Thursday, May 13, 2010

Self-Reflexive

The Difference Between and Importance of Marketing and Advertising

Difference:
Many people confuse between marketing and advertising. Although they are connected to each other, they are distinct. Let us imagine that marketing is a big pie, for instance, and advertising is just a slice of that pie and the other slices resemble the target market, research about the target market, strategies and tactics, communication, media channels and other aspects related to advertising. Advertising and marketing must be an integral part of all businesses.

Importance:
For a business to thrive and prosper, advertising and marketing are crucial. Usually, businesses with poor or no advertising and marketing strategies do not expand in markets; hence, they do not succeed in the industry. Advertising and marketing enable the business to identify the needs and wants of the target market while researching. This process is very important in marketing and advertising because it helps in building and maintaining customer satisfaction; hence, generating revenue and maximizing profit. Without effective advertising and marketing plan, companies will not know the basis as to what their target markets want, this results in a great loss for the companies. Since individuals’ wants and needs are not static and always on a change, marketing and advertising research help the company keep track of these targeted audiences, their needs, desires and behaviors. Marketing and advertising also help them be informed of what is being newly introduced to the markets by other companies and whether consumers are attracted to these new products, services and ideas or not.
Marketing and advertising allow consumers to be aware of the products and services offered in the markets; they remind and reinforce individuals about the benefits of these products and services. In other words, marketing and advertising play big role in maximizing company’s profit.

The Beginning of Advertising and Marketing:
If I were to speculate when, where and how advertising and marketing were first used, I would say at the same time when human species started trading; selling and buying. I assume that traders and sellers needed advertising and marketing to inform individuals about the new products and services being introduced in the markets. Moreover, marketing and advertising were used when sellers wanted to affect consumers’ decision-making process while purchasing the product. In fact, traders and sellers used advertising and marketing to persuade consumers to buy the products. In other words, many years back, I think that advertising and marketing were used in many situations but it might not have been apparent that sellers are using them.
Nowadays, advertising and marketing have grown and developed causing drastic changes in the business and industry. They started with a word of mouth and now emerging to an integrated marketing communication.

The Power of Integrated Marketing Communication
Integrated marketing communication is the coordination of every communication method from the company to the target audience aimed to convey a consistent and complete message; achieving synergy. Although different promotion methods are used in different parts of the job, they are integrated so that the sum is greater than the parts.
Advertising and marketing managers select the media vehicle for promotion depending on the objectives. The ultimate objective of the integrated marketing communication is to affect behavior; meaning to encourage customers to choose a specific product or brand. However, there are specific objectives depend on the market situation and target market. The three basic promotion objectives are informing, persuading and reminding target customers about the company and its products and services.
Many successful companies follow the AIDA model. It consists of four promotion jobs. First is to get Attention. Second, is to hold Interest. To arouse Desire is the third. Fourth, is to obtain action.
Integrated marketing communication requires effective communication. The communication process which is a source trying to reach a receiver with a message, should be planned carefully. Different audiences may interpret the message differently; hence, there should be a common frame of reference between the sender and the receiver.

How is it used today in a Manipulative Way?
Individuals tend to overrate that advertising is manipulative. However, most successful advertisers keep in mind what impact their work might have on society. Critics claim that advertising creates social trends and has the power to dictate how people think and act. They say that although an individual advertisement might not influence their behaviors, the cumulative effect of the bombarded advertisements on TV or Internet might affect them. However, advertising basically mirrors values in a creative way; it does not set them. In addition, consumers have the choice to either refuse or agree to purchase the product; advertising does not force them to; it just illustrates the benefits of the products or services in a unique way.

What have you learned from this class MCM 255? (Personal + professional)

I learned that advertising means bringing a product, service or an idea to the attention of potential or current customers. Advertising is expressing your message in a creative, unique and different method
After learning the five factors of integrated marketing communication that are:
1. IMC is paid communication
2. Its sponsor is identified
3. It tries to inform or persuade
4. It reaches a large audience
5. It conveys a message through many different kinds of largely non-personal mass media or through a media mix.
I am now aware that IMC requires planning, creation and integration.
I learned that in order to effectively reach your goals, key features of IMC should be identified and applied. For this, advertising should always start with the customer or prospect. It also should use any form of relevant contact. Moreover, one important factor in IMC is that it should achieve synergy; speak in one voice through multiple channels. I learned that the goal of IMC is ultimately to affect the behavior of the targeted audience as well as to build relationships with customers.
Furthermore, I learned from the Fundamental Marcom Decisions that all integrated marketing communications should be directed toward a specific market based on consumer characteristics that are behaviorgraphics, psychographics, demographics and geodemographics.
I also have learned how to analyze an ad critically and identify the key elements of it. The sender, the message and the receiver are the key elements of a particular ad. The sender is always trying to accomplish a goal, solve a problem or solve a communication problem behind each campaign it launches. I learned that messages in ads evoke different ideologies, intertextuality and signs. The receiver could be appealed to through the rational model receiver such as using rational information. Also, through the conditioned model received, such as using simple hierarchy-of-effects principles. Moreover, the receiver could be appealed to through the integrated, emotional or active models.
Thanks to the technological advancements, advertising now can be embedded in different types of media. Broadcast media is one way companies rely on nowadays. Television and radio are forms of broadcast media. Infomercials is an example TV advertising. In addition, online media is becoming very dominant these days as it targets mass number of audiences.
After learning all these aspects of marketing and advertising, I think I am now able to apply them in my real life. Although this course is about the basics of advertising, I feel that now I am able to communicate effectively in the workplace as I have now more knowledge in this topic. The campaign plan we developed throughout the course as well as the assignments we did have made me confident in this field and made me understand what goes on in the advertising companies as well as the business companies.
In addition to the professional skills I learned in this class, there are some valuable personal aspects that I gained. One of these aspects is to think, read and speak critically. In order to fully understand what we are reading or listening to, we should ask questions, write comments, speak our minds and voice our opinions. Another thing I learned is that I should ask questions and participate in classes. Since I came to AUS, I remained silent in many of my classes; I learned a lot in these courses; however, not as much as I learned in MCM 255. The professors made us ask questions, make extemporaneous presentations and interact with students in class effectively.

Red Bull Gives you Wings. Creative Brief Video

Red Bull Creative Brief

Introduction:
Red Bull is a sweet, caffeinated energy drink aimed to give customers the high energy kick. It offers s the following products: Red Bull energy drink, Red Bull sugar free, Red Bull cola and Red Bull energy shots. For this particular research project, we will only be focusing on Red Bull energy drinks.

Company Background:
In 1982, Dietrich Mateschitz became familiar with tonic drinks that were spread and dominant in the Far East, specifically in Thailand. At that time, one popular tonic drink company was owned by Chaleo Yoovidhya in Thailand. Mateschitz was inspired by this idea and established his own energy drinks company in Austria in 1984. He named his company Red Bull, which implies power and energy.
Since Mateschitz took the energy drink idea from the Thai owner, he obtained some of the drink ingredients from him as well. It contains taurine, glucuronolactone, caffeine, B vitamins, sucrose, phenylalanine, and glucose.
Mateschitz developed a unique marketing plan and started selling Red Bull Energy Drink in the Austrian market in 1987. This was not only the launch of a completely new product, in fact it was the birth of a totally new product category. After Red Bull’s success in Austria, it entered its first foreign market Hungary in 1992, and the United States in 1997. As Dietrich Mateschitz states, “Around 4 billion cans of Red Bull are consumed every year. The responsibility for the success of the world's No. 1 energy drink is shared by the company's 6,900 employees around the world. The Red Bull headquarters are based in Fuschl am See, not far from Salzburg, Austria.”

Slogan and Logo:
Red Bull's slogan is "it gives you wings". The slogan is very widespread and most people are aware that this slogan belongs to Red Bull drinks. Furthermore, it indicates that Red Bull gives people power, energy and wings which make it easier for people to complete their tasks and make people feel that they alert.

Red Bull’s Main Competitors (Energy Drinks):
• Power Horse
• RockStar
• Bison
• Monster
• Burn
• Effect

Problem:
The communication plan attempts to inform its target audience that Red Bull can boost mental awareness and energize a busy person. Also, it reminds its customers that Red Bull is an effective, good tasting substitute for other caffeinated beverages, such as coffee, tea and Pepsi and it contains all natural ingredients.

According to the Hierarchy of Marcom effects, the communication plan is aimed to establish brand loyalty by creating awareness through its promotional activities among its target audiences. Moreover, it gives the chance for customers to have a free trial for Red Bull in order to taste it; hence, evaluate if it meets their expectations.
Target Audience:
Red Bull targets its customers based on specific age demographics. Red Bull’s target market currently is aimed at teenagers and adults, aging from 15 to mid 30s. Furthermore, Red Bull targets clubbers, alcoholics and individuals who undergo stress while completing their tasks.

Consumer insights and brand imperatives:

Unlike other competitors, Red Bull is recognized as the top-of-mind energy drink. Today, it is also known as the best-selling energy drink in the marketplace. The brand essence lies behind its promotional activities, such as friendly members of Red Bull distributing free samples of their drinks. Moreover, it motivates its targets audience by providing sponsorships in different events and gatherings, such as schools, parties, clubs, social gatherings, sports events including Olympics and much more.
Consumers are attracted by their advertising vehicles (Red Bull Beatle cars) that provide mobile displays, painted blue and silver with a giant can of Red Bull mounted on top. In addition, events such as Air shows and Flug Tag shows developed a sense of consumer interest towards the product. Furthermore, it nominates winners for different gifts and prizes during its shows and events; hence, enhancing interactivity between the brand and consumers.
Consumers also prefer this drink because it enables them to accelerate their performance and revive themselves quickly after being under pressure. “Red Bull promotes its consumption ‘to increase physical endurance, improve concentration and reaction speed, improve vigilance and stimulate metabolism.” (Red Bull, 2008).
Since the brand loyalty is increased in Red Bull, it is achieving a higher market share and it is able to charge premium prices for its drinks; thus, it is the most expensive energy drink in the market.

Media Imperatives/ Creative Direction:
Red Bull uses a media mix in order to reach its target audience at the right moment in the right place. Red Bull uses TV, radio, press, internet and sponsorships. In other words, the company focuses on the media through which it reaches its target market. Red Bull creates its advertisements using a humorous and witty cartoon campaigns, transferring the message that this energy drink helps one complete tasks and function by “giving you wings” . Red Bull launches its advertising campaigns and sponsorships during sports events, parties, schools and places where people are most active.
Throughout Red Bull’s campaigns, the firm prefers personal interaction with their consumers and advertising through digital media, rather than print media. It relies more on what is called 'buzz marketing' or word-of-mouth. The reason why Red Bull favors these methods of advertising is that they offer higher scope for quick response/ feedback. According to Red Bull, one of the advantages of using TV, radio or cinema advertising is that consumers are exposed to these ads from time to time, in comparison to tangible print media which are always available. This advertising method arouses consumers’ interest and curiosity as they are not exposed to it daily.
The animated cartoons used in Red Bull’s advertisements symbolize the light profile of the brand. These ads are usually humorous and send a message related to “body and mind”, hence supporting Red Bull’s campaign slogan: “Red Bull revitalizes body and mind.”

Objective:
The Mission Statement of Red Bull is as follows:
"We are dedicated to upholding Red Bull standards, while maintaining the leadership position in the energy drinks category when delivering superior customer service in a highly efficient and profitable manner. We create a culture where employees share best practices dedicated to coaching and developing our organization as an employer of choice."
Red Bull’s main objective is boosting one’s energy.

SMART Objectives:
Red Bull uses the acronym SMART to set objectives for their strategies and plans. The SMART objectives are: Specific, Measurable, Achievable, Realistic, and Time based.
Specific
Red Bull sets its objectives in precise numerical terms such as numbers, percentages, or even frequencies.
Measurable
Red Bull monitors and records the data based on behaviours and actions. It measures the effectiveness of the objectives by evaluating consumers’ response.
Achievable
Red Bull managers invest a reasonable amount of effort and application into achieving their main objective.
Realistic
Red Bull sets its objectives based on the inputs they have in order to be realistic to reach their goals.
Time Based
When planning a Red Bull campaign, the company sets specific dates and times for when the implantation, process and evaluation will take place.


SWOT Analysis:
Strengths:
Effective communication
Loyal customers
Market share leadership
Strong brand equity
Reputation management
Weaknesses:
Higher price than its competitors
Manufactured only in one factory: Austria
Opportunities:
Emerging markets and expansion abroad
Introduce new products, such as Red Bull Tea, or Red Bull candy bars
Threats:
New competitors emerging in the markets

Support:
Since Red Bull’s establishment till the present day, the company did not face any major complaint or problems regarding its products or promotional activities; hence, enhancing its credibility. Moreover, it maintains its promise which is stated in their objectives and mission statement. It also retains its customer satisfaction by introducing new ideas in order to meet their customers’ satisfaction.

Benefits:
Red Bull promises the following benefits:
1- Enhances performance
2- Boosts concentration and reaction speed
3- Increases endurance
4- Stimulates metabolism

Red Bull drinks contain B-group vitamins which play an important role in energy metabolism, such as the build-up and break-down of carbohydrates, fat and protein. B vitamins are also shown to support mental and physical performance.
Communication Objectives: - What do we want customers to do in response to our messages?
While Red Bull advertises new products that are launched in the market, it sends out a message to the consumers about that particular product. In result of that message that provides information regarding its products and what they offer, attention is created. Consequent to that attention or awareness, the brand seeks response from the consumer, in other words, action or feedback. This type of awareness from the brand and direct response from the consumer is a two way communication process.

In reference to page 151 in Principles of Advertising, the model translates the main aspects of the communication process in advertising terms. The process/model starts with the source, which in this case is the Red Bull firm, and ends with the target audiences, which are the Red Bull/energy drinkers. When a consumers respond to an advertising message, they go through the following stages; perception, knowledge, feelings, connection, believe/persuasion, action. In advertising terms, this is known as the communication objection, which can be summarized in the following table: taken from the textbook page 155 (2009)

Communication Objective Consumer Response Drivers
Perception See/Hear exposure, selection, attention, interest/relevance, awareness, recognition
Emotion/Affective Feel want/desire, feelings, liking, resonance
Cognition Understand need, cognition, learning, differentiation, recall
Association Connect symbolism, conditioned learning, transformation
Persuasion Believe motivation, influence, involvement, conviction, believability/credibility, preference and intention, loyalty
Behavior Act trial, buying, contacting, advocating, referral, prevention/avoidance.

The consumer begins collecting information that is being delivered in the advertisement through their five senses, and then translates this information into meaning. This is also referred to as the perception facet. There are a few drivers that stimulate perception which include; exposure, attention, interest and relevance, and finally awareness and recall. The effective and emotional facet, which is the second stage of the response process, reflects the feelings of the consumer towards the advertisement. These feelings stimulate wants and encourage needs towards the product which in this case is Red Bull. This stage is then followed by the knowledge and understanding of the advertisement, the cognitive facet.
Once a consumer feels strongly about the product, the association and persuasion facet comes in, in which the consumer translates the symbolism of an advertisement into attitudes. These attitudes can be negative, positive, or neutral. The major goal of Red Bull is to enhance positive attitudes towards their energy drink, which in turn will create wants and increase sales. Those positive attitudes are positively correlated with the way consumers behave towards Red Bull. In other words, automatically a consumer develops a wants to buy the energy drink, which is where the final stage of the consumer response occurs, the behaviour facet, or in other words the action phase.
Red Bull utilizes highly targeted communication methods through their interactive promotional strategies, successful and active advertising methods, and free sampling and testing of their products mainly at social events.

The proposition and Selling Idea:
Red Bull promises its buyers with a boost of energy once a consumer drinks their product. The use of symbolism methods in their logo (the red bull) which is known as the strongest mammal, and the wings in their motive “Red Bull gives you wings” strongly reflect what the drink provides to the consumer, which is a creative and unique way of delivering their message to the target audience. In addition, the use of symbolism in their proposition and selling idea is a very provocative and challenging way in communicating with consumers, because it differentiates this energy drinks from its competitors in the market through its uniqueness and creativity.

Conclusion:
Red Bull is achieving leadership in the market by maintaining customer satisfaction, coming up with innovative ideas and effective promotional strategies.

Nivea Ad

Nivea Ad Analysis

By following the structure I learned in class, I will be analyzing the “NIVEA ad campaign” that conveys the idea that NIVEA is love, care and life.

The sender/source:
The source of the advertisement is a private company: NIVEA. NIVEA is a business firm trying to sell products; it is a global skin- and body-care brand that is owned by a private German company by the owner Beiersdorf.
Moreover, since NIVEA is one of the large companies in the world and has a great market share internationally, the credibility is very high and trusted. In addition, the source of the advertisement is speaking to the audience directly without the use of an endorser that acts as a third party. The sender relies on its well-known brand image. The sender’s communication problem is that the concept of “beauty” in people’s minds is interpreted differently. Beiersdorf is trying to persuade his audience that the concept of “beauty” is associated with concepts of love, care and life. The sender is seeking awareness and differentiation among other competitors.

The message:
Based on the AIDA model which consists of Attention, Interest, Desire and Action, the message of the campaign is trying to grab audience’s attention by showing simple women and men engaging in different social activities. The message is attempting to hold people’s interests and arousing desires by showing many real life situations such as people jogging and people working in jobs. The message is persuading people to obtain action and buy NIVEA products. It also is trying to reinforce and remind loyal customers of the brand. The campaign communicates another message to the audience, which is “Share with us what beauty means to you”. This message is helps initiating feedback and receiving comments from the customers. Consumers are invited to send in their personal experience of beauty in word and image via the campaign website
Semiotic analysis: The denotative meaning of the message is conveyed through beautiful women, men, family, baby, life and pure and beautiful skin used in this ad. However, the connotations associated with this concept in the message is that media stands for quality and health. The connotations are the “beauty” is love, care and life, not just the “outer beauty”, it is the inner beauty that is could be felt and seen by showing love, care and life.
NIVEA sign could be seen as a Symbolic sign. The conventional associations to the object are conveyed by the colours of the sign. Blue and white colours always convey and show purity and cleanliness. Those associations apply to the functions of the brand that the company promises: pure, clean and beautiful skin.

The Receiver:
By using the Emotional Model Receiver, the receiver is appealed through the use of emotions that are love, care and life. The receivers view the message as people living a happy, clean and joyful life. The emotional appeal is also shown by using men being attracted to the beautiful women that simple and happy. In other words, audience are appealed to cleanliness, beauty and love.

Chupa Chups Research

Background:
Chupa Chups is a lollipop company owned by Spanish native Enric Bernat. Bernat established the company in 1958. Chupa Chups comes originally from the Spanish verb “chupar” which means “to suck”. Chupa Chups operates in a frontier-free global market. The lollipop company features more than 50 different flavors and combination of flavors. Furthermore, it sells them in a variety of packages ranging from traditional to motorized, canned and tube-shaped lollipops and many other creative designs.
Attractive slogans from Chupa Chups:

"What a sweet half hour"

"It's round and long-lasting"

“Stop smoking, start sucking.”

History:
After Bernat’s experience in working for an apple jam factory, he came up with a new product idea which is to make lollipops. Lollipops at that time did not exist; instead, there were only round candies without a stick. In 1958, Bernat took over the apple jam factory and renamed it Chupa Chups. He manufactured the production machines and started making candies on a wooden stick and sold them. Later on, he shifted to making candies on plastic sticks due to the shortage of wood in Spain. He acquired this idea from his angry mother as she got annoyed when she saw her child with sticky hands from the melted candies. Hence, Bernat felt that sweets were not designed in a way that suits children. Within five years of selling Chupa Chups candy, Bernat sold candies in around 300,000 stores. This showed a successful start of his company.
Ten years later, the Chupa Chups Company sold more than 90% lollipops outside Spain. Afterwards, the company’s selling grew globally making larger number of people aware of its products. The growth of Chupa Chups was unstoppable, leading to the establishment of other factories in France, Mexico, China, United Kingdom and India. “The accumulated quantity of 10 billion Chupa Chups lollipops sold worldwide was reached in 1979. Nine years later, this figure doubled to 20 billion. In 1991, manufacturing operations in Russia began with a daily production of 1.5 million lollipops. A short time later the factory reached another important milestone when it supplied the first lollipops consumed in space, sent to the MIR space station upon the cosmonauts' request.” Chupa Chups Company celebrated its 50th anniversary on September 26th 2008 in Barcelona.

Logo:
Logo is defined as a name, term, sign, design or a combination of these in order to identify the good or service of one seller or group of sellers, and to differentiate them from those of the competition
-Did you know that current Chupa Chups logo was designed by the famous surrealist Salvador Dali in 1969?
First of all, the owner himself created a simple brand logo when he established his company in 1958. Then, he made some changes to the logo and in 1961 and 1963 until Dali created the logo that is still the same now since that time.
An important moment in the Chupa Chups brand history came in 1969 when the company adopted Dali’s logo. In order for Bernat to make a creative logo, he referred to the famous painter Salvador Dali. Bernat traveled north of Bercelona to meet Dali. During lunch and in less than an hour, Dali developed the company's daisy-shaped logo and bright colors. The brand name was centered in the middle of the daisy. Following Dali’s suggestion, the logo was removed from the side of the lollipop and placed on the top to make it more readable. The association of Dali's name with the Chupa Chups company logo gave it an international attention, allowing the company to enter new markets.


The logo hasn't been changed since it was first created. This 38 year-old logo appears to be modern, up-to-date and is very competitive with other candy companies. Although this logo is old, it still looks new and modern as if it has been created now. Since candies are more desired by children than adults, this logo attracts its targeted children by its bright and catchy colors.

Advertising and Logo:
An attractive logo can be an effective sales tactic. The Chupa Chups Company advertises its lollipops using endorsements like Madonna and “famous suckers”. Moreover, Chupa Chups Company launched its first marketing campaign for its logo accompanied with the slogan "It's round and long-lasting". Another campaign was launched in the 1980s; it was an anti-smoking campaign with the slogan “Smoke Chupa Chups”. The company’s current slogan for anti-smoking is “Stop smoking, start sucking.” In addition, the company used endorsements when it ran a successful campaign featuring the Spice Girls with their Fantasy Ball Lollipops and Crazy Dips in 1997 and 1998.

Conslusion:
Chupa Chups has been running since 1958 and since then it is coming up with new ideas to impress its targeted audience and satisfy its loyal customers. Chupa Chups is constantly making new flavors and shapes to remind its customers about its unique flavors. It maintains the brand recognition in the minds of consumers. Chupa Chups started in one country from a small factory merging to worldwide companies increasing its branches around the world. Before Bernat’s death in 1991, he passed formal control of "Chupa Chups" to his son Xavier.


History in a flash
1957 Enric Bernat takes over Granja Asturias S.A.
1958 Introduction of the first lollipop under the CHUPS brand name
1964 Granja Asturias S.A. changes its name to S.A. Chupa Chups
1967 Establishment of Société Bernat et Cie. (France)
1967 Opening of new plant in Sant Esteve de Sesrovires (Barcelona)
1969 Salvador Dalí designs the Chupa Chups wrapper
1969 Opening of new plant in Bayonne, France
1970 90% of business is national and 10% exports
1977 Launch of Chupa Chups in Japan
1980 Exports already represent 90% of total production
1980 Establishment of Chupa Chups USA
1981 Establishment of Chupa Chups Diversificacion, S.A. in Spain
1982 Establishment of Chupa Chups GmbH
1983 Establishment of Chupa Chups UK Ltd.
1989 Establishment of A/O Neva Chupa Chups in St. Petersburg (Russia)
1994 Establishment of Shanghai Chupa Chups Gsy. Ltd (China)
1994 Opening of new plant in Villamayor, Spain
1995 Chupa Chups becomes the first lollipop consumed in space, aboard the Russian space station MIR
1996 Establishment of Chupa Chups invest Mexico S.A. de C.V.
1996 Foundation of Chupa Chups Club
1997 Presentation in Moscow to King Juan Carlos I in celebration of 1 billion Chupa Chups lollipop produced in Russia
1997 S.A. Chupa Chups honoured with Prince Phillip Award for Business Excellence
1997 40 billion Chupa Chups lollipops sold worldwide

Wednesday, April 21, 2010

Wednesday, February 24, 2010

Wednesday, February 10, 2010

Tide To Go Ad

What I like about this advertisement is the humor sence that is coming out from the "talking stain". Moreover, I like the facial expressions of the interviewer and how he is staring at the stain and cannot concentrate on what the interviewee is saying.
Although there is no such thing as "talking stain", it actually happens with me in many situations where I can't focus with the person talking to me if there is something distracting.
This ad emphasize creativity because of the emotional appeal that the advertiser is using to persuade the audience that Tide To Go "Silence the Stain" and makes you comfortable and able to concentrate.