Ch.16 - Advertising, Public Relations and Sales Promotion

Advertising

Advertising is bringing a product or service to the attention of potential and current customers. Advertising can affect consumers’ daily lives, influences their attitudes, beliefs, and ultimately their purchase decisions. Chanel is world known company. The brand is exclusive and has strong equity and loyalty. As a result, Chanel primarily focus on product advertising, which is used to enhance the sales of a specific good or service. The product’s stage in its life cycle often determines which type of product advertising is used. The pioneering advertising is used during the introductory stage of the product life cycle. Chanel recently introduces a new collection of cosmetic products for spring 2014.  They created a video on their website which provides consumers with deep information about those products and how to use each product. They specified each product that is used in the video next to the video. The competitive advertising is used during the growth phase of the product life cycle. Chanel uses competitive advertising on No. 5 perfume series. The advertisings of the products become less informative and focus on attracting consumers’ emotions. The advertisements of No.5 perfume series are vintage style that present its theme of classical that intended to attract customers and differentiable from its competitors. The comparative advertising is used when products experience slow growth or those entering the marketplace against strong competitors. Chanel did not adopt the comparative advertising because its unique styles are different to its competitors. Those advertising strategies are organized around an advertising campaign. Chanel has extensive variety of advertising campaign that are featured in advertising media. The six major advertising media are newspapers, magazines, radio, television, the internet, and outdoor media. Chanel spends around $140 million on advertising media. 

Public Relations

The significant objective of a company’s marketing communication mix is to maintain a positive image of the corporation in the eyes of the public. The public relations is the element in the promotional mix that evaluates public attitudes, identifies issues that may elicit public concern, and executes programs to gain public understanding and acceptance. Corporation donations and sponsorships are supportive in creating satisfying publicity. Chanel has done many donations and have been sponsors frequently. Chanel participates in the charity of “The world’s best-dressed dolls” every year.  Last year, Chanel designed doll’s price was raised approximately around 300,000 USD in a UNICEF auction. Many other luxury fashion houses such as Dior, Louis Vuitton, and Gucci, also the competitors of Chanel, were participated in this Charity of designing one-off doll with the finest fashion. Chanel designed doll successfully presented its theme and being the unique one. Chanel’s participation in this charity not only benefit in maintaining a positive image, but also capture the media attention. Chanel sponsors many events, the popular one is the Metropolitan Museum of Art’s current Costume Institute exhibition. Since Metropolitan Museum of Art is the world’s largest and finest art museum, it helps Chanel in capturing attention and also benefit in maintaining a positive image. Chanel web site is a useful way of gaining understanding and acceptance of the public. Its website is worldwide and provided with various languages. Chanel uses its website to introduce new product, promote existing products, provides the information of products and instruction for using the products, release financial information, interact with consumers, and showcase upcoming event.  

Sales Promotion

Sales promotion is the marketing communication activities, other than advertising, personal selling, and public relations, in which a short term incentive motivates consumers or members of the distribution channel to purchase a good or service immediately, either by lowering the price or by adding value. Chanel is an expensive and exclusive brand that does not offer sales frequently to the public. Since some of Chanel products are sold in certain department store, the promotion sales of products like fragrances, cosmetic products, glasses, and watches are available there. Chanel gives out samples and bonus packs of fragrances and cosmetic products to their current customers and loyal customers to increase consumption. Chanel also produces some limited edition products which will motivate the customers to buy their favorite products immediately.