The perception of storytelling as a marketing tool among millennials
The perception and attitude of millennials to storytelling in advertising. Identification of general quantitative trends, as well as to refute or confirm the previously formulated hypotheses. Identifying commercials that have the most emotional effect.
Рубрика | Маркетинг, реклама и торговля |
Вид | дипломная работа |
Язык | английский |
Дата добавления | 14.07.2020 |
Размер файла | 3,6 M |
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FEDERAL STATE EDUCATIONAL INSTITUTION OF HIGHER EDUCATION NATIONAL RESEARCH UNIVERSITY HIGHER SCHOOL OF ECONOMICS
Saint Petersburg School of Economics and Management
Department of Management
In the field 38.03.02 `Management'
Educational programme `Management'
The perception of storytelling as a marketing tool among millennials
Bachelor's thesis
Baranova Kseniya Aleksandrovna, Guseva Daria Alekseyevna
Academic supervisor Position, degree V.N. Rudchenko
Saint Petersburg 2020
Contents
Abstract
Introduction
Background of the study
Problem statement
Research aim
Research question
Assumptions
Hypotheses
Research objectives
Delimitations
Professional significance
Definition of terms
Distribution of duties (Special protocol stating the specific role of each team member)
Theoretical foundation
Methodology
Research purpose
Research strategy
Research questions for in-depth interview
Research choices
Independent and dependent variables
Time horizons
Population and sample
Data sources
Description of the data collection process
The main sources of participants for in-depth interview and survey
Description of the companies
Reasons for choosing videos
Description of the advertisements
In-depth interview protocol
Questionnaire design
Description of the results
In-depth interview results
Main conclusions
In-depth interview summary results
Questionnaire results
Main conclusions
Adidas results
Budweiser results
IKEA results
Questionnaire summary results
Conclusion
Limitations
Alternative research scenarios
Future research
References
Appendix
Appendix 1
Appendix 2
Abstract
Storytelling is a technique in marketing strategies and techniques which allow transforming commercials into real-life stories, encouraging people to understand the characters involved in the plot and imbue them with sympathy, which, accordingly, can contribute to a better brand awareness.
The study is aimed at researching the perception and attitude of millennials to storytelling in advertising. In the study both qualitative and quantitative methods to collect data were applied. First of all, in-depth interview was conducted, after which all answers were transcribed into coding matrix using content analysis. Selected as the most frequently mentioned results became the basement for questionnaire structure and hypothesis creation. The survey results were interpreted in order to identify general quantitative trends, as well as to refute or confirm the previously formulated hypotheses.
According to the results of the study, those advertisements were identified that produce the greatest impression on the respondents, and these were commercials with storytelling. Furthermore, among advertisements with a story and characters, the commercial that the millennials enjoyed the most and caused the greatest range of emotions was found. However, this does not help significantly change the opinion of the company or arouse interest in brand products, as the survey conducted in the study showed.
The study contribution is the research of the market of marketing tools on the example of storytelling and creating the background for future research in this field. storytelling millennials advertising commercial
Key words: storytelling, perception, emotions, feelings, marketing, tool, millennials.
Introduction
Background of the study
With the development of the technological process and the rate of content consumption, users are becoming more and more selective. In addition, the number of companies and advertising platforms is growing. In general, there is a tendency to diversity in conditions of strong competition between organizations and their marketing campaigns. This is especially relevant to commercial and the selection of the type of promotions that are the easiest to comprehend for consumers. One of the methods used by marketers is storytelling, the influence and perception of which is studied in this research paper among millennials in Russia.
Problem statement
The lack of the scientific studies disclosing perception of storytelling by millennials.
Research aim
To close the gap in terms of the availability of literature which is devoted to the chosen research topic.
To analyze the results of the interviews and questionnaires, to reveal general attitude and perception of millennials considering storytelling and possibly to develop the perception map of millennials emotions.
Research question
What is the perception of storytelling as a marketing tool among millennials?
Assumptions
It is assumed that storytelling is aimed mainly at increasing brand loyalty and awareness but not at stimulating purchases. The hypothesis is going to be tested on the most popular advertisements among respondent.
A1: After watching ads millennials more often choose ads with storytelling as more preferable ones than without it -- with just a product demonstration.
A2: Ads with storytelling cause more positive emotions than regular ads. Opinion regarding the general perception of advertising has changed after viewing the selection of advertisements offered to respondents.
A3: Ads with characters like animals, children or elder people make respondents remember specifically the video with their participation.
A4: Respondents may change their opinion about brand after watching video promotion.
A5: Respondents may have intention to buy products after watching ads.
Hypotheses
Hypotheses were based on results received by complying the qualitative part of the study (in-depth interview). Hypothesis were tested after completing quantitative part of the research (questionnaire).
H1: The greatest number of respondents have high awareness due to storytelling.
H2: Respondents feel that storytelling impact more efficiently on them comparing to usual ad.
H3: The respondents' opinion about the brand does not change after watching the ads.
H4: After viewing advertisements millennials remain indifferent to the products and services presented in commercials.
H5: The most frequently experienced emotions when watching ads are empathy and compassion.
H6: Story and plot are the objectives which impress the respondents more than anything else.
Research objectives
a) Describe the background of storytelling as a marketing tool -- literature review
b) Define information gathering methods and data tools -- methodology
c) Identify set of variables and determine measurement levels -- methodology
d) Compose an in-depth interview protocol -- methodology
e) Conduct in-depth interviews -- qualitative data collection
f) Transcribe gathered data to coding scheme -- transferring data into quantitative format
g) Establish the connections between factors -- data analysis
h) Define a set of factors which might be critical in forming millennials attitude and perception -- data analysis
i) Conduct analysis and interpret results. Conclude and approve/disapprove hypotheses -- data analysis
Delimitations
To make the study more detailed, profound and the object's study more specific, it was decided to establish some delimitations. The restrictions of the population are the territorial attribute, since only residents of Russia are taking part in the in-depth interviews and surveys and age one according to the fact that only millennials including generation Y and generation Z. (Cambridge University Press, 2020) The research paper does not consider all age categories and residents' answers of countries other than Russia in connection with additional circumstances that may affect the results of the study, such as mentality, habits, historical background. Only video format of storytelling was chosen due to theoretical foundation.
Professional significance
Basic. The study can be helpful for future studies as a source of data regarding to attitude towards storytelling as technique. Therefore, it might be considered as a basement for deeper researches but among other age groups, with different geographical factor.
Applied. The research focuses on the perception of storytelling in marketing by millennials, which is important for companies which use this type of advertisement.
Definition of terms
Storytelling can be described as “a process in which systematically dispersing integral media platforms, each delivering a significant and valuable contribution to the whole”. As an example of media platforms not only movies, web and TV series might be considered as ones, but also novels, comic and graphic novels, animated films or series, radio dramas, newspaper articles, live events, exhibitions, interactive websites, emails, podcasts, blogs, voice messages, etc. (Moravинkovб & Kriћanovб, 2020)
Distribution of duties (Special protocol stating the specific role of each team member)
Table 1
№ |
Preparation stages of course paper |
Participant |
Contribution of each member, who participate in implementation process of course paper, % |
1 |
Conducting literature review |
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Guseva Daria |
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50 |
2 |
Data collection |
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Guseva Daria |
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50 |
3 |
Data processing |
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Guseva Daria |
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50 |
4 |
Methodology development |
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Guseva Daria |
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50 |
5 |
Exploratory data analysis |
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Guseva Daria |
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50 |
6 |
Construction and selection of predictive models |
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Guseva Daria |
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50 |
7 |
Depiction of results, making comparative analysis |
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Guseva Daria |
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50 |
8 |
Writing and editing text of course paper |
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Guseva Daria |
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50 |
9 |
Presentation preparation |
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Guseva Daria |
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50 |
10 |
Course work protection |
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Guseva Daria |
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50 |
Theoretical foundation
The distribution area of storytelling among different categories of audience is very wide and extensive. In order to fully disclose the topic, it was decided to study the literature on the theme of storytelling in various fields.
One of the first researchers studied was aimed at elucidating the key strategies that brands apply in the luxury fashion sector. To identify the main points of interaction between brands and their target audience, the authors of the article used qualitative methods of data analysis -- content analysis and in-depth interviews. Furthermore, the researchers describe the widespread use of such a marketing method as storytelling in video marketing strategies, social networks, open events and exhibitions, the main purpose of which is to interact with the public. It is noteworthy that the authors emphasized that the engine in the development of marketing strategies is young audience, accustomed to the use of mobile devices and to close interaction with brands and periodically referring to them. Thus, marketers are constantly forced to reconsider existing approaches, which is why storytelling arose. (Gonzбlez Romo et al., 2017)
Tourism is another area where storytelling is a powerful driver for consumers' behavior. Moreover, this sphere occupies the third place in the major categories in the analysis based on the materials found on the Web of Science platform. The study proposes theoretical and empirical models, where in the latter one online travel reviews are analyzed and the results are interpreted using the Yi and Gong's model. As a result, the research showed that narrative behavior in the joint creation of value leads to a high degree of customer satisfaction, since an effect based on influence is produced. (Pera, 2017)
As another source a case study, dedicated to attempts to revive the brewing industry of sake, namely in Kida Brewery in Japan through storytelling, was chosen. The research paper presented by the authors is based on a high-quality case study, which showed that, thanks to a marketing strategy such as storytelling, Kida Brewery can breathe new life into the sake industry using a narrative of 300 years of history and traditions. (Lee & Shin, 2015)
Nowadays, companies have realized that storytelling is an excellent strategy for commercial or advertising use to create an emotional connection with clients. The main goal of the research is to analyze storytelling as a way of creating emotional marketing strategies among water purification brands. The study reveals how storytelling is an instrument in marketing and advertising, a method to attract the attention of potential customers, evoke emotions and feelings for the brand among customers, which leads to the introduction of the brand in their memory.
To study this, a questionnaire of 8 questions with a Likert scale was developed. Results were analyzed using SPSS. The results of the study revealed the benefits of stimulating the feelings of respondents by creating emotional stories: creating confidence and security when buying and consuming a product. However, according to the results of the survey, not only emotional storytelling affected the respondents, but also the quality of water and packaging, which are necessary elements in the decision of buyers to buy these products.
To sum up, emotional marketing strategies through well-structured stories help connect brands to their potential customers. Such strategies seek to impact feelings and generate experience that will make the consumer experience these feelings again and again. Also, a relationship is formed between the client and the brand, as customers feel closer to the brand, which causes strong emotions in the buyer. (Carbache Mora et al., 2019)
The study by Kang, Hubbard and Hong, is regarded by them as an experimental study, which, based on online sampling, tested the effect of narrative in advertising on the emotional reactions of interviewees.
The main goal was set by researches to explore how people are subject to narrative advertising, depending on the preferences and personality of the narrator in advertising, and how narrative advertising affects the emotions and feelings of customers and their desire to share information about the brand's product. A fictional brand was developed and created for the relevance of research (to exclude previously perceived brand awareness).
The study also illustrates that narrative arc has become a universal strategy for increasing the emotional power of advertising, since people tend to store information in the form of stories. Storytelling stimulates and evoke the feelings and emotions of customers, as they perceive advertising as their own experience.
In this study, a web experiment was conducted using a platform such as Qualtrics. Researchers have studied under what conditions storytelling is most effective in terms of advertising. The study verifies key concepts in the processing of narrative.
According to the results of the study, it was found that the participants in the study perceive stories differently in advertising. Advertising was perceived as significant and touching when respondents imagined themselves in the place of the heroes of history. In this case, the listeners more easily perceived the emotions that the main characters carried, and also the participants could easily feel sympathy for them. The experience lived in advertising was perceived by the participants as their own.
Also, the study found that emotions and feelings are an important element for motivating consumers to talk about advertising. It is more likely that emotional results will convince customers, not arguments.
Regarding the question of who is more influenced by storytelling, an additional statistical analysis has illustrated that women are more likely to experience positive emotions in relation to the founder's story. Researchers also note that women are more prone to open-minded expressions of their emotions. (Kang et al., 2020)
In the study, Magdalena Zubiel-Kasprowicza illustrates with examples of marketing campaigns of famous brands how and by what methods, storytelling can wake a client from indifference, affect the emotional component.
The study cites the IKEA brand as an example, which deliberately communicates with its customers. IKEA not only made the interior design accessible to consumers, but also led an excellent advertising campaign. In a recent campaign, IKEA began to tell tales. The situations that are shown in the commercials do not relate to an idealized family life, therefore, it is much easier for customers to find themselves in them, which leads to a stronger emotional attachment to the brand, in other words, loyalty.
Researchers, using the Nike brand as an example, illustrate the story in promotional videos that use the motive of a hero who fights the weaknesses and imperfections of her body, inspiring and motivating consumers.
The use of storytelling will help not only to convey the goal and mission of the company, but to distinguish the brand from competitors, giving it a special image, thanks to which its products gain a sustainable competitive advantage. The recipient of the message does not focus on the product, but is looking for something more, a unique and personal story. (Zubiel-Kasprowicz, 2016)
The idea of ??the author of the next article is that more and more brands are resorting to content marketing, or rather storytelling, as this allows organizations not only to act as media companies, but also to attract and retain customers. Joe Pulizzi also divides as two fundamentally different in their essence elements: advertising, which is created on the basis of other people's content and content marketing, which is the creation of compelling, penetrating content by the brand itself on an ongoing basis. As for the forms of manifestation of content marketing, it can be seen in information posts on social networks, video materials, webinars, corporate magazines, newsletters, podcasts and websites. (Pulizzi, 2012)
In the article Judith Znanewitz and Kim Gilch wonder how to evaluate effectiveness of using sin marketing. They also write that storytelling not only conveys the most important values of the organization from the outside, but also reflects them for their own staff, their study emphasizes the importance of this approach for hiring and retaining staff. Judith Znanewitz and Kim Gilch in their study developed criteria for the effectiveness of using narrative in marketing. First, the most important criteria are the right story, which let company to represent its core, values. History of the brand and experiences of stakeholders of the organization are the best option for such type of advertisement. Second, entertainment and excitement, consistent with current trends that are relevant to the target audience. Third, uniqueness, it must differ from other marketing campaigns. Fourth, conciseness. Fifth, simplicity, story should not be too complex, letting consumer to feel himself as a co-creator. Sixth, connectivity, great practice are gaps and open ends, therefore recipient could be a creator of its own story. Last but not least, brand persona, narrator, who connects with customer quickly and easily. Moreover, they present their research as a practical guide that shows the use of storytelling in the Bundeswehr campaign promotion film. (Znanewitz & Gilch, 2016)
In the article, Tiphaine Chautard and Isabelle Collin-Lachaud provide an overview of how storytelling is used in management science. The purpose of the study is to present a narrative analysis methodology and to reveal its relevance for marketing research from an organizational point of view. This article illustrates the implementation of a narrative analysis methodology and develops its attractiveness for marketing research. Tiphaine Chautard and Isabelle Collin-Lachaud wrote recommendations, practical tools and a research program for marketers who are interested in analyzing organizational marketing. (Chautard & Collin-Lachaud, 2019)
The article talks about digital storytelling as an art-based research method that has the ability to engage not only consumers, but also psychiatrists in a dialogue about their life experiences. The authors believe that digital narration has the potential to develop relationships between consumers and doctors, due to the creation of a sense of community and solidarity between them. The study obtained data that indicated that digital storytelling can be used to create a space in which dialogue between consumers and doctors develops, moreover, the differences become visible. (De Vecchi et al., 2017)
One of the selected articles as a material for a literary review is a guide with the instructions for marketing managers. It also contributes to the field of narrative transport effect. Through a meta-analysis of 64 articles, the study shows that the effect of storytelling is more efficient when the story is in a commercial area and is generated directly by the user. (van Laer et al., 2019)
This article conceptualized the concept of storytelling effectiveness in agricultural marketing. The goal of this study was to develop the “Storytelling in Agricultural Marketing Effectiveness Scale” (SAMES), as well as to study the structural model of effectiveness. The scale consisted of 13 points, which included dimensions such as narrative processing, affect, brand attitude, and purchase intent. (Yueh & Zheng, 2019)
This study analyzes the history structure using the Freytag Pyramid, which is applied to examples of modern marketing, presenting this concept as an effective marketing practice. The Freytag pyramid includes 5 acts: Exposition, Complication, Climax, Reversal, Reversal. In this article, Keith A. Quesenberry reveals 6 cases using Freytag's concept. (Quesenberry, n.d.)
Speaking of the relevance of the study, it is also supported by scientific sources such as “Telling their stories” by Rachel Landen which provides statistics on a significant increase in spending on online advertising, which confirms the need to consider advertising with storytelling elements in the digital space mostly as a tool to study its impact on millennials. Despite the fact that the article is about a niche the capture of which is not planned in the current study, namely hospitals and the provision of medical services in the framework of health projects, the results obtained in the study described in the article and the general approach of disseminating stories of real people applicable to any field. So, the Chattanooga Memorial Health System, Tennessee, hosted a free broadcast of a pre-recorded and edited video on open heart surgery. Several thousand people took this opportunity, where they could not only observe, but also ask questions to the lead surgeon. However, it should be noted that Rachel Landen did not mention an extremely important aspect: the result of the work done in the form of specific statistics, namely the number of hits before and after the broadcast. Undoubtedly, the author emphasizes that the audience was impressed and gained new knowledge that was more easily accepted than if it were a scientific text in a book even with images or any other demonstration material. Nevertheless, despite the availability of educational goals and wide coverage, it remains unclear how effective this story was for the Chattanooga Memorial Health System. Still such an approach involves increasing the level of not only recognition among potential consumers of their services, but also trust and loyalty, as the company has demonstrated openness and willingness to interact with the audience. On the other hand, the article provides several examples of effective storytelling, which really contributes to the active promotion of the brand and company. For instance, photos and real stories were published on the social network Facebook by fans of the heart center page of the Boston Children's Hospital. People who have yet to go through similar procedures and operations are inspired by the described experience and are more eager to go to this hospital, as their level of trust thus becomes much higher. According to the author's words, stories describing past experiences, reviews and comments from patients are much more effective than hospital ratings published in various websites, newspaper and magazine media. Moreover, Rachel Landen cites statistical data obtained by marketing agency DK New Media from Indianapolis and research and consulting company Forrester Research in Cambridge: 32% of respondents have a higher level of trust in stories published on various platforms of strangers with personal experience than in advertising in the usual format. (Landen, 2013)
As a result of the above articles' analysis, it can be concluded that in none of them consumer perception of storytelling as a marketing tool was analyzed. The main emphasis of the studied materials was placed on how to measure the effectiveness of the instrument under study, which metrics and indicators to develop for such an assessment. In conclusion, after completing the analysis of the above articles on the example of the various samples implying a variety of age, gender, territorial and other categories of respondents in different niches of the market, two main concepts were identified:
a) Storytelling is an instrument to create an emotional connection between brand and consumers
b) There are some essential factors such as uniqueness, conciseness, simplicity, connectivity, entertainment, brand persona and the right story that makes storytelling effective as a marketing tool (Znanewitz & Gilch, 2016)
On the example of the article from Plus Media Solutions, it was also found that video is the most effective tool in delivering content to an audience, which was subsequently used in the current research paper. However, efficiency does not indicate simplicity of development, since competition is really high. Nevertheless, the video is positioned as a reliable way to promote due to the increased demand of the consumers for the video format. (Solutions, 2019)
Methodology
Research purpose
Exploratory and descriptive according to purpose of the research and methods of collecting data (in-depth interview and questionnaire).
Research strategy
The principal ways of data collection in the research are in-depth interview and questionnaire.
Identifying perception of millennials using in-depth interviews lead to revealing their attitude to advertising and storytelling as a marketing tool. Results were applied to identify the most common answers and, consequently, trends which became basement for the survey. Qualitative data was gathered through telephone conversation, audio messages through social networks and via voice chat apps due to lack of possibility to make it face-to-face under quarantine.
The questionnaire was aimed at identifying trends among storytelling using and specific categories of characters that cause more feelings than others. Furthermore, the goal of the survey was to identify respondents' attitudes to products and brands presented in advertisements and to reveal differences, since all videos included elements of storytelling, however, they presented different categories of characters (children, animals, elderly people) and the videos also demonstrated different values. What is more, conducting the survey is necessary for testing hypotheses. Quantitative data was conducted through GoogleForm.
Research questions for in-depth interview
RQ1: What is the attitude of respondents to online advertising?
RQ2: What is the attitude of respondents to offline advertising?
RQ3: What impression respondents get after watching video promotions?
RQ4: What factors may affect respondents' specific types of emotions and feelings?
RQ5: What are the triggers and motivators behind respondents' decisions of buying product after watching an advertising?
Research choices
The collected information was processed and systematized manually by translating qualitative data into quantitative one using content analysis, specifically compiling coding schemes. Answers of the interviewees were analyzed using the Excel and SPSS and results of analysis were the basement for hypothesis setting and survey creation. Respondents' answers were also analyzed by Excel and SPSS to interpret quantitative data to test hypothesis and summarize the results.
Independent and dependent variables
a) Attitude and perception towards storytelling in video promotion (measured by transitioning qualitative data into coding scheme using content analysis);
b) Emotions and feeling to characters after watching promotion;
c) Motivators, factors and reasons behind the desire to buy or look through the products or after watching ads with storytelling as a marketing instrument.
Time horizons
In-depth interview and survey were used as main instruments for collecting data at approximately the same time, design of this research in terms of time limits might be defined as cross-sectional one.
Population and sample
Since different scientific resources mentioned various definitions of millennials and their date of births, such decision was accepted: to examine the impact of storytelling among both generation Y and Z. (Cambridge University Press, 2020) As it was already mentioned in the delimitations in the introduction part, by way of restrictions age and territorial attributes are applied. Millennials are considered people born in the 1980s, 1990s, or early 2000s. The study involved answers of people of a maximum age of 40 years.
As for the qualitative part of the study, based on (QUALITATIVE INQUIRY & RESEARCH DESIGN; John W. Creswell, p. 195), it is recommended that 20 to 30 people be included in order to develop a well-saturated theory. Based on such data, 25 in-depth interviews were collected among millennials among Russian residents.
In order to find out the required number of questionnaires for collecting quantitative data, a confidence level of 95% and a population of 46 million millennials living in Russia were taken. As a result of calculations, using the website with sample size calculator it was found out that the sample size is 384 people which means 384 questionnaires must be collected and analyzed. (The Survey System)
Data sources
The primary data were collected due to strategy and goal of the research. Information were gathered through respondents' answers from in-depth interview, using voice recorder to create audio files during online conversation or a face-to-face one or as another option voice messages were used due to pandemic situation. Afterwards, collected data were transcribed into text format and coding matrix were created. Then, data results were interpreted for the designing a questionnaire, which provide research with a quantitative information in the form of data table.
Description of the data collection process
The main tool of data collection in the study is in-depth interviews and questionnaires.
Qualitative data was conducted personally through telephone conversation, social networks by sending voice messages and face-to-face, while quantitative data was gathered through GoogleForm. Such platforms as Vkontakte, Tinder and Badoo were also used to find volunteers for in-depth interview process, personal messages were sent, and those for whom this practice was interesting participated in the study.
The main sources of participants for in-depth interview and survey
VK groups -- sending messages with link to GoogleForm survey in to VK groups messages with request to post this link, in group discussions, in the comments under the posts. Groups were chosen by number of followers and with the research, study and surveys as the main topics. As an option VK chats with more than 20 000 number of participants were used as a platform for spreading survey.
Telegram channels -- sending messages with link to a GoogleForm survey in servers chat with a request to fulfill it. Main priorities were to find communities with qualitative research as a main subject and which include more than 10 000 participants per channel.
Discord servers -- sending messages with link to questionnaire in servers chat to find volunteers. It was same selection method as before.
Tinder, Badoo -- these apps usually used to find and meet new people. The profile posted a message on the recruitment of candidates for an interview / survey, and invitations for further discussion of all interested. After a little communication and determination of interest, they either switched to other social networks where they could send voice messages for interviews, or a link to the survey was sent.
Taking interviews and surveys remotely not only increased the anonymity, but also allowed to conduct much more reliable data. Gathered data is transmitted into a coding matrix by applying content analysis, for further data analysation and survey design development.
Description of the companies
A description of the marketing, as well as the brand's advertising campaigns, the advertisements of which were used for a qualitative part of the study, and more specifically for in-depth interviews.
Apple
Apple is an American corporation that manufactures personal and tablet computers, audio players, phones, and software. Their marketing campaign can be described in several ways.
First, their marketing is built on simplicity. Brand products are the focus of attention. Texts and visual materials are extremely simple and concise, lists of functions, pricing or expensive special effects are not common. The company relies on the fact that the product sells itself. For example, the logo of the brand is an example of simplicity and conciseness: the silhouette of a bitten apple. Also, an example of laconic design was the Don't Blink advertisement, which mainly used only two colors, black and white, Apple products and frames with people. This advertisement was considered to be the choice for an in-depth interview but was not chosen subsequently due to the possibility of a lack of knowledge of the English language among the respondents.
The second, appeal to the emotions of customers and affordable language for customers. Apple aims to understand their target customers, how they think and speak, their language and habits, preferences. Apple knows how to talk to customers in their language. On this understanding, relationships with potential and regular customers are built. This can also be seen in the example of an IPhone 11 advertisement, which highlighted exactly those problems and aspects that the target audience so often faces.
There's a trick in Apple's commercials when happy people enjoy the simplicity of the iPad, and a consistent display of positive emotions is used as a driving force for sales. The brand sells products through a state of happiness and satisfaction, as in the advertising of the Voice Control function, where a person who cannot us e a computer with a mouse and keyboard feels satisfactory thanks to Apple products.
The company also takes advantage of secrets and rumors about its products before launch. Apple creates a product by holding information in small portions. It also happens that Apple allows information to leak onto the Internet so that there is a stir among buyers and a discussion of future new products begins even before the official announcements.
Last but not least, active implicit advertising. Apple is working closely with cinema and is actively engaged in product placement: gadgets are regularly used in films and television series.
Apple's marketing objectives are divided between the three departments, which are responsible for different areas of promotion due to their website. (Когда продукт вдохновляет вас, вы можете поделиться вдохновением с другими., n.d.)
First, service marketing. The department manages the marketing of all subscription media platforms and services such as Apple Pay and iCloud. The department is responsible for such work: digital marketing, social marketing, ecosystem marketing, product marketing, creative design, brand marketing.
Second, product marketing. This department is made up of experts who own marketing technology and market information. They track the life cycle of products - from concept to development to market launch. The main areas of work are product marketing, marketing for developers, application marketing and business marketing.
Third, marketing communications. This department tells consumers about Apple's development. Their texts reflect the essence of products and services - their ease of use, functionality and features, as well as design. Their main responsibilities include graphic design, writing texts, usability analysis, content management, content production, creative activities, research and analytics, advertising, social networks, marketing, video and animation, packaging design.
H&M
H&M is a Swedish company, Europe's largest clothing retailer. The marketing department in the H&M brand case is their own international advertising agency, where multichannel campaigns are created, and marketing materials are published. (H&M, n.d.) The main objective is also to develop a brand concept, from creating advertising campaigns to advertising products. The marketing department helps to draw attention to the H&M brand and works to increase its popularity, recognition and loyalty.
As for brand advertising campaigns, one of the first concepts is advertising with celebrities. For example, in the 90s, Cindy Crawford and Anna Nicole Smith, representing the brand's underwear, appeared on H&M billboards. Currently, the H&M brand has a special advertising policy. The collections are represented by leading models of the world such as Gisele Bьndchen, Kate Moss, Carly Kloss, as well as celebrities such as Beyoncй, Katy Perry, Lana Del Rey, Madonna, David Beckham. On the streets of the city there are posters depicting models dressed in H&M kits with an indication of cost. And in glossy magazines, brand advertising is printed along with luxury brands, which makes consumers feel like a luxury brand, but this principle does not apply when the store is located in shopping centers.
The second concept is collaboration between H&M and other brands. Once a year, H&M creates a collection with famous designers. The company collaborated with Versace, Balmain, Moschino, Roberto Cavalli and other well-known brands. The history of the company's collaboration with renowned designers began in 2004. In 2004, Karl Lagerfeld created a capsule collection of clothing and accessories for H&M. (Socha, 2020) The media reported an unprecedented rush in stores: in large cities, the collection was sold out within an hour. To advertise the collection with Balmain, H&M was attracted by the model Kendall Jenner, who at that time was third among the highest paid models according to Forbes. (Robehmed, 2016) The action of the video takes place in a futuristic metro, where Jenner dances in a train and demonstrates a clothing line.
An equally important principle in advertising campaigns is positioning. H&M has such brand values: fashion, profitability, sociality and attention to the environment. In 2015, the company issued an advertisement on the importance of recycling. The company asked customers to recycle their old clothes. Since then there has been a clothing recycling program. Anyone can bring a package of clothes and recycle them at any H&M store.
The brand also launches collections from the Conscious line, which include products created with the environment in mind. That is, they are not only made from environmentally friendly materials by at least 50% or more, but also include recycled materials.
Another important policy of H&M is that the brand not only calls for rational consumption and environmental care, but also uses the slogans of feminism and body positive. The brand attracts plus-size girls, people with disabilities, celebrities and ordinary people to its advertising campaigns. H&M does not remove scars, stretch marks and hair on the bodies of its models. This move helped to attract a new audience and gain customer loyalty. Buyers were happy to accept this idea, because it helps ordinary girls not to compare themselves with the “ideal” bodies in the pictures and not feel flawed. In this way, H&M forms a loyal audience sharing the values ??of the company. Just one of the ads selected for the qualitative part of the study reflects the message presented above.
According to the rating of the Fast Retailing research group, in 2016, H&M ranked second among the largest clothing retailers in the world, losing first place to the Zara brand. For this reason, Zara was chosen to analyze promotional videos. In 2019, H&M yields second place to UNIQLO, and thus becomes third place. (Industry Ranking, 2019) The question may arise why the UNIQLO brand was not selected, but this company does not position itself in the fast fashion industry, so it is quite irrelevant to consider and compare these companies.
IKEA
IKEA Sweden-based Dutch production and trading group of companies, the owner of one of the world's largest retail chains selling furniture and household goods. IKEA produces furniture and other household goods of decent quality in its own factories and sells them at affordable prices. The word "IKEA" is composed of the first letters of the name and surname of the founder of the company and the place where he was born, the name is deciphered as Ingvar Kamprad Elmtaryd Agunnaryd.
IKEA company conducts diverse marketing research, for example, such as:
a) Brand Capital - a study of consumer perception of the IKEA brand.
b) A study of customer satisfaction. At the same time, both customers in the online store are interviewed, as well as directly in the retail store, in which the buyer evaluates his visit to the store;
c) The study of the most frequently asked questions of buyers. Each month, department employees collect information on frequently asked questions from customers. (People & Planet Positive. IKEA Group Sustainability Strategy for 2020, 2014)
IKEA uses a comprehensive, integrated approach to the use of marketing communications to promote products and services, including: direct marketing, for example, catalogs; advertising on television, radio, online advertising, outdoor advertising; public relations, which includes articles on the company's activities, interaction with the press, publication of press releases and open reports; sales promotion (promotions, discounts, bonuses), loyalty programs - IKEA FAMILY club.
All areas and principles of the company clearly and consistently fit into the strategy of social marketing. (People & Planet Positive. IKEA Group Sustainability Strategy for 2020, 2014) Today, more and more corporations are beginning to deal with society. For example, the above H&M, the company is concerned about the problem of ecology, and has several programs to ensure awareness among people about this problem. In practice, social marketing covers literally all areas of the company, including responsibility for product safety, the veracity and reliability of advertising, and the objectivity of pricing. This direction also includes charity, a socially responsible approach to doing business, protecting the environment, a lot of attention to staff and team building.
The company's website also widely covers the social activities of the company, as well as activities in the field of ecology and sustainable development. Anyone can get acquainted with the detailed reports on the activities of IKEA in these areas. Such a policy can significantly increase customer confidence in the company and its products. (IKEA, n.d.)
The furniture company IKEA often uses a humorous technique on the subject of its company and encourages others to joke about it. There are a huge number of cartoons on the subject of strange brand names and jokes about what can be collected instead of the right chair or table. Such a positive halo around the company only plays in favor of its popularity. After all, buyers come to the store not only for goods, but also for emotions. The brand follows current topics in order to respond quickly and with humor.
In the advertising field, IKEA can be called situational marketing or emotional marketing. The main objective of such marketing is to be relevant and evoke emotions. World events are immediately processed by the company and ideas for advertising are created. Whether it's a new photo shoot by Kim Kardashian and the creation of a chair for a celebrity, as well as a giant bed for Kanye West. Or the end of the season of the Game of Thrones series and, subsequently, the release of IKEA rug from the cloak of the hero of the series “Jon Snow”. (Fitzmaurice, 2016)
Another example of emotional branding, as well as the use of storytelling, is the company's next commercial. It shows how young children from childhood choose one favorite toy and become inseparable with it. Such a toy becomes for them a true friend with whom they eat, sleep, walk and grow up.(IKEA playing with my friends advert, 2012)
Using trends to create viral videos. The IKEA furniture catalog advertisement, created in the style of Apple's advertisement, was published in the fall of 2014, the video scored over 2,000,000 views in 2 weeks, and currently has almost 19 million views. The main character of the video says the following phrase at the beginning: “Sometimes things appear that completely change our lives”, which sends the viewer to similar videos from Apple. (Experience the power of a bookbook™, 2014) The advertisement shows that the catalog from IKEA has amazing characteristics: an interface of 7.5 inches, eternal recharging, offline work without a network, instant page loading. The video has a subtle sense of humor, which is required for good viral advertising.
The following principle can be called a creative approach to creating an advertising campaign. In the next campaign, an interesting approach can be observed to the characteristics of a particular country. On July 1, an advertising wall was installed in Canada with real IKEA boxes that can be easily removed. July 1 is the day of moving in Canada, which means that there is a shortage of boxes in stores. So, it was great way to increase brand loyalty on Moving Day. (Campaign: IKEA - Moving Day, 2017)
In its advertising campaigns, IKEA focuses on family values. A huge number of commercials and advertising campaigns really attract attention and are a reflection of the basic concept of the brand. The video “If Only We Could Keep Some Things Small Forever” by IKEA, selected for qualitative research, not only has a creative approach to creation, as well as the presence of storytelling, but also meets the brand's values. IKEA very often uses storytelling for advertising campaigns in the form of videos. The brand emphasizes the emotions and perceptions of the consumer.
The company also works with various television projects, in particular, with the School of Repair, providing its furniture and interior items for it. This method of indirect advertising allows attracting a wide television audience as potential buyers. (Facebook, 2016)
Zara
Zara is one of the world's largest fashion clothing companies. It is part of the Inditex group, one of the world's largest distribution groups, and is owned by the Spanish tycoon Amancio Ortega, who also owns brands such as Massimo Dutti, Pull and Bear, Oysho, Uterque, Stradivarius and Bershka. The head office is in La Coruсa, Spain, where the first store was opened in 1975. (Zara, n.d.) It is also necessary to mention the book “The Man from Zara: The Story of the Genius Behind the Inditex Group” by Covadonga O'Shea, editor-in-chief of Telva, Spanish magazine for women about fashion trends and lifestyle. It describes in detail the history of the formation of the company, the activities of its creator, his philosophy, which encouraged to include Zara ads in the compilation for in-depth interview viewing. To sum up, the history of the company, its popularity and revenues are indeed at a high world level among brands mass market which follows modern trends that could not go unnoticed. (O'Shea, 2012)
Moreover, Daniel Piet, fashion director at Louis Vuitton fashion house, described Zara as "Perhaps the most innovative and overwhelming retail chain in the world." Zara has also been described by CNN as the Spanish Success Story.
It is claimed that Zara only takes 2 weeks from design development to the arrival of a new line on sale, compared with the industry average of 6 months. Likewise, over 10,000 new designs are developed during the year. Zara was able to resist the widespread trend in the apparel industry for the location of production outlets in countries with low production costs. Zara company chose the unusual strategy -- instead of investing large sums of money in advertising, the company chose to invest part of the profit in opening new outlets. Furthermore, the company spends 0.3% of profit on advertising: the marketers do not fundamentally talk about brand's positive characteristics such as modernity and convenience. However, this is not an omission of the company's board of directors, but a well-thought-out strategy of emptying consumers' wallets and conquering the market. (Zara, n.d.)
Zara invests its revenues not only in opening new boutiques but also in catalogs and display cases, which create a feeling of exclusivity for the buyer. The quality of the clothes seems to speak for itself and does not need advertising. After all, many well-known luxury brands, such as Balenciaga and Versace do not use television services to show their advertisements, but people know that this is a premium class due to the brand's reputation, which is what Zara focuses on. This was another reason why the organization was included in the list of promotional videos. The brand applies a rather unusual attitude to advertising in its development strategy, which allows to introduce diversity and consider companies with different philosophies and types of promotion on the market. (Zara, n.d.) Last but not least reason is connected with the rating of the Fast Retailing research group conducted in 2016 and Industry Ranking held in 2019 (Industry Ranking, 2019) which were mentioned above. It was decided to make an observation on Zara advertisement since it is the largest clothing retailers in the world.
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