The effectiveness of sponsorship: Coca-Cola

1- Legitimacy

The importance of the legitimacy of the sponsor

Associating the name of a sponsor with an event represents an authentic festive dynamic to get closer to its customers even if the mercantile dimension.

The undisputed brand, present at all times on the grounds of

sport.

Methodical work to give credibility to the commitment before the tournament: present before 1998, present at the draw for the World Cup ...

3 major reasons:

                                The brand anticipated advertising saturation

                                The Products: Coca-Cola is not a brand of sports product. Coke is not used for sport but accompanies it.

                                Prior conditioning to stimulate people's empathy. Coca has established a framework for a set of events: association with the FFF, "you are young, you are football", so that children participate in raising the curtain for World Cup matches; creation of a game of skill that made it possible to select 564 girls and boys who became the balloon collectors; 1024 young people were qualified to become flag bearers of the 32 selected countries.

Coca becomes legitimate and sincere by building an event within the event. Coca contributes to consistency of actions and involvement upstream of the event.

2- Emotions

Difficult exploitation

A necessary capitalization

Create the event in the event.

"Let's make the whole Earth vibrate".

The emotions must be intense, positive, and the brand must be intimately linked to the origin of this emotion. Coca has been associated with 6 World Cups and 16 Olympics. Coca is the sponsor of those who will experience the event, ie the sponsor of the spectators.

Transmit an implicit message.

"I understand you, you are great, I share, I am by your side."

3 - The semantic link

To be linked unambiguously to the event.

The evocative power of words

Of the episodic level.

Has semantic force.

A strategy of conquest

Demonstrate excellence:

                                Capitalize on symbolic associations.

                                Communicate on the functionality of the products.

Coca has demonstrated experiential marketing.

4 - Marketing integration

The communication mix

One of the keys to success: The mix is ​​an intelligent strategic mix. Not only must we communicate, but we must also make it known that we communicate through sponsorship. In 1996, over $ 5 billion was spent by Olympic sponsors.

A meticulous transversal approach

Reflection before, during and after to assess the success of the campaign. So Coca has abandoned "Always Coca-Cola" for "Enjoy Coca-Cola" ie "Live the moment".

The theory of encoding variation, ie the creation of a communication node: Coke has become the drink of young people.

Maintain the magic . Coca paid an entry fee to participate as an official sponsor of the Atlanta Olympics up to $ 40 billion and at the same time invested $ 500 million in international marketing actions.

Coca spent $ 60 Million on commercials, $ 30 Million on institutional receptions and $ 25 Million on entertainment in the Olympic Village.

Local distribution : find something to eat and refresh in all the places where you can attend the event.

Coke is everywhere and all the time.

Coca becomes a partner of the National Olympic Committees.

III - A successful campaign

Impact measurements

Memorization scores: Calculation of brand awareness rates through surveys.

Survey of July 98 on the legitimacy of the sponsor in sport or in football:

                                he is international

                                he is popular and accessible

                                it conveys festive values

In 2 years, brand equity has grown by 75% for Coca (between 98 and 2000). It went from $ 48 billion to $ 84 billion. In 1953, 61% of French people did not like coca. Per capita consumption increased by 48% in France, going from 15.3 to 22.7 liters / year / inhabitant between 1994 and 1997.

The mastery of Coca-Cola

 

 

A reward for all the efforts made: longevity maturity recognition of Coca sponsorship

The company translates a campaign associated with dreams, emotions, winning moments for the French.

France won the World Cup but Coca won too!

But beware, "In cauda venenum" ie the venom is in the tail: the brand is at the mercy of consumers.

 

THE CONCEPT OF MARKETING

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From a basic definition to a modern conception of marketing

It is in a common way to try, by one or more definitions wanting to present what marketing is in reality at the risk of reducing its scope.

Indeed, if the major problem of any business has always been to sell their product to customers, perhaps without knowing it, it has been in marketing. What appears nowadays, on the contrary, is that under the influence of various factors (economic, technological, scientific), the way in which companies practice it, and even more even their conception of it. exchange.

Marketing is “the set of means at the disposal of a company to sell its products to its customers in a profitable manner.” Until the end of the 19th century, the dominant question was that of producing because it was necessary to constantly improve the production tool and meet a demand for goods and services. Manufacturing difficulties relegated other problems including selling what was produced. It was a question of improving production techniques but also of scientifically organizing production in order to reduce production costs.

For this, it was necessary to raise a significant volume of capital and to appreciate more the role of the engineer and the financier compared to that of the salesman. Commercial management occupied a subordinate position and was occupied indifferently by production managers or delegates to the financial sector.

The advent of a society of abundance, at the beginning of the 20th century, will shift the point of view of entrepreneurs: they will understand that if it is up to themselves to build factories, they will It is complex to conquer a clientele where you are in competition with everyone. So we went from "a seller's market to a buyer's market" or "from a production culture to a sales culture."

All the efforts to create, retain or even expand the company's clientele will do, whatever incidental that was the marketing function compared to the function of production, finance and organization, it becomes first or primordial.

We introduced the concept of the market in relation to the notion of business. This is true in the areas of consumer goods, services, industrial goods or high technology, i.e. those who have understood that it is necessary to no longer sell a commodity already produced and whose price is fixed but to act. in an opposite way.

It is necessary to start from the analysis of market needs to decide what to produce and the price at which it will be sold. In addition, care must be taken to retain its customers and therefore consider that buyers are satisfied with their purchases, hence the need for after-sales service.

The buyer becomes an actor.

The extension of the marketing service is taking place towards new sectors of activity that are not commercial or lucrative. Political parties are discovering electoral marketing, social organizations of all kinds, government and municipal actions are using marketing.

3 kinds of marketing:

Study marketing

                                Market study (survey): adaptation to the environment

                                Competition analysis

                                Monitoring and evaluation of company actions

Strategic marketing

                                choice of target market or clientele

                                product design and accompanying services

                                Fixing the price

                                Choice of distribution channels and producer-distributor relationship

                                Development of a brand and communication strategy

Operational marketing

                                Implementation of advertising and promotional campaign

                                Vendor action and direct marketing

                                Product distribution and merchandising

                                After sales service

In general, it is appropriate to speak in terms of "organization" because it may be non-market sectors whose objective is not to make a profit.

Likewise, we speak of "concerned audiences" (customers) or even of "promoting behavior" (both political and social behavior of individuals but also purchasing and consumption behavior.)

3 elements:

Knowing the public: through studies, an absolute necessity even if it is not an end in itself.

Adapt to the public: satisfy their needs and tastes, speak a language to which they are sensitive, let them know that you know them.

We are not always there to please the public: to rehabilitate certain values, to change behavior and to create new habits.

Influence the public

Getting people to join the consumer actors who at the beginning were not sensitive to a product, taking into account the mentality and characteristics of the people.

Fundamental behaviors of the marketing attitude:

Avoid myopia

Stay close to your customers intellectually and physically

Base decisions on beliefs but facts

To be capable of critical thinking and of synthesis and anticipation

Constantly monitor the competition

Dare by taking the measure of risks

Have countenance

New communication techniques with the internet, different scientific disciplines will boost marketing approaches and techniques. Thus, from mass marketing after the Second World War until the end of the 1950s, or even the 1960s, segmented marketing followed.

Finally, the 1980s saw the development of GSS (specialized supermarkets) and the advent of the service sector at the same time as the exponential growth of new IT techniques (quasi-interactive and low-cost management) will bring together large groups with their clientele, which must now be retained by creating value in particular. Today, marketing seeks to differentiate the offer and create added value targeted at each customer segment.

For Helfer, marketing is "all the activities of the firm which are now based on commercial activities."

Marketing or marketing is "the set of actions which, in the market economy, have for objective to foresee, note, stimulate, arouse or renew the needs of consumers and to carry out the adaptation of the production apparatus and of the commercial apparatus of a company with undetermined needs. "

Marketing refers to the commercial function based on knowledge of the market according to forecasting patterns, driven dynamically towards ambitious objectives, programmed by combining means of action chosen, coordinated and controlled according to rigorous procedures.

Marketing is a set of methods available to the company to:

                                Adapt its offer according to demand, competitors and the means available to the company.

                                Build the "symbolic envelope" around the product / service: the imaginary of the product / service.

                                Encourage behaviors favorable to the achievement of its objectives among a variety of audiences.

Ex: consumers, distributors, investors, public authorities.

Marketing is the methodical and permanent conquest of a profitable market, involving the design and marketing of a product or service that meets the expectations of the target consumers.

Understanding is facilitated if we rely on the product / market pairing by observing the nature of the relationships which link the product to its market: 3 conceptions.

 

- unilateral design PRODUCT MARKET

(product orientation) 1 2

 

- bilateral design PRODUCT MARKET

 

(market orientation) 1 2

First, market research, then specifications, and finally product design. 1

 

- responsive design 3

 

PRODUCT MARKET

Pre-test 2

Perform consumer tests

The product / market relationship is fundamentally dynamic in nature.

Note: Marketing is a state of mind largely based on intuition and imagination that mobilizes all possible means to communicate with the consumer of the product. Usually, success is the result of innovative and imaginative products with strong sales.

Unilateral marketing organization chart :

Executive management

Production Finance Sales management

Head of sales

Sellers

Bilateral marketing organization chart :

Executive management

Production Finance Sales management

Sales Department Marketing Department

Responsive marketing flowchart :

Executive management

Production Finance Marketing Department

Product A Product B Division A Division B

Head of production A Sales Studies Sales Studies Chief prod. B

MARKET

Consumer study Competition study

Product manager

Product Price Promotion Distribution

EngineerR.D Accountants, financiers, advertising manager Sales force

COMPANY

It is this marketing management approach that we find in the term "Marketing Mix", developed by Philipp Kothler, which "aims to analyze the opportunities of a market to develop strategies, to implement tactics. and to seek the best balance between:

The 4 Ps

"Product", "Price", "Promotion", "Place"

The "marketing mix" must combine 4 kinds of tools.

The product refers to its intrinsic quality which represents solidity, durability, measured through scales and according to the know-how of the company.

MIX MARKETING

Product Implementation (distribution)

- quality - distribution channels

- variety - catchment area

- characteristics - assortments

and options MARKET - points of sale - TARGET style - stocks and warehouses

- brand - means of transport

- conditioning

- sizes

- guarantee

after sales service

Promotion Award (communication)

- price - pub

- discount - sales force

- discounts - sales promotions

- payment condition - public relations

- credit condition - free advertising

- Direct marketing

Some people think that the "4 Ps" forget or do not give their rightful place to certain activities: thus it is not because the first letter of an activity is not a P that it should be forgotten.

Kotler recently completed the list with two more Ps:

                                Politics: the political context can greatly influence sales (laws against tobacco advertising, on environmental protection, etc.) Marketing managers often use political lobbying to defend their markets.

                                Audience: through their habits and moods, they represent a variable that influences the future of certain products or services. Thus, the companies concerned will finance campaigns to encourage the resumption of consumption (particularly true for consumer products, such as beef, etc.)

Do not forget the consumer's point of view because he can perceive the offer in a completely different way, busy as he is to find a solution to his problem.

4 P

4 C

Product

Customer-Value

Price

Cost

Promotion

Convenience

Square

Communication

Example of evaluation of strategic options

Strategy is a set operated by a company in order to achieve a goal set in advance. It requires the mobilization of available forces (technology, investment, human resources) ordered according to a precise plan: the strategic plan.

A range of strategic choices

PRIVILEGED OPTION

TYPES OF STRATEGY

PRIORITY PRINCIPLES AND OBJECTIVES

Axis 1

Reaction mode

Facing the environment

outside

Innovator

 

Imitator or

Follower

 

Wait-and-see

Launch the first of the products (service) incorporating technological or commercial innovations.

Copy successful products by adding new functions or correcting defects.

Act only at the last end by adopting the majority solutions of the market

Axis 2

Economic and financial synergy

Industrial integration

 

External growth

 

Cost response

Penetrate interdependent or complementary business sectors.

Acquire market shares by buyout, merger or participation in other firms.

At equal quality, obtain lower costs than competitors to maximize profit.

 

 

 

Axis 3

Product coupling and

 

 

market

Wallet

Activity

Segmentation and positioning

Internationalization

Blanket

Diversification

Seek balanced growth by selecting the activities of the company.

Select a group of consumers for whom a product is differentiated.

Establish a lasting presence abroad to conquer new markets.

Develop a range of products covering the vast majority of market needs.

Conquer new markets with new products

The problem that concerns us and that upsets everything is "the internet train". The Internet brings the consumer even closer to the designer. Direct marketing offers new possibilities to the company but disrupts its mode of organization. The explosion of mobile opens a mass market.

Internet is not only a new medium like television was, it is + a platform of convergence of all the current media on which are grafted new modes of communication. The Internet is becoming a very open and evolving system that belongs above all to Internet users, according to Lendrevie.

Know the market Adapt to the market Act on the market

 

Market research Segmentation and targeting 4P implementation

Marketing is a fundamentally pragmatic discipline.

In the service of the company's strategy and tactics, it focuses on the problems posed by the adaptation of the company's productions to the market environment. It is an interface function whose roles are to study the environment, to propose action plans, to implement them and to monitor the successful achievement of objectives.

Marketing requires mastering broad fields of knowledge:

                                economy and strategy in essence

                                psychology and sociology by nature

                                law by duty and constraint

Marketing can be approached as an art and as a science:

                                an art where mastery of the development and implementation of trade policies requires experience, know-how and imagination.

                                A science because the market obeys laws and the mix requires learning, starting from general laws, to know how to test, verify, correct, adapt in order to revive.

Marketing, whose stake is exchange, (a constant flow where utilities are exchanged, in an uncertain, risky universe, shaped by a web of communication and distribution channels) is the art and science of navigate this forest of links and maintain access to primordial sources.

The steps

the market concept

Used in marketing in 2 meanings, both different and complementary:

                                set of quantified data that provides information on the importance, structure and evolution of sales of a product or service.

                                All the audiences (actors) likely to exert an influence on the sales of a product.

The fundamental idea is that the market is "the meeting of a supply with a demand which tends to match", this is why it is necessary to specify the characteristics of the product and / or the service, its components and its factors. influence. It is necessary to distinguish between the different types of market (according to the products offered and the needs met, the upstream and downstream markets) as it is necessary to apprehend the various stakeholders or actors.

First of all, there is the consumer, that is to say the one who consumes a service, whether he has purchased or not. In buyers, we must differentiate those who buy with their own resources and who understand the real users as well as the so-called "potential" consumers.

The potential market remains one of the major objectives of the company. Either we try to increase the market share of the product by encroaching on the competing market or by attracting new consumers.

The other sectors are:

                                Producers who supply the market as needed. We speak of direct competition if the products are similar and the market segment identical and of indirect competition when the product is different but the needs and motivations are similar.

                                Distributors who act as a link between producers and customers

                                Prescribers who influence the act of purchasing through their professional situation (doctors / pharmaceutical industry; travel agencies / transport). We can talk about opinion leaders, advocates, BAO (word of mouth). Indirectly, other intermediaries can influence or advise (journals).

In fact, it is the whole of society that exerts an influence on the act of purchasing, in the sense that it permanently determines and modifies the environment and one could represent the market in the form of a system.

THE MARKET: SYSTEMS ANALYSIS

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Market contours

 

 

            

The market is made up of a set of players (company, individuals, organizations, etc.) It is necessary to provide details on the elements that best identify the contours of the product and / or service, which allows us to define:

                                the main market : all similar and directly competitive products.

                                The surrounding market : set of products of a different nature from the main product but satisfying the same motivations in the same circumstances.

                                The generic market : all products linked to the needs satisfied by the main product.

                                The support market : all the products whose presence is necessary for the consumption of the product studied.

Main market

Surrounding market

Support market

Generic market

Organized trips abroad

Free travel abroad

Air, maritime transport

Tourism

Painting

Wallpaper

Wall coverings

Decoration

Tights

Socks

Skirt, pants, dress

Female clothing

Electric razor for men

Razor blade

Disposable razor

Beard fashion

Beauty

In this specific market, the manager or the marketing manager cannot fail to integrate the importance of the market into his field of analysis. A company must take into account not only competing products but also those which are likely to substitute for them because they meet the same needs.

Attributes must be added to the market term to give it its true meaning. Ex: In an airline, the reception, the comfort of the seats, punctuality.

Different approaches in the sports, leisure or sports tourism market:

                                the sports shoe market (main market)

                                the sports footwear market for non-sports activities (secondary market)

                                the market for shoes (non-sports) used for sports (generic market)

                                the market for socks essential for sports practice (market complementary to support)

Supply-demand approach

We know that the markets, especially for consumer goods, are relatively saturated and that they evolve mainly thanks to the appearance of new products. Ex: soups in brick, email ...

We will see how innovation, including in the sports industry, can be a success factor for a company.

The marketing of the offer is classified as high risk because it supposes costly investments, a response to a need not necessarily expressed, but this explains, nowadays, the success in cutting-edge sectors (high technology, mobile telephony).

A product (tangible or intangible proposition offered at a given price for a specific use and loaded with social and individual values) and / or a service (which is thus a product) and its market must be understood according to the audiences likely to exercise a influence on the sales of this product or + generally on the activities of the organizations concerned.

market measurement

It is generally done on the basis of supply and demand.

A - Market study in volume

depending on size

                                Very large markets where the unit of measurement is one billion or ten billion euros, such as large-scale distribution or the industrial market.

                                Markets qualified as niches where the unit is one million or ten million euros (segmentation) whose success depends more on the market than on the company and ensures its sustainability. The example of thalasso (Bobet à Quiberon, 1960) reminds us that a product's success can lead it to grow and in turn become a market in its own right. For SMEs, it is a question of finding promising niches whose success depends on three rules:

PROXIMITY; PERFORMANCE; INNOVATION

                                Micro-markets with companies that can go even further in identifying customer groups with identical needs (marketing database technique then "drilling" data to "unearth" configurations of results.

according to the structure

                                open or closed markets (weakly or strongly structured)

                                fragmented or concentrated markets

according to the life cycle

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