these appeals generally do not vary by market segment.

Informational/rational ads create feelings, images, beliefs, and meanings about the product or service. The particular features, benefits, or evaluative criteria that are important to consumers and can serve as the basis of an informational/rational appeal vary from one product or service category to another as well as among various market segments.

Bloom’s: Remember

Difficulty: Easy Learning

Objective: 09-01 To analyze various types of appeals that can be used in the development and implementation of an advertising message.

Topic: Advertising Appeals 0. (p. 294)

An ad for Calloway Gardens Resort stresses the different forms of recreation available to visitors to the resort. This is an example of a(n) _____ appeal.

A. news
B. favorable price
C. feature
D. popularity
E. emotional

Ads that use a feature appeal focus on the dominant traits of the product or service.

Bloom’s: Apply

Difficulty: Hard Learning

Objective: 09-01 To analyze various types of appeals that can be used in the development and implementation of an advertising message.

Topic: Advertising Appeals 11. (p. 94)

Which of the following statements is true about feature appeals?

A. They tend to be very informative and present a number of attributes that can be used as the basis for a rational purchase decision.
B. They are never used for technical and high-involvement products.
C. They can be used for advertising a product but not a service.
D. They never focus on attributes or benefits that are important to consumers.
E. They stress upon the popularity of a product or service by pointing out the number of consumers who use the brand and the number who have switched to it.

Ads using feature appeals tend to be highly informative and present the customer with a number of important product attributes or features that will lead to favorable attitudes and can be used as the basis for a rational purchase decision.

Bloom’s: Remember

Difficulty: Easy Learning

Objective: 09-01 To analyze various types of appeals that can be used in the development and implementation of an advertising message.

Topic: Advertising Appeals 12. (p. 294)

To announce sales, special offers, or everyday low prices, retailers often use a _____ appeal.

A. unctional
B. popularity
C. favorable price
D. transformational
E. productive

Price appeal advertising is used most often by retailers to announce sales, special offers, or low everyday prices.

Bloom’s: Remember

Difficulty: Easy Learning

Objective: 09-01 To analyze various types of appeals that can be used in the development and implementation of an advertising message.

Topic: Advertising Appeals 13. (p. 294)

A personal computer manufacturer has developed a significant technological breakthrough that will make its computers easier to use for novices.

The computer manufacturer will probably use _____ appeal to announce the breakthrough.

A. favorable price
B. emotional
C. news
D. popularity
E. transformational

News appeals are those in which some type of news or announcement about the product, service, or company dominates the ad. This type of appeal can be used for a new product or service or to inform consumers of significant modifications or improvements.

Bloom’s: Apply

Difficulty: Hard Learning

Objective: 09-01 To analyze various types of appeals that can be used in the development and implementation of an advertising message.

Topic: Advertising Appeals 14. (p. 294)

Aleve ran a series of ads showing everyday people having to deal with minor arthritic pains. In each instance, the individual was pleased to learn that two Aleve were just as effective as taking eight of his or her old pain reliever. This ad campaign is using a(n) _____ appeal.

A. emotional
B. competitive advantage
C. fear
D. favorable price
E. transformational

When a competitive advantage appeal is used, the advertiser makes either a direct or an indirect comparison to another brand (or brands) and usually claims superiority on one or more attributes.

Bloom’s: Apply

Difficulty: Hard Learning

Objective: 09-01 To analyze various types of appeals that can be used in the development and implementation of an advertising message.

Topic: Advertising Appeals 15. (p. 294)

The Glad trash bag campaign, which used the slogan “Don’t get mad. Get Glad,” tells the reader that Glad trash bags are twice as thick as the leading volume bag. Glad uses a(n) _____ appeal.

A. emotional
B. competitive advantage
C. fear
D. favorable price
E. transformational

When a competitive advantage appeal is used, the advertiser makes either a direct or an indirect comparison to another brand (or brands) and usually claims superiority on one or more attributes.

Bloom’s: Apply

Difficulty: Hard Learning

Objective: 09-01 To analyze various types of appeals that can be used in the development and implementation of an advertising message.

Topic: Advertising Appeals 16. (p. 294)

The ad for ‘TDAmeritrade’ investment bank states that the company is “Ranked #1 by SmartMoney Magazine for the Do-It-Yourself Investor. ” The ad is using a(n) _____ appeal.

A. emotional
B. ompetitive advantage
C. feature
D. favorable price
E. transformational

When a competitive advantage appeal is used, the advertiser makes either a direct or an indirect comparison to another brand (or brands) and usually claims superiority on one or more attributes.

Bloom’s: Apply

Difficulty: Hard Learning

Objective: 09-01 To analyze various types of appeals that can be used in the development and implementation of an advertising message.

Topic: Advertising Appeals 17. (p. 294)

Advertisements that focus on the dominant attributes or characteristics of a product or service are known as _____ appeals.

A. feature
B. news
C. price
D. product popularity
E. generic

Ads that use a feature appeal focus on the dominant traits of the product or service.

Bloom’s: Remember

Difficulty: Easy Learning

Objective: 09-01 To analyze various types of appeals that can be used in the development and implementation of an advertising message.

Topic: Advertising Appeals 18. (p. 294)

A _____ appeal is used when the advertiser makes either a direct or an indirect comparison to another brand and usually claims superiority on one or more attributes.

A. feature
B. popularity
C. competitive advantage
D. technical
E. news

When a competitive advantage appeal is used, the advertiser makes either a direct or an indirect comparison to another brand (or brands) and usually claims superiority on one or more attributes.

Bloom’s: Remember

Difficulty: Easy Learning

Objective: 09-01 To analyze various types of appeals that can be used in the development and implementation of an advertising message.

Topic: Advertising Appeals 19. (p. 294)

Toyota ran an advertisement proclaiming their Camry has been the best selling model in the United States for two straight years.

This is an example of a _____ appeal.

A. feature
B. favorable price
C. news
D. product popularity
E. generic

Product/Service popularity appeals stress the popularity of a product or service by pointing out the number of consumers who use the brand, the number who have switched to it, the number of experts who recommend it, or its leadership position in the market.

Bloom’s: Apply

Difficulty: Hard Learning

Objective: 09-01 To analyze various types of appeals that can be used in the development and implementation of an advertising message.

Topic: Advertising Appeals 0. (p. 294)

Intuit, a computer software company, runs an advertising campaign for Quicken that emphasizes the fact it is the most preferred brand of financial software. This is an example of a(n):

A. emotional appeal.
B. teaser appeal.
C. product popularity appeal.
D. transformational appeal.
E. favorable price appeal.

Product/service popularity appeals stress the popularity of a product or service by pointing out the number of consumers who use the brand, the number who have switched to it, the number of experts who recommend it, or its leadership position in the market.

Bloom’s: Apply

Difficulty: Hard Learning

Objective: 09-01 To analyze various types of appeals that can be used in the development and implementation of an advertising message.

Topic: Advertising Appeals 21. (p. 295)

Advertising appeals that relate to consumers’ social and/or psychological needs for purchasing a product or service are known as _____ appeals.

A. informational
B. rational
C. irrational
D. emotional
E. feature

Emotional appeals relate to the customers’ social and/or psychological needs for purchasing a product or service.

Bloom’s: Remember

Difficulty: Easy Learning

Objective: 09-01 To analyze various types of appeals that can be used in the development and implementation of an advertising message.

Topic: Advertising Appeals 22. (p. 296)

Which of the following statements provides a reason for why marketers use emotional appeals?

A. The favorable feeling created by the appeal may transfer to the brand.
B. Emotional appeals focus on the consumer’s practical, functional, or utilitarian need for the product or service.
C.Emotional appeals tend to be informative, and advertisers using them generally attempt to convince consumers that their product or service has a particular attribute(s) or provides a specific benefit that satisfies their needs.
D. Emotional appeals persuade the target audience to buy the brand because it is the best available or does a better job of meeting consumers’ needs.
E. Emotional appeals are easy to execute and cost less than rational appeals due to lack of creativity.

Research shows that positive mood states and feelings created by advertising can have a favorable effect on consumers’ evaluations of a brand.

Bloom’s: Remember

Difficulty: Easy Learning

Objective: 09-01 To analyze various types of appeals that can be used in the development and implementation of an advertising message.

Topic: Advertising Appeals 23. (p. 296)

Advertisers create emotional advertising appeals by using:

A. comparative advertisements.
B. feature appeals.
C. transformational advertising.
D. news appeals.
E. popularity appeals.

One reason for using emotional appeals is to influence consumers’ interpretations of their product usage experience. One way of doing this is through what is known as transformational advertising.

Bloom’s: Remember

Difficulty: Easy Learning

Objective: 09-01 To analyze various types of appeals that can be used in the development and implementation of an advertising message.

Topic: Advertising Appeals 24. (p. 296)

Advertising appeals that portray people in an advertisement as experiencing an arousing, upbeat and/or exciting benefit or outcome from using a product or service are relying on:

A. informational integration.
B. rational integration.
C. mood transfer.
D. emotional integration.
E. outcome integration.

Kamp and Macinnis note that commercials often rely on the concept of emotional integration, whereby they portray the characters in the ad as experiencing an emotional benefit or outcome from using a product or service. Ads using humor, sex, and other appeals that are very entertaining, arousing, upbeat, and/or exciting can affect the emotions of consumers and put them in a favorable frame of mind.

Bloom’s: Remember

Difficulty: Easy Learning

Objective: 09-01 To analyze various types of appeals that can be used in the development and implementation of an advertising message.

Topic: Advertising Appeals 25. (p. 96)

An advertisement for the State of Alabama shows a family with two teens arriving in the state alienated from each other. The fun they experience in the state brings the family back together again. The commercial ends with all four running down the beach holding hands. This ad uses _____ for its appeal.

A. informational integration
B. rational integration
C. mood transfer
D. emotional integration
E. outcome integration

Ads using humor, sex, and other appeals that are very entertaining, arousing, upbeat, and/or exciting can affect the emotions of consumers and put them in a favorable frame of mind.

Bloom’s: Apply

Difficulty: Hard Learning

Objective: 09-01 To analyze various types of appeals that can be used in the development and implementation of an advertising message.

Topic: Advertising Appeals 26. (p. 296)

Advertisements that create feelings, meanings, images or beliefs about a product or service that can be activated when consumers use it are known as _____ ads.

A. rational
B. transformational
C. nostalgic
D. affective
E. informational

Transformational ads create feelings, images, meanings, and beliefs about the product or service that may be activated when consumers use it, transforming their interpretation of the usage experience.

Bloom’s: Remember

Difficulty: Easy Learning

Objective: 09-01 To analyze various types of appeals that can be used in the development and implementation of an advertising message.

Topic: Advertising Appeals 27. (p. 297)

_____ advertising attempts to make the experience of using a product or service richer, warmer or more exciting.

A. Informational
B. Competitive advantage
C. Transformational
D. Image
E. Rational

Transformational ads make the experience of using the product richer, warmer, more exciting, and/or more enjoyable than that obtained solely from an objective description of the advertised brand.

Bloom’s: Remember

Difficulty: Easy Learning

Objective: 09-01 To analyze various types of appeals that can be used in the development and implementation of an advertising message.

Topic: Advertising Appeals 28. (p. 297)

Transformational advertising can differentiate a product or service by:

A. convincing a consumer of the superior performance of a brand.
B. aking the consumption experience more meaningful, exciting and enjoyable.
C. making a consumption experience last longer.
D. showing performance superiority of one brand over another.
E. proving brand superiority.

Transformational advertising can help differentiate a product or service by making the experience more enjoyable by suggesting the type of experiences consumers might have when they consume the product or service.

Bloom’s: Remember

Difficulty: Easy Learning

Objective: 09-01 To analyze various types of appeals that can be used in the development and implementation of an advertising message.

Topic: Advertising Appeals 29. (p. 297)

The Oscar Mayer ad touched the child in all of us when it showed Andy on the pier singing the “My bologna has a first name” jingle. This example of _____ advertising won America’s heart and stomach.

A. competitive advantage
B. refutational
C. transformational
D. transactional
E. rational

Transformational advertising can help differentiate a product or service by making the consumption experience more enjoyable by suggesting the type of experiences consumers might have when they consume the product or service.

Bloom’s: Analyze

Difficulty: Hard Learning

Objective: 09-01 To analyze various types of appeals that can be used in the development and implementation of an advertising message.

Topic: Advertising Appeals 30. (p. 297)

Skyy Vodka’s use of cinematic-inspired cocktail moments created marketing success through:

A. image advertising.
B. television infomercials.
C. CEO spokesperson press releases.
D. banner advertising.
E. rational advertising.

Image advertising, which is designed to give a company or brand a unique association or personality, is often transformational in nature.

For example, the Lambesis agency has created a unique image for SKYY vodka by creating ads that associate the brand with cinematic-inspired cocktail moments. (Refer: Exhibit 9-6)

Bloom’s: Remember

Difficulty: Easy Learning

Objective: 09-01 To analyze various types of appeals that can be used in the development and implementation of an advertising message.

Topic: Advertising Appeals 31. (p. 297)

_____ is designed to give a company or brand a unique association or personality and is often transformational in nature.

A. Rational advertising
B. Image advertising
C. Feature appeals
D.Transactional advertising
E. Brand immorality

Image advertising is designed to give a company or brand a unique association or personality, is often transformational in nature.

Bloom’s: Remember

Difficulty: Easy Learning

Objective: 09-01 To analyze various types of appeals that can be used in the development and implementation of an advertising message.

Topic: Advertising Appeals 32. (p. 297)

Rational and emotional advertising appeals:

A. represent two distinctive approaches which should never be combined because they divide the focus of consumers’ attention.
B. are essentially the same.
C. can be combined since consumers’ purchase decisions are often made on the basis of rational and emotional motives.
D. are used together only for low-involvement products.
E. can be combined only for products and not for services.

Consumer purchase decisions are often made on the basis of both emotional and rational motives, and attention must be given to both elements in developing effective advertising.

Bloom’s: Remember

Difficulty: Easy Learning

Objective: 09-01 To analyze various types of appeals that can be used in the development and implementation of an advertising message.

Topic: Advertising Appeals 33. (p. 298)

The proprietary research technique developed by the McCann-Erickson Worldwide agency that helps evaluate how consumers feel about brands and the nature of their relationship with them is known as:

A. focus group research.
B. transformational research.
C. emotional bonding.
D. psychographics.
E. ethnographics.

McCann-Erickson Worldwide, in conjunction with advertising professor Michael Ray, developed a proprietary research technique known as emotional bonding. This technique evaluates how consumers feel about brands and the nature of any emotional rapport they have with a brand.

Bloom’s: Remember

Difficulty: Easy Learning

Objective: 09-01 To analyze various types of appeals that can be used in the development and implementation of an advertising message.

Topic: Advertising Appeals 34. (p. 298)

According to McCann-Erickson’s concept of emotional bonding, the most basic relationship a consumer has with a brand is how he or she thinks about the:

A. emotional ties he or she has with the product and/or brand.
B. brand personality.
C. product benefits.
D. self-actualization motives for purchasing.
E. self-esteem motives that will be affected by the purchase.

The basic concept of emotional bonding is that consumers develop three levels of relationships with brands. The most basic relationship indicates how consumers think about brands in respect to product benefits.

Bloom’s: Remember

Difficulty: Easy Learning

Objective: 09-01 To analyze various types of appeals that can be used in the development and implementation of an advertising message.

Topic: Advertising Appeals 35. (p. 298)

Research shows consumers perceive Miller beer as strong, bold, and adventurous. This is an example of how consumers assign a _____ to a brand.

A. roduct rank
B. personality
C. product features
D. unique selling proposition
E. market rank

The basic concept of emotional bonding is that consumers develop three levels of relationships with brands. At the second stage, the consumer assigns a personality to a brand. For example, a brand may be thought of as self-assured, aggressive, and adventurous, as opposed to compliant and timid.

Bloom’s: Analyze

Difficulty: Hard Learning

Objective: 09-01 To analyze various types of appeals that can be used in the development and implementation of an advertising message.

Topic: Advertising Appeals 36. (p. 298)

Consumers perceive Maytag appliance as dependable. Consumers have assigned a _____ to the brand.

A. product benefit
B. personality
C. product features
D. unique selling proposition
E. market rank

McCann-Erickson researchers believe the strongest relationship that develops between a brand and the consumer is based on feelings or emotional attachments to the brand.

Bloom’s: Remember

Difficulty: Easy Learning

Objective: 09-01 To analyze various types of appeals that can be used in the development and implementation of an advertising message.

Topic: Advertising Appeals 38. (p. 299)

Well-known brands and market leaders often run ads that do not use any specific types of appeals but rather focus primarily on keeping their brand name in front of consumers. This type of advertising is known as _____ advertising.

A. teaser
B. reminder
C. repetitive
D. popularity
E. brandstanding

Not every ad fits neatly into the categories of rational or emotional appeals. For example, ads for some brands can be classified as reminder advertising, which has the objective of building brand awareness and/or keeping the brand name in front of consumers

Bloom’s: Remember

Difficulty: Easy Learning

Objective: 09-01 To analyze various types of appeals that can be used in the development and implementation of an advertising message.

Topic: Advertising Appeals 39. (p. 99)

Hershey’s advertises heavily around Christmas with ads that show only a picture of red, green and silver wrapped Hershey Kisses chocolate. Hershey’s is using _____ advertising.

A. transformational
B. reminder
C. rational
D. emotional integration
E. teaser

Well-known brands and market leaders often use reminder advertising to maintain top-of mind awareness among consumers in their target markets. For example, marketers of candy products often increase their media budgets and run reminder advertising around Halloween, Valentine’s Day, Christmas, and Easter.

Bloom’s: Apply

Difficulty: Hard Learning

Objective: 09-01 To analyze various types of appeals that can be used in the development and implementation of an advertising message.

Topic: Advertising Appeals 40. (p. 299)

Ads for Oneida flatware are frequent, show a piece of Oneida flatware, the headline, “ONEIDA,” and the slogan “Your table is ready” in small print. This type of ad is intended as _____ advertising.

A. transformational
B. reminder
C. rational
D. emotional integration
E. favorable price

Well-known brands and market leaders often use reminder advertising to maintain top-of mind awareness among consumers in their target markets.

Bloom’s: Apply

Difficulty: Hard Learning

Objective: 09-01 To analyze various types of appeals that can be used in the development and implementation of an advertising message.

Topic: Advertising Appeals 41. (p. 300)

_____ advertising is sometimes used to create curiosity and build interest and excitement in a new product or brand by talking about it but not showing it.

A. Reminder
B. Teaser
C. Rational
D. Comparative
E. Feature appeal

Advertisers introducing a new product often use teaser advertising, which is designed to build curiosity, interest, and/or excitement about a product or brand by talking about it but not actually showing it.

Bloom’s: Remember

Difficulty: Easy Learning

Objective: 09-01 To analyze various types of appeals that can be used in the development and implementation of an advertising message.

Topic: Advertising Appeals 42. (p. 300)

Taco Bell launched the advertising campaign for its Double Decker taco by running anonymous full-page ads featuring basketball stars issuing vague challenges to one another. This is an example of _____ advertising.

A. reminder
B. teaser
C. transformational
D. favorable price appeal
E. news appeal

Bloom’s: Apply

Difficulty: Hard Learning

Objective: 09-01 To analyze various types of appeals that can be used in the development and implementation of an advertising message.

Topic: Advertising Appeals 43. (p. 300)

When Ford Motor Company was preparing to introduce a new model, ads were run for several weeks that talked about the new car but never showed it. This is an example of _____ advertising.

A. reminder
B. transformational
C. teaser
D. emotional
E. cognitive

Bloom’s: Apply

Difficulty: Hard Learning

Objective: 09-01 To analyze various types of appeals that can be used in the development and implementation of an advertising message.

Topic: Advertising Appeals 44. (p. 301)

Which of the following statements is true about the use of teaser advertising?

A.They cannot be used to draw attention to and generate publicity for an upcoming advertising campaign.
B. They do not work well because consumers really do not pay much attention to advertising.
C. They can be effective but marketers must be careful not to use them too long.
D. They usually offend consumers.
E. They have the objective of building brand awareness by keeping the brand name in front of the customers.

Teaser campaigns can generate interest in a new product, but advertisers must be careful not to extend them too long or they will lose their effectiveness.

Bloom’s: Remember

Difficulty: Easy Learning

Objective: 09-01 To analyze various types of appeals that can be used in the development and implementation of an advertising message.

Topic: Advertising Appeals 45. (p. 302)

The argument by famous advertising copywriter David Ogilvy that “what you say in advertising is more important than how you say it” suggests that:

A. advertising appeal is more important than the way it is executed.
B. advertising execution is more important than the appeal.
C. advertising appeals and executions are equally important.
D. advertising execution is more important than message content.
E. the product is more important than the creative appeal.

In his famous book on the advertising industry, Madison Avenue, Martin Mayer notes Bernbach’s reply to David Ogilvy’s rule for copywriters that “what you say in advertising is more important than how you say it. ” Bernbach replied, “Execution can become content, it can be just as important as what you say”.

Bloom’s: Understand

Difficulty: Medium Learning

Objective: 09-02 To analyze the various creative execution styles that advertisers can use and the advertising situations where they are most appropriate.

Topic: Advertising Execution 46. (p. 302)

An advertising execution technique that relies on a straightforward presentation of information concerning the product or service is called a(n):

A. straight-sell or factual message.
B. demonstration.
C. testimonial.
D. dramatization.
E. animation of key benefits approach.

One of the most basic types of creative executions is the straight sell or factual message. This type of ad relies on a straightforward presentation of information concerning the product or service.

Bloom’s: Remember

Difficulty: Easy Learning

Objective: 09-02 To analyze the various creative execution styles that advertisers can use and the advertising situations where they are most appropriate.

Topic: Advertising Execution 47. (p. 302)

Straight-sell message executions are commonly used with _____ advertising appeals.

A. informational
B. emotional
C. teaser
D. transformational
E. emotional integration

Straight sell or factual message type of execution is often used with informational/rational appeals, where the focus of the message is the product or service and its specific attributes and/or benefits.

Bloom’s: Remember

Difficulty: Easy Learning

Objective: 09-02 To analyze the various creative execution styles that advertisers can use and the advertising situations where they are most appropriate.

Topic: Advertising Execution 48. (p. 302)

A print ad for flood insurance lists twenty good reasons why every homeowner should have flood insurance. This is an example of _____ advertising.

A. straight-sell
B. transformational
C. testimonial
D. teaser
E. refutational

One of the most basic types of creative executions is the straight sell or factual message. This type of ad relies on a straightforward presentation of information concerning the product or service.

Bloom’s: Apply

Difficulty: Hard Learning

Objective: 09-02 To analyze the various creative execution styles that advertisers can use and the advertising situations where they are most appropriate.

Topic: Advertising Execution 49. (p. 302)

The ad for TDA meritrade investment company opens with the statement, “You can’t plan for tomorrow if you don’t know where your money is today” and continues with a lot of information about investment and its benefits. This indicates that the ad is an example of _____ advertising.

A. straight-sell
B. transformational
C. testimonial
D. teaser
E. efutational

One of the most basic types of creative executions is the straight sell or factual message. This type of ad relies on a straightforward presentation of information concerning the product or service.

Bloom’s: Apply

Difficulty: Hard Learning

Objective: 09-02 To analyze the various creative execution styles that advertisers can use and the advertising situations where they are most appropriate.

Topic: Advertising Execution 50. (p. 303)

When an advertiser cites technical information such as the results of laboratory studies in an advertisement, a(n) _____ execution is being used.

A. dramatization
B. slice-of-life
C. scientific evidence
D. testimonial
E. animation

In case of scientific/technical style of execution, advertisers often cite technical information, results of scientific or laboratory studies, or endorsements by scientific bodies or agencies to support their advertising claims.

Bloom’s: Remember

Difficulty: Easy Learning

Objective: 09-02 To analyze the various creative execution styles that advertisers can use and the advertising situations where they are most appropriate.

Topic: Advertising Execution 1. (p. 303)

In a Neutrogena moisturizer with superior sun protection ad, a dermatologist’s report stated, “A year of incidental sun equals baking for a week at the beach! ” This is an example of a(n) _____ execution.

A. dramatization
B. slice-of-life
C. technical evidence
D. testimonial
E. animation

Bloom’s: Apply

Difficulty: Hard Learning

Objective: 09-02 To analyze the various creative execution styles that advertisers can use and the advertising situations where they are most appropriate.

Topic: Advertising Execution 52. (p. 303)

An ad for Lipton tea states that according to laboratory research, “a serving of tea has more antioxidants than a serving of carrots or broccoli. ” Which type of ad execution is being used in this example?

A. Dramatization
B. Testimonial
C. Scientific/technical evidence
D. Slice-of-life
E. Comparison

Bloom’s: Apply

Difficulty: Hard Learning

Objective: 09-02 To analyze the various creative execution styles that advertisers can use and the advertising situations where they are most appropriate.

Topic: Advertising Execution 53. (p. 303)

Which of the following is an advertising execution approach designed to illustrate key advantages or features of a product by showing it in actual use?

A. Comparison
B. Demonstration
C. Scientific evidence
D. Straight-sell
E. Animation

Demonstration advertising is designed to illustrate the key advantages of the product/service by showing it in actual use or in some staged situation.

Bloom’s: Remember

Difficulty: Easy Learning

Objective: 09-02 To analyze the various creative execution styles that advertisers can use and the advertising situations where they are most appropriate.

Topic: Advertising Execution 54. (p. 303)

An ad for Toyota vans shows how easily a child, who needs to use a bathroom, can get out of the vehicle.

Which ad execution technique is being used in this ad?

A. Comparison
B. Demonstration
C. Scientific evidence
D. Straight-sell
E. Testimonial

Demonstration advertising is designed to illustrate the key advantages of the product/service by showing it in actual use or in some staged situation.

Bloom’s: Apply

Difficulty: Hard Learning

Objective: 09-02 To analyze the various creative execution styles that advertisers can use and the advertising situations where they are most appropriate.

Topic: Advertising Execution 55. (p. 03)

When a person speaks on the behalf of a product or service based on his or her personal use of and/or experiences with it, a(n) _____ execution is being used.

A. dramatization
B. slice-of-life
C. animation
D. demonstration
E. testimonial

Many advertisers prefer to have their messages presented by way of a testimonial, where a person praises the product or service on the basis of his or her personal experience with it.

February 4th, 2023

Reflection Essay on International Finance

Abstract: The assignment requires one to select one major economic sector in Tanzania and •Evaluate the FDI’S flow and •the importance of FDI’s in that sector during the past 4 years. •Identify the likely impairing factors to FDI’s in that sector. •Recommend what the government should do to attract more FDI’S Method After selecting the one major economic sector which is Agricultural sector, data were requested which will provide the end results of this assignment. ? Table of Contents 1. Introduction: Tanzania’s Economy4 2. Evaluation of Tanzania’s FDI’s flow5 . Importance of FDI in Agriculture in the past 4 years7 •Capital:7 •Technology:8 •Market Access:8 4. Factors Impairing FDI’s in Tanzania8 •Poor Infrastructure8 •Capacity8 •Bureaucracy8 •Corruption9 •Seasonality9 •Access to finance9 •Regulatory framework9 5. Recommendation to attract more FDI’s10 6. Conclusion10 References. 12 1. Introduction: Tanzania’s Economy Tanzania is one of the world’s poorest economies in terms of per capita income, with GDP growth of average 7% per year between 2000 and 2008 on strong gold production and tourism.

However, the economy heavily depends on agriculture, which accounts for more than one-fourth of GDP, provides 85% of exports, and employs about 60% of the work force. Tanzania also depends on the World Bank, the IMF, and bilateral donors to provide funds to rehabilitate Tanzania’s aging economic infrastructure, including rail and port infrastructure that are important trade links for inland countries. With the recent banking reforms that have helped increase private-sector growth and investment, and the government has increased spending on agriculture to 7% of its budget.

Continued donor assistance and solid macroeconomic policies supported a positive growth rate, despite the world recession. Also, in 2008, Tanzania received the world’s largest Millennium Challenge Compact grant, worth $698 million. Dar es Salaam used fiscal stimulus and loosened monetary policy to ease the impact of the global recession. GDP growth in 2009-10 was a respectable 6% per year due to high gold prices and increased production. Tanzania’s economy was forecast to grow by 7. 2 percent in 2012, up from an estimated 6. 0 percent this year, provided weather conditions improve as reported by the International Monetary Fund (IMF).

However, Tanzania’s economy will grow by a median 6. 7 percent this year from 7. 0 percent last year, weighed down by chronic energy shortages, as reported by a Reuter’s poll. The median forecast by a poll of 11 analysts showed gross domestic product would rebound to 7. 1 percent next year in east Africa’s second-largest economy. The downside risks to the growth outlook emanate mostly from the power rationing that has been going on in the country. It has compelled firms to resort to less productive sources of power. The Washington-based body earlier this year cut its 2011 growth projection for Tanzania from 7. percent because of widespread power outages triggered by drought in the predominantly hydropower producing country. Africa’s fourth biggest gold producer, Tanzania mainly depends on tourism, mining and agriculture and is increasingly attracting higher investor interest in telecommunications, energy, manufacturing, financial services and transport. 2. Evaluation of Tanzania’s FDI’s flow The Government of Tanzania (GOT) generally has a favorable attitude toward foreign direct investment (FDI) and has made significant efforts to encourage foreign investment.

After several years of growing FDI, new FDI declined sharply from USD 6. 68 billion in 2008 to USD 2. 3 billion in 2009. The number of new foreign projects registered at TIC dropped to 503 last year from 768 in 2008. There is no restriction in foreign exchange. Foreign investors generally receive national treatment; however, the Tourism Act of 2007 bars foreigners from engaging in some tourism-related businesses. The Dar Es Salaam Stock Exchange forbids companies with more than 60 percent foreign ownership from listing.

There are no laws or regulations authorizing private firms to limit or prohibit foreign investment, participation, or control, and firms generally do not restrict foreign participation in practice. The global economic crisis had minimal impact on the Tanzanian financial sector due to its relatively low global integration, however tourist arrivals dropped up to 20 percent, new tourist projects fell by 50 percent, and FDI dropped within the natural resource sector, resulting in layoffs at gold mining firms and stalled mineral and gas exploration and development projects.

The Tanzanian Investment Center (TIC), established by the Tanzanian Investment Act of 1997, is the focal point for all investors’ inquiries, screens foreign investments, and facilitates project start-ups. Filing with TIC is not mandatory, but offers incentives for joint ventures with Tanzanians and wholly owned foreign projects above USD 300,000. The review process takes up to 10 days, and involves multiple GOT agencies, which are required by law to cooperate fully with TIC in facilitating foreign investment, but in practice can create bureaucratic delays.

TIC continues to improve investment facilitation services, provide joint venture opportunities between local and foreign investors, and disseminate investment information. TIC does not have specific criteria for screening or approving projects, but considers factors such as: foreign exchange generation and savings, import substitution, employment creation, linkages to the local economy, technology transfer, and expansion of production of goods and services. Among investment and trade opportunities promoted by the TIC are agriculture, mining, tourism, telecommunications, financial services, and energy and transportation infrastructure.

The Economic Processing Zones Act 2006 authorized the establishment of Special Economic Zones (SEZs) to augment investments in the light industry, agro-processing industry and agriculture sectors. Greenfield foreign direct investments are allowed through this legislation. The Export Processing Zones Authority continues to promote Export Processing Zones (EPZ) to attract investments in agribusiness, textiles and electronics and Spatial Development Initiatives (SDI). Investors in EPZs are eligible for tax exemptions. Investments on the Dar es Salaam Stock Exchange (DSE) are open to foreign investors, but capped at 60 percent.

Foreign investors are barred from participating in government securities. The financial sector has continued to expand, with an increase in foreign-affiliated financial institutions and banks operating in Tanzania. As of December 2009, the Bank of Tanzania listed a total of 27 commercial banks licensed and operating in Tanzania, over half of which are foreign-affiliated banks. Competition among these foreign commercial banks has resulted in significant improvement in the efficiency and quality of financial services.

Tanzania expected to increase foreign direct investment (FDI) by 16 percent in 2010 from $645 million last year as the global economy recovers. Foreign direct investment in 2009 dropped from $679 million the year before as a result of the global financial crisis. The FDI inflows into east Africa’s second largest economy were expected to surge to $800 million in 2011. Tanzania’s economy mainly depends on tourism, mining and agriculture. Its telecommunications, energy, manufacturing, financial services and transport sectors are attracting rising investor interest.

It is expected that most of the investments in 2010/11 will focus on tourism, agriculture and telecoms. The government is implementing investment reforms to woo foreign capital. According to the World Bank’s Doing Business in the East African Community 2010 report, Tanzania fares poorly in key areas such as closing and starting a business, protecting investors, access to credit, cross border trade and issuance of construction permits. 3. Importance of FDI in Agriculture in the past 4 years Tanzania has more than 44 million hectares of arable land, and a wide variety of ecological zones, climates and water resources.

The country could feed most of the East, Central and Southern African countries with food deficits. 80% of the population in Tanzania lives in rural areas and are in some way or another depending on agriculture. The agricultural sector is vital to Tanzania’s economy and therefore also to the reduction and eradication of poverty. Other advantages of FDIs in agricultural sector in Tanzania are as follows: •Capital: First and foremost FDI brings much needed capital to Tanzania. This helps the country to achieve rates of domestic investment higher than their domestic savings.

Besides, the financial resources that FDI brings in are in long term and non-debt creating. •Technology: There are a number of ways in which FDI through TNCs can help develop indigenous technology. Firstly TNCs usually bring in modern technology in agriculture and practices to Tanzania and help it upgrade its existing technology. •Market Access: TNCs in the agricultural sector has enabled Tanzania to better exploit its comparative advantage in international trade and thus gain access to global markets. 4. Factors Impairing FDI’s in Tanzania •Poor Infrastructure Lack of stable power has led to power outages throughout the country.

It has compelled firms to resort to less productive sources of power. These power outages triggered by drought due to high reliance in the predominantly hydropower. Another significant constraint to improving FDI in Tanzania through agriculture is poor infrastructure within Tanzania. Insufficient investment in the road network has resulted in just 4,000 kilometers of Tanzania’s 85,000 km road network being paved. Most of these unpaved roads are feeder roads in rural areas, and many routes become impassable after heavy rains. The country’s two railway systems are also unreliable, with dilapidated infrastructure and outdated rolling stock. Capacity TIC currently lacks the capacity to address the complicated and non-transparent investment clearance processes, to collect comprehensive and timely data for the research needed to facilitate both policy making and investment decision-making. •Bureaucracy Bureaucratic intransigence continues to pose a severe obstacle to doing business in Tanzania as in the rest of East Africa. Investors looking to startup businesses in Tanzania often complain about the level of red tape associated with issues such as the issuance of business licenses, company registration, building permits, land certificates and taxation. Corruption Corruption is an endemic problem in Tanzania and is often cited as one of the biggest hindrances to doing business. The World Bank 2006 Enterprise Survey indicates that 49. 5% of the surveyed companies reports that they expect to make informal payments to achieve specific goals. According to the 2006 IFC-World Bank Enterprise Survey, 20% of the companies surveyed expect to give gifts or make informal payments to get an operating license, and 32% to get a construction permit. •Seasonality

More than 75% of Tanzanian enterprises are heavily affected by seasonality, whereby farmers sell their produce when prices are lowest and buy inputs for the next cropping season when prices are highest. •Access to finance Most enterprises in the rural areas are small scale and engage in or rely on agriculture. Bearing the above constraint, these small enterprises have a comparatively high risk, high transaction costs and low volumes, limiting access to capital. •Regulatory framework The economic growth potential of investments in agricultural land is questionable due to an inadequate regulatory framework governing (FDI) in the sector.

FDI in agricultural sector in Tanzania can even jeopardize local resource users land rights. In such that farmers are giving away their most valuable assets to profit-seeking entities, based on information asymmetries and persuasion. 5. Recommendation to attract more FDI’s Including the ongoing reforms to woo investments, TIC continues to improve investment facilitation services, provide joint venture opportunities between local and foreign investors, and disseminate investment information.

In order to attract more FDIs in the agricultural sector and to increase productivity and high quality output, effort is needed to understand and eliminate the barriers to smallholders that inhibit the growth of productivity. The structural problems facing smallholders such as limited access to information, to input and output and financial markets need rethinking that will attract more FDI to the sector. Such an arrangement would involve smallholders being better organized in producer associations.

Producer associations can improve productivity, reduce costs through supply chain linkages and improve competitiveness. They manage to do so by improving access to necessary and affordable input (technologies and credit). The second challenge is to build integration of production, transport, processing and marketing to take advantage of supply and demand value addition. Third is to ensure the introduction of innovation and knowledge on a continuing basis without subjecting members to high consultancy fees given the socio-economic conditions of smallholders. 6. Conclusion

Apart from general determinants such as macroeconomic stability, efficient institutions, political stability and a good regulatory framework, the smallholder institutional setup has positive impact on FDI flow into the sector. It has been observed that crops whose smallholders are well organized attracted more FDI. An important implication of the result is that FDI to the agricultural sector is not solely driven by policies and incentives to foreign investment and that the institutional setup of smallholder farmers can play an important role in promoting investments to the sector.

In the short and medium term, efforts to foster integration and creation of strong bonds between smallholders and investors through integrated producer schemes can increase FDI to the sector and thus increase productivity. Other determinants such as investment regulatory frameworks, policies that promote macroeconomic economic stability, and improved physical infrastructure also have a role to play both in the short and long run. In the long run, more FDI can be attained by developing strong institutions in all sectors. ?

February 4th, 2023

Rbs – Case Study Example

Table of contents

Summary of Background and Facts Reliance

Baking Soda was discovered by James Stewart Augusta in 1915. He called it the “miracle compound. ” It was founded to serve as a leavening agent in baked goods to let them rise properly. With the invention of self-rising flour and instant cake mixes, baking soda’s original use importance declined. With this decline, Stewart Corporation started promoting baking soda for a myriad of other uses, which include household cleaner, laundry aid, and deodorizer.

Reliance baking soda holds a 70% market share. They produce three box sizes, 8oz, 1lb, and 5lbs. The 1lb box holds almost 50% of the sales volume. Reliance has excellent brand awareness and customer loyalty. Stewart Corporation is comprised of four divisions. Reliance Baking Soda (RBS) is in the household division. Anna Regnante was promoted to Domestic Brand Director for RBS. She was placed in charge of increasing Reliance’s profit by 10% in 2008. The Household Division is planning to introduce two new product launches in 2008.

According to Chris Dale, Managing Director for Stewart’s Household Products Division, they need the incremental profit increase from RBS to “fund the marketing launch expenses for the new products. ” (Quelch & Beckham, 2009, p1) Regnante needs to figure out how she can generate the required profit growth for the old-fashioned, mainstay product of baking soda.

Statement of the core problems

Regnante’s core problem is figuring out what marketing mix to use to increase Reliance Baking Soda’s profit by 10% in 2008. One of the main problems with RBS is the current lack of advertising.

Regnante’s predecessor had cut the consumer promotion budget in half. Advertising is a key component in making sure the brand’s product is marketed to its consumers. RBS did not properly advertise the significance of what all baking soda could be used to do, which includes outdoor cleaning, baby care, pet care, and a myriad of other things. RBS had established brand awareness and loyalty with customers; but, they needed to educate the customers and position the brand through advertisements which can give RBS more of competitive advantage. Decreasing the amount of money allocated towards advertising was not a wise choice, especially, when the company needed to revamp how baking soda was marketed. The trade promotions were effective in moving the product; however, they accounted for around 73% of total sales. This led to the company only selling around 25% of RBS at regular prices, which could be leaving RBS a lot less profitable. The trade was overbuying during the promotional periods, which caused inconsistencies in regular purchasing patterns of the product. Another issue was with the cooperative advertising program.

Regnante was concerned that RBS was not getting sufficient advertising in exchange for the trade promotions. In fact, she found that “Advertising trade support for RBS is much lower than our branded competitors. ”(Quelch & Beckham, 2009, p. 5) RBS also rarely advertised in retail stores, magazines, or television commercials. If RBS was more diverse with advertising, then, they would be able to capture their target audience in other ways.

Secondary Problems

Reliance Baking Soda lacked in providing different promotional discounts to grocery stores.

By not providing promotional discounts for grocery stores, the store managers did not have a creative way to attract customers into the store to purchase baking soda. Grocery store chains thought that the Reliance Baking Soda needed to market their products better because baking soda was a boring product. Reliance Baking Soda does not manufacture for private label brands. Therefore, their market share decreased. This lack of going after the private label market has caused the RBS to lose 5% of its market share to private label brands.

Reliance Baking Soda was the market leader, so, if they were able to manufacture private labels brands they would have not lost 5% market share; and its overall market share could have an increase. Also, a problem existed with trade promotion events due to the fact that the company did not negotiate or set a price with the trade on what to sell its products for when they were purchased during a trade promotion. By not having set promotional retail prices, the trade was allowed to stock up on inventory at reduced prices. They did not have to extend the savings to the consumer.

This ultimately caused a loss in profit for RBS. To make matters worse, these trade promotions often overlapped with consumer promotions. Therefore, it is hard to tell what the actual real incremental profits for the promotions were.

Constraints and Limitations

Besides the problems listed in the above sections, Reliance Baking Soda is constrained and limited by the fact that baking soda is in the mature part of its life cycle. When a product reaches maturity, there is no room for traditional growth. The product must discover new uses.

RBS is not a “wow” product that can be categorized as a necessity; therefore, it must be aggressive in its advertising in order to stimulate further purchase. The product was old-fashioned and needed some ‘refurbishment’ to make it attractive to the target market. The need for RBS nose-dived, following the introduction of self-rising flour and instant cake mixes. Naturally, it would be cheaper for bakeries to move to baking soda and reduce costs. This was a very big setback for RBS, as the market leader and the largest provider of the “miracle compound.

Randall Todd, an Account Manager, for several of the major grocery chains, stated that even though the product was physically placed on the store shelves, it was not “visible” to the consumer. It was a very slow-moving product, which needed “a lot of push marketing to stimulate trade interest. ” (Quelch & Beckham, 2009, p. 2). Randall further observed that it was “not a natural traffic builder, it does not have high turnover, and it is boring. ”(Quelch & Beckham, 2009, p. 2). RBS needed promotional methods that would turn the tide in their favor.

According to Exhibit 3, RBS had “low advertising recall. There was a greater need to refocus marketing communication efforts. Another limitation was the continual price increase for baking soda over the last 5 years. The price changes were not good because it had a negative impact on the number of cases that were shipped to the stores. This could lead to stores choosing a competitor’s brand or selling more of its private label brand. The final limitation is that RBS being a mature product is sold on the push system. The household sales force is paid based on quarterly sales quotas. This allows the sales staff to wait on trade promotions to sell the product. Therefore, they are not concerned with the day to day sales of RBS.

Alternative Solutions

Reliance Baking Soda must increase profit in its household division by 10% in 2008. In deciding how to do this, Regnante must decide what to do about the trade promotions, consumer promotions and advertising. Since baking soda is a mature product, a push system has been implemented at RBS using a quarterly quota system. In order to deal with the problem of 73% of factory shipments being sold using trade promotions, a new monthly quota system could be placed in service.

This would make the sales force focus on selling baking soda all throughout the year, not just when promotions are in place. Another option is to totally revamp the co-op advertising reimbursement system. At this time retailers are not promoting the product with the same size ads of RBS’s competitors. RBS offers a 5% of invoice incentive for any ad. RBS should offer 50% of the ad cost up to a certain percentage of the invoice for a purchase made within 45 days of the ad. The ad also needs to be submitted for approval prior to the ad being placed.

RBS needs to make sure that their co-op advertising plan states what an acceptable ad size is. This will encourage retailers to do local advertising for RBS. The third option would be to increase advertising and consumer promotions through event advertising. With this option, RBS could focus on important events like Earth Day. They could create a whole marketing campaign around this event and others like it. Another option would be to mount an internet campaign on the alternative uses of baking soda. This alternative would not involve huge cash outlays.

RBS could create blogs on websites as well as have a completely interactive website devoted to helping the consumer understand the myriad of uses for baking soda. The final option is to focus on pushing the product through trade promotions. RBS could offer 10-15% off total invoice price several times during the year to make sure that our product is being shipped. With this increased trade promotion, RBS could list a lower suggested retail price on the promotional packages, so that stores will have to pass the savings along to their customers. This would alleviate the problem of purchasing simply to increase revenue.

Implementation of Best Alternative

The best solution is to take a holistic marketing approach and incorporate a marketing plan that uses trade promotions, consumer promotions and advertising in conjunction with one another. This approach should focus on event marketing for its major advertising expenditures. One such event that lends itself to the promotion of the different uses for baking soda is Earth Day. With more and more of the American population focusing on Eco-friendly products, RBS can showcase baking soda as being a one-stop wonder.

RBS should partner with Earth Day events and hand out 2oz samples with pamphlets on how baking soda is an environmentally safe cleaning agent. It should list all of the possible uses of the eco-friendly baking soda. The pamphlet could, also, reference RBS’s Eco-pack, which will include a $1. 00 off rebate. RBS can package 1 lb boxes of baking soda in twin packs called Eco-packs. The packaging should have new ideas of how to use baking soda in environmentally friendly ways. Since this is a special packaging product, RBS should offer a trade promotion on the twin pack only for the six weeks starting the first of March.

This promotion should consist of buy eleven cases, get one free. During this time RBS should also beef up television, print and internet advertising, which all should include the environmental aspect of the product. To coincide with the company’s marketing efforts, RBS should offer an incentive for the trade to promote RBS through advertising. RBS could pay for 50% of the advertisement cost attributable the RBS product, up to 5% of a total invoice purchase within 45 days of the advertisement this promotion would run through the entire month of April.

Other events that could be marketed include the Start of Summer, Fire Prevention Month and the Holiday Season. For the start of summer, RBS should focus its advertising efforts on its uses for outdoor cleaning, pool, camping and weed removal. This is not a traditional high volume time; therefore, they should also use their trade partners by offering the same advertising incentives that were offered during the Earth Day promotion during the months of May and June. Since RBS can be used to put out certain fires. The company should focus on fire safety and prevention during the month of October.

RBS could put a pamphlet and a $. 25 coupons in the bags that children traditionally bring home from school during this month. The pamphlet should focus on key fire safety initiatives and highlight RBS’ commitment to fire prevention and uses of RBS in fire situations. During the first three weeks in October, RBS should offer a trade promotion of 10% off invoice prices on all sizes. This will help the trade partners get ready for the upcoming holiday season. The final event marketing campaign of the year should focus on the holiday season and getting your home in tip-top shape for the holidays in a health-conscious manner.

RBS should again partner with other Household Division products to advertise nationally how to get your home ready for the holidays. This ad should run in the October/November editions of top Women’s magazines. It should also offer a contest for a $10,000 kitchen makeover. This contest will be open to the purchasers of the products advertised in the magazines. This will also be advertised on the internet and through POP displays in the stores. During the months of October and November, RBS should offer its co-op advertising promotion as defined in the Earth Day section.

Justification

Since Reliance is in the maturity stage of its life cycle, it is important for them to focus on extending the usage rate and repositioning itself in the market. According to Shaeffer (2009), “As a market matures, the customer buys solutions and not products. ” Therefore, it becomes more vital to focus on advertising efforts on new ways of using baking soda. By focusing on event marketing, Reliance can help the consumers understand all the possible uses of traditional baking soda.

This increased knowledge will drive the sale of baking soda to the levels needed to meet the 10% profit increase of the household division. To increase the profit by 10% the Profit before SG&A, Overhead and Taxes needs to be $20,587,000. The event marketing campaign proposed will increase the profit to $20,974,000, which well exceeds the 10% increase.

February 4th, 2023

Developing a Product

The business I am studying is called ‘Rocco’s Pizza’. Rocco’s Pizza was established in 1980 and is a franchise whose stores are located in Bristol, Southampton, Surrey and Camberley. The store I am studying is Located in Greenford – London. Rocco’s Pizza mainly sells low – medium quality pizza. As well as pizza, they sell other appetisers such as garlic bread, chips, chicken wings, ice cream and soft drinks. Rocco’s pizza has their own online store (http://www.roccospizza.co.uk) in which customers can place there order and get it delivered, or have it collected in stores.

The main product the shop sells is a pizza. Before the pizza is made, the employee has to make the dough which is made from flour mixed into water. The size of the dough depends on the size the customer order. They come is a variety of sizes from 7 inches (small) to 15 inches (extra large). Once the dough is made, they flatten it out into a circular shape and add the basic cheese and tomato sauce. They then add a variety of topping which is decided by the customer such as Pepperoni, Chicken, Mushrooms, Sweetcorn, Bacon etc. They come with a choice of crust: deep pan – a thick crust that goes around the edges of the pizza or no crust. Once the raw pizza is made, it is put into the oven. While it is in the oven, the pizza rises, the cheese melts and the toppings are cooked. After it is cooked, it is immediately put into a box so it is kept freshed and is either delivered to the customer or given to them in store.

The shop I am studying is located next to a school. This is a very good location as the students are likely to go out for their lunch and having a fast food restaurant next to a school would mean the student are more likely to go there. However they face competitors with other fast food restaurants nearby such as 2in1 Pizza, Lahore Spice and Harry’s Fish Bar. Their competitors are a major concern as they’re located closer to the school which make the students more likely to go there them rather than their shop.

Form and Function:

Form is the appearance of an item – what it looks like. For example the form of a football is a sphere. Aesthetic is the beauty of a product – people buy the product based on its look for example a piece of art. The form the dough of the pizza before it is cooked is a pale colour and has a circular shape once it’s flattened out. After the pizza has been baked in the oven, it rises and the colour of the crust turns from a pale colour to a brown colour. The toppings, along with the cheese, on the pizza become cooked and the colours become darker.

The form of the box is a cuboid. It is made from cardboard with information on it written from ink. The lid of the box tucks inside so it is easy to open and it leaves minimum opened space so it is kept fresh for longer. It is small and compact so the pizza doesn’t move around inside.

The function of a product is what it does. For example the function of USB flash drive is to store and back up files. The main function of the pizza is to be eaten by customers. It also has to look and smell good so it would attract to the customer. The main reason why people eat is to satisfy their need to eat. Another reason why they eat it is for its taste.

The function of the box of the pizza is to keep the box fresh. It also advertises the business i.e. through its logo and it gives instructions on how to reheat the pizza. Another thing the box does is it informs the customers of the business such as contact details. The box has flaps on the inside to support the lid.

The dough on the pizza is rough when it’s made but once it’s rolled out, it has a smooth feel. Flour is put on it so it doesn’t stick to the surface when it’s being rolled out and can be easily removed after it has been baked. Once it has been baked, it has a softer texture which mainly due to the pizza being raised. The cheese also has a softer texture because it has been melted. The toppings on the pizza and the base turn darker as it has been cooked.

Quality of Materials:

Rocco’s Pizza buys their materials from JJ Food. They buy it from here as they provide a range of different materials such as packaging and ingredients. They chose to buy from their as they’re relatively cheap and also provide to other fast food retails such as ‘Ali’s Fast Food’ and ‘Chicken Ranch’. However, not all of their products are bought from JJ Food. For example, they buy their sweetcorn from retailers such as Tescos as it is more convenient for them

Rocco’s Pizza uses medium quality materials. They use this as they want to provide their customers with a good service whilst making as much profit as possible at the same time. If they used high quality materials, they would have to charge a higher price for the pizza which may lose customers. If they used low quality materials the customers won’t be satisfied and my never go there again.

The ingredients involved in making a basic pizza are: flour, cheese, tomato sauce and the extra topping decided by the customer. These again are all medium as they can’t afford to purchase high quality materials.

The basic ingredients:

Flour – This is used to make the base of the pizza. The base is use to hold the rest of the toppings.

Pizza- Normally small fast food restaurant would buy their pizza sauce from JJ food or from a supermarket; but according to the questionnaire Rocco’s Pizza filled out, they use their own special sauce which they make themselves

Cheese- The cheese is poured on top of the pizza and is grated so it can be scattered around the pizza.

Selection of topping in which the customers can choose from:

The toppings they have are: Pepperoni, Ham, Mushrooms, Onions, Green Peppers, Tomato Beef, Pork, Smoky Bacon, BBQ Sauce, Chicken Chunks, Prawns, Tuna, Anchovies, Pineapple, Jalapenos, sweetcorn, and Mexican Beans.

Rocco’s Pizza allows their customers to choose from a selection of topping as they don’t want them restricted the choices of pizza they provide. Also, because different people like a different combinations of toppings.

Customer Service:

Customer service is the services the business provides for its customers. Different business offer different services as they have different budgets. For example Tesco can offer more services such as delivery unlike a local retailer. Rocco’s Pizza offers these types of services to its customers to enhance their reputation as there a competitors nearby i.e. 2in1 Pizza. They also want their customers to be satisfied so they will want to shop there again

Rocco’s Pizza’s offers a variety of services to its customers. One of these is free delivery however to be eligible for this, the order must be ï¿½8.99 or more. Delivery is only available around limited areas as it would cost them a lot if they were to deliver to wider areas. Delivery can be done over the phone or at the counter at the customer’s convenience. It can even be done online. This is useful as they customer can change what they’re purchasing before they’ve ordered it. If they did this over the phone, they could cause annoyance to the staff. It also allows them to view the menu so they can see any special offers available Delivery is offers so they can get a wider audience. If they didn’t offer it, their only customers will be the local people however, since they do offer delivery, customers who don’t live so close can order from them at the convenience of their own homes and get it delivered to them for free.

Rocco’s Pizza allows their customer to pay via debit or credit card. This is convenient for their customers as they don’t have to carry around money with them when buying from the shop. They can also control the amount they spend as is they pay with cash; the customers may have some change left over and spend it on other stuff. Paying via credit/debit card can be done in stores through the credit card reader.

Rocco’s Pizza can’t offer return on purchases because it is food. It can only be returned if there is something faulty with the pizza for example if a hair is found in there; however this is a very rare occurrence. If there is something faulty with the pizza such as if the wrong toppings are put on, then they can either offer the customer with a refund or a freshly baked new pizza.

Rocco’s Pizza gives their customers offers to attract them. They have 4 deals in which they provide to their customers:

1. Buy any medium pizza and you can get the 2nd, up to the same value, for ï¿½2.00

2. Buy any Large Pizza and get the 2nd, up to the same value, for ï¿½3.00

3. Buy a medium Margherita with up to 5 toppings, with Garlic Sticks or Garlic Bread, a portion of Potato Wedges and 2 cans of soft drink for ï¿½12.49

4. Buy A Large Margherita with up to 5 toppings, with Garlic Sticks or Garlic Bread, Hot Wings or BBQ Wings and a 1.5 litre soft drink for ï¿½15.99

The waiting time at Rocco’s Pizza is average. The delivery time is roughly 30 minutes as they have to make the pizza and deliver it to the customer’s house. If there are delays, the customers may get frustrated and may never shop their again. They may even refuse to take it a demand for a refund.

If people aren’t satisfied with their customer service they’re providing for example the waiting time is long, then they could complain to the manager. However it is not always bad as they can take the complaints as feedback and improve from it.

Resources:

Physical:

Like every other business, Rocco’s Pizza needs a building in order to start selling. This is put on land. They use a lot of resources in the day-to-day running.

One example of a resource they use is an oven. They use this to bake the pizza. They have around three to four of these as it speeds up if there are a few people ordering a pizza at the same time.

They also need a kitchen in the building to make the pizza. The kitchen is also used to wash any dishes such as pizza trays and cups. The shop front is separate from the kitchen and is used to serve the customers.

Rocco’s Pizza has their own delivery vehicle. It is used to deliver pizza to the customers’ house. The delivery vehicle has to have enough fuel to last enough deliveries otherwise the customers will get frustrated. Rocco’s Pizza use a car over a motorbike as it is less likely to get spoilt. However unlike a car, a motorbike can get through traffic more easily and get to the customers house quicker.

The tools required to make pizza:

Pizza cutter – This is used to cut the pizza into even slices. It goes from one edge of the pizza to the opposite. The number of times it is done depends on the size of the pizza for example, if it is a 7 inch pizza, it would be cut 2 times making 4 even slices whereas if it was a large 12 inch pizza, it would be cut 6 times making 12 even slices. A separate cutter is used for vegetarian pizzas and non-vegetarian pizzas so no trace of meat gets passed.

Oven – This appliance is used to bake the pizza in. The person who operates it, sets the temperature and waits till the pizza has finished baking. The over would have a see-through glass on it so the staff can see whether it’s cooked or not. Rocco’s Pizza would have around 3 – 4 of these in their shop as they can make more pizzas if there are a few people ordering at the same time.

Pizza tray- The pizza tray has 2 purposes. One of these purposes is a mould. The staff can place the pizza base inside the try so they can get the exact size of it. For example, if a customer ordered a small 7 inch pizza, the staff would get the 7 inch tray and place the pizza base on it so they can get a perfect 7 inch pizza. This is useful as they don’t have to waste time measuring in out themselves. The other purpose of the pizza tray is to hold everything together whilst it is being baked in the oven.

Rolling pin – This is used to flatten out the dough into the pizza base before it is placed on the pizza tray.

Human:

Human resources and the people used to make an item. The main person who works at Rocco’s Pizza is the manager. He is the person in charge of the business and chooses who to employ. He also makes major decision such as what the money is going to be spent on.

Rocco’s Pizza tries to minimise the amount of employees they have in order to make a bigger profit.

There a different types of staffs who work at Rocco’s Pizza. One example is the person who works at the shop front operating the till. They take the customer’s order, take their money and give them their change and receipt. Another employee who works at Rocco’s Pizza is the kitchen staff/chef. This staffs makes the pizza based on the customer’s order. The final staff that work there are the delivery people. These people take the order and deliver it to the customer’s house

The staffs are given training in order to perform their role better. For example the staff that operates at the till will be given training on how to work the till faster making waiting queues shorter. The kitchen staff would be given training on hygiene and the delivery people would be given training on taking different (shorter) routes so they can get to the customers houses quicker.

Financial:

Financial resources are the fund which is available to the business which is used to run and make a product.

According to the questionnaire, Rocco’s Pizza needed ï¿½100,000 to start up. The used two sources of finance – internal and external to gather the money:

The internal sources of finance they use, is retained profit. This is the profit made the business in which the owner invested back in. This source of finance is useful for Rocco’s Pizza as they don’t have to pay back interest on it and they have the cash immediately there however the money could be used for other reason such for the owners own personal use.

One external sources of finance they use, is a loan. This is when they borrow money from the bank and pay it back with regular instalment with interest added on. The advantage of using this is that they can borrow how much they need whenever they want but they must pay back interest and it could take some time to get the loan approved.

The finance used by Rocco’s Pizza is used for many purposes. The main reasons they use it is to buy the materials from JJ Food. They buy it in bulks as they get it at a discounted price. This is good for Rocco’s Pizza as they get it cheaper and it is good for JJ Foods as they’re getting a large order.

Another way in which they use the finance is to pay the employee’s wages. This is their major expenditure so they have to only get the right number of employees as they’re not a very large business.

Rocco’s Pizza Also uses the finance available to expand on their business. For example they can buy more hi-tech equipment like a better oven. They can also use it to expand on the building itself as it is relatively small.

Rocco’s Pizza has the tough challenge of paying bills. They have to pay bills for water, electricity, heating, lighting and the worse of them all, business tax. They have to try and minimise any wasted resources in order to reduce bills. A way in which they could do this is by turning of the lights and radiators when they’re not in use.

A computer is an important financial resource to Rocco’s Pizza. It is important to them as it is used to draw up financial data such as cash flow forecasts, budgets, profit & loss accounts and balance sheets. They can use this data to see how well their business if doings convince bank manager to take out a loan should they require one.

Materials:

The material resources are the equipments needed to make an item.

For hygienic reasons, the staffs at Rocco’s Pizza have to wear equipment while they are making the pizza. An example of an equipment wear is hairnets. This goes over the head and is used to prevent any hair pieces from falling on to the pizza. They also wear rubber gloves when preparing the pizza to stop and dirt or bacteria from spreading. This is used as a precaution when though the employees wash their hand before they are making pizza.

Rocco’s pizza has a computer located in their store which has many purposes. One of which is to order stock from JJ Food. They use the computer to select the amount of quantity they want and to enter their shipping and contact details. Another reason they use a computer is to design and print out their leaflets. They would use a software like Microsoft Word as it has a variety of features such as word art and a wide selection of fonts.

They also have a till which is used to calculate the customer’s order and is also used to print out their receipts. The till also contains change in which the cashier has to give to the customer if they don’t have any change.

February 4th, 2023

Financial Market In Sri Lanka

Table of contents

The purpose of this chapter is to put the phase and reexamine the fiscal market in Sri Lanka and to discourse the audit market with particular accent on the Big 4 audit houses. The demand and supply of companies and the general audit patterns used by companies are discussed subsequently. The background to the research further explains the ordinances on external audits while foregrounding both professional and legislative guidelines. Some characteristics of the external audit fees are discussed later.

Fiscal market in Sri Lanka

Sri Lanka ‘s fiscal system continues to stay stable and resilient underpinned by strong domestic economic growing in the face of increased hazards from the planetary macro-financial environment. This stableness is instrumental in making a favorable environment for depositors and investors, while promoting fiscal establishments and markets to work efficaciously and expeditiously, advancing investing and economic growing. Financial system stableness requires a stable fiscal and economic environment within an effectual regulative model and a safe and robust payment and colony system. The local fiscal landscape can be divided into the Money Market and the Capital Market severally. The Money Market where short-run interest- bearing assets with adulthoods of less than one twelvemonth, such as exchequer measures, commercial paper, and certifications of sedimentations are traded and ease the liquidness direction in the economic system. The Capital Market on the other manus is the market for trading in assets for adulthoods longer than one twelvemonth, such as exchequer bonds, private debt securities ( bonds and unsecured bonds ) and equities ( portions ) . Its intent is to ease the elevation of long-run financess.

The Financial Market can be besides be classified harmonizing to instruments, such as the debt market and the equity market. The debt market is besides known as the Fixed Income Securities Market and its sections are the Government Securities Market ( exchequer measures and bonds ) and the Private Debt Securities Market ( commercial paper, private bonds and unsecured bonds ) .

The fiscal system consists of the Central Bank, as the apex fiscal establishment, regulative authorization, fiscal establishment, a payment and colony system and a legal model. The fiscal system carries out the critical fiscal intermediation map of borrowing from excess units and loaning to shortage units. The Central Bank through its behavior of pecuniary policy influences the different sections of the Financial Market in changing grades. The Central Bank ‘s policy involvement rates have the greatest impact on a section of the Money Market called the inter-bank call money market and a section of the Fixed Income Securities Market, i.e. the Government Securities Market. The Central Bank may besides step in in the inter-bank Foreign Exchange Market, which is closely connected to the Money Market.

One of the most of import maps of the fiscal system is to guarantee safety and efficiency in payments and security minutess. Fiscal substructure refers to the different systems that provide for the executing of both large-value and small-value payments. Payment and colony systems enable the transportation of money in the histories of fiscal establishments to settle fiscal duties between persons and establishments. ( Fiscal System Stability Review – Central Bank 2011 )

Audited Account Market in Sri Lanka

The Institute of Chartered Accountants of Sri Lanka ( CA ) plays a critical function as the state ‘s exclusive authorization in explicating Accounting and Auditing Standards while adhering to the International Financial Reporting Standards ( IFRS ) .

The Sri Lankan audit landscape is chiefly dominated by the Big 3 audit houses which are Pricewaterhouse Coopers, Ernst & A ; Young and KMPG. These audit giants account for the bulk of audit services across the listed companies. In add-on to these major participants BDO Partners, B. R. De Silva & A ; Company, Amerasekera & A ; Company, SMJS Associates, De Zoysa Associates, R N Associates, Nandimuttu & A ; Co, Ranwatta & A ; Co are some of the other auditing houses that compete in the general audit industry of Sri Lanka. These participants largely are involved in scrutinizing companies that are non listed on the Colombo Stock Exchange.

The game of Big 4 & A ; Non Big 4 audit houses

The largest web for accounting professional services identifies the Big 4 audit houses as the ‘Final four ‘ which is responsible for a bulk of audits for publically traded companies. This is largely due to the market portion of those four houses where other little houses could non vie with the top terminal work and besides that they are non dependable as hearers to big administrations. However in Sri Lanka it is noted that Deloitte Touche Tohmatsu is non a outstanding participant and merely the other three audit houses are important within the industry. The stableness, credibleness and planetary presence that these companies offer are in fact significant. In a Sri Lankan context these companies have an border and go a formidable rival for about all the listed companies.

Demand and Supply

In footings of geographics, the American part histories for a 40 % and worsening portion of planetary combined grosss. From 2010 to 2011 nevertheless, the American part had a strong public presentation growing of 9.9 % . Europe has 44 % of combined house grosss and increased 5.4 % from 2010 to 2011, turning the slowest due to regional uncertainness. Asiatic grosss have more than doubled from $ 7 billion in 2004 to $ 17 billion in 2011, and grew a dramatic 17.4 % from 2010 to 2011. ( The 2011 Big Four Firm Performance Analysis )

Harmonizing to employee statistics, indicated in the Big 4 Performance analysis study for twelvemonth 2011 the four houses jointly employ staff of more than 65,000 across the Earth with 35,000 spouses. It besides indicates that the net employment increased by 36,000 from 2010 to 2011. This gives an indicant of how important these companies are and to what extent they dominate the full audit landscape.

Regulations on External Auditing

All listed companies should set up formal and crystalline agreements with regard to the concern monitoring patterns, typically overseen by the audit commission, and involves the application of accounting policies, fiscal coverage patterns, supervising guidelines, build relationships with the company hearers. Once this is finalised a listed company should obtain the services of a professional audit house. To this consequence the company must make out to the model on Sri Lankan Auditing criterions. The Companies Act of 2007 besides has a series of ordinances that need to be adhered to when choosing and commissioning the services or an external hearer. This is besides applicable in the event of altering the bing audit house. It is obligatory for listed companies to follow with the Sri Lankan Accounting Standards every bit good as the Listing Rules of the Colombo Stock Exchange when fixing audited fiscal statements which are included in their Annual Report. Consequently, one-year studies normally include audited fiscal statements of the Company, Director ‘s study and the revelations required by regulation 7.6 of the Listing Rules and must be circulated to stockholders before the termination of five ( 5 ) months from the terminal of the fiscal twelvemonth. This is one of the chief considerations that the listed companies must run into in order to follow with the demands mandated by the Securities and Exchange Commission and the Colombo Stock Exchange.

Professional Guidelines

The Sri Lankan Auditing Standards are created on the International Standards on Auditing ( ISA ) published by the International Auditing and Assurance Standards Board ( IAASB ) of the International Federation of Accountants ( IFAC ) , with little alterations to run into local conditions and demands. It sets out the basic rules and related patterns and processs that apply to audits of fiscal statements. Hence this confirms conformity in all stuffs respect to the International Standards on Auditing.

Under the Sri Lanka Accounting & A ; Auditing Standards Act No. 15 of 1995, conformity with these Standards is ineluctable when transporting out the audits of entities specified in the said Act. This Act non merely places the duty of following with these Standards on the Auditors entirely, but besides places a corresponding duty on the entity ‘s direction to take all sensible stairss to guarantee that these Standards are complied with in the behavior of the audits of their histories.

Legislative Guidelines

When analyzing the legislative model for the listed companies, it is the duty of the audit commissions of listed companies to find the audit procedure both internal and external. Audit commission duties in companies are to be enriched harmonizing to the Sri Lanka subdivision of the Association of Chartered Certified Accountants which will make an extra bed of administration and answerability. This will guarantee that naming audit houses to carry on external audits will now rest in the custodies of these audit commissions which will supervise and supply transparence to the audit procedure. Stairss are taken to guarantee that all listed companies provide information publically on hearer independency. This corporate revelation has enabled more transparence into the audit procedure. Therefore hearers are bound to present comprehensive information on their independent study and hazard and internal control reappraisals. In the aftermath of important disagreements in corporate revelations in listed companies it is of import to observe that hearers merely give an sentiment of the true and just position of the fiscal statements taken as a whole, in footings of materiality, which is termed as a sensible confidence and non an absolute confidence, in conformity with the international accounting criterions.

Features of External Audit Services

An external audit is a reappraisal of the fiscal statements or studies of an entity, normally a authorities or concern, by person non affiliated with the company or an bureau. External audits play a cardinal function in placing fiscal mistakes of concerns and authoritiess because they are conducted by outside persons and hence supply an impartial judgement. External audits are normally performed at regular intervals by concerns, and are typically required annually by jurisprudence for authoritiess. External audits are performed to confirm that the fiscal statements of an entity are right presented with a true and just position. They do non affect an existent accounting of a concern ‘ fiscal histories, but instead external audits are an independent rating of fiscal paperss provided to the party, that carries out the audit. For a private-sector concern, an external audit will typically include a reappraisal of the company ‘s quarterly or monthly fiscal studies every bit good as statements on grosss and expenditures to guarantee they are right presented. For authoritiess, an external audit will include a reappraisal of the budget, the distribution of financess and the disbursals to guarantee the budgeted grosss and disbursals were right compiled and used.

An external audit will have a study sketching the hearer ‘s findings. This will by and large be a sum-up of the overall cogency of the fiscal statements and paperss as presented by the company or authorities which is normally presented as the Statement of Auditors in the Annual Reports. Should the external hearer uncover disagreements between the statements presented by the company and his findings, these will be noted in the study as good. The audit will frequently include fiscal suggestions for the entity as ways to better its overall fiscal standing and accounting patterns. The more of import characteristic of an external audit is the decision of the hearer. A favorable decision is indifferent grounds that the entity is describing fiscal informations right while a negative decision is a ruddy flag for hapless accounting patterns.

Drumhead

The stableness of the fiscal market in Sri Lanka is a cardinal driver of economic growing and nutriment. Similarly the capital markets provide a gateway for foreign investing and excite growing flights. The Sri Lankan Auditing Standards board and the Institute of Charted Accountants are the top government organic structures that guarantee good patterns and transparence in the industry. In drumhead it was revealed that in Sri Lanka a bulk of the listed companies prefer to seek the services of three of the Big4 audit houses, viz. , Ernst & A ; Young, KMPG and Pricewaterhouse Coopers. There are some smaller audit houses that are non so important in supplying services to the listed companies. This chapter discusses the ordinances on external audits while emphasizing the importance of both professional and legislative guidelines. Appraisal of the external audit fees, its composing and services offered have been discussed from a Sri Lankan position.

February 4th, 2023

Successful Campaigns by Big Advertising Agencies

Table of contents

When it comes to advertising, a small business is more likely to it in house due mainly to the fact that it is very expensive to get an advertising company to do it for you. Where as a small company does not the luxury of having a large advertising budget, they need to do it by the most effective means possible.

Three examples of successful campaigns produced by big advertising agencies are:

The Marks & Spencer’s “Magic & Sparkle” Christmas Adverts which were made by a firm called Rainey Kelly Campbell Roalfe. It was run up to and including Christmas Eve. These adverts put M&S back on the map for food and clothing, boosting their sales tremendously. The adverts include many famous celebrities including Twiggy and Shirley Bassey.
Halifax pioneered an innovative approach to bank adverts in 2000, when it allowed its staff to star in adverts, singing popular songs with the words changed to reflect financial services products. Halifax worker, Howard Brown is the regular star of the adverts. Following the merger with the Bank of Scotland, this practice has continued, with the Bank of Scotland also allowing its staff to take part. These adverts were made by a company called Roberts & Robertson, and it became very successful for them.
Sainsbury’s is another company that has done well out of a recent campaign to promote them selves. Sainsbury’s did this with their “Try something new today” campaign. They showed how they are now offering all sorts of new products in store that many people would not have tried or liked, but are now widely available. Their campaign’s were organised by a company called Redbus, who did market research and found out what customers want from their food shops.

There are many types of media that companies use to get their message across. These are Television, Radio, Posters and Magazines / Newspapers.

Magazines:

More colour pagers to give the viewer a more detailed image
Better Reproduction and quality of the printing
Longer copy deadlines as some are monthly etc.
Few regional editions, different areas will be interested in different things
Diversity of subject matter, there is almost a magazine for any subject matter so you can target the exact audience
Reach specific groups of people either by age or what they are interested in.
Sunday colour supplement, this free magazine is often jam packed with different adverts and promotions
Weekly women’s magazines will mean if you have a specific product such as something to do with babies etc you can put it right in their face.
TV Guides often have a lot of space at the back filled with more information about Television programs so products / services can be linked in with this.
Carry adverts for a broad range of products / services
Low cost per thousand, it becomes a lot cheaper when you are making many thousand copies
Business publications given free to company executives
Kept for a reasonable amount of time, as they do not perish and are harder wearing than a newspaper etc.
The amount of magazines that people often browse at when sitting in waiting rooms.
There is no sound or movement.
You have to book and produce a month in advance.
Many have many pages of adverts so that they could get missed.

Posters

Must be clear and quick to the point..
Relatively cheap to produce and make.
Can be seen again and again.
Can be placed near the shop where the product / service is currently on offer.
Posters cabn have large impact due to the size and colour and the boldness of the print.
They are very popular with art directors to get their message across in a different and eye catching way.
They have to be printed and distributed way before the product / service is available so they need to be created and planned months in advance.
Can become damaged and damaged so they need to have a level of looking after.
The message cannot be complex as many people will not stop to read an advert specifically just glimpse at it.
Some people see poster adverts as anti-environment.

Radio

It gives the listeners an opportunity to use their imagination.
You can reach listeners whilst they are doing other things such as driving etc.
They can be local, regional or national.
Very popular and worth while during “drive time”
Radio adverts are quick to produce.
Intensive medium, it will make people think of it, even though they may have been thinking of something completely different.
Listeners for certain radio stations may be low and not worth while.
It is very difficult to advertise food and clothing product by radio as people want a visual representation.
You can buy a package from many of the bigger radio stations for certain “spots” during the day.

Cinema

The visual power of the adverts is very effective with the visual representation and the sound in a cinema.
It is the strongest medium of all as you are going to watch it anyway because you are sitting down waiting for the film to start and as it is on such a large scale straight in front of you.
Campaigns can be local or national as all of the adverts can be edited onto the beginning of films by the cinema itself.
Book / soundtrack commercials are very effective too advertise for the film at the beginning as they are about to watch the film and may be interested.
Audiences often will chat through the adverts.

TV

Hundreds of thousands of people watch TV every day so there is an enormous market to show the product / service to.
Vivid colour and sound though a television, giving the viewer a good visual representation of the product / service.
BBC channels do not have advertisements in them so that will cut down the number of viewers.
There are many channels on Sky that are becoming very specific to certain interests etc, so you are able to advertise to the right audience.
Many people either turn over when the adverts come on, or more recently with the creation of Sky+ etc you can simply fast forward them and skip them completely.

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Summary of Background and Facts Reliance

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Secondary Problems

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Financial Market In Sri Lanka

Fiscal market in Sri Lanka

Audited Account Market in Sri Lanka

The game of Big 4 & A ; Non Big 4 audit houses

Demand and Supply

Regulations on External Auditing

Professional Guidelines

Legislative Guidelines

Features of External Audit Services

Drumhead

Successful Campaigns by Big Advertising Agencies

Magazines:

Posters

Radio

Cinema

TV

Sometimes it is hard to do all the work on your own