Example
| A Why don't we place a series of full-page ads in The Sun? Their readership is over seven million and we'd get maximum exposure. B That may be so but The Sun really doesn't correspond to the image of quality we're trying to project. C I feel the same way. We're aiming at a thinking public, the kind that might read The Guardian or The Independent. |
Campaigns
Section 3
Campaigns
| 5.3.A Analysis | Which media do they choose?
Table 4 on pages 68 to 69 represents the main advertisers in the French media in 1991. Read aloud the gross investment figures. In small groups, analyse the main trends which the figures reveal and explain the possible reasons for these trends. Report your findings to the class.
Example
The following verbs and expressions may be useful:
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| to spend to attract to dominate | to restrict to advertise to be present | to aim at to spread to concentrate | this may be due to ... the reason for this may be . this could be explained by | ||
| The following abbreviations are used in the table: | |||||
| Auto: automobile ret: retailing gamb: gambling TC: Telecommunications cos: cosmetics tob: tobacco ale: alcohol | comp: computers elec: electronics ener: energy ins: insurance chem: chemicals SC: soap/cosmetics | ||||
Part II Marketing Unit 5 Promotion
Table 4:
The main advertisers in the French media in 1991
| WHICH MEDIA DO THEY CHOOSE? | |||
| Daily newspapers | |||
| Company | Industry | Gross investment in 000 FF | % of company's total advertising expenditure |
| 1 Renault 2 Casino 3 Leclerc 4 France Loto 5 Cora 6 Peugeot 7 Citroën 8 Auchan 9 Système U 10 Intermarché | auto ret ret gamb ret auto auto ret ret ret | 258 187 222 479 191 818 173 096 166 164 133 752 117 776 114 903 101 503 95 700 | 29.5 54.2 60.7 42.6 76.8 21.6 26.9 44.5 59.5 46.6 |
| Magazines | |||
| 1 France Télécom 2 Renault 3 VAG 4 Peugeot 5 Guerlain 6 Seita 7 Nestlé 8 Christian Dior 9 Rover 10 Moët Hennessy | TC auto auto auto cos tob food cos auto ale | 146 750 146 404 129 371 95 644 86 473 86 722 78 836 78 359 70 704 67 513 | 50.4 16.8 19.9 15.4 87.4 68.2 18.3 72.2 39.8 68.1 |
| Specialised reviews | |||
| 1 France Télécom 2 IBM 3 Canon 4 Crédit Agricole 5 Electricité de France 6 Société Générale 7 Sony 8 UAP 9 Peugeot 10 Philips | TC comp elec bank ener bank elec ins auto elec | 9 348 7 960 4 959 4 708 3 722 3 359 3 195 2 645 2 329 2 160 | 3.2 11.3 4.6 3.3 3.7 4.8 4.6 2.8 0.4 0.1 |
Campaigns
| Television | |||
| 1 Henkel 2 Procter & Gamble 3 Nestlé 4 Gervais-Danone 5 Palmolive 6 Lever 7 Peugeot 8 L'Oréal 9 Unisabi 10 Renault | chem SC food food SC food auto cos food auto | 376 586 343 997 276 303 265 959 247 312 210 133 202 212 161 381 156 233 | 84.8 93.4 64.1 94.7 79.1 80.4 32.7 72.0 69.7 17.1 |
| Radio | |||
| 1 VAG 2 But 3 Renault 4 Continent 5 Peugeot 6 Ford 7 Conforama 8 Fiat 9 Intermarché 10 Casino | auto ret auto ret auto auto ret auto ret ret | 142 252 138 019 122 087 105 728 101 688 92 427 85 964 83 227 79 809 | 21.9 53.0 14.0 63.9 16.8 33.6 37.2 25.6 40.5 19.5 |
| Billboards | |||
| 1 VAG 2 Renault 3 Leclerc 4 Auchan 5 France Loto 6 Fiat 7 Peugeot 8 Casino 9 Conforama 10 Française de Brasserie | auto auto ret ret gamb auto auto ret ret ale | 207 102 189 095 110 262 106 388 97 381 88 555 80 998 73 526 69 430 63 022 | 31.9 21.6 34.9 41.2 24.0 26.4 13.1 17.9 27.9 43.0 |
| Cinema | |||
| 1 Seita 2 Peter Stuyvesant 3 Reynolds 4 Philips 5 Marlboro 6 Nestlé 7 Ricard 8 Française de Brasserie 9 Moët Hennessy 10 Kronenbourg | tob tob tob elec tob food ale ale ale ale | 31 025 26 100 24 481 22 249 22 000 19 029 16 639 12 654 12 203 11 966 | 24.5 42.5 26.6 9.9 38.4 4.4 24.1 8.6 12.3 8.7 |
Part II Marketing Unit 5 Promotion
| 5.3.B Discussion | Describing and analysing graphs In pairs, describe and analyse the graphs in Figure I I. What explanations can you give for these seasonal variations? Why would an advertiser be interested in data of this kind? |
Figure 11:
French television viewing data
Campaigns
| 5.3.C Vocabulary | Compound words Match each of the words in the first column with words in the second column to make compound nouns. |
| 1. market 2. market 3. disposable 4. pie 5. department 6. life 7. pocket 8. stereo 9. burglar 10. vacuum 11. microwave 12. brand 13. cash 14. mass 15. advertising 16. trade 17. distribution 18. raw 19. farm 20. air 21. profit 22. telephone 23. purchasing 24. patent 25. shop | a. segment b. tuners c. material d. income e. channel f. loyalty g. agency h. transport i. cleaners j. ovens k. calculators l. share m. window n. pending o. chart p. power q. media r. margin s. show t. alarms u. store v. produce w. discount x. directory y. cycle |
| 2 Write a concise definition for five of the above compound nouns without using a dictionary, in small groups, read your definitions without using the words that make up the compound nouns. The other members of your group have to find the compound noun you are defining. 3 Simplify the words in italics in the following sentences by using compound words. 1) We'll place an advertisement in the press which specialises in horse-racing. 2) The Italian market for wines is growing. 3) Shoes for basketball represent an expanding market. 4) We'll need the support of advertising. 5) We may have to change the design on the pots in which yoghurt is sold. |
Part II Marketing Unit 5 Promotion
| 5.3.D Project | Creating an advertising campaign Imagine your company is developing a product (a good or a service) which you hope to launch in one year's time. The Marketing Director has called a meeting in order to develop an appropriate advertising campaign. In small groups, appoint someone to role play the Marketing Director. He or she will steer the discussion and, after the meeting, will report back the following information to the class: • the nature of the product • the company's objectives • the financial constraints • the target audience • the creative appeal • the most appropriate medium or media. The Marketing Director will be expected to justify each point, answer any question raised by the class and give as many details as possible within the time constraint imposed by the teacher. |
| 5.3.E Writing | A business report Imagine you are the Marketing Director for an overseas subsidiary of an American multinational. Your company is developing one of the following products which you hope to launch in one year's time: • a new-formula toothpaste with battery-operated dispenser • a rapid ice-cube maker • a pocket-size electronic encyclopaedia • an anti-wrinkle face lotion • a zero-cholesterol, zero-sugar chocolate bar which actually helps you lose weight • an alcohol-free beer • a rechargeable electric screwdriver • a low-risk, high-yield investment scheme • a combined leisure and commercial centre. Write a report to Head Office. The objectives of your report are as follows: • To inform Head Office of your project. You will need to describe the four Ps of the Marketing Mix and justify each element wherever appropriate. • To describe key elements of the campaign including timing, costs and personnel. • To convince Head Office of the importance and value of your project. You need to gain their support if the campaign is to go ahead. The report should not exceed four pages and should, if possible, be typewritten and double-spaced with 2.5cm margins. If necessary, refer to the guidelines on report writing in exercise 3.2.D (page 38). |
UNIT 6
Retailing and merchandising
Section I
Merchandising
| 6.I.A Reading | Retailing and merchandising Read the following passage and complete the true/false exercise which follows. The post-war period has seen a radical change in the nature of retailing in many advanced industrialised countries. An overbundance of small shops which bought, and sold o a small scale and relied heavily on personal service for their success? has given way to an increasing concentration of large specialised stores and retail chain with highly sophisticated logistical support systems and well-differentiated positioning strategies. Increasing concentration has been accompanied by a reduction in the number of retail outlets as many shops have failed to keep pace with the competition. Producers have had to deal more and more with highly rationalised central purchasing offices where the retailer's negotiating powers have become immense. A direct consequence of this is that producers have had to drastically reduce their sales force and concentrate more on other marketing techniques such as interactive merchandising in order to win shelf space. Until the 1960s, merchandising was relatively unimportant because the customer was rarely in direct contact with the product in the shop. A counter and a sales assistant usually kept them apart. With the development of self-service retail outlets, however, the product needed to be able to sell itself, hence the growing importance of merchandising. We can define merchandising as 'the marketing techniques used to present the product in the most favourable conditions, both materially and psychologically. It involves an active presentation in which the packaging and visual display of the product are paramount. From the producer's point of view, merchandising is a key point in negotiating shelf space with retailers, and a way of maximising sales. The producer's merchandisers must ensure that, once accepted by the retailer, their products are well-presented on the shelves and there is no danger of the retailer running out of stock. From the retailer's point of view, merchandising is a way of optimising shelf-space and maximising its profitability. He or she must constantly review the mix of products being presented, their location in the store and on the shelves, the amount of space given to each product, their price, promotions and so on. Above all, the design of the store should encourage the movement of customers into every part so that 'what can be seen may be handled, and what can be handled may be bought. Placing high-turnover items in various parts of the store and signposting them clearly is one way of achieving this. Store design should also take into account the nature of each product, so that items whose purchase needs some reflection should be given more space than items which are bought on impulse. Another consideration is the height at which products are presented. Levels 3 and 4 are at eye-level and are therefore the most attractive. Level 2, at hand-level, is reasonably attractive but Level 1 is much less so. Level 5 may be attractive if it is not too high. The customer associates Level 1 with low-priced |
Part II Marketing Unit 6 Retailing and merchandising
products or basic products, whereas Levels 4 and 5 are associated with more sophisticated, up-market items. There is a golden rule which says that 'mass attracts'. Two methods are used to achieve this: · vertical presentation, whereby different families of one product are grouped together · horizontal presentation, whereby different brands of one family are grouped together. Although offering a wide range of products tends to stimulate customers into buying impulse items such as biscuits and crisps, this is not the case for basic products such as flour and sugar where the variety of products has practically no effect on overall sales. Furthermore, too much diversification on any one shelf may confuse the customer who may not find what he or she is looking for and end up buying nothing. The proximity of a particular product to a product leader may also be of importance, although there are differing views on this. In some cases, being in close proximity to a leading brand may lead to significant loss of sales, especially if the product belongs to the same segment as the leader. On the other hand, some products may reap the benefits of synergy by being placed close to a leader. It is important to remember that there are no absolute rules which can be applied to all stores at all times, but only recommendations which can be made. Each store tends to develop its own merchandising philosophy in keeping with its conception of the market and its overall strategy.
Say whether the following statements are true or false by marking with a ü. Justify your answers.
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| 1 Nowadays, retailing relies more on personal service than it did in the past. 2 Retailers are becoming fewer and fewer. 3 By grouping together all the high-turnover products, the retailer will maximise sales. 4 The distance between shelves should always be the same. 5 Supermarkets usually offer a limited range of sugar because greater selection would not mean greater sales. 6 The producer's merchandisers rarely visit the stores which stock their products. | True o o o o o o | False o o o o o o |
Merchandising