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Controversial advertising campaigns vs. corporate objectives of Benetton

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Introduction

Suhaila Sinn Integrated Marketing Communications MBA class, Professor Berarducci June 2007 Subject: Controversial advertising campaigns vs. corporate objectives of Benetton Group S.p.A 1. INTRODUCTION 2 1.1 COMPANY BACKGROUND 3 2. THEORETICAL ORIENTATION 5 2.1 CONDITIONS OF INTERNATIONAL MARKETING 6 3. ALTERNATIVES FOR COMMUNICATIONS POLITIC 7 3.1 INTERNATIONAL CORPORATE IDENTITY POLITICS 8 3.2 INTERNATIONAL ADVERTISING 9 3.4 IMAGE LOSS OR INCREASE OF POPULARITY THROUGH AGGRESSIVE ADVERTISING 10 3.5 CURRENT DEVELOPMENTS 11 4. RESULTS AND CONCLUSION 12 INDEX OF LITERATURE 12 1. Introduction "If people ask me, what the war in Ex-Yugoslavia, Aids or current events have to do with pullover, I reply, that they don't have anything to do with each other. I make advertisement. I do not sell. I don't try to persuade the consumers. I use the opportunities, the influential power and the chance to present a not sufficiently utilised art, which is advertisement. I itch the public opinion there where it itches." 1 With the increasing globalisation and the general flood of information, it becomes more important for international companies to develop a communications politic, that marks the society�s mind and differs from the competition. The aim of this paper is to describe at the example of the Benetton Group S.p.A. a different form of communications politic. In the second chapter the necessary theoretical basis is created by describing the international communications politic as a part of the Marketing Mix. Afterwards the conditions and alternatives for international marketing will be explained. The third part deals with the specific alternatives for Benetton to act. These relate to corporate identity policy and international advertising. The thereafter following section tries to answer the question, if aggressive advertising achieves an image loss or image improvement. ...read more.

Middle

The first four mentioned instruments have the greatest importance in international marketing. Sales promotion and direct communications are limited to the country, as they mostly only have a regional importance. Therefore only corporate identity policy, advertising, sponsoring and product placement will be mentioned in the following section. The most important concept of communications politics is the corporate identity. This consists of corporate mission, corporate design and corporate behaviour. Corporate identity serves to make a company unmistakable to the consumers. More details about international corporate identity politics and international advertisements related to Benetton are found in the following chapter. A further element in the communications mix is sponsoring. Sponsoring is based on the principle of exchanging performance. A company, in this case Benetton, provides an institution or a person with money with the intention to receive an economic benefit in return. Usually sports, culture and social activities are sponsored objects. Benetton currently sponsors the local sport club, a museum and a library. It is no longer sponsor for the formula one team. 3.1 International corporate identity politics International corporate identity policy and advertisement are options within international communications. There are different basic strategies for a worldwide communication: a global (standardised) strategy and a non-global (differentiated) strategy. In the first case one communications politic is applied worldwide. In the second case there is a differentiation between the communication politics in different countries. To achieve the goals of corporate identity a company can make use of following instruments: Corporate design, corporate communications that includes corporate advertising and public relations, and corporate behaviour. Corporate design is the identical design of the company name and company sign in advertisements, letter heads and facilities. Concerning the corporate design Benetton follows a global strategy. ...read more.

Conclusion

By reinforcing the collaboration between Benetton and humanitarian organisations, this thesis is supported. Back then they worked out a campaign for the World Food Program, to stress on the hunger suffering in many parts of the world.6 4. Results and conclusion In a sum it can be said, that the advertising campaigns "United Colors of Benetton" have created attention. Especially remarkable are the different reactions in the USA and Europe. The declared goal of Luciano Benetton, to achieve more brand awareness through advertising, could be reached. The partially negative publicity and the resulting image loss influence Europe�s revenues only at the beginning of the campaigns. According to a market survey asking about following the continuation of the political adverts or conventional advertising, it revealed that with increasing age the conventional adverts are preferred. The brand awareness with 93% is very high. However, the advertising campaign does lead only a few of the asked persons to purchase Benetton products. Benetton follows with its international advertising politic an unusual way. This unusual way seems to be Benettons key to success. Index of literature Benettongroup Press (2005): About Benetton- Culural and Social Activities, [http://press.benettongroup.com/ben_en/about/cultural/] Benettongroup (2004): Annual Report 2003, [http://benettongroup.it/investors/encorporate_governance.htm] Jain, Subhash C.: International Marketing-Management, 3rd ed, Boston, 1990 Keegan, Warren: Global Marketing-Management Laroche, Michel: Service Quality Perceptions and Customer Satisfaction: Evaluating the Role of Culture, No. 3, 2004, p. Magala, Slawomir: Under Construction. Identities, Communities and Visual Overkill, 2001 Toscani, Oliviero: Advertising is smiling, Paris, 1995 1 Oliviero Toscani, Advertising is smiling, Paris 1995 2 Warren J. Keegan, Global Marketing Management, p.774 3 Subhash C. Jain, International Marketing Management, p. 564 4 Warren J. Keegan, Global Marketing Management, p.506 5 Slawomir Magala, Under Construction.Identities, Communities, and Visual Overkill, p.34 6 Benettongroup Corporate Governance Annual Report 2003 (2004), p. 18 ?? ?? ?? ?? ...read more.

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