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This paper is founded on the market research carried out by the author in 1987 in the Market Research Centre - Zagreb, for the needs of a specific Yugoslav conglomerate which is involved in the production and processing of zinc, alloys and chemical products. The basic impetus for the research was an assumption that the existing corporate image was inconsistent.
Sales Promotion is a strategic communications discipline at least for those client companies who use it properly. As a discipline it has a leading edge over most others in that it can be used tactically to produce a short term result but only within the framework of an overall promotional strategy which in turn must be developed as a key element of the total communications strategy. In total, the budgets for Sales Promotion and Direct Marketing exceed those of consumer advertising and this has become a fact of life in most major Western markets. Yet, in spite of this fact many, may be even a majority, of companies remain inconsistent in their use of these disciplines. The function of an advertising agency and agency/client relationships are clearly defined. Other disciplines still suffer from the "shop around" syndrome and this can and frequently does lead to, what one senior American promotion executive recently and rather aptly, called Marketing Strategy Erosion. Sales Promotion can and should contribute to the overall brand franchise and build on brand assets. Any Sales Promotion activity which is developed in isolation from the overall communications strategy will lead to a strategy erosion. A well planned Sales Promotion strategy will build on a brands assets, contribute to the long term consumer/trade franchise and be capable of producing effective and measurable results.
Before the Lancia Grand Gala 1984 can be presented within the framework of brand promotion activity it is necessary, indeed absolutely essential, to define the background. Above all, the overall auto market is as we shall see in direct contrast to the general European trend and presents some distinctly atypical features. Then there is the position and experience of the Lancia brand, fruit of its history and its myth. The strength and weakness of a tradition that excites the fourth and fifty year olds but has very little influence on the younger generations that will lead the market of the future. Finally the strategic objectives of the brand on the European scene and more specifically the home market orients us towards the acquisition of an exclusive, highly personal position in line with the expectations and aspirations of the motorist of tomorrow. Naturally the report will conclude with the presentation of the initiative as such, explained and motivated in relation to both the relevant promotional activities and our global marketing strategy.
We will be discussing the use of promotion and sponsorship in the marketing mix, dealing with the state of the art and trends. And, of course, within the framework of the ESOMAR umbrella, we will pay particular attention to roles of research in decision making.
The choice of horse racing sponsorship can solve the problem of being in touch with the most difficult target: the wealthy. The cost effectiveness of this operation is, by large, at the top of the scale. That's why it seemed worthwhile to consider more carefully whether a sponsoishij by Lancia of a famous horse racing could be a cost effective tool for Thema launch. And in fact it was understood that this kind of operation would solve in a successful way all the problems previously described and would meet the objectives of Lancia Thema launch, producing, in addition, a positive effect on the whole brand image (and awareness of course).
Some remarks on what we called below-the-line. It seems to me that this area has reached a more developed status from the research point of view. Still there is room for improvement, especially: We observe that cumulated experiences lead to learning curves or experience lines; - It is interesting to note that changes at the retail level ask for special attention to meet the needs of trade marketing; -Modern tools emerge, such as telemarketing and POS scanning systems. Also here, it is necessary to specify the requirements for promotion.
A substantial manufacturing company operating in the difficult food-stuff field had set itself as an objective to expand their distribution beyond their limited regional market. The method employed has been that of a combination of direct marketing techniques: The first step has been the sending out of a mailing; this action has been followed by a first telemarketing operation to implement the effects of the mailing. We have then devised a means to submit our target to a product demonstration (i.e. bring the market to the product). The conclusive stage (i.e. to bring the product into the market) has consisted in a second telemarketing action to fix an appointment for the salesmen and so exploit the good-will generated by the preceding actions. The results at the end of the operation have been consistent with the objectives and, on the basis of feed-back data, we can consider it a success.