LOreal Essays

LOreal Essays LOreal Paper LOreal Paper Essay Topic: Marketing Promotion refers to any marketing activities that are intended to inform, persuade or motivate current and potential customers into buying or supporting a product or service. So as a result of this the promotional mix is a combination of promotional methods used to communicate with target customers. The promotional mix is split up into eight main methods of promotion, these methods are; Using the corporate image. Public relations. Personal selling. Advertising. Exhibitions. Sponsorships. Direct marketing. Sales promotion. The first method I am going to look into for the promotional mix is Using the corporate image. This is when a company uses promotion through the reputation of their business. This can either be through either the company being very profitable or even being a green business that cares for the environment. The corporate image is the public perception of the company rather than a reflection of its actual state. The next method that Im going to be looking into in the promotional mix is Public relations. Public relations is the process of communication of a specific message to organisations stakeholders. The purpose of public relations is to achieve positive publicity from the customers or potential customers. Public relations has to be very effective and the way that this method can deliver being effective is by being planned and controlled and be ready to deal with any situations that arise and continue to deliver effective service over a long period. The next method that Im going to look into in the promotional mix is Personal selling. Personal selling is face-to-face selling in which a seller attempts to convince a customer to make a purchase. A way that personal selling is used in the promotional mix is by increasing business sales, this can be done in two ways these are;   Cross-selling which is done by selling a product that is related to the product that the customer or potential customer has bought or is about to buy. An example of this is if a customer walked into a phone store and the employee persuades the customer to buy a phone case for the phone they have just purchased.   Up-selling is done if a customer walks into a store and is going to purchase a product or service and an employee persuades them to upgrade to get a more expensive better product than what they were looking for. By providing personal selling in the promotional mix it helps businesses to remain competitive against its competition. Another way that personal selling is used is by developing the customer care in the business by gathering feedback off the customers to see what they can improve or add to the service they are providing. This might be by training up staff better so they know more about all the products or services that the company offers so they can help customers make a better purchase. The next method that Im going to look into in the promotional mix is Advertising. Advertising is used to promote a product or service; advertising can be done through celebrities. Such as the new Morrisons advert staring Freddy Flintoff, by using a celebrity in the advert is persuades the customers to shop their as a celebrity is being seen doing so themselves so they want to follow the celebrity trend. The next method that Im going to look into in the promotional mix is Sponsorships. Companies use sponsorships as a way of advertising themselves to the public. An example of this is companies sponsoring the London 2012 Olympics such as McDonalds and Heineken. The next method that Im going to look into in the promotional mix is Direct marketing. Direct marketing is a direct marketing communication with the customer. An example of direct marketing can be;   Direct mail.   Mail orders.   Tele-marketing.   Door to door distribution. The next method that Im going to look into in the promotional mix is Sales promotion. Sales promotion refers to the techniques and methods used by a business to sell its products to either customers or other businesses. Its main purpose is to get customers to purchase the product that the company is trying to sell. An example of this could be by offering a 10% discount to the product or service if you buy a particular newspaper. The first business I am going to look into is LOreal with the AIDA model. AIDA stands for; Attention, Interest, Desire and Action. The way LOreal grabs the attention of its customers or its potential customers is by Sponsorships. LOreal has sponsored Fiat Yamaha in the MotoGP and as a result of this they are placing the LOreal logo on their bikes that they will be racing on, because this logo is on the bikes it will attract people that are watching the MotoGP and will stick that business in peoples minds so it will gain attention of the business a lot more. Another way that LOreal will grab the attention of its customers and potential customers is by using the corporate image. As LOreal is a well established hair product brand it will stick in peoples minds when they think of shampoo as they are a top leader in this target market. The way LOreal gets the interest of its customers or its potential customers is by sales promotion. LOreal uses sales promotion on some of its products to get the customers attention of the product, this is sometimes used by using buy one get one free. LOreal mainly use sale promotion when a new product is launched so that the reputation of that product rises and customers become more aware of it, so as a result of this it gains the interest of the customers or potential customers. The way LOreal gains the desire of its customers or its potential customers is by advertising. LOreal uses advertising to gain the desire of the customer for the products that they are trying to sell, such as the LOreal advert for mens deodorant staring Eric Cantona, by seeing a celebrity using the product customers or potential customers instantly want it because it is being used by a celebrity and is deemed good to have. The way LOreal gets the action off the customers is by direct marketing. LOreal uses direct marketing to customers by sending them newsletters telling them personally about products that suits them by seeing what products they have bought before in the past that relates to the products they are trying to sell. As customers receive this newsletter that relates to what they usually buy they take the action of making a purchase of a new product to test it out and see what it is like. Another way LOreal gets the action off customers is by personal selling. LOreal uses personal selling in the form of cross-selling for some of its products by selling products that relate to the product they have already purchased such as if a customer bought moisturiser then employees for LOreal would try and sell them post balm. The communication model is used in advertising. The company encode the message which they are trying to get across to their current and potential customers in the television advertisements which the viewers will then decode the information in the way they perceive the message. The aim of this method is to persuade the customers to purchase the product in question. The way that LOreal creates an appropriate mix is by splitting up the mix into different categories, these are;   Short term and Long term goals the short term goal is to get the funds to make the new products and bring the new product out to the market. The long term goal is to make the product well established   Target market and exposure to the media the target market that LOreal are aiming for is both men and women between the ages of 16-65, they expose this to the media and aim their products to who they are aiming to, such as a girly magazine that targets teenagers.   Type of market the market that LOreal is in is cosmetics, skincare and head care.   Changing market conditions LOreal needs to take into account the recession so that they are bringing out products that customers can buy whilst money is an issue and spending has to be careful.   Budget and timing LOreal need to budget the products they are making so that the company doesnt make a loss by too many being made, not only this but the time to make the products cant be to long in case there is a huge demand for it. The next business I am going to look into is Compare the Market with the AIDA model. AIDA stands for; Attention, Interest, Desire and Action. The way that Compare the Market grabs the attention of its customers or its potential customers is by Sponsorships. Compare the Market has sponsored channel 4 drama and as a result of sponsoring channel 4 drama they have their advertisements placed before a number of television dramas such as ER, Brothers and Sisters and Shameless, because this advertisement is on the channel 4 breaks it will attract people that are watching the television and will stick that business in peoples minds so it will gain attention of the business a lot more. Another way that Compare the market will grab the attention of its customers and potential customers is by using the corporate image. As Compare the Market is a well established comparing website brand it will stick in peoples minds when they think of finding cheap insurance from their advertisements compare the meerkat, as they are a top leader in this target market. The way that Compare the Market gets the interest of its customers or its potential customers is by advertisements. This is done through people on the advertisement saying that they have saved x amount of money by using the website and how quick and easy it is to use. This gets the interest of the customers or potential customers as they realise that by going on the website they can save more money by comparing different insurance companies all on one page. The way that Compare the Market gains the desire of the customers or its potential customers is by advertisements. This is done by people knowing that by using this website you will only have to fill out your information once, and the rest will be done by the website. This gets the customer desired by only having to fill out information once instead of a lot of times on a number of different websites. Not only this but when on advertisements it tells you that on average people save around à ¯Ã‚ ¿Ã‚ ½200 this gets them wanting to go on it. The way that Compare the Market gets the action of the customers or its potential customers is by people going on the webpage. Once there on the page and filled out their details and realise how cheap some of the insurance quotes are then they are more likely to make a purchase as it is so simple. The way that Compare the Market creates an appropriate mix is by splitting up the mix into different categories, these are;   Short term and Long term goals the short term goal for Compare the Market is to get the reputation up of the website. The long term goal for Compare the Market is to be the market leader in this market.   Target market and exposure to the media the target market for Compare the Market is between the ages of 17-80 both men and women.   Type of market Compare the Market is in the insurance market.   Changing market conditions in the recession a lot of car insurance companies decided to promote offers such as purchase a year car insurance and get the first two months free, as a result of this Compare the Market are able to market these deals.