Promotional Techniques IB Past Paper PDF

PROMOTION TECHNIQUES Ch. 1 -The Role Of Communication In Promotional Activities Content and types Communication is the process through which a person or group of persons sends ideas, thoughts, opinions to other persons, with the intent of obtaining an answer. Com...

PROMOTION TECHNIQUES Ch. 1 -The Role Of Communication In Promotional Activities Content and types Communication is the process through which a person or group of persons sends ideas, thoughts, opinions to other persons, with the intent of obtaining an answer. Communication: - assumes the existence of 2 participants (transmitter and receiver) - the process = a suit of events which take place in the time and space between transmitter and receiver - Use of symbols (words, gestures, mimics) which can act as a message; - The sender’s intent of influencing the receiver and obtaining an answer; Classification: By receiver nature: -Intrapersonal (with oneself) 70% -Interpersonal (between 2 or more persons, small groups) -In-group (i.e. family, study group) -Mass communication (between a complex system and the public at large) By message type: - Verbal (using words) - Non-verbal (gestures, mimics) By number of elements: - Interpersonal communication system - Organizational communication system - Public communication system (public entity to group) - Mass communication system (between complex system and the public) At company level there are: - Formal communication systems (organized) - Informal communication systems (most frequent, most credible) For an information source to be efficient it must be: - Sufficiently powerful (having authority over the target audience) - Attractive (unlike others) - Credible ( accepted by the majority of receivers) Elements of the communication process: a. Small scale: A company, or NGO sends a signal which will be correctly interpreted 1 Information sources (talking, gesturing person) in economic activity – suppliers, clients, buyers, intermediaries, public institutions Message: word, written notes, radio/TV broadcast, or any correctly interpreted signal Examples specific for economic activity: goods and services offers, price communications, distribution Message transmission channel = support which can circulate between transmitter and receiver (media, press, radio, TV, prints, billboards, posters) Recipient = receives the message (clients, customers, suppliers) b. Wider meaning (Kotler) Communication Model -Humans process data in much the same way as computers or other machines - 2 participants (sender - receiver) - 2 communication tools (message and means of propagation) - 4 activities : - coding (translation of ideas in symbols) - decoding (meaning attributed by the receiver of the message) - response / reaction of the receiver to the message - feedback / reverse reaction (the response that the receiver gives) Message reception is influenced by: - Selective attention (message passing through the filter system of the individual who retains what he wants) - Selective distortion (interpreting of the message according to their own beliefs and convictions) - Selective retention (message passing from temporary memory to permanent memory) Stages of communication: a. choosing the target audience (consumer segments to which the message is addressed) based on socio- demographic, economic and geographical criteria b. establishing the communication objectives (the important areas in which it will operate) c. message elaboration d. choosing the message channels (press, TV, print, billboards, posters, etc.) e. the organization and management of communication processes (solving problems such as time, flight period, funds, human resources, etc.) Organizational communication – marketing communication – promotion relationship Organizational communication contains 4 two-way information streams: 1. Between company and its suppliers 2. Between company and its clients 3. Between company and public institutions 4. Between company and its employees 2 Marketing communication is a part of Organizational communication. Its purpose is the fulfillment of marketing objectives. Marketing Mix = product, price, placement, promotion Promotion is a part of marketing communication It contains all specific activities which target the comprehensive information of the consumer, influencing consumer buying behavior and boosting sales Promotional activity structure a. advertising - long-term, qualitative variable with the purpose of non-personal presentation of a message about a product / service / company by a supporter / payer b. PR (public relations) = quantitative variable that includes all specific activities designed to improve company / product / services. c. Sales promotion = quantitative variable which envisages specific set of activities that bring immediate material benefits to the buyer d. Promotional events (sponsorship) - qualitative variable, deployed for limited periods of time - includes a full range of promotional activities e. Branding - all distinctive signs intended to individualize a product from those of competitors, guarantee quality, reputation and prestige and certifying company f. Sales force - employed persons / associates of a company with main purpose of contacting as many people to showcase their products, to advise, to contract and sell those products g. direct marketing - a set of activities with the purpose of achieving a direct link between suppliers of goods and the end customer (eg telemarketing, mailing, home shopping, e-mail) 3  Ch. 2. ADVERTISING 1. Concept Advertising is defined as any paid form of nonpersonal communication about an organization product, service, or idea by an identified sponsor. Benefits of Advertising Still most cost-effective way to reach large audiences Valuable tool for building company or brand equity as it is a powerful way to provide consumers with information as well as to influence their perceptions Stimulate demand It helps products to become the top of mind brand – awareness campaigns 3 R’s of Advertising: Retaining Loyal Customers Reducing Lost Customers Recruiting New Customers Information Processing Theory in Advertising  Encompasses not only a theory of communication but also a theory of human cognition  There are many variations, but all share key assumptions about human communication, persuasion and advertising Advertising is a qualitative variable which includes all activities with the purpose of nonpersonal presentation of a written or oral message for a product, service, or company by an identified payer. = Most important promotional activity = Core of promotional activity = Its importance lies in the number of units involved, the variety of promotional techniques it uses and the high volume of investments required To describe the notion of advertising, we also use terms like: - Fully semantic and conceptual – the term of ADVERTISING (by payer) - Publicity (presenting the product/ service on the market by a manufacturer without paying for it) - Propaganda (includes the political field) To define an advertising message, we use three concepts: - nonpersonal presentation of a message by an intermediary (not direct presentation) = making the advertisement more credible - a paid form of marketing communication - an identified paying supporter 2. History - Starts in 1440 - with the discovery of the printing press by Johannes Gutenberg - 1472 - appearance of the first advertisement on the doors of a church in England - 1525 - the first advertisement printed and distributed in Germany - 1625 - the first newspaper ad in England - 1854 US -Boston - the first advertising agency - 1800-1820 - the first advertising clubs (England, USA) - 1917 - Association of advertisers (USA) - 1926 - Radio advertisement - 1947 - TV advertisement - after 1960- the exponential development of advertising activity in all media categories 4 - After 1970 - Internet advertising 3. Features - Public character - Relatively cheap communication –regarding the high number of receivers - Partisan character -in the service of a cause, usually commercial, in the service of a person - Impersonal character - is addressed by intermediaries - Persuasive character - honest intent to deceive, showcase a product / service / company by making excessive arguments - Offensive character - urges to action - BUY !! 4.Advantages - Creates a climate of safety for the buyer-he accepts the features that are being promoted and deems that he is legally protected - Gives the impression of financial strength - It is relatively cheap 5. Disadvantages: - Sometimes not fully credible because it is broadcasted through intermediaries - One way communication, unidirectional - On some types of media it is expensive (TV) 6. Requirements -listed in the Fair Practice Code broadcast by the International Chamber of Commerce in Paris (1937) a. Decency- in the creation and dissemination of public messages, one should not violate the rules of moral conduct, ethics b. loyalty – not take advantage of the lack of knowledge of some individuals, should not take advantage of the situation in which people may find themselves (sickness, religion) c. credibility- must meet at least the main characteristics of the product / service, and mention an accurate description of their usefulness, correct indication of the origin of the products, including the country of origin, its full price. 7. Objectives - Promote / increase sales - Comprehensive, persuasive information regarding the quality of the product - Launching a new product - Launch existing products on new markets - Model / alter consumer buying and consumption behavior 8. Functions -Information - the existence and characteristics of the product - Economic - Social - creates patterns of behavior, customer segments - Persuasive – uses persuasive techniques - Poetic- uses poetic constructs 9. Forms of advertising: a. by object 5  - product advertising -informative, conditioning, comparative, reminder - trademark -to highlight the brand name under which a product is sold -institutional- improves the image of the producer b. by geographic area - local, regional, national, international c. by market type (consumer segments) – for buyers, for intermediaries, for other institutions, organizations, associations d. By message type: - factual - informs the public on the nature of the product - Emotional – impresses the audience e. By sponsor - from the manufacturer - from Intermediaries - from other institutions, bodies 6  Ch. 3 – Channels For Sending Advertising Messages Supports for sending advertising messages: a. media advertising -television, radio, cinema, Internet, press b. Print advertising - catalogs, brochures, booklets, agendas and calendars c. Outdoor advertising- posters, billboards, bright signs d. Free advertising- free articles Press advertising - Is the most important media to deliver the advertising message when it comes to the number of messages sent. It can be daily or periodical. Daily Press- Features: - Flexibility – possiblity of placing the announcement on any page of the newspaper and in any area of the country - Selectivity- possibility of chosing which socio-professional category of consumers to address Advantages: - daily frequency - Wide coverage - Low price for an announcement - Flexibility Disadvantages: - low selectivity - Poor quality of printing - Use of black and white colors - Very short life ] Periodical Press - Advantages -High selectivity -Good quality of printing and paper -Uses colors Disadvantages- low flexibility - Higher price Radio Advantages - ranked No. 2 on the number of messages sent -High flexibility - High selectivity - Is found everywhere - Reasonable price Disadvantages - only broadcasts soundtracks 7  TV Disadvantages- little flexibility, high selectivity, high price (average price 5000 euros /30 sec) Advantage- unique combination audio-visual + motion Cinema - Broadcasts short films / documentaries (5 / 30min) Criteria for the selection of advertising media a. General: - Availability of the advertising media for a certain message - given by the legislation in force and costs - The extent of media coverage- number of receivers / publications per 1000 inhabitants - Degree of coverage of the target groups reached by the media - Advertising message transmission cost (avg. cost in the US $ 180,000 / 30 sec) - Nationality b. Specific choice of media: Press: - the frequency of the newspaper - Time (morning, noon, evening) - Socio-professional categories it addresses - print run (no. of printed issues) - Price of broadcast - Print quality Radio: - Frequency (wavelength) - The wording of the advertising message - Message characteristics (actors, personalities) - Recording mode - Time of broadcast - Adjacent programs - The cost of one broadcast TV - image of the company which owns TV station - Moments of message transmission. (Prime time 18: 00-21: 00) - Adjacent programs - The cost of transmission - Coverage of the respective channel Factors that influence the efficiency of the advertising message in the press: - Text quantity- with The more words related to the product, the more efficient the message - Message location- the cover page and pages 3 and 5, middle page, upper right corner - Font size – bigger is better, but at the same price it is better to send several messages in lsmall print than fewer with large characters - Use of the image - 70% photo illustration -Time of broadcast of a promotional message 8  - Salutation – 2nd person singular without the use of pompous words, exaggerated comparisons and superlatives. Printed advertising: - catalogue -to prospect -to showcase / for product launch - Working catalogue - contains description and characteristics of the products and an annex listing prices - Prestige - deluxe edition- quality Illustration, quality cover paper- sent to journalists - leaflets- Text and image, folds in 2/4 - The prospect - contains development perspectives on a given period of time / area - Brochure- listed products, their features, how to use, commissioning, warranty - more words than images - Agenda / calendar - advertising gifts - Details identifying the company and dates + photos / images - Billboards - illustration 80-90%; = eloquent image - Articles, interviews, free reports – on opening new stores, events.etc Advertising Techniques  Avant-Garde -Suggesting that the product puts the user ahead of the times. Being “in” and being the first.  Facts and Figures - Use of statistics and objective factual information to prove superiority of the product.  Weasel Words - Suggests positive meaning without making any guarantee.  Magic Ingredients -A somehow miraculous ingredient makes the product exceptionally effective.  Patriotism -Highlights the product as a local manufacture. Purchase of product shows love of country.  Diversion - Seems to tackle an issue or a problem, but throws in an emotional distraction  Transfer - Use of words and ideas with positive connotations to suggest that the positive qualities should be associated with the product and the user.  Plain Folks- Highlights product as practical and of good value for ordinary people.  Snob Appeal - Use of product shows association with an elite group. Makes the customer feel luxurious and glamorous  Wit and Humor -Clever use of words and visuals that attract the audience.  Simple Solutions - Promotes the product as a solution to many problems.  Bandwagon - Exploits the desire of people to join the crowd/the winning side.Popular choice.  Card Stacking - “Stacking cards” in favor of the product. Stress positive qualities, ignore negatives.  Glittering Generalities - Uses appealing words and images. Gives a message that the product will change your life.  Side-by-side comparison- Comparing the product to competition. Putting new developments in a product alongside itself (old version).  Human-Interest- Places product or service at the center of drama, personal confession. Revolves around characters – can be fictional.  Hidden Fears - Presenting the product as something that can solve problems or get rid of future fears/dangers.Use of insignificant problems can be more effective. 9 Domestic and International Regulations for Advertising: There are special laws, administrative practices governing the creation and dissemination of promotional messages An advertising message must be true in the following respects: - Product composition - Mode of production (unique / produced in series) - Origin of the product (factory and producing country) - Main utilities of the product -Total price Regulations are drawn up for: - Products - Promotional message contents - Practices, advertising techniques - Promotional message length - Number of interruptions within broadcasts - Costs / allocated amounts - Foreign equity participation in domestic companies - Using words, personal pictures in adertising There are 3 categories of advertising for products: a. Forbidden - weapons / drugs b. Limited - tobacco, alcohol, personal hygiene products c. With recommendations - drugs Planning an advertising campaign Content - Any advertising action is carried by a program that includes steps, resource allocation, persons responsible, monitorization and control. Steps of a promotional campaign: 1 2 10  Evaluation of the current Plan objectives status (exploratory analysis) Results evaluation Elaborating the advertising communication strategy 4 3 Exploratory analysis refers to: - Presentation of the company and its organizational structures - Company history (significant events) - Presentation of economic-financial indicators for a period of time (5-10 years), turnover, market share, profit, ROI - Presentation of the market and competitors - Presentation of characteristics of the product which will be promoted - Promotional actions from the past to present - SWOT analysis - strengths, weaknesses, opportunities and threats - Presentation of objectives Advertising plan – STAGES: 1. Target audience 2. Objectives of the plan (fields of action) 3. Product positioning on the market 4. Development of the overall strategy of the advertising campaign 5. Chosing the media in accordance with objectives and resources 6. Advertising creation 7. Pre- testing of the advertising message- pilot market test, fictitious magazines, group meetings - Laboratory tests tests tahitoscope tests (projecting images at increasing speeds), language tests (analysis of message wording), eye movement tracking, etc. 8. Buget – usually a percentage of the turnover (up 3%);- Possibilities method; - Competitive method;- based on objectives; - based on promotional mix and weight factors. 9. Campaign tracking and control. Indicators measuring the effectiveness of advertising - By comparing the obtained result against expenses 1. Universe of media audience – all persons in a particular geographic area or with certain characteristics (ex: Romania - 19 million, without elderly and children) 11  2. The target group / target – all persons targeted by a specific advertising campaign - thousands of pers 3. Reach (coverage) - all persons who came into contact with an ad; (expressed in%) 4. Audience level (rating) – all persons, families / households who watch / hear a TV / radio broadcast (%) 5. Gross rating points (GRP`s) – Number of audience points accumulated by an advertising campaign/broadcast; Relates to the same target and can exceed 100% 6. Contacts – Number of persons reached by al least one media vehicle during the transmission of an advertising message. 12  Ch. 4 – Advertising – The Creative Process The creative process is the most important step in an advertising plan. The success of the advertising campaign depends on the content of ad text, ilustration quality, soundtrack, background blend, and harmony of the message elements. To achieve an effective message, the following CONDITIONS must be met: a. advertising message creation - only after finalizing the advertising campaign strategy; b. objective- to present motivations for buying the product and not only announce its existence; c. the campaign must contain a single message Principles 1. Selecting the argument = choice, selection of arguments, basic key elements to motivate product purchase(=Unique Selling Proposition -a key feature of the product, an important utility, other items related to the buyer’s status elegance desire to be first, to ease his work) 2. Convergence of means = choice and combination of instruments to highlight the key elements 3. Advertising uniformity = target a typical consumer in the chosen category Requirements: 1. Message simplicity - simple words, understandable 2. Message clarity – legibility, quality graphics 3. Suggestive character- opportunity to draw attention 4. Sending the message in an intelligent manner 5. Practicality – Underline features and usefulness 6. Operational character - call to action STAGES A. General advertising creative activity- flow of all actions B. Advertising creation itself A. – 1. Presentation of an order for an advertising campaign to the Customer Relations Department of the advertising agency. 2. Preparing a file containing a company status and the main objectives of the proposed campaign (account manager) 3. Development of a brief for the Creative Department 4. Case analysis by specialists from the Creative Department 5. Creation plan 6. Assigning tasks to specialists (text, illustration, soundtrack) 7. Approval of the creative plan by the agency’s management 8. Presentation for customer approval B- 13 1. Chosing the psychological axis (basic idea, striking element) 2. Establish a communication concept (elaborating ideas that highlight the psychological axis) 3. Establishing transmission schemes (the media by which the message reaches the public) Components of the advertising message 1. Key elements - feature / product utility= USP (unique selling proposition) 2. Product name = product’s identity on the market 3. Logo / visual identity = graphic elements giving the product a visual identity 4. Campaign title = campaign statement 5. subtitle = explanation title 6. slogan = essence in words of the product’s characteristics / usefulness 7. main block of text In the construction of the message, the following items are taken into account: a. rational reasoning = describing the basic idea of the campaign b. the storyboard = an illustratet scenario unfolding on the sequence of an advertising film c. press layout (layout) = presentation of the elements of an advertising message in a general framework d. Blueprint= final sample of the advertising message Construction of advertising texts Although they occupy a small share in the overall message, advertising texts are very important, as they communicate the Unique selling proposition. There are creative advertising methods and schools of thought (the strongest creative advertising school = French School) Methods of argumentation 1.Arguments which defy logic - some basic principles of logic are canceled through various arguments (ex: principle of noncontradiction) Applications: a. Logic shock (construction of phrases which shock, thus compelling the reader to translate / understand those words) - "is permitted without a permit", or "shows everything but doesn’t reveal anything " b. Hyponymy (restructuring of words within a sentence that shocks) "At the price of perfume you can buy Chanel 5 ", " There are cars and there is Ford ' c. Praxeograma violation (disrupting the natural order of urban activities) - "Sunrise sleeps "," Finally, advertising will not be interrupted by the movies" d. Thematic breaks (pronouncing a sentence which is interrupted and afterwards continued) – “townsfolk who.... " e. Tautology (science that says nothing and each understands what he wants) "France is France"..... "He’s the only one because he is unique" f. Situational inconsistencies (shock, contempt - the message statement) - "When you have 4 million readers do you still need advertising?" 14 2. Descriptive argumentation - Description (fictitious world, imaginary) - The message is very long 3. Narrative argumentation Genre: Police novel, fairytale, story 4. Using intertextuality - Inserting promotional words within a well-known text - Genre: recipes, horoscopes ("the stars are favorable for our new Dacia Logan") 5. Substitution in stereotypical forms - Replacement of consecrated forms with certain words relating to the product in question = Vampire activity 6. Using language functions - Information function (referential function) - Emotional function (speaking in 1st person singular/plural) - Poetic function ADVERTISING GRAPHICS - Envisages th part that isn’t read or heard in a message - Consists of special typeface, the use of drawings, engravings, pictures, images, color, etc. - In its construction, we find the following requirements: 1. Unity - arrangement of graphic components to form a whole 2. Harmony = compatibility 3. Succession - understanding the assembly by reading from the upper left corner to the bottom right 4. Highlights - highlighting graphic elements 5. The use of colors – placing the viewer in a certain mood 6. Use of white space - not to give the impression of empty space 7. Use of background color and shape color (black on yellow, green on white, red on white, blue on white) - Colors used according to their significance (traditions, customs, religious beliefs) – in accordance with age and gender The structure and responsibilities Creative Department: a. Advertising Editor- builds text - philologist, humanities graduate b. Creative Director - Illustrator- Creative Arts Director = arts, designer, screenwriter, etc. c. Film producer - Engineer = arranges all sequences of the ad in the illustrated scenario. 15  Ch. 5. Sales Promotion Definition: Mass communication technique that offers short-term incentives to encourage purchase or sales of a product or service. Rapid growth in the industry has been achieved because: – Product managers are facing more pressure to increase their current sales, – Companies face more competition, – Advertising efficiency has declined, – Consumers have become more deal oriented. Characteristics: 1. It is related to a product / group of products 2. Has specific economic/material advantages 3. Has a direct and immediate character 4. It is characterized by a temporary character 5. The promoter of stimulant promotion activity is any natural / legal person, usually the producer 6. Beneficiary = any natural/ legal person 7. It is planned, organized Frequently used terms: - promoter - Intermediary (merchant) - Beneficiary (final user) - Main Products - The main advantage Factors influencing the activity of Sales Promotion: 1. The need to find immediate solutions to company problems and profit 2. The need for liquidities 3. The lower cost compared to other types of promotional activity, greater or equal results 4. Can lead to a change in consumer mentality in certain cathegories, as time passes 5. The decrease of national and global rate of product renewal leads to an increase in sales promotion. Consumer-Promotion Objectives: 1. Entice consumers to try a new product 2. Lure customers away from competitors’ products 3.Get consumers to “load up’on a mature product 4. Hold & reward loyal customers 5. Consumer relationship building 16 Consumer-Promotion Tools: Trade - Promotion Tools = short-term incentives that are directed to retailers and wholesalers. Trade-Promotion Objectives: - persuade retailers or wholesalers to carry a brand - give a brand shelf space - promote a brand in advertising - push a brand to consumers Trade Promotion tools: Tools For Consumer Sales Promotion: Coupon= A certificate that entitles consumers to an immediate price reduction. Rebate = A cash refund given for the purchase of a product during a specific period. Premium = An extra item offered to the consumer, usually in exchange for some proof of purchase. Loyalty Marketing Program = A promotional program designed to build long-term, mutually beneficial relationships between a company and key customers. Frequent Buyer Program = A loyalty program in which loyal consumers are rewarded for making multiple purchases. Contests = Promotions that require skill or ability to compete for prizes. Sweepstakes = Promotions that depend on chance or luck, with free participation. Sampling = A promotional program that allows the consumer the opportunity to try a product or service for free. Point – of-purchase promotion (build traffic, advertise the product, induce impulse buying). 17 Tools for Trade Sales Promotion: - Trade Allowance = A price reduction offered by manufacturers to intermediaries, such as wholesalers and retailers. - Push Money = Money offered to channel intermediaries to encourage them to “push” products--that is, to encourage other members of the channel to sell the products. - Training - Free merchandise - Store demonstration - Conventions and trade shows Benefits of Trade Promotions:  Help manufacturers gain new means of distribution  Obtain wholesaler and retailer support for consumer sales promotions  Build or reduce dealer inventories  Improve trade relations Steps in the Trade Promotion Plan: 1. Objectives formulation 2. Establishing the specific activities 3. Legal and material feasibility check 4. Actual planning (main activities, resource allowance for each activity and assignment of responsibilities) 5. Control and monitoring of the plan 6. Results evaluation 18  Ch. 6 – Public Relations Public Relations -Building good relations with the company’s various publics by obtaining favorable publicity, building up a good corporate image, and handling or heading off unfavorable rumors, stories, and events. Public relations is used to promote products, people, places, ideas, activities, organizations, and even nations. New York City turned its image around when its “I Love New York!” campaign took root, bringing millions more tourists to the city. It has a lower cost than advertising, and a stronger impact on public awareness than advertising Public Relations Functions: Press relations or press agency Product publicity Public affairs Lobbying Investor relations Development Press relations or press agency involves the creation and placing of newsworthy information to attract attention to a person, product or service. Product publicity involves publicising specific products. Public affairs involves building and maintaining national or local community relations. Lobbying involves building and maintaining relations with legislators and government officials to influence legislation and regulation. Investor relations involves maintaining relationships with shareholders and others in the financial community. Development involves public relations with donors or members of nonprofit organisations to gain financial or volunteer support. Public Relations Tools: News Speeches Special events Buzz marketing Mobile marketing Written materials Audiovisual materials Corporate identity materials Public service activities Company Web site It began and was developed in the late nineteenth century, with the advent and manifestation of social groups (against abuses of big manufacturers, etc.) -Started in the US -PR –term-appeared in 1897 in a directory of American Railroads PR activity cultivates relationships with: - Media - Own employees (human relations) 19 - Authorities - Political parties - Universities - Other (non) governmental bodies Features for the PR activity - Specific to legal persons - A function of leadership - Aimed at improving the image, cultivating trust and doesn’t have an immediate commercial purpose - Bilateral activity (= requires a response from the population) - Has an objective character (informs on strengths and weaknesses of companies) - Payment - hidden, indirect Factors which influence the PR activity: - Increasing and diversifying production of consumer goods - The explosion of technology and information systems - Increased global competitiveness - Increased interest for TV advertising (the appearance of a psychological threshold) - The impact of video equipment (decreases receiving commercials on TV) - Increased costs for advertising - Opportunities for PR activities (conferences, seminars, gigs) Public relations business objectives: - Creating a favorable image for the business - Fostering good relationships with a number of domestic and international organizations (media, authorities, political parties) - Lobbying activities (promoting legislation favorable to companies) - Ensuring internal and external company communications - Promotion of company products - Market launch of new products - Re-launch products on the market -Large scale information for buyers I. Specific techniques 1) In relationship with the media: - Important feature articles (written by specialists outside the firm who treat a subject within the firm) no more than 3,000 words - Profile article (specialist article written by an employee of the company - the acquisition of new products, etc.) - Press release / news release – issued by the company to a news agency, about 3000 words, with details identifying the company and contact person. - Press conference (on significant events within the firm, positive / negative) - distribution of written material on which questions can be addressed to company management / representatives. 20 - Interviews (conversations between a journalist and the CEO, innitiated by any of the parties) - Photo + text (sent to a publication) – has an emotional effect on the audience - Dinners, cocktails with journalists - Specialist collumns (a person giving advice on certain areas) 2) in relations public personalities: - Seminars, conferences - Publicized tours - Opening museums (cutting the ribbon) - Inaugurations - Dinners, cocktails 3) in customer service: - Fan clubs - Hotlines - Newsletters 4) Specific to product positioning - Notoriety awards (Best...) - Obtaining official recognition (certificates of quality issued by institutions with international vocation) - Labeling clothing and other products - Product placement in films documentaries / art - Awarding prizes on radio / tv - Branding moving vehicles 5) At events: - Posters, banners, billboards, bright signs placed at events (festivals, humanitarian) 6) For positioning companies - Stationery with company logo / company name - business cards - Diaries, calendars - Uniforms II. Stages - Establishing goals and objectives of the public relations plan - Delineation of specific activities of the public relations plan - researching the reasons that lead to its adoption - Development of the main reasons, indication of resources and responsibilities for each activity - PR plan implementation - monitoring, controlling, conducting public relations activities = elimination of some activities = Inclusion of other activities = Reallocating budgets - Evaluating the public relations activity- long time period that consists of the company’s sales volume 21  CH 7. Using the Brand in Promoting Products, Services and Organizations 1. The concept of brand, image and brand image Using the brand = one of the most important techniques for promoting the image of the product, services and organizations Brand = name, term, symbol, sign, drawing / any combination thereof which serves to individualize the product / service to a seller or group of sellers and to differentiate them from those of competitors. = A set of distinctive signs intended to individualize a product / service / company from those of competitors, guarantee product quality, certify company notoriety and prestige. In building and strengthening a brand, the following have an important role: - The image of products / services / companies - Brand image - Image value Image = attribute of psicho-social life, characterized by human psychosocial ability to construe mental representations about a product / service / company capable to influence the decision to purchase of an individual /group. Brand image = mental representation of a product / service / company plus a sum of values and beliefs of individuals that have a role of enhancing the product's market position Brand Value = the amount of money an individual is willing to pay extra for a product bearing a brand name versus an identical product that has no brand name. Brand elements: 1. Brand name = verbal expression of the brand; which can be read; name of the product / service 2. Visual brand symbol = expression; a graphic element; cannot be read. 3. Registered trademark = brand / part of it which is filed with the State Office for Inventions and Trademarks, it ensures exclusive rights of ownership of the trademark 4. Copyright = owner's right to reproduce, publish, sell a literary, artistic, musical piece. The brand has economic value when there is a product / service / company that bears its name on the market. Brand history - Use of trademarks gained importance in the Middle Ages (with the advent of corporate craftsmen) - Signum Colegi/ Signum Privati Laws: - 1857 France - the first law of protection of trademarks - Law No 84/1998 - Protection of trademarks and geographical insignia First brands: - Patronymic brand (bore the name of the employer, business owner) - Tiriac, Ford, Citroen - Brands that distinguish and describe the product - Palmolive (soap from palm oil), Luxten (light graded10) - Symbolic- brands with the same characteristics as the aspirations of their buyers (Microsoft, IDM) Hallmarks in brand building: 1. Letters and numbers / combinations thereof (AMA- American Marketing Association) 22  2. Words and their combinations (MontBlank) 3. Figurative elements (drawings, photos, engravings) 4. 3D shape of the product / packaging or colors, color combinations Visual representation of brands can be expressed by: - Logotype- visual representation of the name product / service / company (Philips) - Siglotype -Acronym- visual representation of the initials of a prod / service / company (AMA rail passenger company) - Icons: = Phitotype - visual representation of the brand through a plant (lily) = Geotype - visual representation through a geometric figure = Zootype- animal representation = Amfotype- combination of the above Brand differentiation depending on the brand name: - Brand names for each product belonging to a company - The brand name for all products of a comapany - Brand name for families of products manufactured by a single company - Combined brand names (name + surname) (Keloggs) Brand Quality Features: - Brand distinctiveness = has its own form in its construction so that it is different from all others - Non-deceptive = brand should not contain elements that mislead the buyer - Legal and moral character = mustn’t contain elements that infringe on the rules of moral, social coexistence - Perceptibility = readable character - Homogeneity = building the brand so as to give the impression of a whole - Easy to associate = highlighting elements that lead to the basic characteristics of the product / service - Memorable = easy to remember (Kodak, Sony) - Brand awareness – brand endurance over time (Coca-Cola) - Associativity - possibility to include the brand in a complex marketing program. Brand functions: 1. Guarantee and protect certain products marketed under a brand name 2. Individualization of products / services from the mass of existing products on a given market 3. Differentiation from producers who make identical/similar products 4. Guarantee quality through promotion under a brand name of only products with superior technical characteristics that are constant in time 5. Adjust market mechanisms (demand/supply) 6. Monopoly- a brand with high reputation on the market wards off other brands 7. Self-advertising 8. Consumer protection – given by the 4th function- the buyer has the opportunity to choose quality products. Key factors - Turnover of the company owns the brand - Consumer loyalty - Awareness and brand recognition (spontaneous) - Level of expenditures reduction (promotion expenditures) 23 Brand potential =financial evaluation of the brand (linked to the company’s turnover) 24