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Marketing Communications
Marketing Communications
A European Perspective
A European Perspective Fourth Edition
Marketing
of the key concepts, techniques and applications of marketing communications
within a European context.
The book covers all elements of the communications mix, including advertising,
public relations, sponsorship, sales promotion, direct marketing, point-of-
Communications
purchase communications, exhibitions, and personal selling. It also offers up-to-
date coverage of e-communication, including e-marketing, mobile marketing,
interactive television and relationship marketing.
Building on the success of the third edition, the fourth edition comes fully updated
with brand new material on a diverse range of products and brands such as Coke
Zero, Twitter and Wii Fit, as well as coverage of topical issues such as the Barack
Obama campaign and the EU anti-smoking campaign. A European Perspective
Fourth Edition
New to this edition:
● A brand new chapter examining ethical issues in marketing
communications.
● Brand new end-of-chapter cases on international companies and
organisations such as Mars, UNICEF, Carrefour and many more.
● Video case material linking key marketing communication theory
with the practical issues faced by marketing professionals in a variety of Fourth Edition
companies.
The book is suitable for both undergraduate and postgraduate students of Patrick De Pelsmacker
marketing communications.
Maggie Geuens and
www.pearson-books.com
MARKETING
COMMUNICATIONS
Fourth edition
MARKETING
COMMUNICATIONS
A European Perspective
Patrick De Pelsmacker
Maggie Geuens
Joeri Van den Bergh
A01_PELS1383_04_SE_FM.QXD 2/11/10 10:34 AM Page iv
Edinburgh Gate
Harlow
Essex CM20 2JE
England
and Associated Companies throughout the world
The rights of Patrick De Pelsmacker, Maggie Geuens and Joeri Van den Bergh to be
identified as authors of this work have been asserted by them in accordance with the
Copyright, Designs and Patents Act 1988.
All trademarks used herein are the property of their respective owners. The use of any
trademark in this text does not vest in the author or publisher any trademark ownership
rights in such trademarks, nor does the use of such trademarks imply any affiliation with
or endorsement of this book by such owners.
Crown Copyright material is reproduced with the permission of the Controller of HMSO
and the Queen’s Printer for Scotland
ISBN: 978-0-273-72138-3
10 9 8 7 6 5 4 3 2 1
14 13 12 11 10
We dedicate this book to Isabel, Vita, Jina, Jan, Jolien and Jelle
A01_PELS1383_04_SE_FM.QXD 2/2/10 2:06 PM Page vi
Supporting resources
Visit www.pearsoned.co.uk/depelsmacker to find valuable online resources
For instructors
■ PowerPoint slides that can be downloaded and used for presentations
■ Complete, downloadable Instructor’s Manual
For more information please contact your local Pearson Education sales representative or
visit www.pearsoned.co.uk/depelsmacker
A01_PELS1383_04_SE_FM.QXD 2/2/10 2:06 PM Page vii
Contents
1 Integrated communications 1
2 Branding 50
viii CONTENTS
7 Advertising 212
Review questions 330
Further reading 33 1
Chapter outline 212 Case 9: Euro Millions: From outrageously rich
Chapter objectives 212 to sympathetic 33 1
Introduction 213 References 337
A01_PELS1383_04_SE_FM.QXD 2/2/10 2:06 PM Page ix
CONTENTS ix
x CONTENTS
Introduction 554
15 Exhibitions and trade fairs 500
The growing importance of e-media 554
Chapter outline 500 E-communications objectives 56 1
Chapter objectives 500 E-marketing tools 562
Introduction 50 1 Mobile marketing 578
Types of exhibitions and trade fairs 50 1 Interactive television 582
The role of exhibitions in marketing From Web 1.0 to Web 3.0 and further . . . 585
communications 504 Relationship marketing and the internet 59 1
Objectives and target groups 504 Tracking the effectiveness of
Planning an exhibition 51 1 e-communications 592
Assessing effectiveness 515 Summary 598
Limitations of fairs and exhibitions 519 Review questions 599
Online trade shows 519 Further reading 600
Summary 520 Case 17: Nokia Concept Lounge: creating
Review questions 52 1 online buzz around the brand 600
Further reading 52 1 References 604
Case 15: FISA – Batibouw: How to calculate
the effectiveness of a trade show 52 1
References 527
18 Ethical issues in marketing
communications 607
Patrick De Pelsmacker (b. 1957) holds a PhD in eco- Management School. She also has teaching experience
nomics (University of Ghent, Belgium). He is Professor in The Netherlands, Italy, Kazakhstan, Russia and
of Marketing at the University of Antwerp, Belgium Vietnam. She is involved in consultancy on a regular
and part-time Professor of Marketing at the University basis.
of Ghent. He is or has been a regular guest lecturer at Her main field of research interest is in advertising,
various institutes, such as the Solvay Business School branding and consumer behaviour. She has co-
(Univeristy of Brussels, Belgium), the Rotterdam School authored a book on Marketing Management, has con-
of Management (The Netherlands), the Swedish Institute tributed to over sixty papers and research reports in
of Management (Brussels, Stockholm), the Centre for her interest field, and has published in journals such as
Management Training (University of Warsaw, Poland), International Journal of Research in Marketing, Journal
the Institute of Business Studies (Moscow, Russia), of the Academy of Marketing Science, Journal of Health
the University of Lugano (Lugano, Switzerland), the Communication, Psychology and Marketing, Journal
Copenhagen Business School (Copenhagen, Denmark) of Advertising, International Journal of Advertising,
and Ca’Foscari University (Venice, Italy). He also has Journal of Business Research, Journal of Marketing
teaching experience in management and marketing Communications, International Marketing Review,
programmes in France, Thailand, Indonesia, the Philip- Psychologica Belgica, Tourism Management, Advances
pines, Vietnam, Italy, the Czech Republic, Hungary and in Consumer Research, Journal of Business and
Romania. He has undertaken numerous in-company Psychology, Psychological Review, Educational and
training and consultancy assignments. Psychological Measurement, Applied Psychological
His field of interest is in marketing research tech- Measurement, International Journal of Advertising and
niques, consumer behaviour and marketing communi- Marketing to Children, and Journal of Consumer and
cations. He has co-authored textbooks on marketing Market Research.
research techniques, and has written over one hundred
articles in various journals, including Applied Economics, Joeri Van den Bergh (b. 1971) holds a masters degree
International Journal of Research in Marketing, Journal in marketing (University of Ghent and the Vlerick Leuven
of Advertising, Psychology and Marketing, International Gent Management School). He started his career as a
Journal of Advertising, Journal of Marketing Com- researcher at the Marketing Communication Research
munications, Advances in Consumer Research, Journal Centre, and later became senior researcher, involved in
of Business Ethics, Journal of Consumer Affairs, Journal the activities of this Centre, as well as the Kids and
of International Consumer Marketing, International Teens Marketing Centre, and the Senior Consumer
Marketing Review, Marketing Letters, Journal of Marketing Centre. He is co-founder and managing
Business Research, Journal of Advertising Research, partner of InSites Consulting, the European online
Cyberpsychology and Behavior, Accident Analysis and market research pioneer. He is now director of InSites
Prevention, Health Communication, Journal of Busi- Consulting ON SNEAKERS, the kids & youth division
ness and Psychology, Journal of International Advertis- where he manages European accounts suchs as MTV
ing, Educational and Psychological Measurements, and Networks and Nokia. He is a regular teacher in various
Psychological Reports. He has contributed to more marketing programmes, has been involved in in-
than twenty books and over sixty research reports company training and consultancy, and is Secretary of
and working papers on various marketing-related the Board of Ancienne Belgique (AB), one of Europe’s
topics. leading music venues.
His main field of interest is marketing communica-
Maggie Geuens (b. 1969) holds a PhD in Applied tions, especially internet communications and research
Economics at the University of Antwerp, Belgium, techniques and kids & youth marketing. He has con-
where she also worked as an assistant professor. tributed to various books and to over thirty research
Currently she is Professor of Marketing at the reports in these fields. He has published in journals
University of Ghent. She is the academic director of the including International Journal of Advertising and the
Brand Management Centre at the Vlerick Leuven Gent Journal of International Consumer Marketing.
A01_PELS1383_04_SE_FM.QXD 2/2/10 2:06 PM Page xii
Preface
Marketing communications are not only one of the major objectives of marketing communications is to
most visible and widely discussed instruments of the build and maintain strong brands. Branding is covered
marketing mix, with an overwhelming impact on both in Chapter 2. The following chapter discusses the
society and business, they are also one of the most groundwork of all marketing communications activity.
fascinating. Every private consumer and business It is devoted to the intriguing question of how commu-
executive is exposed to advertising. They make use of nications influence consumers.
sales promotions, are approached by sales persons, In subsequent chapters the different steps in the
visit trade fairs and exhibitions, buy famous or not so marketing communications plan and the various instru-
famous brands, are a target of public relations activity, ments and techniques of marketing communications
are exposed to sponsorship efforts, receive direct mail, are covered. Separate chapters are devoted to the
telemarketing or research calls and visit stores in which definition of target groups (4) and objectives (5) and to
no stone is left unturned to influence their buying budgeting issues (6).
behaviour. Furthermore, an increasing number of con- Chapters 7–17 cover each of the marketing com-
sumers are regular users of the Internet. munications instruments. Chapters 7–9 address
Marketing executives constantly face the challenge advertising-related issues, including media planning
of integrating their promotional effort into strategic and advertising research. Subsequent chapters each
management and marketing plans. They must inte- cover one tool of the marketing communications mix:
grate the various instruments of the marketing com- public relations (10), sponsorship (11), sales promotion (12),
munications mix, build successful brands, try to find out direct marketing (13), point-of-purchase communica-
how marketing communications can be instrumental in tions (14), exhibitions and trade fairs (15), personal
achieving company objectives, and how they can be selling (16) and e-communications (17). In Chapter 18
applied in specific marketing situations. the increasingly important ethical side of marketing
Following the success of the first three editions, communications is discussed.
this fourth edition of Marketing Communications:
A European Perspective continues to offer a compre-
hensive overview of the cornerstones, techniques and Pedagogy
applications of marketing in a European context.
To help reinforce key learning points, each chapter
The market includes the following:
PREFACE xiii
Authors’ acknowledgements
While we assume full responsibility for the content of the whole book, important parts of it could not have been
written without the help and support of numerous people. We would particularly like to thank the following
people, and hope we have not forgotten anyone.
Malaika Brengman (Free University of Brussels) Marc Frederix, Nathalie Laskoutoff (National Lottery
Kristiaan Cloots (FreeMobility & CIA) Belgium)
Danny Cools (Sony I.T.E.) Lars Vervoort, Tine Nelissen (Carrefour Belgium)
Laurent De Hauwere, Pia Steen Hansen, Vincent Toon Coursement
Maenhaut, Sandra Deblander (Tele Atlas) Marianne Vansummeren (Silence-Lotto Cycling Team)
Serge Dekoninck (Saatchi and Saatchi Business Emile Clemens
Communication) Christine Edier (Unicef)
Dimitri De Lauw, Sofie Huygelen, Wouter Alain Heureux (IAB Europe)
Van den Herreweghen, Fons Van Dijck (VVL/BBDO) Marc Michils (Quattro Saatchi and Saatchi)
Ann Galland (Barco) Jorgen Nygaard Andreassen (Fedma)
Derek Gosselin, Rick Grant, Julie Vitek, Katja Damman Veerle Ringoir (Bacardi-Martini)
(Suez) Chris Van Roey (Mobistar)
Martin Kingdon (Retail Marketing In-Store Services) Theo van Roy (Hints and Hits)
Nigel Lawrence (Dunnhumby) Joëlle Van Ryckevorsel, Teresa di Campello (L’Oréal)
Pascal Libyn and Filip Eeckhoudt (RISC) A number of reviewers: Paul Copley, University of
Klaus Lommatsch (Duval Guillaume) Northumbria; Claude Pecheux, Les Facultés
Yuri Malinin (Mediafirst Russia) Universitaires Catholiques de Mons; Jane Underhill,
Robin McCammon (General Motors) University of Northumbria; Tania Van den Bergh,
Luc Suykens, Nicolas Frèrejean, Nada Dugas (Procter Arteveldehogeschool, Flanders, Belgium
& Gamble)
Finally, we would like to thank Pearson Education for supporting and publishing the fourth edition of this book. In
particular we thank the following: Rachel Gear Acquisitions Editor; Joy Cash, Desk Editor; Maggie Wells, Senior
Designer for cover and text; Caterina Pellegrino, Senior Project Controller and Emma Violet, Editorial Assistant.
A01_PELS1383_04_SE_FM.QXD 2/2/10 2:06 PM Page xv
Publisher’s acknowledgements
Figures
Figure on page 19 from A Method for the Selection of Appropriate Business-to-Business Integrated Marketing
Communications Mixes, Journal of Marketing Communications, 8(1), pp. 1–18 (Garber, L.L. and Dotson, M.J. 2002),
Taylor & Francis, reprinted by permission of the publisher (Taylor & Francis Group, http://www.informaworld.com);
Figure 1.5 from Integrated marketing communication and the evolution of marketing thought, Journal of Business
Research, Vol. 37, pp. 155–62 (Hutton, J.H. 1996), with permission from Elsevier.; Figure 1.6 from Determinants of the
Corporate Identity Construct: A Review of the Literature, Journal of Marketing Communications, 9(4), pp. 195–220
(Melewar, T.C. 2003), reprinted by permission of the publisher (Taylor & Francis Group, http://www.informaworld.com);
Figures 1.11, 1.12 from Special Eurobarometer ‘Attitudes of Europeans towards Tobacco. Fieldwork October 2006 –
November 2006. ‘Special Eurobarometer 272c/Wave 66.2 – TNS Opinion & Social. European Commission
(Publication May 2007); Figure 2.1 from PLMA Yearbook 2006; Figure 3.1 after How Advertising Works: A Planning
Model, Journal of Advertising Research, 20(5), pp. 27–33, www.warc.com/jar.; Figure 3.3 after The Elaboration
Likelihood Model of Persuasion, Advances in Experimental Social Psychology, 19, pp. 123–205 (Petty, R.E. and
Cacioppo, J.T. 1986), Copyright 1986 Academic Press Inc., with permission from Elsevier.; Figure 3.6 after The
Role of Attitude Toward the Ad as a Mediator of Advertising Effectiveness: A Test of Competing Explanations,
Journal of Marketing Research, 23, p. 131 (MacKenzie, S.B., Lutz, R.J. and Belch, G.E. 1986), American Marketing
Association; Figure 5.2 from Defining Advertising Goals for Measured Advertising Results, Association of National
Advertisers (Colley, R.H. 1961); Figures 6.4, 6.5 after Ad Spending: Growing Market Share, Harvard Business
Review, 68(1), pp. 44–8 (Schroer, J.C. 1990), Harvard Business School Publishing, Reprinted by permission of
Harvard Business Review. Copyright (c) 1990 by the Harvard Business School Publishing Corporation; all rights
reserved.; Figure 8.5 from JFC Informatique & Media, Paris, France (2003); Figure 13.1 after Survey on Direct and
Interactive Marketing Activities in Europe, Federation of European Direct Marketing (FEDMA 2002); Figure 13.4
after The Loyalty Effect. The Hidden Force Behind Growth, Profits and Lasting Value, Boston: Harvard Business
School Press (Reichheld, F.F. 2001) Harvard Business School Publishing, Reprinted by permission of Harvard
Business School Publishing Corporation; all rights reserved; Figure 13.6 after Survey on Direct and Interactive
Marketing Activities in Europe, FEDMA (FEDMA 2002); Figure 13.10 from The Mismanagement of Customer
Loyalty, Harvard Business Review, pp. 86–94 (Reinartz, W. and Kumar, V. July 2002), Reprinted by permission of
Harvard Business Review. Copyright (c) 2002 by the Harvard Business School Publishing Corporation; all rights
reserved.; Figures 14.1, 14.3 from The POPAI Europe Consumer Buying Habits Study, POPAI UK & Ireland (POPAI
UK & Ireland 1998), from the POPAI European Consumer Buying Habits Study 1998 (POPAI UK & Ireland); Figures
15.3, 15.4 from Geert Maes, CEO, FISA; Figure 16.1 from Sales Management, New York: John Wiley & Sons
(Dalrymple, D.J. and Cron, W.L. 1992), Reproduced with permission of John Wiley & Sons, Inc.; Figure 16.4 from
Exploring Strategies for Companies that Use Manufacturers’ Representatives as Their Sales Force, Industrial
Marketing Management, 25(5), p. 455 (Dishman, P. 1996), Copyright 1996, with permission from Elsevier.;
Figure 17.1 from Insites, www.insites-consulting.com
Tables
Tables 1.3, 1.4 adapted from An Exploratory Study of the Internet as an Industrial Communication Tool. Examining
Buyers’ Perceptions, Industrial Marketing Management Vol. 31, No. 2, pp. 145–54 (Deeter-Schmelz, D.R. and
Kennedy, K.N. 2002), Copyright 2001, with permission from Elsevier.; Table 1.5 adapted from van Raaij, W.F. (1998),
A01_PELS1383_04_SE_FM.QXD 2/2/10 2:06 PM Page xvi
‘Integratie van Communicatie: vanuit de Zender of vanuit de Ontvanger’ (Integration of Communication: Start-
ing from the Sender or the Receiver?), in Damoiseaux, V.M.G., van Ruler, A.A. and Weisink, A., Effectiviteit in
Communicatiemanagement (Effectiveness in Communication Management). ISBN: 9014058411, 9789014058412,
pp. 169–84 Deventer: Samson; Table 4.4 from Segmenting the Industrial Marketing, Lexington Books (Bonoma, V.
and Shapiro, B.P. 1983); Table on page 177 from Esomar (c) 2000 Esomar, (c) Copyright 2000 Esomar (R) – The
World Association of Research Professionals.; Table 6.2 after Ad Spending: Maintaining Market Share, Harvard
Business Review, 68(1), pp. 38–43 (Jones, J.P. 1990), Harvard Business School Publishing, Reprinted by permis-
sion of Harvard Business Review. Copyright (c) 1990 by the Harvard Business School Publishing Corporation; all
rights reserved.; Table 6.3 after Advertising Media Planning, Lincolnwood, Il: NTC Business Books (Sissors, J.Z.
and Surmanek, J. 1986); Table 6.4 from FPS Economy, S.M.E.s, Self-employed and Energy – Statistics Belgium;
Table 6.5 with thanks to Nancy Vranken of VMMTV for providing advertising budgets of the car industry based
on MediaXim – CIM MDB.; Tables 11.1, 11.2, 11.6 from Sports Sponsorship Development in Leading Canadian
Companies: Issues and Trends, International Journal of Advertising, 17(1), pp. 29–50 (Thwaites, D., Anguilar-
Manjarrez, R. and Kidd, C. 1998); Table on page 454 from Food for thought, Precision Marketing, pp. 14–15 (Croft,
M. 5 December 1994), Centaur Communication Ltd; Table 14.3 after Store Atmosphere, Mood and Purchasing
Behavior, International Journal of Research in Marketing, Vol. 14 No. 1, pp. 1–6 (Spies, K., Hesse, F. and Loesch, K.
1997), Elsevier Science BV, Copyright 1997, with permission from Elsevier.; Table 15.2 after Selecting and
Evaluating Trade Shows, Industrial Marketing Management, 21, pp. 335–41 (Shoham, A. 1992), Elsevier, Copyright
1992, with permission from Elsevier.; Table 16.6 adapted from Sales Management, New York: John Wiley & Sons
(Dalrymple, D.J. and Cron, W.L. 1992), (c) 1992 John Wiley & Sons, Inc. Reproduced with permission of John Wiley
& Sons, Inc.; Table on page 631 after Doukakis, I., Krambia-Kapardis, M. and Katsioloudes, M., Corporate Social
Responsibility: A Pilot Study into the Realities of the Business Sector in Cyprus, New Challenges for Corporate and
Marketing Communications. Proceedings of the Eighth International Conference on Marketing and Corporate
Communications, pp. 64–80 (Bennett, R. 2003), London Metropolitan University.
Text
Box on pages 141–2 adapted from From lad mag to dad mag, The Guardian, 9th April 2003 (Janes, H.), Copyright
Guardian News & Media Ltd 2003; Box on pages 143–4 from Van den Bergh, J. & Verhaeghe A., InSites Consulting
2008 lifestyle segmentation of Dutch youngsters for MTV Networks.
In some instances we have been unable to trace the owners of copyright material, and we would appreciate any
information that would enable us to do so.
Picture Credits
The publisher would like to thank the following for their kind permission to reproduce their photographs:
(Key: b-bottom; c-centre; l-left; r-right; t-top)
The Absolut Company: 15; AMVBBDO: 233; Reproduced with permission of Barco: 79; BBDO, Daimler AG: 444;
Corbis: Ashley Cooper 468, Richard Cummins 417, Henry Diltz 172, John Hicks 284, Richard Klune 171, Tony Savino
213; Reproduced with permission of De Lijn, Belgium: 222; European Anti-smoking Campaign: 42, 44, 45;
Reproduced with permission by FISA, Belgium.: 522–524; Getty Images: 12, 139, 348, 350, 380b, 413, 609, 614,
AFP 61, Guinness 380t, Max Nash/AFP 102; Grey Communications Group Ltd: 241; L’Oreal UK: 257; Reproduced
A01_PELS1383_04_SE_FM.QXD 2/2/10 2:06 PM Page xvii
with permission of Mobistar: 122, 126; Nationale Loterij, Belgium: 396, 401; Reproduced with permission of
Nissan: 219; NV Mars Belgium SA: 432–433; Omega Pharma www.omega-pharma.be: 398; Pampers: UNICEF
636–637; Smart Center Antwerpen: 485; The Advertising Archives: 235; Reproduced by permission of
V.F. Corporation: AMVBBDO 220
Every effort has been made to trace the copyright holders and we apologise in advance for any unintentional
omissions. We would be pleased to insert the appropriate acknowledgement in any subsequent edition of this
publication.
A01_PELS1383_04_SE_FM.QXD 2/2/10 2:06 PM Page xviii
List of acronyms
OOH out-of-home
OTS opportunity to see
PBC perceived behavioural control
PLC product life-cycle
PMT Protection Motivation Theory
POP point-of-purchase
POPAI Point-of-Purchase Advertising Institute
POS point-of-sales
PPC pay per click
PR public relations
PVR personal video recorder
RE Reading Ease
RFID radio frequency identification
RFM recency-frequency-monetary value
RNR Radio News Release
ROI return on investment
RQ Relationship Quality
SEM search engine marketing
SMA Small and Medium Accounts
SMS Sports Marketing Surveys
SOI Share of Investment
SOM share of market
SOV share of voice
SRO self-regulatory organisation
SRC self-reference criterion
STAS Short-Term Advertising Strength
STP segmenting–targeting–positioning
TOMA Top of Mind Awareness
TORA Theory of Reasoned Action
TPB Theory of Planned Behaviour
TRP television rating point
USP Unique Selling Proposition
VNR Video News Release
WFA World Federation of Advertisers
VOD video-on-demand
YFJ European Youth Forum
A01_PELS1383_04_SE_FM.QXD 2/2/10 2:06 PM Page xx
Guided tour
Chapter 1
Integrated communications
Chapter outline The Chapter Outline section
guides you through each chapter
allowing you to see the key points
and topics which will be covered.
Chapter objectives
The Chapter Objectives enable
This chapter will help you to:
■ Situate marketing communications in the marketing mix you to focus on what you need to
■ Get an overview of the instruments of the marketing communications mix
and the special business-to-business and international marketing
have understood by the end of
communication context
■ Understand what integrated marketing and corporate communications mean,
each chapter.
and their organisational implications
■ Learn to know the factors leading to integrated communications
■ Get an overview of the different levels of integration
■ Understand why fully integrated communications are not easily implemented
■ Get an overview of the essential steps in the marketing communications plan
Chapter objectives
This chapter will help you to:
■ Understand the various aspects of branding
■ Learn about the characteristics of successful brands
■ Make the distinction between major types of brand strategies and their
New to this edition! Video Case
advantages and disadvantages
■ Form an idea of the composition of a brand portfolio
Studies. These fascinating
■ Understand the concept of brand value or brand equity and its major documentaries help to develop your
components
■ Assess the benefits of branding for the consumer and the manufacturer learning further by examining how
■ Get an overview of how marketing communications contribute to brand
strength well-known companies use marketing
Visit the Marketing Communications website at: www.pearsoned.co.uk/
communications to enhance
depelsmacker to find out more about Electrolux. Electrolux is an international company
specialising in innovative electronic products. How does Electrolux combine its brand their businesses success. Visit
values and consumer insights to develop the message and creative strategy of its
communication campaigns? www.pearsoned.co.uk/depelsmacker
to view the videos and answer the
questions.
A01_PELS1383_04_SE_FM.QXD 2/2/10 2:06 PM Page xxi
The L’Oréal Group ■ respect for personal diversity; the company strives
to match personal diversity with the diversity of
The L’Oréal group, with headquarters in Clichy, France,
was founded in 1907, and is the world’s number one
their products and brands (age, type of skin, over Each chapter concludes with a
time, culture . . . )
company in cosmetics. The group has 67 500 employ-
ees in 58 countries and 42 production facilities around
■ the effectiveness of the products is built upon detailed Case Study. These will
in-depth research and a dedication to investing
the world. It is present in 130 countries with almost 300
subsidiaries. In 2008, group turnover was a17.5 billion,
in innovation, product safety and the highest provide a range of material for
standards of reliability and product quality.
2.7 billion of which was profit. The competition is heavy
and global, with companies such as Procter & Gamble, seminars and private study by
With respect to R&D, in 2008 about 3300 employees
Unilever, Beiersdorf, Wella, Estée Lauder and LVMH.
Western Europe, North America and Asia Pacific each
of 60 nationalities worldwide were working in 30 dif- illustrating real life applications
ferent research disciplines. a580 million was invested
account for 26–29% of sales. The world market for
hygiene and beauty in 2002 was about a100.16 billion,
in R&D, one third of which is devoted to advanced and implications of the topics
research. In 18 research centres and 13 evaluation
13.9% of which was made up of L’Oréal products.
L’Oréal’s vision is that cosmetics are part of the
centres around the world, each year 5000 formulas are covered in the chapter.
developed and, in 2008, 628 new patents were regis-
universal quest for beauty and wellbeing. As a form of
tered. L’Oréal has 100 active co-operations with leading
self-expression, they are personal, part of social life,
academic and research institutions.
and they serve a daily need for self-confidence and
Attention to consumer needs and personal diversity
contact with others. L’Oréal claims to put all their
is reflected in the branding and product range strategy
expertise and research resources to work for the
of the group. The company markets 17 global brands, 16
wellbeing of men and women, in all their diversity,
of which are responsible for 95% of cosmetics sales.
around the world. Consequently, the company’s focus
They can be divided into four categories (Table 7.6).
centres around three important principles:
Each brand has its own well-designed brand proposition,
■ unfailing attention to consumers and and brand equity is continuously built and supported
understanding and anticipating their individual by means of advertising and other forms of marketing
needs and aspirations communications. L’Oréal also recognises that there is
Type of product Consumer product Professional product Luxury products Active cosmetics
find the product that is best suited to his personal skin Questions
care needs.
In March 2003, a qualitative brand study in four focus 1. Is the vision and branding strategy mainly global
groups of men aged 20–45 was carried out in Germany. (standardised) or local (adapted to local cultures)? Each Case Study ends with a
In this study, the brand statement was tested as well as Explain and give examples.
a number of advertising campaigns for both Biotherm 2. Looking at the different types of needs that people number of questions to test
and some of its competitors, merchandising programmes can experience (for instance, Maslow’s hierarchy
and product offers. The conclusion was that the idea of with physiological as the most basic followed by your knowledge.
a ‘coach’ was too business-like and authoritative, did safety, love/belonging, esteem and finally self-
not fit into the need for autonomy of men, and lacked actualisation – see http://www.businessballs.com/
pleasure, character, sensuality and emotionality. maslow.htm.), to which needs do L’Oréal in general,
However, the notion of personalisation, and the and Biotherm and Biotherm Homme in particular,
description of ingredients and scientific research were appeal? Do you believe these needs are universal?
noted as strong points. In terms of advertising effects, 3. Clinique is mentioned as one of the closest com-
the conclusions were that they were identifiable, petitors of Biotherm. Why? In what ways is the posi-
attractive, aesthetic, masculine, informative and simple. tioning of Biotherm and Clinique similar or different
However, the non-German name of the product, the (use communication materials, websites . . . to
‘coach’ idea and the non-selective packaging were illustrate)?
negative points, leading to low spontaneous recognition. 4. Summarise the main similarities and differences of
The conclusion was that the brand statement needed the results of the focus group discussions in the
to be redefined, using elements such as: skin care three countries studied. Can you find a relationship
specialist, scientific knowledge, innovation, highlighting between the cultural characteristics of the countries
skin care benefits and sensations. The communication and the attitudes and perceptions of the group
elements to stress were the specific characteristics of members from these countries?
the product, and the sensuality of the product and the 5. Is Biotherm Homme positioned differently in differ-
models, and the key colour codes on each product. ent countries? (consult communication materials,
It was further concluded that, in order to build brand websites . . . ). Why or why not?
loyalty, the identification of men with the product 6. Are the conclusions and the marketing communi-
needed to be enhanced by means of clear claims, visible cation implications of the German Biotherm Homme
skin results, identification of skin types, needs and study correct? Would you adapt the communication
benefits, and identification of products offer. strategy in a different way?
Sources:
Materials provided by Teresa di Campello and Joëlle Van Rijckevorsel, L’Oréal. www.loreal.com; www.biotherm.com;
http://www.loreal.com/_en/_ww/pdf/Rapport_Annuel_2008_FR.pdf.
2
13th edition. Upper Saddle River, NJ: Prentice Hall.
Many organisations offer software to help companies to 5
Kids, New York: The Free Press.
Clegg, A. (2006), Mining the Golden Years, 24 April, http://
a list of References directing your
plan their advertising campaigns. See, for instance www.brandchannel.com/features_effect.asp?pf_id=311
3
www.paloalto.com.
6
(accessed June 2009). independent study to both printed
Solomon, B. and Askegaard, H. (2007), Consumer Weijters, B. and Geuens, M. (2003), ‘Evaluation of Age-
Behaviour. A European Perspective, 3rd edition. London,
Pearson Education.
Related Labels by Senior Citizens’, Working paper, Vlerick
Leuven Gent Management School; Young, G. (2002),
and electronic sources.
4
Geuens, M., De Pelsmacker, P. and Mast, G. (2003), ‘Family ‘Ageing and the UK economy’, Bank of England Quarterly
Structure as a Moderator of Parent–Child Communication Bulletin, 42(3), 285–92.
7
about Consumption’, International Journal of Advertising Walker, M.M. and Macklin, M.C. (1992), ‘The Use of Role
and Marketing to Children, 4(1), 1–6; Roedder John, D. Modeling in Targeting Advertising to Grand-parents’,
(1999), ‘Consumer Socialization of Children: A Retrospec- Journal of Advertising Research, 32(4), 37–45.
8
tive Look at Twenty-five Years of Research’, Journal of Ahmad, R. (2002), ‘The Older Ageing Consumers in the
Consumer Research, 26(3), 183–213; McNeal, J.U. (1999), UK: Are They Really that Different?’ International Journal
Kids Market: Myths and Realities, Ithaca, NY: Paramount of Market Research, 44(3), 337–60; Moschis, G.P. and
Market; Gunter, B. and Furnham, A. (1998), Children as Mathur, A. (1997), ‘Targeting the Mature Market:
Another Random Scribd Document
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