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PEOPLES’ FRIENDSHIP UNIVERSITY OF RUSSIA

(RUDN UNIVERSITY)
INSTITUTE OF FOREIGN LANGUAGES

СВЯЗИ С ОБЩЕСТВЕННОСТЬЮ
КАК СРЕДСТВО ПОВЫШЕНИЯ
УЗНАВАЕМОСТИ МАРКИ
Сборник статей межвузовской студенческой
научно-практической конференции

Москва, 8 октября 2019 г.

PUBLIC RELATIONS AS A BRAND


AWARENESS BOOSTER

Proceedings
of the Inter-University Students Science Conference

Moscow, October 8th, 2019

Moscow,
Peoples’ Friendship University of Russia
2019

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УДК 659:339.138(063) Утверждено
ББК 60.84+65.191.3 РИС Ученого совета
С25 Российского университета
дружбы народов

Н а у ч н ы й р е д а к т о р – профессор Н.Л. Соколова

Редакционная коллегия:
старший преподаватель кафедры ТиПИЯ А.А. Баталов;
специалист по учебно-методической работе НИРС Т.И. Ларкина

С25 Связи с общественностью как средство повышения


узнаваемости марки = Public Relations as a Brand Awa-
reness Booster : сборник статей межвузовской студен-
ческой научно-практической конференции. Москва, 8 ок-
тября 2019 г. / науч. ред. Н. Л. Соколова. – Москва :
РУДН, 2019. – 143 с. : ил.

Сборник конференции состоит из статьей студентов магистратуры


различных российских и зарубежных вузов и посвящен важнейшим
функциям продвижения товара, таким как создание образа, сохранение
популярности товаров (услуг), изменение образа использования товара,
создание энтузиазма среди участников сбыта, убеждение покупателей
переходить к более дорогим товарам, ответы на вопросы потребителей.

ISBN 978-5-209-09744-0 © Коллектив авторов, 2019


© Российский университет
дружбы народов, 2019

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Состав Организационного комитета

Председатель оргкомитета:
Н.Л. Соколова, к.ф.н., профессор, директор ИИЯ РУДН, РФ.
Зам. председателя оргкомитета:
С.А. Шаронова, д.с.н., доцент, зам. директора ИИЯ по
научной работе, РФ.
Члены оргкомитета:
А.А. Баталов, старший преподаватель кафедры теории и
практики иностранных языков ИИЯ РУДН, РФ.
Л.А. Егорова, к.ф.н., доцент, доцент кафедры теории и
практики иностранных языков, руководитель отделения
«Лингвистика» ИИЯ РУДН, РФ.
Н.В. Никашина, к.ф.н., старший преподаватель кафедры
теории и практики иностранных языков ИИЯ РУДН, РФ.
И.П. Барабаш, зам. директора ИИЯ по экономике, РФ.
Т.И. Ларкина, лаборант кафедры теории и практики
иностранных языков ИИЯ РУДН, РФ, ответственный
секретарь оргкомитета.

Состав Программного комитета

Председатель комитета:
Н.Л. Соколова, к.ф.н., профессор, директор ИИЯ РУДН, РФ.
Зам. председателя комитета:
С.А. Шаронова, д.с.н., доцент, зам. директора ИИЯ по
научной работе, РФ.
Члены программного комитета:
А.А. Баталов, старший преподаватель кафедры теории и
практики иностранных языков ИИЯ РУДН, РФ.
Л.А. Егорова, к.ф.н., доцент, доцент кафедры теории и
практики иностранных языков, руководитель отделения
«Лингвистика» ИИЯ РУДН, РФ.
Н.С. Ерохова, к.и.н., главный специалист ИИЯ РУДН по
научно-инновационной деятельности, РФ.

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Т.В. Болдовская, главный специалист ИИЯ РУДН по
редакционно-издательской деятельности, РФ.
Т.И. Ларкина, лаборант кафедры теории и практики
иностранных языков ИИЯ РУДН, РФ, ответственный
секретарь.

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THEORETICAL QUESTIONS AND CONCEPTS
OF PUBLIC RELATIONS

THE CONCEPT OF PUBLIC RELATIONS


AND ITS MANIFESTATION IN EVERYDAY LIFE
Erkiada Gorezi . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
CORPORATE COMMUNICATIONS LEVELS
OF RETAIL AND SERVICE COMMERCIAL
COMPANIES
Zhantali R. Nurgaliyev . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
MARKETING MIX (THE CONCEPT OF 4PS)
Olga Bruskova . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22
THE NOTION OF A PUBLIC RELATIONS
CAMPAIGN IN RUSSIAN EDUCATIONAL SYSTEM
Sofya E. Baeva . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28
ESSENTIAL COMPONENTS OF PUBLIC
RELATIONS: TYPES AND TOOLS
Sona K. Ivanyan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38
7 EFFECTIVE WAYS TO BUILD
YOUR PRODUCT’S BRAND AWERENESS
Daria S. Alexeeva . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47
PRODUCT PLACEMENT AS A BRAND
AWARENESS BOOSTER
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Ekaterina V. Petrushkina . . . . . . . . . . . . . . . . . . . . . . . . .

STRATEGIES IN BRAND PROMOTION

PROCTER & GAMBLE UNSUCCESSFUL


PR-CAMPAIGNS ACCORDING
TO THE MARKETING-MIX CONCEPTION
Veronika I. Kulikova . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62

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MARKETING MIX OR 4PS STRATEGY
AS THE MAIN COMPONENT OF PROCTER
AND GAMBLE SUCCESS
Irina A. Khoreva . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70
MARKETING MIX OF IKEA
Alexandra V. Sudakova . . . . . . . . . . . . . . . . . . . . . . . . . . . 76
4PS MARKETING THEORY ON THE EXAMPLES
OF COCA-COLA SUCCESSFUL AND
UNSUCCESSFUL PR CAMPAIGNS
Anna A. Askinazi . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 84
THE USAGE OF COMMUNICATION CHANNELS
ON THE EXAMPLE OF NIKE PR-CAMPAIGNS
Alina A. Kardanova 90
POSITIVE AND NEGATIVE EXAMPLES
OF PR-CAMPAIGNS ON THE EXAMPLE
OF NESQUIK COMPANY
Esenia S. Korolyova . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 96
POSITIVE EXAMPLE OF PR-CAMPAIGN
FOR NESTLE AND THEIR PRODUCT NESQUIK
Daria I. Romanyuk . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 103
COMMUNICATION CHANNELS AS THE
ELEMENTS OF A SUCCESSFUL PR-CAMPAIGN
ON THE EXAMPLE OF NIKE PR-CAMPAIGNS
Anastasia A. Sorokina . . . . . . . . . . . . . . . . . . . . . . . . . . . . 109
PEPSI PR-CAMPAIGNS AS EXAMPLES
OF SUCCESSFUL AND UNSUCCESSFUL
MARKETING-MIX REALIZATION
Valery M. Fedorova . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 115
OCCUPATIONAL CHARACTERISTICS,
DURING A PERIOD OF CHANGE,
IN THE ISRAELI LABOR MARKET
Lama Mashal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 122

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BRANDS IN THE LIGHT INDUSTRY
OF MOLDOVA AND THEIR INTERACTION
WITH PR PROJECTS
Elena I. Chernova, Ekaterina N. Mironenko . . . . . . . . . 133
NATIONAL BRAND AS AN INNOVATIVE
DIRECTION IN THE TOURISM SECTOR
OF THE REPUBLIC OF MOLDOVA
Elena L. Zhigareva . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 138

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THEORETICAL QUESTIONS
AND CONCEPTS OF PUBLIC RELATIONS

THE CONCEPT OF PUBLIC RELATIONS


AND ITS MANIFESTATION IN EVERYDAY LIFE

Erkiada Gorezi

Assistant
Institute of Foreign Languages
Peoples’ Friendship University of Russia
Moscow, Russia
e-mail: gorezi-e@rudn.ru

Abstract: The article reveals several definitions of the term


"public relations" and describes the history of its origin and the
problem of the correlation of two types of social communication,
PR and advertisement. Based on the results it can be concluded
that the core of PR (manifested in multiple types in everyday life)
is communication and there exists a very slight difference
between PR and advertising. The results were found by using the
contextual analysis and descriptive-analytical method and they
can be used as a guide for further research in this field.
Keywords: public relations; communication; PR technology;
"abstract social harmony"

Currently, the term "public relations" is widely used. There is an


active development of PR-technologies, various associations on
PR are created all over the world, in many universities, both in
Russia and abroad, there are faculties where PR specialists are
trained. Even in everyday speech, we increasingly hear the

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words: "PR", "do PR". All this indicates that this phenomenon is
firmly established in our lives.
There is a huge amount of literature devoted to the issues of
"public relations". Basically, in this literature, both in textbooks
and in monographs, it is said about the definition of the term
"PR", about the need for the existence of PR Specialists, about
the technologies of PR. However, a careful analysis of the
literature shows that there is a certain problem with
understanding the nature and functions of PR. There is a
discrepancy between the declarations of PR specialists who claim
that "public relations" exists as a kind of "science", the purpose of
which is to influence the consciousness of people, and the real
functioning of PR. This discrepancy leads to the existence of a
huge range of diverse opinions on the definition of PR, its
functions and essence.
First, let's try to determine how PR-technologies are presented in
the research literature. Most often, "public relations" is
understood as a practical or professional activity: "Public
relations is a specific professional activity aimed at establishing
mutual understanding and friendly relations between public
entities, which are individuals, groups of people, society as a
whole, as well as various organizations and industrial structures.
The means used in PR activities include the exchange of
information, the dissemination of explanatory materials, the study
of public opinion" [6, P. 7].
Here is another definition that illustrates this approach: "PR is the
art and science of analyzing trends, predicting their
consequences, making recommendations to management, and
implementing programs, actions in the interests of both the
organization and the public" [2, P. 15-16]. With this approach,
PR is the activity of people who are engaged in establishing
friendly relations with the public and issue recommendations to
various organizations to achieve their goals (creating a positive
image of the organization, the sale of goods and services).

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The well-known American specialist Sam Black, who adheres to
the same understanding of PR, writes that the usual activity of
"public relations" consists of four different but related parts. First,
it is an analysis, research and problem statement. Secondly, the
development of the program. Third, communication and
implementation of the program. And finally, fourthly, the study
of results, evaluation and possible improvements. Despite the fact
that this activity involves the achievement of specific goals,
experts say that the results of PR activity are very difficult to
detect.
S. Black writes: "Doubts about the value of PR are generated by
the complexity of assessing the results of this activity and the
lack of criteria by which these results could be determined with
sufficient clarity" [2, P. 28]. This is explained as follows: "... PR
is the promotion of governance, it is a tool of the authorities and a
means of achieving understanding at the international and local
level. The results of PR activities can rarely be isolated and
therefore accurately measured" [2, P. 28-29].
Another type of definition is characterized by treating public
relations as communication between an organization and the
public. "The concept of "public relations" is connected with the
concept of "communication", and in the broadest sense of the
word "public relations – is a communication between an
organization and its social environment" [7, P. 18]. According to
this definition, public relations cannot be avoided.
Specialist in PR technologies Ph. Henslowe writes: "PR is one
element of the variety of activities that comprise our lives. We
face them all the time. We constantly use public relations in many
different ways (depending on the problems solved in a particular
situation), even if we do not realize it" [7. P. 18]. In this
definition, PR becomes more than just a professional activity that
organizes communication (interaction) between the organization
and its environment in a special way, and even more than a form
of communication organization. Public relations is
communication itself, i.e. the connection between a structure and

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its environment. It exists regardless of whether anyone controls it
or not. We are always involved in the field of PR.
One of the well-known researchers of the phenomenon of public
relations Alexander Chumikov identifies three approaches to the
definition of the term "public relations". The analysis of the
literature showed that the definitions of PR proposed by other
authors somehow fall under this classification. The first approach
is altruistic. According to the author, the altruistic definition is
aimed at achieving "abstract social harmony". It is not about any
specific goals, actions of the organization, but about the need for
a complete "mutual understanding" between an enterprise and
social groups. Therefore, the author says that this is "abstract
harmony", which, in his opinion, has nothing to do with modern
reality.
This concept is proposed by the founder of PR-school. PR-
specialist Sam Black says: "Public relations" is the art and
science of achieving harmony through mutual understanding
based on truth and full awareness" [2, C. 17]. The "altruistic”
approach to PR is also enshrined in Webster's popular dictionary,
which gives the following definition: "Public relations" is the
promotion of mutual understanding and goodwill between an
individual, an organization and other people, groups of people or
society as a whole through the dissemination of explanatory
material, the development of exchange (information) and the
evaluation of public reaction" (CIT. by: [8, P. 13]).
Unlike the first approach, where the goal is to establish a friendly
relationship, the second approach involves a process of
persuasion. This approach in the definition of the term "PR" the
author calls "compromise". This approach emphasizes other
factors. It is no longer a question of "abstract "achievement of
"social harmony", which has no relation to the reality around us,
but of satisfaction of specific interests of any organization. This
approach to PR is suggested by one of the founders of PR,
Edward Burnows, who writes: "Public relations is an effort to
persuade the public to change its approach or its actions, as well

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as to harmonize the activities of the organization in cooperation
with the interests of the public and vice versa" [8. P. 13]. The
main purpose of PR here is to change the behavior of people in
the interests of an organization. In this case, the population may
not be given completely reliable information, in contrast to the
first approach.
The third approach in defining PR is pragmatic. According to the
interpretation of A. N. Chumikov, "PR is a system of
information-analytical and procedural-technological actions
aimed at harmonizing relations within a project, as well as
between project participants and its external environment in order
to successfully implement it" [8. P. 14]. In this case, the main
goal of PR is not to harmonize relations with the public or change
its behavior, but "the successful implementation of the project as
a whole". Thus, public relations appears before us as a system of
actions, the purpose of which is the successful implementation of
a project.
In our opinion, there are no significant differences between
compromise and pragmatic approaches. Both the first and the
second underline the existence of pragmatic goals on the part of
the organization and a system of actions to achieve these goals. In
the case of an altruistic approach, PR is communication between
the public and the organization without any pragmatic goals.
To clarify the meaning of these definitions of public relations, we
turn to the history of this phenomenon. Conditionally, two
approaches to the question of the origin of PR can be
distinguished. The first approach sees public relations as old as
civilization itself. Probably, in this case, the sphere of PR is
understood as the desire of someone to give as much information
about himself as possible and consequently, to indicate his
position among other people. If we follow the logic of supporters
of this approach, we can safely say that "public relations"
appeared as soon as a person appeared. In their opinion, even in
the days when people lived in caves, PR already existed.

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Proponents of another approach believe that PR appeared in the
twentieth century. In their understanding, public relations is an
applied discipline which appears as a profession. This
explanation of the phenomenon of "public relations" also fits the
definition of public relations as a professional activity. If we
apply this approach to the analysis of the meaning of the above
definitions proposed by A. N. Chumikov, then this way explains
the emergence of PR from a pragmatic point of view.
In order to understand the need for the phenomenon of public
relations, consider the history of PR as a professional activity. For
the first time officially the expression "public relations" was used
by US President Thomas Jefferson, when in 1807 in the draft of
his "Seventh Address to Congress" he wrote it, instead of the
crossed out "state of thought".
But the practice of classical PR originates in 1902. The History of
science under the name "Public Relations", according to some
researchers, began with the events that Russian authors K. V.
Antipov and Yu. K. Bazhenov describe in their textbook on PR.
One American journalist published a series of articles under the
general title "Standard-oil company". The owner of this company
was the well-known John D. Rockefeller. In these articles he was
accused of using unscrupulous methods of competition. After
these articles ran into trouble with the companions, worsened
relations within the firm. In response, Rockefeller hired a
journalist. Ivy Lee was well known in business circles. Lee
became the author of articles published in well-known
newspapers. In them, Rockefeller appeared as the father of the
family, a loving father, an exemplary husband. This greatly
improved the company's business, as society saw him in a
different light – as a good citizen, an example to follow.
In the 20-40-ies of XX century there is an active development of
PR as a profession and scientific discipline. Recognized authority
in this area is Sam Black, the founder of the school of PR. Here is
what he writes about the need for PR-activities: "in a family or a
small, close community there are no serious obstacles to

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communication and free exchange of views, but even here
misunderstanding it is quite possible. In public or commercial
life, "family members" are distant from each other, and the lack
of personal contact makes it very difficult to establish
cooperation and mutual understanding. PR specialists use modern
methods of communication and persuasion to achieve mutual
understanding" [2, P. 13]. Thus, "public relations" become a
necessary component in any commercial organization.
In 1948 in the USA the society of PR is created, and in 1955 in
London – the international Association of PR which unites
experts from 65 countries. As a result, we can see that today PR
is widely distributed throughout the world.
Even though, the clarification of the difference between PR
activity and advertising is fundamentally important for
understanding the role of advertising in the system of marketing
communications. This is evidenced by the fact that almost all the
authors of monographs and textbooks devoted to advertising, PR,
and marketing in general, pay special attention to it. However,
despite this, it still remains open.
Many researchers and PR practitioners consider advertising to be
part of PR. Thus, a prominent practitioner and theorist of the
methodology of "public relations" Sam Black states that "since
advertising is one of the means of public relations, there is every
reason to attribute it to PR. The fact that advertising is paid for
does not change the essence of its definition..." [2, P. 30-31].
D. Newsome, T. D. van Slyke, and C. Dean are in the same
position. In their joint work "All about PR", they argue this as
follows: "the tasks of advertising include the development of
advertisements, the preparation of their texts and the purchase of
time and space for their distribution. Although advertising should
complement a holistic PR program, it is still a separate function...
Advertising is needed for each individual product and its
successful promotion... Advertising in the form of free or pre-
paid time and space is a PR tool often used to supplement

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publications, product promotion and print agency activities"[3,
P. 10].
Another group of researchers, on the contrary, considers
advertising and PR as fundamentally different from each other
areas and activities. In justifying this point of view, they
acknowledge their partial similarity and at the same time point
out the existence of fundamental differences. "Of course,
advertising and PR solve some common problems, individual
advertisements help to establish public relations, and in general
advertising is one of the means achieving PR goals... However,
without denying the importance of advertising, nevertheless, it
should be emphasized that PR and advertising-it is not the same",
– says VA Moiseev [5, P. 82]. "The difference between public
relations and advertising is significant... Although advertising
complements the general program of public relations, its function
is somewhat different... Advertising in the form of paid time or
space in the media acts as a tool of public relations..." [4, P. 33].
British PR specialists in the PRCA prospectus, when asked
whether PR is advertising, unequivocally state: "No, despite the
fact that PR firms and advertising agencies can carry out the same
processes of identifying key customer information at the planning
stages; here the similarity ends. Advertising uses paid space or
time in the press to convey information, and media relations only
try to convince journalists that the story or information of the
client deserves publication, as it will be interesting to readers.
And since PR is more than a media relationship, we can say that
PR tends to use other communication methods than those used by
advertising within the marketing program" [1, P. 2-3].
As a result of the above study, the following conclusions can be
drawn:
1. Based on a careful analysis of the literature it is shown that
there is a discrepancy between the declarations of PR specialists
who claim that "public relations" exists as a kind of "science", the
purpose of which is to influence the consciousness of people, and
the real functioning of PR. This discrepancy leads to the

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existence of a huge range of diverse opinions on the definition of
PR, its functions and essence.
2. The practice of classical PR originates in 1902 but only in the
20-40-ies of XX century there is an active development of PR as
a profession and scientific discipline.
3. The main differences between advertising and PR are as
follows. First, advertising is aimed solely at achieving a specific
commercial result; PR is aimed at achieving public consensus, at
creating indirect favorable conditions for its achievement.
Secondly, advertising is limited in time; PR is focused on
building continuous relationships with various social groups, and
on a variety of occasions and in a variety of spheres of public life.
Third, advertising is predominantly one-sided; PR involves two-
way communication. However, due to the fact that advertising
has recently become more dialogical, this distinction is no longer
so obvious. Fourth, advertising is a paid placement of customer
information, while PR means actions that are not directly related
to costs.

References
1. All we need to know about PR. PRCA. – London, 1991.
2. Блэк С. Паблик рилейшнз. Что это такое? М. : Новости,
1990.
3. Дак Н., Ван Слот Т.Д., Дин К. Все о PR. Теория и практика
паблик рилейшнз. – 7-е изд. – М., 2006.
4. Королько В.Г. Основы Паблик рилейшнз: Учебник для
студентов вузов. – М., 2000.
5. Моисеев В.А. Паблик рилейшнз. Теория и практика. – М.,
2001.
6. Федотова Л.Н. Паблик рилейшнз и общественное мнение.
СПб.: Питер, 2003.
7. Хеслоу Ф. Практическое руководство по паблик рилейшнз
/ пер. с англ.; под ред. А.Н. Андреевой. СПб. : Издательский
Дом «Нева» ; М. ПЛМА-ПРЕСС Инвест, 2003.

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8. Чумиков А.Н. Связи с общественностью : учеб. пособие.
2-е изд., испр. и доп. М. : Дело, 2001.

CORPORATE COMMUNICATIONS LEVELS OF RETAIL


AND SERVICE COMMERCIAL COMPANIES

Zhantali R. Nurgaliyev

student of the Public Relations


Journalism Faculty
Al-Farabi Kazakh National University
Almaty, Republic Kazakhstan
e-mail: zhantalin@gmail.com

Abstract: The article describes the results of a study of 4


companies from two sectors of the economy, which was attended
by 600 mid-level employees, as well as their leaders. The object
of the study was to identify the presence of corporate
communications within the company, namely: increasing the
efficiency of employees, intangible motivation and loyalty to the
employer. Employees of each of the four companies were
interviewed through a secret online survey using the Google Polls
service.
The study allowed us to identify the main quantitative
characteristics of the respondents of each selected company, as
well as to categorize each segment of the internal audience.
Among the main factors in choosing an employer was:
availability of information about the company in open sources,
convenient location of the office in the city and the average age
of employees.
Keywords: internal PR, corporatism, HR-brand, employer,
employee, motivation

Introduction. Today, the level of corporate responsibility among


companies in Kazakhstani business has grown to such an extent

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that corporate policy management is regularly on the agenda.
With a properly conducted corporate PR, financial remuneration
for work should not be the main motivation for the effective work
of an employee. Since today, in addition to competitive salaries,
the emotional climate within the company is important for
employees, its openness, the use of modern technologies in the
work process and the presence of partnership agreements with
various services (privileged access to fitness centers, discounts to
restaurants, communication services and other). When building
an HR brand for a company, you need to start by positioning
yourself in the employers' market. Example: innovative - applies
modern technologies in all areas, caring - takes care of customers
and employees, traditional - operates for several generations and
adheres to certain values, etc.

УРОВНИ КОРПОРАТИВНЫХ КОММУНИКАЦИЙ


КОММЕРЧЕСКИХ КОМПАНИЙ В СФЕРЕ
РОЗНИЧНОЙ ТОРГОВЛИ И СЕРВИСА

Жантали Р. Нургалиев

студент 4 курса специальности связи с общественностью


факультета журналистики
КазНУ им. Аль-Фараби
Алматы, Казахстан
zhantalin@gmail.com

Abstract: В статье описаны результаты исследования 4


компаний из двух секторов экономики, в котором приняли
участие 600 сотрудников среднего звена, а также их
руководители. Объектом исследования стало выявление
наличия корпоративных коммуникаций внутри компании, а
именно: повышение эффективности сотрудников,
нематериальная мотивация и лояльность к работодателю.
Сотрудники каждой из четырех компаний были опрошены

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путем тайного онлайн-анкетирования посредством сервиса
Google Опросы.
Проведенное исследование позволило идентифицировать
основные количественные особенности респондентов каждой
выбранной компании, а также категорировать каждый
сегмент внутренней аудитории. В числе основных факторов
выбора работодателя стало: наличие информации о
компании в открытых источниках, удобное расположение
офиса в черте города и средний возраст сотрудников.
Keywords: внутренний PR, корпоративность, HR-бренд,
работодатель, сотрудник, мотивация.

Introduction. Исследование отвечает на ключевые вопросы


касательно внимания казахстанских работодателей на
человеческий капитал и личностный рост сотрудников. Так
как на сегодняшний день, уровень корпоративной
ответственности среди компаний в казахстанском бизнесе
вырос до высшей ступени внимания, где управление
корпоративной политикой регулярно встает на повестку дня.
При правильно проведенном корпоративном PR, финансовое
вознаграждение за труд не должно быть главной мотивацией
для эффективной работы сотрудника. Так как на
сегодняшний день, помимо конкурентоспособной заработной
платы сотрудникам важен и эмоциональный климат внутри
компании, её открытость, использование современных
технологий в процессе работы и наличие партнерских
соглашений с различными сервисами (привилегированный
доступ в фитнес-центры, дисконты в рестораны, услуги связи
и др.). При построении HR-бренда компании необходимо
начать с позиционирования себя на рынке работодателей.
Пример: инновационная - применяет современные
технологии во всех областях, заботливая - заботится о
клиентах и сотрудниках, традиционная - действует несколько
поколений и придерживается определенных ценностей и др.

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Цель: выявить степень вовлеченности казахстанских
компаний в сфере розничной торговли и сервиса к
корпоративным коммуникациям, человеческим ресурсам и
HR-брендингу. Инструментом исследования был выбран
онлайн опрос на сервисе Google Forms с количественным
методом исследования.
Я сотрудник организации: Сферы розничной торговли –
41%; Сферы предоставления услуг – 58,3%;
Перед поступлением на работу я проходил (-а)
собеседование: Да – 83,3%; Нет – 16,7%;
Я и большинство моих коллег нашли своего
работодателя через: Сервисы по поиску работы – 49,9%; По
знакомству – 51,1%;
Я знаю в лицо руководителей компании, в которой
работаю: Да – 91,7%; Нет – 8,3%;
Я знаю историю своей компании: Да – 88,9%; Нет – 11,1%;
Информация о компании-работодателе есть в открытом
доступе: Да – 86,1%; Нет – 13,9%;
У компании-работодателя есть свои ценности и миссия:
Да - 77,8%; Нет – 3,8%; Не знаю – 19,4%;
В среднем, мои коллеги работают в этой компании:
Меньше года - 25%; Больше года – 38,9%; Больше
нескольких лет – 36,1%;
Я вижу перспективы профессионального роста в этой
компании: Да – 69,4%; Нет – 30,6%;
Руководство уделяет внимание профессиональному и
личностному развитию сотрудников (проведение мастер-
классов, курсы повышения квалификации и др.):
Да - 75%; Нет - 25%;
В нашей компании есть интранет (внутренний портал
для работы и коммуникации с другими сотрудниками):
Да – 61,1%; Нет – 38,9%; В компании, в которой я работаю
несколько отделов/департаментов: Да – 69,4%; Нет – 30,6%;
В компании проводятся тим-билдинги:
Да – 69,4%; Нет – 30,6%;

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Как часто ваш работодатель проводит тимбилдинги?:
Пару раз в год – 36,1%; Несколько раз в год - 16,7%;
Несколько раз в месяц – 19,4%; Тимбилдинги не проводятся
– 16,7%;
Руководитель в курсе эмоционального климата между
подчиненными и готов прибегнуть к решению
конфликта: Да - 75%; Нет - 25%;
Разница в возрасте между сотрудниками в отделе: 1-5 лет
- 50%; 6-10 лет – 41,7%; более 10 лет – 8,3%;
Компания-работодатель входит в ассоциации и
профсоюзы: Да – 30,6%; Нет – 38,9%; Не знаю – 30,6%;
Мой работодатель предоставляет дополнительные
социальные условия для поддержки и мотивации
сотрудников (абонементы в фитнесс-зал, дисконтные
карты в рестораны и другие заведения): Да – 22,2%; Да, но
только проявившим себя сотрудникам – 11,1%; Да, но с
вычетом суммы с зарплаты – 5,6%; Нет – 61,1%.

Существующая литература о лояльности к бренду была в


основном сфокусирована на роли воспринимаемого качества,
репутации бренда и особенно удовлетворенности, поскольку
они обобщают знания и опыт потребителей, направляя их
последующие действия. Сейчас для компаний, которые
стремятся занимать сколь-нибудь серьезное положение на
рынке труда, становится крайне важным их имидж как
работодателя. HR-бренд - это привлекательный
благоприятный имидж компании как работодателя в глазах
соискателей, ради которого они готовы немного снизить свои
требования к работе или выбрать среди других поступивших
предложений именно эту компанию, чтобы стать ее
сотрудником. Актуальность HR-брендирования в процессе
планирования потребности в работниках возникла по той
причине, что каждый работодатель хочет заполучить в свой
штат только лучших в своей сфере, профессиональных
сотрудников. А для того чтобы быть привлекательным

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местом труда («компанией мечты»), надо соответствовать
имиджу и оправдывать ожидания.
Преимущества HR-брендирования
Значительная экономия средств на подборе персонала. Время
на поиск подходящих кандидатов существенно сокращается,
так как соискатели более активно реагируют на вакансии от
компании «с именем».
Заключение: Каждая организация хочет увеличить
лояльность клиентов и персонала, получая максимальное
количество позитивных отзывов, чтобы сформировать
положительный образ во внешней среде. Также стоит учесть,
что отрицательные комментарии – это стимул к развитию.
Работа специалиста PR по внутрикопоративным
коммуникациям будет эффективна только при получении
обратной связи от его целевой аудитории – работников
компании и ее партнеров.

MARKETING MIX (THE CONCEPT OF 4PS)

Olga Bruskova

graduate student of Public Relations


Institute of Foreign Languages
Peoples’ Friendship University of Russia
Moscow, Russia
e-mail: 1032186137@rudn.ru

Abstract: The article overviews the marketing mix concept which


is widely accepted be business schools and marketers. The 4Ps
concept suggests four elements that should be considered by
companies to launch their products: Product, Price, Place,
Promotion. The concept became the basic one but there is much
criticism of it. Specialists offer new extensions or versions: 7Ps,
8Ps, 4Cs. 7Ps and 8Ps models offer to add components People,

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Process, Physical evidence and Performance. The 4Cs concept
proposes to replace components with Consumer, Cost,
Convenience, Communication which are more customer-
orientated. Despite the variation used marketing mix is an
important part of a business strategy and each element must be
thoroughly considered on its own and as a part of the whole.
Keywords: Marketing mix, Product, Price, Place, Promotion

Marketing mix is a combination of factors that can be controlled


by a company to influence consumers to purchase its products.
It is considered that the term “marketing mix” was created and
first used by Neil. H. Borden, a professor of advertising at
Harvard business school. Now, the marketing-mix concept is
nearly always used in conjunction with the famous "four Ps"
categories [3, p. 831]. The theory of 4Ps was created by Jerome
McCarthy, American marketing theorist. In 1960 he defined the
four elements of the marketing mix: Product, Price, Place and
Promotion. The model has been widely accepted by business
schools and managers through over the world.
The marketing mix is a set of controllable variables that the
company can use to influence the buyers responses [6, p. 401].
Each of its elements is a vital part of the firm’s business strategy
and should be considered carefully:
• Product. A product refers to a physical item or service that
could be purchased in order to satisfy consumer's need. It can
exist in tangible (goods) and intangible (ideas, services) forms.
It must be ensured that the product is in demand for target market.
The other point is to make a research on its life cycle during the
creation.
Each product has a life cycle. Each phase explains how the sale
would change in a time period. There are four stages: introduction
stage, growth stage, maturity stage and decline stage. Once the
product reaches the sale's decline it should be reinvented by
marketers to stimulate more demand.

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Another important factor for a product is the customer’s lifecycle.
The customer lifecycle is a term that describes the different steps
a buyer goes through when they are considering, buying, using
something or remaining loyal to a particular product or service.
• Price. Price is the amount the consumer must exchange to
receive the offering [1]. It also includes an effort and time to buy
something. It determines the company's profit and survival. The
marketing strategy is hugely influenced by proper adjusting of the
product's price. Apart from products initial price it includes
expenses of distribution, advertising and other possible variables.
Changings in one of them will influence the final price.
• Place. One of the key points of placement or distribution is to
make it accessible for the target audience. That requires a deep
understanding of your target market. It includes distribution
channels, warehousing facilities, mode of transportation and
inventory control management thus it is a mechanism through
which goods and services are moved from the service provider
and manufacturer to consumer [6, p. 421]. Success is hugely
dependent on good logistics and supply chain.
• Promotion. Promotion is a very important component of
marketing as it can boost brand recognition and sales [2]. It is
comprised of elements like Sales promotion, Sales organization,
Public relations and Advertising.
There are different types of product promotion. Advertising
includes the means that are usually paid for. Public Relations are
free. They include charity, exhibitions, press releases,
conferences. Another type is a word of mouth, though it belongs
to informal communication and is spread by customers satisfied
by some product or service.
Twenty years after creation of 4Ps concept some specialists tried
to change and expand it. They believed that service marketers
required more useful modified version. In the early 1980’s the
limitations and significant problems of the model were discussed
during the AMA Conference.

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The business sphere has survived many changes since 1960. One
of the most important of them is E marketing that has changed the
very idea of selling goods. The current relationships between
companies and consumers changed too. Now sellers concentrate
on customers, study their behavior, create algorithms to offer
them what they wish or may like. These changes are one of the
reasons traditional model is getting criticized because it does not
cover all the elements becoming important in the modern world.
The first extension of 4P’s model included 3 additional elements:
Process, People, and Physical evidence:
• People. This constituent includes human factors that influence
the execution of services. It describes relationships between
customers and employees and marketing solutions that related to
training or recruitment of staff, handling complaints.
• Process. Process describes the ways to deliver the service. It
includes design, standardization, preparations of manuals,
analysis.
• Physical evidence. Physical evidence includes elements of
environment created for service. While People describes the way
customers and employees interact, Physical evidence is
responsible for the space of interaction and non-human factors. It
includes spatial layouts, conditions, design. One of its goals is to
prove in the future that the service has taken place. It can be
memories of customers or prepared mementos.
There is another one extension for 7Ps model that is used
occasionally. The 8Ps model includes an additional element of
Performance.
Another concept was proposed in 1990 by Robert F. Lauterborn
and was called 4Cs. It is considered to be more consumer-
orientated. Its key difference is movement from mass market to
niche market [4].

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Table 1. Comparison of 4Ps and 4Cs
4P’s 4C’s
Product Consumer
Price Cost
Place Convenience
Promotion Communication
• Consumer. A company should consider people’s wants and
needs. The customers should be thoroughly studied so the
company could satisfy the demand.
• Cost. Cost is not considered as money but also what it cost
customer to own this product. For example, it can include time
spent on purchasing, moral sufferings for not having something or
preference of one seller to another.
One of the strategies is value-based pricing which primary
considers the perceived value of some product to customers. The
initial cost of the product stops playing critical role and the final
decision on pricing is based on buyer’s emotions. This is relevant
for such spheres as fashion or complementary products.
• Convenience. The product must be available for potential
audience. The seller requires knowing the best place to distribute
it in order to gain attention and provide a convenient way to buy
it. But with the development of technologies the place stopped
being the most important element. Online stores allow purchasing
without quitting a room or choosing during a walk. Now the
easiness to find or to buy something plays the bigger role.
• Communication. The key point of communication is to create a
dialogue between seller and buyer. While Promotion manipulates
the customer to make them buy or to attract their attention to the
product they had created, Communication is based on
understanding on a more personal level.
The Law of 7 is a marketing theory claiming that a customer has
to interact with some brands for 7 times on average before they
will purchase something. Target advertising and selling through

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the social networks can make potential consumers accustomed to
the brand in a form of a dialogue.
There are other extensions like 4Cs created by Koichi Shimizu
and its own extension to 7Cs. Another example is S.A.V.E.
(Solution, Access, Value, Education). The list is probably infinite
and new ideas will appear.
In conclusion, the 4Ps model has been the basic one for business
sphere for many years. But that does not exclude the possibility of
creating extensions and its analogues. The proper marketing plan
stays vital for every company despite the concept’s choice (4Ps,
7Ps, 4Cs). It is important to consider each element of the strategy
on its own and to review all of them as a part of the whole.
The progress has changed every sphere of the life and the process
didn’t stop, the business sphere does not remind anymore the one
that existed in the 1960’s. Thus, the knowledge of the difference
between strategies and their week places may help to choose the
proper one for a certain case.

References
1. Borden N.H., Marshall M. V. Advertising Management: Text
and Cases. Homewood, III, Richard D. Irwin, 1959.
2. https://marketingmix.co.uk/ [27.10.2019]
3. Jocz K.E., Quelch J.A. Milestones in Marketing. The Business
History Review, 2008. Vol. 82. No. 4, A Special Issue on
Salesmanship. P. 827-838
4. Lauterborn, B. New Marketing Litany: Four Ps Passé: C-
Words Take Over. Advertising Age, 1990. 61(41). P. 26.
5. Needham D. Business for Higher Awards. Oxford, England:
Heinemann, 1996.
6. Singh M. Marketing Mix of 4Ps for Competitive Advantage.
Journal of Business and Management, 2012. Vol. 3. Issue 6.
P. 40-45

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THE NOTION OF A PUBLIC RELATIONS CAMPAIGN
IN RUSSIAN EDUCATIONAL SYSTEM

Sofya E. Baeva

graduate student of Public Relations


Institute of Foreign Languages
Peoples’ Friendship University of Russia
Moscow, Russia
e-mail: 1032182204@rudn.ru

Abstract: The article highlights the key aspects of a PR


campaign, including its definition, stages, aims and classification.
A PR campaign is considered as an object of study within the
framework of a training course in Russian higher education
institutions. Since the theoretical part of public relations is based
on the foreign model, and higher education mainly implies
working under the conditions of the Russian reality, the aim of
this research is to show the necessity to integrate into the training
course the theoretical and practical material which would the
particularities of cultural, economic, political and social spheres
in Russia. In addition, the article indicates the necessity to
cooperate advertising and PR activities in order to achieve the
best results. The topicality of this research lies in the fact that the
notion of a PR campaign is analysed in close connection with the
Russian reality. The methods used in this work include analytical,
analogy and classification methods. The presented conclusions
may be used in pedagogy, advertising and public relations.
Keywords: public relations, PR campaign, advertising, PR
activities

The notion of a PR campaign is a basic unit in the vocabulary of a


future PR specialist. However, public relations are often mixed
up with the related sphere – advertising. Thus, the difference
between a PR and an advertising campaign often seems vague to

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learners. The problem is complicated by the fact that Russia and
the USA share different views on successful PR strategies, and
the examples of American PR campaigns may be found
inapplicable to the Russian market.
In the following article we will analyse the difference between a
PR campaign and an advertising campaign, basing on the
opinions of specialists in the field of PR. In addition, by outlining
general characteristics of a PR campaign, we will compare
dominating PR tendencies in Russia and the US.
PR in the USA was born and developed at the beginning of the
XX century, whereas in Russia this sphere became widespread in
the late 1980-s. Thus, the adapting period of PR in Russia
coincided with the fall of the USSR and significant changes in
political, social and economic life of the country. On its initial
stage public relations in Russia combined the elements of soviet
propaganda with foreign PR technologies and theories.
Today, Russian PR is often considered separately from
worldwide tendencies in communication and public relations.
For example, N.V. Starykh suggests three periods of advertising
development in the post-perestroika Russia: in 1985-1991 the
major point was the advertising of perestroika itself, the period
from 1991 to 2000 covered the “pyramid building”, and the
period from 2000 till present days is called the epoch of “the
Putin stagnation”. The author sees PR in close connection with
marketing relations and even uses these notions as
interchangeable. Moreover, she refers the advent of black PR in
Russia to the XIX century [6, p. 28-29].
Combining the notions of public relations and advertising may
result in misunderstandings regarding the aims, tools and
particularities of these two spheres.
An advertisement is an open direct message to a potential
consumer. This message implies the necessity to buy,
emphasizing the product being useful, trendy, status, or able to
solve some problem. PR is a more subtle and accurate tool for
interacting with target audiences. To put it simpler, the aim of PR

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is not to sell but to inform about a company, product or service,
to create a certain image in customers’ mind, to achieve loyalty
or, ideally, devotion to the brand.
Here we will enlist the differences between PR and advertising,
basing on the opinions of Russian specialists in public relations:
1) advertising is paid, PR is for free;
2) advertising works spontaneously (e.g. 50% sale!), PR can be
planned for months;
3) a customer might forget about an advertising campaign soon
after it is over, but PR is aimed at a longer influence on
customers’ preferences;
4) advertising sells a product, PR creates a brand;
5) with good PR a consumer might be more tolerant to poor
advertising;
6) in advertising there is a place for insincerity, in PR there is
not;
7) advertising is more obvious than PR;
8) advertising can make you famous for one day, PR is aimed at a
longer period;
9) advertising allows quick changing of conceptions, PR is strict
to changes;
10) unlike advertising, PR can fix negative attitude towards a
company;
11) advertising is trusted less than PR;
12) an advertising text calls for an action, a PR text informs
about a company;
13) advertising can turn into art, PR – to mastery;
14) in advertising, a plot may be remembered instead of a brand,
but in PR brand will be remembered in the 1st place;
15) an advertising can be prohibited, PR cannot.
There is also a number of features which are possible in public
relations rather than advertising:
1) PR may break the standards and use methods of information
supply which are not typical of the company;
2) it aims at a long-term effect;

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3) it forms the pool of future and “set-aside” clients;
4) it can pick on competitors;
5) it allows collecting and analyzing negative experience.
The categories of public relations and advertising have a common
element, which is influence on opinions. The result of both
activities is a formed personal and public opinion about an object.
Unlike N.V. Starykh, I.V. Niesov integrates PR to the
international context, suggesting that PR development at the end
of the XX century was defined by the major priorities in
production and management: effectiveness (1970-1980), quality
(1980-1990), flexibility (1990-2000) and innovation (2000-2010)
[3, p.129]. However, E.A. Bogoyavlensky argues that such strict
division to 10-year periods does not reflect the fundamental
reorganization of the country, and the nominations of the periods
are too vague [3, p.129].
Irrespective of the approach to the PR development in Russia,
this subject as a science discipline is based on foreign strategies
and terminology. Edward Bernays’s “Egg and bacon” promotion
still remains the most illustrative example of a successful PR
campaign, and the standard structure of a PR campaign is based
on the American 4-step RACE formula. However, the
particularities of Russian market and culture cause unavoidable
changes in PR activities, hence a problem: the theory does not
correspond with the real situation.
According to a basic definition by E.A. Blazhnov, a PR campaign
is “a complex and multiple use of PR tools and advertising
materials within the framework of a unified conception and a
general plan of influencing public opinions and attitudes with the
aim of popularizing image, supporting reputation, creating
publicity” [1, p.139].
In other words, it is a large number of PR events which are held
in a certain period of time in order to achieve certain results.
The reasons for organizing a PR campaign are usually the
following:
- the need to create an image for a company/organization;

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- the need to penetrate to new markets;
- the need to create a brand to increase the commercial value of
the company;
- the need to overcome a crisis within the company;
- the need of competitive activity;
- the need to carry out privatization;
- the problem of changing the trade name.
Within the framework of a PR program, one or several PR
campaigns are to be organized. These campaigns recognize
various PR actions and events. A general plan of a campaign
includes four stages, known as the RACE formula: Research,
Actions, Communications and Evaluation.
Table 1. Four stages of a PR campaign
1 Research and Getting the task, defining the problem and
analysis finding solutions, working on target audience,
creating a media kit, building a team
2 Planning Setting aims and tasks, planning the key events,
defining the most effective PR tools,
developing the media plan, planning the budget
3 Realization Bringing to life the pre-planned events,
and controlling and accounting, correcting the
communication plans, overcoming communicational and
organizational problems
4 Evaluation Making a report, press-clipping, evaluating the
effectiveness, defining the perspectives for
further actions
The 1st stage implies collecting, processing and analyzing all the
information which is necessary for conducting the campaign. The
overall situation in the company is evaluated in order to define
the reasons for organizing a PR campaign. These reasons are
usually caused by problems facing the company. Since they are
not always easily detected, there are various techniques which
may help looking at the situation from a different angle.

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For example, Situation Analysis offers a plan, which discloses the
key points for further consideration:
- point blank (where the company is now?);
- objectives (where does the company want to go?);
- strategy (how can the company fulfill its objectives?);
- tactics (specifying the actions to be done);
- action (bringing communicative actions to life);
- control (evaluation and monitoring).
Another technique, SWOT analysis, covers four main aspects of
the company:
- Strengths (What is good about the company? What reputation
does it have? What position on the market does it have?);
- Weaknesses (What are the weak or vulnerable points of the
company?);
- Opportunities (What are the opportunities to achieve a better
position?);
- Threats (What can competitors do to ruin the plans or to
prevent the company from success?).
The initial analyses respond to the main task of the campaign: to
define a detailed problem facing the company.
After the problem is detected and formulated, it needs to be
solved.
The second stage of a PR campaign concerns planning, which is
divided into three main types:
1. Audience planning considers the events on interacting with the
main target audiences. The role of this planning is very important,
taking into account how much attention is paid to working on
target audiences.
2. Media planning includes the supporting media events for the
PR campaign. It is necessary to prognose whether the media
coverage will require any financial investments.
3. Financial planning shows the potential cost of an event, a stage
or the campaign in general. The basic types of costs include
carrying out preliminary analyses and research, organizing events
and arranging the support of the media and advertising. Besides,

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costs should also include the services of the PR team. The major
priority of planning the budget is to minimize the risks, i.e. to
achieve main and secondary aims.
An important part of this stage is to convert planning into a
document which would present an official and legitimate plan of
the campaign. It is necessary to engage maximum specialists
from the related spheres – analysts, lawyers, researchers etc.
Afterwards, the plan needs to get a formal or informal approval.
Once the plan is approved, it is possible to proceed to the third
step, realization. This stage only takes 10% of a PR campaign,
compared to 90% of preparatory work and prognosing.
This stage involves bringing to life the pre-planned activities.
I.L. Vikentiev suggests the most widespread options, for
example:
- press-conferences, press-tours, briefings and interviews;
- mass media publications;
- presentations, seminars, public speeches;
- free supply of products/services to get feedback from press
and customers;
- meetings with celebrities;
- round-table discussions, official receptions, banquets;
- gossips and scandals;
- prestigious advertising;
- company magazines, souvenirs, marking, clothes;
- opening ceremonies;
- announcing a new political course or activity programs [4,
p. 202].
The final stage includes evaluating the effectiveness of the PR
campaign, i.e. whether the achieved results correspond with the
initial aims and whether further actions will be reasonable.
Nevertheless, one missing element or stage will significantly
worsen the results, meaning that the PR activity in question failed
to reach the level of a PR campaign.

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There is a wide variety of PR actions or special events which are
organized during a PR campaign and respond to its aims and
tasks.
PR actions are socially responsible events which are organized
within the framework of a PR campaign, for example, providing
discounts for students in a café.
These actions might imply changing the policy, the usual
behavior pattern or the principles of decision-making in order to
avoid negative consequences, or improving the general quality of
a product. These changes and modifications help achieving the
strategic aims of the company and satisfying the needs of the
target groups.
PR campaigns in Russia and abroad are held in various spheres:
politics, economics, social and cultural spheres. Their
particularities are conditioned by the following factors:
- the particularities of a corresponding sphere;
- the particularities of the target audience;
- the aims of the campaign;
- the engaged communicative tools, technologies and channels.
PR campaigns may be divided into three groups according to
their aim:
1. Some campaigns are aimed at informing. They intend to
increase the level of public knowledge, to raise awareness about
potential consequences, alternatives or available options, to make
people realize the importance of a certain idea.
2. PR campaigns which are aimed at convincing create new
behavioral or communicative stereotypes or try to change the
settled stereotypes of the target audience.
3. The third type intends to change the behavior of the target
audience. These are mobilizing PR campaigns which aim at either
encouraging or preventing the change of behavioral stereotypes.
According to the sphere of realization, there are four types of PR
campaigns:
- economical or commercial;
- political or state;

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- social or cultural;
- recreational or entertainment.
Geographically, PR campaigns divide into:
- local (on the level of a local community);
- interregional (taking place in separate regions or federal
subjects);
- national/federal (taking place in the whole country);
- transnational (taking place in a number of states or in regional
international organizations like the European Union);
- global (on the level of global international organizations like
the UN, UNESCO or global interstate agreements).
Based on the emotional effect, PR campaigns can be:
- aggressive (using strong psychological influence and bright
slogans);
- moderate (relying on rational arguments and neutral slogans).
According to the duration, PR campaigns fall into three groups:
- strategic (lasting for several years);
- operative (lasting for one year);
- situational (lasting for several months).
In present-day circumstances the major part of PR activities in
Russia are singular, short-term events, although a full-scale PR
campaign usually lasts up to a year.
PR campaigns in Russia are best represented in politics (where
they are widely used during the elections), in large commercial
corporations, industrial giants and banks.
It is worth mentioning that today it is impossible to carry out a
PR project that would not include the elements of advertising,
and vice versa. The market appreciates integrity of the campaign,
an idea that goes through all brand activations. For this reason,
united efforts of PR and advertising specialists lead to effective
communication with target audiences.
Although both spheres aim at realizing a profit and achieving
long-term stability, advertising has a brief effect and a target to
attract customers, whilst PR is not as brief, it works on influence
groups and creates a favourable communicative environment.

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The outcome of a public relations campaign is unpredictable. It is
much more complicated to control the spread of information and
to forecast how long the information will be covered by the
media.
Provided that PR campaigns in Russia should respond to the
needs of real businesses, it seems highly necessary to integrate in
the learning plan the theoretical and practical material about
economic, social, cultural and political situation in Russia in
terms of public relations.
A proper organization of PR activities allow companies to build
stronger bonds with the target audience, which leads to mutual
satisfaction.
Balancing the basic theory with examples of real, present-day PR
in Russia will provide students with comprehensive and useful
experience considering their future career in public relations.

References
1. Блажнов Е.А. Паблик рилейшнз: Приглашение в мир
цивилизованных рыночных и общественных отношений. –
М.: ИМА-пресс, 1994. – 152 с.
2. Блэк С. Паблик рилейшнз. Что это такое. М.: Сирин, 2003.
- 240 c.
3. Богоявленский А.Е. Паблик рилейшнз в России: от
«пюблисите» к паблисити. Статья 2. Истоки российских
паблик рилейшнз // Вестник ВГУ. Серия: Филология.
Журналистика. 2015. № 3. С. 128-131.
4. Викентьев И.Л. Приёмы рекламы и public relations. - СПб.:
ТРИЗ-ШАНС, 2007. - 406 с.
5. Почепцов Г. Г. Паблик рилейшнз для профессионалов. М.:
Рефл-бук, 2003. - 447 с.
6. Старых Н.В. История рекламы. – М. : Изд-во МГУ, 2012. –
100 с.

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ESSENTIAL COMPONENTS OF PUBLIC RELATIONS:
TYPES AND TOOLS

Sona K. Ivanyan

graduate student of Public Relations


Institute of Foreign Languages
Peoples’ Friendship University of Russia
Moscow, Russia
e-mail: 1032185156@rudn.ru

Abstract: Public Relations is an inseparable part of every


successful company nowadays. The present article introduces
some important aspects of Public Relations starting from the
history of PR, then describing what Public Relations is and the
aims it pursuits. Then it focuses on the areas where Public
Relations exist and explains the link between them. There are
certain tools and channels that are used in Public Relations, and
each of them has its pros and cons. Here, we also talk about the
differences between Public Relations, Advertising and marketing,
meantime showing how the system of marketing mix works, and
the role that PR plays in it. We highlight the differences that exist
between advertising and Public Relations and introduce the PR
campaign process in accordance with the R.A.C.A. principle.
The aim of the present article is to provide a theoretical
background and introduce the basics of PR.
The methods that have been used in the present article are;
descriptive and comparative.
The obtained results of the study can be implemented in all
spheres of public relations.
It can be concluded that Public Relations is an inseparable part of
the operation of all companies and organizations regardless of the
sphere of their operation.
Keywords: types and tools of PR, symmetrical communication,
marketing mix, PR and advertising

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Public Relations is one of the most important elements used to
influence the public. In order to be able to live in public, it is
necessary to have a certain level of agreement with it and have
the ability to persuade and impact.
The roots of PR can be observed from ancient times. Greek
philosophers mentioned in their works more than once about the
importance of taking into consideration the wish of the public,
which shows the importance that they gave to public opinions.
The history of PR is inseparably linked with religions. Both
Christian and Muslim prophets used various tools to influence the
public, such as public speeches, lectures etc. But the start of the
PR profession is considered 1900 when the "Publicity Bureau"
was founded. The founder of Public Relations in Britain is
considered Basil Clarke, who started editorial Services in 1924.
The founders of PR in the US are considered Ivy Lee or Edward
Bernes and after 1948 the practice of American PR was spread to
Europe.
Public Relations present the ways and methods that a company
uses to spread new messages about its products or services. The
main priority of public relations is creating a favorable image of
the company among the customers. The objectives of public
relations are to create, keep and protect the company’s fame and
prestige. A number of studies proved that people always buy
certain products just based on the company’s reputation. Thus it
can be said that public relations have a direct influence on the
sales and revenue of the company. If the company wants to make
profit, it has to make sure that their marketing and public
relations work closely together.
As there are different companies with various goals, consequently
there are certain areas of public relations as well. Now we will
shortly describe each of the area of public relations more detailed.
Product Public Relations is when public relations and marketing
work closely together, to promote a new or already an existing
product. The aim of product public relations is to enhance the
brand awareness among the customers. There are many

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successful examples of product public relations, such as when the
Prince Matchabelli produced a new fragrance for males called
‘Hero’, they implemented a successful and creative product
public relations tactic and enhance the sales. All that they did was
organizing a ‘National Hero Awards Program’ and honoring male
heroes.
Another interesting example of product public relations is when,
Campbell Soup Co. introduced their product with just
highlighting how it can be cooked in a different way, they just put
a recipe booklet and thus enhanced the number of sales.
The next important area is employee public relations. At the first
sight it sounds a bit strange, but actually this is an inseparable
part of any successful public relations. Employees are an
important audience of the company, so they should be aware of
what is going on in the whole company, the scope of company’s
operations etc. A very successful example of employee relations
has been implemented by ‘Betchel Group’. Firstly, they published
an annual report to inform their employees about the company’s
operation, then they used surveys, so that to find out how useful
the report was. Then they organized ‘brown bag’ lunches, which
is now widely used in many organizations, they are live
presentations about the companies.
If Employee Relations deals with the inner audience of the
company, the Financial Relations of the company deals with the
potential investors outside the company. This area of public
relations is a vital part of company’s capital. There are a number
of tools that are used in this area, including mailing, briefings,
formal presentations, stockholder meetings, annual meetings. The
last one is an efficient way of dealing with the financial relations,
as very often, many successful companies organize their meetings
in different countries thus enhancing the awareness of their
company in products on a wider scale [1, p. 45- 52].
Another important area of Public Relations is Community
Relations which creates a favorable image of the company among
the community members. Community Relations manifestation

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may have different forms: various social events, children’s
programs, sponsoring events, plant closing, sport events etc. For
example, a small business company built its office in an
abandoned building, thus immediately creating a favorable
picture of a company in the eyes of the public.
The most important area where public relation becomes really
critical is during the ‘Crisis Communications’. This is when there
is a natural disaster, accidents or even for example, product
failures, public relations role becomes undeniable. A very good
example of how public relations operated successfully, is when
there was an earthquake in San Francisco in 1989, the department
of Public Relations of the Bank of America started quickly
reaching the public in all possible communication channels and
inform them that the bank still operates, and thus they prevent the
panic.
And of course, the most important area of any public relations is
Media Relations, which includes press releases, interviews, press
relations etc. The key point of media relations is to create an eye-
catching and interesting story that the media would like to cover.
In order to achieve their goal, PR specialists use a number of
techniques. The key techniques that are used in PR are Press
Releases, Newsletters, Attendance of Public Events, Sponsorship,
Social Media, Brochures and catalogues, the list is endless.
Press Release is still considered the most influential tool used in
PR. In this case information is sent out by traditional media
channels including TV, radio, newspapers. They are still
considered quite actual as people trust such information more
than the one being communicated by digital channels.
Newsletters are the most efficient and time-saving tool used in
PR, as the information is directly sent to the target audience. This
is also a powerful way to create a strong bond with the public.
Blogging is one of the modern tools that is used in Public
Relations. It includes also includes press releases, newsletters, but
unlike the traditional ones, in this case all these tools in digital
forms.

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Sponsorship is another tool which is an inseparable part of most
public relations campaign. There are many events taking place in
various scales, locally, nationally or internationally, which
provide a platform for companies for ‘free advertising’. By
sponsoring certain events the company can reach even a wider
brand recognition than it has had or can reinforce already existing
recognition of the company. A successful example of sponsorship
event is when L’Oréal sponsored ‘The Toronto International
Festival’ and their sponsorship was focused on the red carpet.
Social media, is definitely, the most efficient and economical tool
used in Public Relations nowadays. This is when Public Relation
specialists use various social media such as Facebook, Instagram,
Twitter to directly achieve their audience. In this way they have a
chance to create a two-way communication.
Brochures and catalogues help potential customers think about
the company and its products. Well-designed brochures can make
the customers think about the brand, google it and know more, in
other word, they will help trigger curiosity of customers.
As in all spheres, Public Relations is not an exception, there are
some advantages and drawbacks. The first advantage of Public
Relations is its trustworthiness, i.e. because public still trusts the
information communicated in traditional channels. Next is its
accessibility, i.e. it is easily reachable for a large audience. Public
Relations is more cost effective way of promoting a product or a
service of company than other channels [5, p. 64-70].
There are some drawbacks that PR deals with. Firstly, it is
somehow uncontrolled, secondly, in many cases it is difficult and
even impossible to calculate how influential the PR campaign
was. And finally, there are no guaranteed results, i.e. the media
covers the information if it is sure that it will attract its audience.
Another important point that we would like to cover in the
present article is discussing the link between advertising, Public
Relations and marketing, as very often this might cause
confusion. Though all three are closely connected, there are
certain essential differences among them. Now we we’ll look at

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each of them separately and try to highlight the differences they
have.
Marketing is generally defined as introducing the right product or
service at the right place, at the right price and at the right time.
At the first sight this just seems a simple formula that can be
easily implemented, but actually it is not. If one of this elements
fails to operate properly then the whole marketing campaign
might fail. Thus everything should be organized properly. The
marketing mix is an efficient tool which can define the future of
the product or service. So, the marketing mix is manifested
through P’s of marketing. These are Product, Price, Promotion
and Place.
Now we will go a bit deeper in each ‘P’ of marketing mix. The
first is product, which can be not only a good but also any
service. There is a well-known concept in marketing called cycle
of product life. And for the marketers it is vital to know all stages
and be prepared for the possible challenges that they might face.
Every detail starting from the benefits, distinguishing aspect of
the product should be taken into consideration. Besides, the most
important point here is identifying the possible target audience of
the product or service.
The price should correspond with the value that the product
carries, otherwise the number of sales will be less than it is
expected. As far as the customer see the real value of the product
then the marketers can be sure that the product will be sold
successfully. There are other factors affecting the price of the
product; such as the price of the competitors on similar products.
Promotion is the next important step in marketing mix chain. This
is when specialists use certain strategies and tools to promote the
definite product. The main tools used here are advertising and
public relations. The specific tool (can be more than one) of
promotion is chosen depending on many factors, such as product,
budget, target audience etc.

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The last step is place or placement of the product, i.e. how the
product should become available for the customers. Again
depending on the product the channels of distribution will vary.
Thus, it can be said that advertising and PR are promotional tools
that are used in marketing campaigns. Now we will discuss how
advertising and PR are different from each other [4, p. 85- 87].
It becomes clear that both advertising and PR are tools that are
used in marketing to promote a certain product or service of a
company. The main difference between these two is that
advertising is quite an expensive tool and might include a larger
audience, meantime Public Relations is generally free of charge,
it can be said that it is an advertising through the third party.
While advertising tries to grab the attention of the target audience
through money, Public Relations seeks way of creating a solid
relationship with the public. That is why, advertising is generally
called as paid media, and PR known as earned media. Another
crucial difference between them is that, advertising is mostly a
one-way communication, while PR seems to be a two-side
communication between the public and company. If the main
purpose of advertising is to make people buy the product, for PR
the priority is to create a positive image of the company in the
eyes of public. In case of advertising the company has a control,
while in PR it doesn’t. An advantage of advertising is that it will
undoubtedly find its placement, in case of Public Relations it is
not certain that the media will cover what the company wants to.
And the main difference is that people believe Public Relations
more than advertising, because in case of public relations there is
a medium who is more trustworthy than the direct reach to the
public as in case of advertising.
As we talked about the history, areas and tools of PR, we also
introduced the difference between PR and advertising, and also
discuss what marketing mix is, now we can introduce what PR
campaign is, what stages it consists of.
The successful PR process should involve symmetrical
communication. This idea lies on the basis of Grunig’s

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Excellence Theory. Symmetrical communication implies that the
decisions made by the company should be mutually beneficial
both for the company and the target audience. This kind of
system is used when creating a strategic PR plan. There are
different formulas of successful PR process but two of them are
considered the most efficient ones: R.P.I.E and R.A.C.E. Both are
considered effective but the latter is a more in-depth approach.
Thus, the R.A.C.E. process includes the following important
stages: Research, Action and planning, Communication and
Evaluation. In the first stage which is Research it is essential to
study and analyze the situation that the company is in and then
precisely define problems and opportunities that the company
has. There is a useful technique that is widely used in this stage;
gathering information referring what other companies did in the
same situation, and consider whether the same approach will be
efficient in your case. The SWOT analysis which is a very
common and popular tool used in PR, can be quite useful when
trying to determine the current problems that the company is
facing and opportunities that exist to solve the problem. The
SWOT analysis reviews the situation from two angels: external
and internal. It consists of 4 stages strengths and weakness of the
company (internal factors) and opportunities and threats (external
factors). It is equally important to understand what are the strong
and weak points of the company, i.e. what is good about the
company and what vulnerable points does it have). Next is
analyzing the opportunities that the company has and the threats
that it might face, i.e. what are the possible opportunities to
achieve better positions and what are the threats that might be
faced on that way.
The second stage of R.A.C.A. technique is action planning, and
the main point here is to be realistic, the objectives that have been
set forth should be, SMART, that is, Specific, Measurable,
Attainable and Time-bounded. In this stage it is also important to
know definitely who the targeted audience is [2, p. 21-25].

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The next stage is communication and relationship which in itself
is the core of Public Relations. In this stage a company should
already decide the channels through which the news should be
disseminated to the targeted audience. Depending on the targeted
audience the communication channels will vary.
Finally, the last stage is evaluation, when PR specialists analyze
the efficiency of the PR campaign, i.e. how the final results
correspond to the initial goals.
And the last important point that we will cover in the present
article is the classification of PR campaigns. There are certain
criteria based on which the classification can be done: based on
the strategy of PR campaign it can be either negative or positive.
Geographically, PR campaigns fall into the following groups;
global, international, national, interregional and local. PR
campaigns can also be classified based on the emotional effect
that they have; they can be aggressive or moderate. And finally
they can be classified according to the sphere of their usage;
state/political, commercial/corporative/ non-commercial and
cultural.
Thus, we can say that Public Relations is quite a large area of
study, we tried to introduce some essential aspects of PR. The
present article can serve as basis to learn some essential aspects
of PR and a background from where one can go deeper into PR.

References
1. Edward L. Public Relations; University of Oklahoma Press,
Norman, 1952. – 285 p.
2. Cutlip, Scott, Unseen Power: Public Relations as History;
Lawrence Erlbaum & Associates, Mahwah, NJ, 1999. - 344 p.
3. Grunig, James E; Hunt, Todd, Managing Public Relations (6th
ed.), Orlando, FL: Harcourt Brace Jovanovich, 1984. - 297 p.
4. Newsom, Doug, This is PR: The Realities of Public Relations.
8th ed., Wadsworth, 2003. – 365 p.
5. Seitel, Fraser P. The Practice of Public Relations. (10th ed.),
Upper Saddle River, NJ: Pearson Prentice Hall, 2007. – 348 p.

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7 EFFECTIVE WAYS TO BUILD YOUR PRODUCT’S
BRAND AWARENESS

Daria S. Alexeeva

graduate student of Public Relations


Institute of Foreign Languages
Peoples’ Friendship University of Russia
Moscow, Russia
e-mail: AlexeevaDS@yandex.ru

Abstract: Objectives We conduct our research of successful and


unsuccessful PR campaigns of worldwide brands, such as IKEA,
Coca-Cola, Pepsi, Nike, Nesquik and P&G and we reveal 7 key
ways to build brand awareness.
Methods The research involves the analysis of successful and
unsuccessful PR campaigns examples.
Results Some worldwide companies use the 4Ps strategy. In order
to increase brand awareness, it is important not only to focus on
advertising and promotion, but also to take into account such
aspects as: price, product, place and promotion. The identified
mistakes in non-compliance with this strategy helped to identify
the main ways to increase brand awareness.
Keywords: brand awareness, public relations, advertising, place,
product, promotion, price

According to a basic definition by E.A. Bazhnov «PR is the


management of communication between an organization and its
public» [3, p. 4]. While advertising is a marketing tactic
involving paying for space to promote a product, service, or
cause.
Advertising is paid media, public relations is earned media. This
means you convince reporters or editors to write a positive story
about you or your client, your candidate, brand or issue. It
appears in the editorial section of the magazine, newspaper, TV

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station or website, rather than the “paid media” section where
advertising messages appear. So your story has more credibility
because it was independently verified by a trusted third party,
rather than purchased.
Both advertising and PR help build brand awareness and
communicate with target audiences. The most basic difference
between them is that advertising space is paid while public
relations results are earned through providing the media with
information in the form of press releases and pitches.
There are 5 main elements of PR campaign:

Public Relations campaign elements


Target •to attract a wider audience
• to build brand awareness and
Objectives
reputation
•to keep up with trends and to
Relevanсe
conduct media experiments
•to use diverse communication
Strategy channels
•to keep abreast of the rivals
Сompetitiveness activities
1. Target: while companies and organizations are creating
advertisements that primarily target potential customers, PR
professionals are hoping to cast a wider net. They can include
employees, investors, customers, the media, legislators, and many
more. There is also a new category called influencers, which
refers to people who have a lot of connections personally, like
celebrities or politicians, or who have a large following on social
media. For example, the successful endorsement with Kolin
Kapernic in the Nike campaign, which attracted customers’
attention to the company products?
2. Objectives: public relations help build brand awareness and
reputation. The objectives behind a successful PR campaign
revolve around the fact that consumers place more trust in and are
more likely to do business with a company they know and

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admire. Such brand awareness was achieved by IKEA through
creating separate Instagram pages for each piece of furniture in
social network. Or for example, Advertisements are generated for
a specific target market in order to generate sales. They usually
focus more on promoting a product or service than on building a
reputation.
3. Relevance: the only way to stay top-of-mind with the public is
to remain a relevant force in the marketplace for as long as
possible. Keep up with trends, and go where the people are.
Experiment with different social media platforms as they fall in
and out of favor with your target audience. Following long-term
trends is always important, but also stay on top of viral crazes and
current events. People will only talk about your brand if your
brand is doing things worth talking about, so keep your ear to the
ground and create buzz as often as possible. So, thanks to a wide
range of various technical tools used by IKEA company they
demonstrate their products directly to the customers. Thus IKEA
succeeded in building brand awareness.
4. Strategy: once you know who you’re reaching and what you
want to achieve, the next step is figuring out how to tailor your
message to your audience to make your goals a reality. Because
you’ve done your research and know your audience, you should
know the most effective ways to reach them. For example,
Necquik PR campaign covered not only social networks but also
managed to attract both children and their mothers by creating
different online tests, pitch writing and blogging.
5. Competitiveness: the only way to stay ahead of the
competition is to know everything about it. Make a list of your
biggest threats and then take note of what they’re doing. Monitor
their PR activities and note their successes and missteps. If a
strategy seems to be working for them, see if you can incorporate
something similar into your own campaign. If you see them
lacking in a certain area, there’s an opportunity for you to fill the
gap. As we can see from “Pepsi” succeeded advertising
campaign, the volume packaging increase in contrast to “Coca-

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coca” products leaded not only to temporary sales increase but
also boosted “Pepsi” brand awareness in general.
In that way, the best way to promote a business is to incorporate
both public relations and advertising into your marketing strategy
in an integrated and coordinated way.
In order to boost a Brand Awareness it is important not only
concentrate on advertising and promotion but also to take into
account such aspects of 4Ps strategy as: price, product, place,
promotion. In other words neglecting of one of these aspects can
lead to the PR campaign failure.

4 Aspects of Successful PR Сampaign

Product Place Price Promotion

The P&G company didn’t elaborate their PR campaign launched


in Japan. They paid not enough attention to the fact that the width
of the towels was inappropriate for local market. According to
this example, we can see that the place aspect wasn’t worked out.
Other unsuccessful example of 4P strategy was Coca-Cola
campaign in which their price policy depending on the summer
weather leaded to the sales volume reducing. Coca-Cola company
made price increase too evident for consumers that caused not
only seasonal sales decline but event to undermine the brand
credibility.
The bright example of the 4P structure brake down was Nicki
campaign. The model of Nicki sneakers with embedded
Bluetooth system didn’t succeed in the Russian market as there
weren’t special devises which had to be connected with this
product.

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Looking at Necquik PR campaign it becomes evident that
Promotion aspect wasn’t worked out. As the Necquik promo with
rabbit ears was presented just through social networks and wasn’t
supported by other media channels. PR professionals are always
looking at the big picture, delivering meaningful information
about their brand.
After scrupulous analyzing the mistakes made in PR campaigns
we were able to identify the main ways that will help you to
promote your product or service

7 key ways to build brand awareness:


1. Using various communication channels such as: Internet,
social networks, TV, mass media, individual contacts as one
channel can’t cover all target audience. Using different
communication channels at the same time allows you to cover not
only the primary audience, but also the secondary audience.
2. Appealing to different technical tools such as: press releases,
blogging and speech writing, events, direct mail, banners. The
use of different technical tools allows more precise convey to the
consumer information about the brand.
3. Carrying out detailed market researches. The discoveries you
make as a result of market research will help you better
understand your customers.
4. Being committed to primary quality standards.
5. Inviting influencers into your niche (endorsement) is a great
way to increase brand awareness and hopefully drive sales. When
influencers have an established audience that knows and trusts
them, once they mention your product(s) and discuss your brand
in their content, those mentions will expand your reach and
increase people’s awareness of your product.
6. Creating online contests. Today, the younger generation is
very active in online competitions.
7. Taking risks such as acting against public opinion can cause
great success or great failure.

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Conclusion These seven ways are a great way to increase your
brand awareness and help your company prosper. To increase
brand awareness, it is important not only to focus on advertising
and promotion, but also to take into account such aspects of 4Ps
strategy as: price, product, location, promotion.

References
1. Архангельская А. С. Социальные сети как площадка для
бизнескоммуникаций // Вестник Нижегородского ун-та им.
Лобачевского. – 2013. - № 4. – С. 186-189.
2. Серегина Т.К., Титкова Л.М. Реклама в бизнесе: Учеб.
пособ. - М.: Маркетинг, 2014. - 428 с.
3. Bazhenova, E.A. Opposition friend-or-foe in the political
discourse / E.A. Bazhenov, S.A. Lapcheva // Modern political
linguistics. Yekaterinburg: Ural. State. Ped. Univ., 2003.
4. Gregory A., Planning and Managing Public Relations
Campaigns: a strategic approach. Great Britain: KonganPage,
2010. 659 p.
5. https://blog.ezmarketing.com/top-failed-marketing-campaigns
(дата обращения: 25.09.2019).
6. https://www.business2community.com/public-relations/5-
numbers-from-nikes-recent-dream-crazy-campaign-that-confirm-
its-smashing-success-02117687 (дата обращения: 29.09.2019).
7. https://econsultancy.com/10-examples-of-great-ikea-
marketing-creative/(дата обращения: 27.09.2019).

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PRODUCT PLACEMENT AS A BRAND
AWARENESS BOOSTER

Ekaterina V. Petrushkina

graduate student of Economics


Financial University
Moscow, Russia
e-mail: Petrushkina.katena@mail.ru

Abstract: This paper is considered to study the phenomenon of


Product Placement both, worldwide and in the Russian
Federation. Accurate definitions of this advertisement tool are
given and analyzed due to the main characteristics of Product
Placement. It is shown here how this method is used in the
advertisement industry and which advantages and disadvantages
it contains. Special character of Product Placement in Russia is
discussed separately and is considered with the international
experience. Approximate data are given showing quantity and
qualitative indicators. In conclusion general position of Product
Placement and its prospectives and barriers are analyzed.
Keywords: Product Placement, hidden advertisement, media,
marketing portfolio, direct advertisement, channel, recipient,
brands, communication

In the conditions of the market economy, where there are so


many suppliers of the identical goods and services, it is getting
more complicated to impress and interest a sophisticated
customer. Moreover, statistics shows that 60% of Russian
population find usual advertisement annoying and unreliable [1,
p. 3]. For advertisers, the logical solution is to search for new
communication channels that allow to bypass the "advertising
filter" of consumers. And such a solution was found: Product
placement is an advertising technique used by companies to
subtly promote their products through a non-traditional

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advertising technique, usually through appearances in film,
television, or other media [2]. It will be helpful for absolute
clearness to use one more definition from the reliable source:
Product placement is a form of advertising in which a company
has its product placed where it can be clearly seen during a film
or television programme [3]. To cover the topic of the paper it is
necessarily to combine mentioned above definitions. Product
placement is a form of hidden advertising in which a certain
brand or product is unobtrusively included in the plot of a film,
television program, music video, computer game, or other
illustration for profit.
This is a fairly large set of technologies and methods for
promoting a brand, service or company on the market, which
usually accompany direct advertising and are aimed at achieving
the best marketing results. As a rule, such hidden advertising
demonstrates the advertised product itself, its company, or
directly mentions its purpose, quality or method of use. The
effectiveness of the method lies in the fact that in the process of
communication, advertising information partially passes the
barriers of the perception of advertising, which are present in the
minds of all people. This is due to the fact that an advertising
message, in contrast to direct advertising (an advertising video),
sounds implicitly; a person may not understand at all that it is an
advertisement. This product remains in the human subconscious
and can covertly affect it for a long period, prompting a specific
action - to acquire this particular product.
Product Placement has many applications in the field of modern
advertisement, because it is one of the most popular and effective
methods of influencing the audience in the modern advertising
business. This method is increasingly becoming a vital factor in
new advertisement horizons which managed to combine art and
commerce. Therefore, this topic is actual in the conditions of
nowadays trends.
For this article, it was of interest to analyze the difference
between Russian and foreign experience in the sphere of Product

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Placement and to evaluate the economic benefit from
implementation of Product Placement in advertisement
campaigns.
The detailed description of the main characteristics is needed for
further investigations. There are three main types of Product
Placement: screen placement, script placement, plot placement.
The first type uses a product in the foreground or background of a
shot. The product is not mentioned by name, but does garner
some decent screen time. Script placement literally puts a product
in the script, where a character in the film will mention the
product by name. Plot placement makes a product a part of the
film. These are products that are always connected to characters
of the film or other media product.
The mechanism of influence works quite simple, it can be traced
on the example of any movie: the viewer likes the plot and the
main character. The character likes, for example, drinking
Nesquick cereal in the morning, calling Nokia, wearing Nike
sneakers, drinking Pepsi soda and drinking Lipton tea. Such
details for the plot may be absolutely not important, but the only
thing matters in such a case is that the addressee has adopted all
the habits of the protagonist. Thus, the viewer goes into the
category of consumers of the brand represented in the film.
It doesn’t seem to be difficult to extract the main components of
Product Placement from the above-mentioned example. Among
the components of Product Placement, as well as in the classical
theory of communications of G. Lasswell [4, p. 604-605], there is
a source, message, channel and recipient.
It is common to single out several types of sources on the Product
Placement market: film companies, production studios,
distributors, agencies specializing in Product Placement, and
actually the customer companies. A distinctive feature of the
source, which is often the customer company, is that within the
framework of this technology it is always invisible to the
recipient, since the fundamental goal of Product Placement is to
integrate a product or service into an artwork. The placed subject

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of advertising should not be perceived by the addressee as
Product Placement and should send it to the manufacturer. It
should be identified as an integral part of an existing lifestyle or
character that impresses the recipient.
The message in Product Placement has many varieties. Any
message in Product Placement is always based on strictly defined
customer tasks.
The channel in Product Placement can be any art product.
Computer games, animated films, feature films, fiction, television
series and sitcoms, television programs and talk shows are among
the most popular. The shares of Product Placement are
represented on the Figure1. The bar chart shows that the most
common channel of Product Placement is TV, which involves TV
networks, all sorts of TV shows, etc. «This trend is being driven
by a growing number of more valuable plot integrations in media
content, primarily in live TV and OTT video.» comments PQ
President Patrick Quinn [5].

Figure 1. Share of Product Placement [5]


Since the Product Placement channel is any art product and
product of the entertainment industry, it is always focused on a
wide and long-term reach of the target audience. This is
facilitated by the repetition of films and series, the reprint of
books and the exchange between acquaintances, citation in other
works, release on other media, etc.

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These main components create the structure of implementation of
Product Placement. However, there may be a lot of assumptions
and differences which are strongly remarkable in the comparison
of Russian and foreign Product Placement approaches. Product
placement is not a new phenomenon; it dates back to the
beginning of 20th century, but it got the familiar in the 1940th. In
1945, Nathan D. Golden, director of the cinematography
department at the US Department of Commerce, suggested that
industrial and commercial films would be one of the strongest
incentives to ensure a high level of production activity. Studies
conducted by American advertising analysts showed that by
1998, more than 1,000 companies had Product Placement
strategies in their marketing portfolio. Nowadays The U.S. is the
largest and fastest growing paid product placement market. It
showed revenues of $1.5 Billion in 2005, $2.9 Billion in 2007,
and $11,4 Billion in 2019. It is necessary to note that such a
significant increase is marked not only by the USA, but only by
other countries represented on the graph below.

Figure 2. Spending on Product Placement in different countries


Source: STATA

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In Russia Product Placement is also widely used since 20th
century, but not in such an effective way. The quality of this
advertisement method is poor. Often in domestic cinema product
placement of a product takes tens of seconds, it starts to annoy
and becomes ineffective. Moreover, according to numerous
studies, the two-second appearance of the logo in the frame is
already imprinted in the subconscious. And, how Maria Vogt,
editor-in-chief of the magazine “Cinematographic Distribution
Bulletin” said, for the Russian box office this is a common
problem. One of the reasons may be that the promotion of the
brand was agreed upon when the film was already shot, and the
Product Placement scenes were seemed to be illogic and
misplaced. Moreover, modern methods of introducing brand
advertising in Russia do not allow to recognize Product
Placement, because they often doesn’t embodies one aspect of the
so-called stealth of advertising. Russian cinema is full of the
image of brands, reproduction of slogans and all kinds of
interaction of the main characters with the advertised brand.
However, Product Placement in Russia has great potential.
Firstly, because more than 56% of Russians watch films and
serials and TV in general everyday according to statistics.
Therefore the influence of Product Placement would be directed
on the huge audience. Secondly, there are less goods and services
in Russia than in the US and Europe, so, brands represented on
the territory of the Russian Federation have less competitors.
It is very difficult to compare Russian experience of Product
Placement and foreign one on the financial matter, because there
is no such an information in the open sources. However, it seems
to be quite obvious that Product Placement in the USA is more
developed than in Russia. For instance, the average price of
Product Placement in TV shows and sitcoms in the USA is from
$60K dollars to $200 000K+ dollars, in Russia the situation is
absolutely different: from $30K dollars to $120K dollars.
Moreover, some data are even disproportionate. The examples of
the most expensive Product Placement are $45 millions dollars

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paid by Heineken to «Skyfall» and $20 millions dollars paid by
Lexus and Bulgari to «Minority Report» for hidden advertisement
of these companies’ products, while the most profitable usage of
Product Placement in Russia is only $3 millions dollars gained by
hidden advertisement of more than 30 products in «Дневной
дозор». It is not necessary to make serious calculations in order
to understand how different financial situations are. However,
Product Placement has big prospectives because of growth of
volumes of the Russian film industry, which is represented on the
diagram below.

875

700

525

350

175

0
2011 2012 2013 2014 2015 2016 2017 2018 2019

Figure 3. Amount of Russian films playing in the cinema


(designed by the author)
Despite the fact that Product Placement is very prospective and
profitable tool in advertisement, which may provide brand
awareness among bigger amount of people, it also has some
disadvantages. First of all, it should be noted, that the method of
hidden advertisement doesn’t imply instantaneous results,
because Product Placement deals with subconscious and human
psyche. The second obvious reason is the expensiveness,
especially nowadays. This disadvantage causes the third one:
only big brands can afford Product Placement in Movies and TV
shows which have a global reach that hits billions of people.

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Otherwise, cheap hidden advertisement in second-rate movies
and shows with little amount of viewers wouldn’t pay off. And
the last burning disadvantage which is special for Russia is lack
of legislative framework. There are plenty of laws which are
supposed to regulate advertisement policy on the territory of the
Russian Federation. And the problem is that some of these laws
contradict each other and leave necessary information blurred and
unclear.
However, in general Product Placement is flourishing: it
generates profit, new channels are appearing, that causes an
increase of the potential customers, it is getting more creative in
order to be competitive. All these tendencies are reflected on the
graph below, because they caused this revenue increase.

Figure 4. Revenue from Product Placement worldwide


Source: STATA
To sum up, Product Placement is one of the most creative tool in
advertisement and both, effective and efficient one. According to
the author’s opinion, despite the fact, that the mechanism of
Product Placement has relatively long history, Product Placement
itself tends to adapt to the changes in the society and its demands.

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Diversification of such a tool allows to capture market
opportunities and niche markets.
Thus, product placement, by virtue of its unobtrusiveness and
effectiveness, is becoming an increasingly popular way of
advertising products and can significantly increase the client
base.
However, the condition of Product Placement in Russia is much
different. It requires serious regulation policy from the state and
fundamental change of its implementation. There are many
misunderstandings and large knowledge gap on the matter of
Product Placement demonstrated by Russian users of this
technology. But since the volume of film industry increases and
advertisement specialists gain more experience from year to year,
Product Placement in Russia has a lot of prospectives and
impetus of getting more qualitative.

References
1. Каблукова Ю. О. (2013) Продакт Плейсмент и
перспективы его развития в сети Интернет.
2. Business Dictionary // URL:
http://www.businessdictionary.com/definition/product-
placement.html (дата обращения: 24.10.2019)
3. Collins dictionary // URL:
https://www.collinsdictionary.com/de/worterbuch/englisch/produ
ct-placement (дата обращения : 24.10.2019)
4. Zachary S. Sapienza, Narayanan Iyer, Aaron S. Veenstra
Reading Lasswell’s Model of Communication Backward: Three
Scholarly Misconceptions // Mass Communication & Society
Division. 2015 doi: 10.1080/15205436.2015.1063666
5. Media Daily News // Product Placement Poised To Top $10
Billion // URL:
https://www.mediapost.com/publications/article/320675/product-
placement-poised-to-top-10-billion-repor.html (дата обращения:
24.10.2019)

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STRATEGIES IN BRAND PROMOTION

PROCTER & GAMBLE UNSUCCESSFUL


PR-CAMPAIGNS ACCORDING
TO THE MARKETING-MIX CONCEPTION

Veronika I. Kulikova

graduate student of Public Relations


Institute of Foreign Languages
Peoples’ Friendship University of Russia
Moscow, Russia
e-mail: niky1919.96@yandex.ru

Abstract: The aim of this article is to discover unsuccessful PR-


campaigns of Procter & Gamble company according to 4P
strategy in order to define mistakes the company made while
choosing marketing tools for promotion. The conclusion
summarizes all the mistakes Procter & Gamble made while
strategies the company used during the promotion in their
businesses.
Keywords: marketing-mix, 4P strategy, marketing, launching
product, PR-campaign, promoting

The marketing-mix model is the main element of any business


strategy. The model is simple and universal in use, and is a
checklist for the effective development of a company's product on
the market. It is because of its simplicity that anyone can use the
mix marketing model - even a person who is not a specialist in
marketing.

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Initially, the marketing-mix consisted of four elements (4P),
subsequently became more complex and as a result went over to
the marketing mix 5P and 7P. In this article, we will concentrate
on the basic 4P model, which served as the basis for the analysis
of unsuccessful PR campaigns by Procter & Gamble company.
First of all, let's look at the history of the company. There are not
many companies in the world that can withstand changes over a
hundred years, and even among them stands out Procter &
Gamble, which appeared in the mid-19th century. This is an
example of a brand that is able to survive any difficulties and
even after 178 years of its history remains innovative and
modern. Procter & Gamble is an American multinational
consumer goods corporation established at 1837 that specializes
in a wide range of personal health, personal care and hygiene
products; these products are organized into several segments
including Beauty; Grooming; Health Care Fabric & Home Care;
and Baby, Feminine, & Family Care. The company’s portfolio
contains more than 300 brands. Of these, 22 brands have a
turnover of more than $ 1 billion each (Pampers, Tide, Ariel,
Always, Pantene Pro-V, Charmin, Bounty, Iams, Crest, Folgers,
Pringles, Downy, Gillette Mach 3, Dawn, Oral-B, Olay, Wella,
Actonel, Duracell, Gillette series, Head & Shoulders, Braun).
P&G launches Gillette Fusion ProGlide and acquires Ambi Pur
brand of air fresheners.
Now we should turn our attention back to marketing mix.
Basically, the 4P model includes four main elements: product,
price, place and promotion. The “Product” element answers the
question “What does the market or target audience need?”, The
“Price” element helps to determine the cost of goods sale and
assess the level of sales profitability, the “Place of sale” element
helps to build the correct distribution model (or delivery of goods
to the final consumer), and the “Promotion” element answers the
question “How will information about the company's product be
distributed on the market?” [1, p. 57].

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PRODUCT. The product is what the company offers the market
and the consumer. It can be either a physical product or a service.
The product is the first thing that begins work on a marketing
mix. Successful product is always built on understanding and
satisfying the important needs of the target market. The product
initially includes:
• Product functionality - necessary and unique properties of a
product or service.
• The required level of product quality - from the point of view of
the target market. Product quality should be built on the
perception of consumers.
• Product appearance - style, design, packaging.
These decisions that the company did not take into account when
distributing a new line of its products in the Japanese market.
Here is the first example of an unsuccessful PR campaign. Today
customer focus is the first thing the self-respecting company
takes care of. P&G suffered serious setbacks in Japanese market
in 1970s. They placed disposable towels in the Japanese market
with an 80% market share, by the early 1980s. But at that time
the company did not study the needs of its intendent recipients in
advance and did not take into consideration Japanese cultural
characteristics. The problem with P&G was that its towels were
not bulky enough, to the taste of Japanese consumers. And as a
result the company owned only a meager 8%. At the same time
the Japanese company "Kao" has developed its own line of
production of goods that are more in line with the tastes of the
Japanese. Only later P&G realized that they needed to change
towels to suit the tastes of Japanese consumers. Eventually, P&G
managed to increase its market share up to 30%.
One more product failure took place in 1993. Compaction of
product was a key strategy that delivers benefits in terms of
storage packaging materials delivery costs and much more. In
1993 Charming Spacemarker was one such product. Compressed
to about half the size of regular charmin, the new Spacemarker
product required less packaging and less storage area. An 8-roll

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of Charming Spacemarker reduced packaging volume 35%
compared to a regular Chdrmin 4-roll. For customers it was more
convenient to carry, it fit easily in grocery bags and helped reduce
the risk of running out of bathroom tissue since twice as much
could be stored in the same space. Charmin Spacemarker didn’t
just fail, it bombed. Despite all of each potential benefits the
compressed roll of the product would never assume its original
shape once in the bathroom resulting in a pool user experience
[3].
PRICE. Price is an important element of the marketing mix, it is
responsible for the final profit from the sale of goods. The price is
determined on the basis of the perceived value of the goods by
the consumer, the cost of the product, the prices of competitors
and the desired rate of return. Solutions that may be reflected in
the marketing strategy at the “price” level:
1. Price entry strategy.
2. Retail price - it is necessary to correlate the selling price of the
goods with the desired retail price if the company is not the last
link in the sales chain.
3. Batch pricing provides for the simultaneous sale of several
company products at a special price level.
4. Availability of seasonal discounts or promotions.
5. Policy regarding promotional events (terms and conditions of
discounts, maximum and minimum levels of discounts, frequency
of promotional events, etc.).
6. The possibility of price discrimination.
In 1976 The company launched another diaper brand, Luvs, in the
form of an hourglass with elastic bands. New diapers provided
superior fit, absorbency and comfort, and were 30 percent more
expensive than Pampers. The decision to launch the Luvs brand,
representing a higher-end product, was the most annoying
strategic miscalculation in the history of the company. So why
did P&G decide to launch a new brand on the market, instead of
improving or expanding an existing one? Firstly, the practice
used by the company at that time required the use of a multi-

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branding strategy (creating a new brand for each new product in
each category): this approach provided good results in the
detergent category and some other product categories. Secondly,
the release of new diapers required higher running costs and
significant investment in production. According to preliminary
estimates, in order to maintain a profit margin, a 20 percent
premium on the retail price should have been established.
Therefore, the company feared that existing consumers would not
accept a new line of Pampers diapers sold at a higher price. Thus,
the Pampers remained the same, and the diapers of the new
design were introduced to the market under the name Luvs as
more expensive. Unfortunately, the company incorrectly assessed
the situation. Although people almost always claim that they will
not buy (or even try) an improved product if it costs more, they
often change their mind when the experience of using a new
product clearly speaks in its favor, and the price premium reflects
a higher value. This is exactly what happened in the case of
diapers in the form of an hourglass, which negatively affected the
Pampers brand [3].
PLACE. The point of sale ensures that the product is available for
the target market and means that the company's product must be
presented on the market in the right place (where the target
consumer can see and buy it) at the right time (when the target
consumer needs to buy it). In other words, a point of sale denotes
a distribution model of a company's product.
Nowadays, in this aspect, the company is thriving, however,
launching a product line in the Russian market in 1991, Proster &
Gamble did not take into account the fact that the income of
russian citizens is lower than in other countries. Imported goods
are more expensive, therefore, the final price of a product cannot
be made lower than their initial cost, so many residents of Russia
could not afford to buy many goods. This was the only mistake
the company made. However, soon, the company was able to
rehabilitate and localize plants in Russia and other countries,

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which helped replace import with localization and allowed both
to reduce company costs and lower product prices.
One more mistake the company made according to a place was
launching new shampoo on Polish market. In the summer of
1991, P&G appeared on the Polish market with its «Vidal Sasson
Wash & Go» shampoo (shampoo and conditioner in one bottle),
which was in great demand in the US and Europe. Product launch
was supported by an American-style marketing campaign on an
unprecedented scale in Poland. At first, the campaign seemed to
work, as P&G took over more than 30% of the shampoo market
in Poland, but at the beginning of 1992 sales suddenly fell. Then
the rumors went: “Wash & Go” caused dandruff and hair loss -
statements that P & G actively rejected. Then jokes appeared. The
one that was common in Poland sounded like this: "I washed my
Wash & Go car and span tires." And when President Lech Walesa
proposed his candidacy for the post of prime minister, critics
ridiculed the idea as "a combination of two in one, just like Wash
& Go". So where did P & G make a mistake? The most common
assumption is that the company used hard methods while
promoting «Wash & Go» in a country that showed little
enthusiasm for the bold American style of product advertising. A
survey conducted by Pentor, a privately owned market research
company in Warsaw, showed that there were three times as many
Poles who did not like P & G ads than those who liked it. Pentor
also claimed that the outstanding advertising campaign had the
opposite effect, because the long years of communist propaganda
led the Poles to conclude that advertising is just a way to get rid
of a product that no one wants to buy. Some also believed that the
Wash & Go, which was developed for American consumers
washing their hair daily, was too elaborate for Polish customers
who were less obsessed with personal hygiene. Thus, P & G once
again faced its own mistakes, because again the product and
marketing strategy was transferred from the USA to another
country without any changes in relation to the tastes and
preferences of local consumers [3].

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PROMOTION. In the context of the marketing mix, promotion
refers to all marketing communications that allow you to draw
consumer attention to the product, generate knowledge about the
product and its key characteristics, shape the need for the
purchase of the product and repeat purchases [1, p. 32].
Promotion includes such marketing communications as:
advertising, promotion at points of sale, search engine
optimization, PR, direct marketing and others.
P&G promotes its brands and products through various means
such as Advertising, Direct Marketing, Public relations and
personal selling. P&G pays much attention to their promotion,
and tries to create wow-mpression among their customers. But
not long time ago
January 15, 2019 Gillette launched an advertising campaign. The
centerpiece of the campaign is a “short film” of less than two
minutes that replaces Gillette’s famous slogan, “the best a man
can get”, with “the best men can be” while portraying instances
of bullying, aggressive behavior, sexism and sexual harassment.
Among the objections were that the video implied most men were
sexual harassers or violent thugs, that it was “virtue-signalling”
by a company that doesn’t care about the issue, and that the
advertisement was emasculating. But their idea was to show that
this commercial isn’t anti-male. It’s pro-humanity. And it
demonstrates that character can step up to change conditions. But
still, the film’s YouTube page quickly became a cultural
battleground, with negative responses outnumbering positive on
the platform. The ad eventually became the 20th most disliked
YouTube video [5].
Summing it all up, we should analyze all the mistakes made by
Procter & Gamble for each element of the marketing mix. Firt of
all - product. Here, in both examples, the company made two
mistakes: did not study the needs of its intendent recipients in
advance and did not take into consideration Japanese cultural
characteristics.

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Secondly, price. P&G launched another diaper brand, Luvs, in the
form of an hourglass with elastic bands, that were 30 percent
more expensive than Pampers. The company feared that existing
consumers would not accept a new line of Pampers diapers sold
at a higher price, so they introdused a new brand on the market.
The new line of diapers was more comfortable in using and more
to the taste of the consumers and the new product clearly speaked
in its favor, and the price premium reflected a higher value, so
Pampers lost their reputation and weren't sold well.
Thirdly, place. P&G did not take into account the fact that the
income of russian citizens is lower than in other countries and
that the company used hard methods while promoting «Wash &
Go» in a country that showed little enthusiasm for the bold
American style of product advertising.
And finally, promotion. Gillete advertising campaign suffered
setbacks on January this year. Considering comments and
viewer’s reaction discontent was caused by the fact that the video
implied most men were sexual harassers or violent thugs, that it
was “virtue-signalling” by a company that doesn’t care about the
issue, and that the advertisement was emasculating.
Due to our research, to avoid making mistakes when promoting
goods on the market, you need to follow simple rules:
1. Adhere to a competent pricing policy.
2. Take into account the cultural characteristics of countries in
which production is planned to launch.
3. Сarefully consider the advertising campaign, taking into
account the features and mentality of the countries in which the
product is planned to be released.

References
1. Бхимани Р., Блэк С., Бернейз Э. Л. Паблик рилейшнз. Что
это такое? - М.: Агентство печати "Новости", 1990. – 240 с.
2. Искренко Э.В.. Международный бизнес: Учебно-
методический комплекс / науч. ред. О.А. Ломовцева. -
Волгоград: ВолГУ, 2003. – 176 с.

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3. История Procter&Gamble: Как любовь к поглощениям чуть
не погубила известного производителя бытовых товаров //
URL:
https://www.sostav.ru/news/2012/08/24/procter_gamble_istoriya/
[Дата обращения:12.10.2019].
4. Маркетинговая стратегия «Procter & Gamble» // URL:
https://economics.studio/mejdunarodniy-biznes/marketingovaya-
strategiya-procter.html [Дата обращения: 14.10.2019].
5. Barro J. Why Nike’s Woke Ad Campaign Works and
Gillette’s Doesn’t, 2019 // URL:
http://nymag.com/intelligencer/2019/01/why-nikes-woke-ad-
campaign-works-and-gillettes-doesnt.html [Дата обращения:
19.10.2019].

MARKETING MIX OR 4PS STRATEGY


AS THE MAIN COMPONENT OF PROCTER
AND GAMBLE SUCCESS

Irina A. Khoreva

graduate student of Public Relations


Institute of Foreign Languages
Peoples’ Friendship University of Russia
Moscow, Russia
e-mail: irina.sinkova.97@mail.ru

Abstract: The aim of this article is to discover what marketing


tools Procter & Gamble applied according to 4P strategy to run
successful PR-campaigns.
Keywords: market, PR-campaign, marketing mix, marketing
strategy, 4Ps

The marketing mix is a set of variable marketing factors that can


be controlled, the combination of which company uses in an

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effort to provoke the desired response from the target market [2,
с. 45].
It is believed that the marketing mix model includes all the
necessary product parameters that the company can control and
develop for the effective promotion of goods on the market.
The purpose of the marketing mix is to develop a strategy that
will increase the perceived value of the product, and will also
help maximize the company's long-term profit in the market.
The specific content of the marketing mix depends on many
parameters, primarily on the characteristics of the market
(industry) and product (for example, on the duration of its life
cycle), the capabilities of the company itself - for example, on the
size of the marketing budget, the experience of the staff of the
marketing department and other factors.
The "4P" model was first published in its modern form by E.J.
McCarthy in 1960 [5, p. 106]. Later, Philip Kotler made a
significant contribution to the popularization of this approach.
The marketing mix, concept is a marketing theory based on the
four main “coordinates” of marketing planning.
Product – product or service, assortment, quality, product
properties, design and ergonomics technical parameters,
packaging, delivery;
Price – setting prices that are optimal in terms of correlating the
benefits of the seller and the buyer, as well as discounts on the
price of the product for different cases and different groups of
buyers;
Promotion – the development and implementation of promotional
activities, sales promotion, organization of public relations and
personal sales;
Place – points of sale, distribution channels, seller’s staff [4,
p. 57].
Any successful business or enterprise uses the 4Ps strategy in
their work. To understand in more detail how the marketing mix
mechanisms work, we turned to one of the most successful global
companies, Procter & Gamble.

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Procter and gamble is an American multinational consumer goods
corporation that has gained the reputation of one of the best
global trading firms. It specializes in a wide range of personal
health/consumer health, and personal care and hygiene products;
these products are organized into several segments including
Beauty; Grooming; Health Care; Fabric & Home Care; and Baby,
Feminine, & Family Care.
In the modern world, it is quite difficult to find a company that
has been successfully overcoming many difficulties as well as has
been constantly developing for a long time. Procter & Gamble is
a vivid example of how one can overcome serious difficulties and
remain an innovative and modern enterprise throughout 180 years
of its history.
Today, Procter & Gamble has approximately 127,000 employees
and over 300 brands, selling in 180 countries. In addition, Procter
& Gamble is one of the largest advertisers in the world.
We have selected several examples from the long history of
Procter & Gamble that reflect the successful application of each
component of the 4 Ps strategy.
A product is what any business starts with and what the 4Ps
strategy itself is based on. A product can be any product or
service introduced to the market taking into account various
criteria established by the target audience. Today customer focus
is the first thing a self-respecting company takes care of, in order
to minimize risks before launching a product.
Packaging is one of the equally important components of a
company's product. So, in 1970, Frederick Bor, an employee of
the company who carried out a thorough market research among
customers, proposed a unique idea for packaging chips. What is
the main feature of the Pringles chipset? That's right, its
cylindrical shape, which helped keep the chips in their original
state without breaking, which is extremely important for many
chip consumers. As the result, due to the package, P&G managed
to increase brand recognition, and eventually in 2009, World’s
Food named Pringles the most popular potato chips in the world.

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Hence why, P&G is extremely accurate, extremely specific in
receiving data about consumers. Due to modern P&G
technologies, it gets a huge amount of customer`s data in real
time to satisfy their client`s needs.
Price. P&G has different pricing policy for different brands. The
price of P&G products mainly depends on the quality of the
product and the value of its brand. P&G uses three different
pricing policies to gain market share and generate revenue,
namely competitive prices, penetrating prices, and premium
prices. Brands, whose sales are highly dependent on competitors,
competitive pricing is part of the marketing mix. If a competitor
reduces his price, there is a good chance that this will affect the
sale of the product, and therefore the product must have a
competitive price. When P&G enters the market or wants to
create a new consumer base, it tries to take over the market by
following penetrative pricing policies. P&G evaluates products of
the same quality as competitors at a slightly lower price to gain
market share. Brands also provide high-quality products focused
on the segment that can afford these products. P&G charges a
premium for this type of product.
P&G, with its pricing policy has always been one step ahead of
its competitors. For example, in 1861, the Civil War began in the
United States. During the battle, Procter & Gamble hit the
jackpot. Before the war started they had bought huge tar reserves
at the pre-war price of $ 1 per barrel. The deal was completed by
founder sons, who would eventually enter the family business and
even introduce several important innovations into it. After the
war outbreak, tar prices rose significantly. Almost all Procter &
Gamble competitors were forced to reduce production, and P&G
became the main supplier of candles and soap for the ally armies,
which helped it to earn great money and make the brand
recognizable in remote states.
Place. P&G has an efficient distribution system and thus is able to
reach a larger consumer base. P&G products reaches a wide
audience through provision stores chemist shops, retail Outlets

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and super markets all over the world. And their strategy is not
just distribution of products, but placing manufacture itself in
different countries.
Like between 2016 and 2018, P&G invested 9 billion rubles to
expand and modernize two enterprises in Russia. Upcoming
investments were aimed at increasing the capacity of the Russian
distribution center, modernizing production, as well as localizing
the production of female care products in Russia. Four of the five
P&G product categories are already localized. The remaining
category is hair care, and it may also be localized in the future.
Thus, the company solves the problems of the political aspect and
the problems of the cost of importing raw materials.
One more smart decision was to launch online brand services,
which can be available all over the world. Moreover, they not
only offer to purchase products at cheaper price, but also provide
recommendations and articles on the topic demanded.
Promotion. P&G promotes its brands and products through
various means such as advertising, direct marketing, public
relations and personal selling. Procter and Gamble uses TV, print
and online media to promote the brand through advertisements.
P&G also uses celebrity endorsements for the advertisements.
The company uses direct marketing to sell its products to its
corporate consumers. Personal selling is applied when a new
brand or a new product of an existing brand enters the market.
P&G gives sponsorships for various TV shows and events under
its public relations activities.
P&G pays much attention to their promotion, and tries to create
touching impression among their customers, like it was with the
thank you, mom advertisement.
For the 2010 Olympics, P&G wanted to turn its corporate
reputation into a competitive advantage, leveraging its global
reach and combining 34 brands under one voice. They created a
truly global, genuine connection that linked the goal of the
Procter & Gamble brand - to touch life, improve life - to the
Olympics.

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At first glance, P&G has no obvious connection with the
Olympics. But every Olympic athlete has or had a mother. And
P&G loves moms. Thus, P&G did not make athletes their heroes
in advertising; they celebrated their moms. They created a fully
integrated “Thank you, Mom” campaign, which recognized
Mom’s rightful place in these Games.
The tagline “P&G, Proud sponsor of Moms” was used to link all
the elements of the campaign. They have expanded the
capabilities of our consumers by giving them the opportunity to
participate. They also developed a unique digital platform for
consumers to thank and honor their moms. P&G built the P&G
family house, the first “home away from home” for moms and
families of Olympic athletes, and took all the mothers of the US
team to the Olympics. As a result, in 2010, Thank You, Mom
became the largest and most successful global campaign in the
175-year history of P&G.
To sum up all said above, established in 1837 P&G has a long
history of development with both failure and successful
campaigns and strategies. In this article we studied only
successful examples in order to explore what marketing tools and
channels Procter & Gamble uses according to 4Ps strategy and
how they affect the company`s development. And we can
conclude that P&G has a clear idea how world of marketing
works, and it always keeps up with it by not just applying 4P
strategy but smartly balancing in between marketing mix in order
to always be and stay one of the most successful training
companies in the world.

References
1. Кожушко О. А., Чуркин И., Агеев А. и др. Интернет-
маркетинг и digital-стратегии. Принципы эффективного
использования. - Новосибирск: РИЦ НГУ, 2015. – 40 c.
2. Котлер Ф. Основы маркетинга. Краткий курс. 2015. –
496 с.

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3. Маркетинговая стратегия «Procter & Gamble» // URL:
https://economics.studio/mejdunarodniy-biznes/marketingovaya-
strategiya-procter.html [Дата обращения: 20.10.2019].
4. Kerin, Hartley and Rudelius Marketing, The Core 4th Edition,
McGraw Hill Publishing, 2001. – 237 p.
5. Marschner D. C., McCarthy J. E. Basic Marketing: A
Managerial Approach // Journal of Marketing. - 1972-01. - Т. 36,
1. – 106 p.

MARKETING MIX OF IKEA

Alexandra V. Sudakova

graduate of Public Relations,


Institute of Foreign Languages
Peoples’ Friendship University of Russia
Moscow, Russia
e-mail: avsudakova96@mail.ru

Abstract: The article is devoted to the research of theoretical and


practical questions of the Marketing Mix and the peculiarities of
display of such marketing on the example of IKEA. How the
company gained a foothold on the market based on the strategy
4P’s.
Keywords: 4Ps, 4Ps-model, marketing mix, place, promotion,
price, product, IKEA, PR-campaigns

This article will explain the Marketing Mix of IKEA and presents
the most successful PR-campaigns of IKEA. IKEA is a Swedish-
founded multinational group the world’s largest furniture retailer
that designs and sells ready-to-assemble furniture, kitchen
appliances and home accessories. The company built on the idea
to “offer a wide range of well-designed, functional home
furnishing products at prices so low, that as many people as
possible will be able to afford them”. IKEA was founded by

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Ingvar Kampard in 1943 and its headquarters are in Sweden.
"The name IKEA is formed from the founder's initials (I.K.) plus
the first letters of Elmtaryd (E) and Agunnaryd (A), the farm and
village where he grew up." Nowadays, with a presence in over 52
different countries, IKEA has a total of 424 stores from where
customers can buy their favorite piece of furniture.
To carry out a correct analysis of IKEA and understand key
business success factors, it is essential to grasp the importance of
the marketing concept. All successful businesses, it doesn’t
matter whether they are large or small, they focus a large portion
of their energy on marketing. Marketing concentrates not only on
advertising. John William Stanton, a professor of marketing at the
University of Colorado-Boulder, defines marketing as “a total
system of interacting business activities designed to plan, price,
promote and distribute want-satisfying products and services to
present and potential customers”. It means that marketing deals
not only with goods and services but it also focuses on ideas,
issues, concepts and principles [8].
Gary Armstrong and Filip Kotler describe marketing as “a social
and managerial process by which individuals and groups obtain
what they need and want through creating and exchanging
products and value with others” [7].
In essence, marketing entails the entire process of choosing a
product, producing a product, and then successfully selling that
product, to fulfill a need of a customer, for a profit and meeting
the business’s goals. Key business success factors will be
determined by the ability to follow the roadmap of marketing. A
common road map in marketing is called the “Marketing Mix”.
Marketing Mix is the most fundamental concepts in marketing. It
consists in product, price, place, promotion. The Marketing 4Ps
was created in the 1960s by E. Jerome McCarthy. The different
marketing activities are categorized by McCarthy into marketing
mix tools. There are four types, which are commonly known as
“four Ps of marketing”.

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Product
The first one is a product. It’s a good or service that a business
owner provides for sale to his target market. When it comes to
developing a product, the design, quality, packaging, features,
after-sales service, and customer service should be considered. A
product should satisfy the needs of a certain group of people.
IKEA offerings can be broadly divided into outdoor furniture,
baby and children’s products, eating, bathroom stage, desks,
mirrors, beds and mattresses, chairs, cooking, clothes storage,
decoration, leisure and safety products. All of its products are
sold under the brand name of IKEA. Its products are perceived to
be of higher quality than that of competitors. Therefore,
customers are willing to pay a higher price for these. Moreover,
IKEA sells products that are famous for its traditional design that
is also practical for customers to use.
Price
The second one is a price. It is described as the amount which a
customer pays to get the desired product or service. The pricing
of the product should be done keeping in mind the list price,
competitor’s price, terms of sale, customer location, discounts
and so forth. While deciding the prices, the value and utility of
the product to its customers are to be considered.
The task of accomplishing IKEA mission is to make products
affordable. In traditional mind-set of furniture business, prices of
furniture should be high and prices would be reduced as the
furniture quality becoming lower. IKEA provides low prices and
good quality products by standardizing its products range,
seeking low-cost manufactures, and selling furniture in high
volume globally.
Place
The third point is a place. It refers to the easy availability of the
product in the target market. It implies that a suitable marketing
channel is to be chosen, to reach the customers, because the better
the chain of distribution, the higher would be the coverage.

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IKEA has got an excellent place and distribution strategy as a
part of its marketing mix. IKEA sells its products through two
marketing channels. The first is where it sells directly to its
customer through its online website. The second is where it sells
to wholesalers who then sell to different retailers located all over
the country. These then sell to its customers. IKEA has its
products present on over 500 retailers in more than 52 countries.
It follows an intensive marketing strategy where it tries to include
its products on as many retailers as possible. This ensures that its
products are available to customers easily in different parts of the
country.
Promotion
The last but not least is a promotion. It is the most visible "P,"
because it includes advertising, sales promotions and PR efforts.
It aims at grabbing the attention of customers and impose them to
buy it. Promotion mix implies the promotional tools used by the
marketers to reach the target audience.
The promotional and advertising strategy of IKEA focuses a lot
on its marketing activities. They use promotion tools like TV,
print, online ads, billboards and others in its marketing mix.
IKEA promotion strategy deserves particular attention. Here
we’re going to demonstrate great PR-campaigns in different
countries.
The most successful IKEA PR-campaigns
1. IKEA Australia
has come up with an
amusing Valentine's Day
offer. It’s a free crib for
babies born nine months
from St Valentine’s Day.
Future parents should clip
out the voucher and keep
it in a safe place for those
nine months, and also
provide proof of birth.

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The coupon also notes
that "Delivery not
included." That, of course,
is the mom's job.

2. For the opening of a


Brooklyn store, they built
a 400 square meters’
studio apartment
furnished with IKEA
staff. So people could
enter the ‘box’ and view
the show apartment
inside.

3. IKEA France, to
celebrate the 30th store,
installed a vertical
outdoor apartment
billboard which was then
turned into a climbing
wall.

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4. IKEA store in
Greenwich (London) has
been designed to
encourage sustainable
travel via public transport,
rather than private cars,
decided to promote a
sustainable travel
initiative, IKEA have
found a media first. The
outdoor media campaign
across South East London
takes advertising sites
across the area and
repurposes them as
directional sign towards
the new IKEA
Greenwich.
Marrying the IKEA
philosophy of design
function for its products,
each poster site is unique.
They offer exact footsteps
and direction to store –
measured by walking
between each poster site
and IKEA Greenwich’s
front door. There are 80
sites in total and,
unusually for an outdoor
media campaign, they will
be live for the next six
months, allowing
directions to IKEA to
become well-known in
the local area.

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5. IKEA is the first
furniture retailer to have
incorporated the latest
technologies like
augmented reality, to help
customers make the right
purchasing decisions. It
was back in 2013, when
IKEA rolled out a catalog
app feature called ‘Place
in Your Room’, that
allowed users to try out
their desired products in
their homes. As the
research has shown that
almost ‘14 percent of its
customers end up taking
home furniture which
turns out to be the wrong
size for its intended
location’, the feature
allows 360-degree room
views and videos to help
customers find out the
best matching products.
IKEA is the only retailer store that specializes in furniture
products that would come into mind when comparing their good
quality and affordable household furniture. However, IKEA
doesn’t simply generate the profits and market shares, but for its
achievement is to become the dominant home-furnishing retailer
globally. By concluding, success of IKEA came from their
marketing strategy, good customer service, pricing, style and
functionality, store location and wide variety of products. Their
marketing strategy is really commendable as they have carefully
thought about how to sell their products effectively.

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References
1. Дальвиг А. ИКЕА: собери свою мечту. – М. : Манн,
Иванов и Фербер, 2012.
2. Жанаева, А.Е. Паблик рилейшенз / А.Е. Жанаева // Социс,
- 2005. - № 1. - С.8-15.
3. Котлер, Ф. Маркетинг менеджмент / Ф. Котлер. – СПб.:
Питер Ком, 1999. – 234 с.
4. Котлер, Ф. Маркетинг менеджмент / Ф. Котлер. – СПб.:
Питер, 2001. – 356 с.
5. Котлер, Ф. Основы маркетинга / Ф. Котлер; - М.:
Прогресс, 1993. – 136 с.
6. Стенебу Ю. Вся правда об ИКЕА. Что скрывается за
успехом мегабренда. – М. : РИПОЛ классик, 2014.
7. Kotler P., Armstrong G., Wong V., Saunders J. 5th European
ed.: Principles of Marketing // Pearson Education Limited. 2008.
41 p.
8. Sinclair S. A. 1992: Forest Products Marketing // McGraw-
Hill, Inc. pp 3, 17, 79-82.

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4PS MARKETING THEORY ON THE EXAMPLES
OF COCA-COLA SUCCESSFUL AND UNSUCCESSFUL
PR CAMPAIGNS

Anna A. Askinazi

graduate of Public Relations


Institute of Foreign Languages
Peoples’ Friendship University of Russia
Moscow, Russia
e-mail: aanna777@gmail.com

Abstract: The purpose of this article is to consider successful and


unsuccessful PR campaigns of The Coca-Cola Company using
4Ps marketing theory, in the process of considering the main
topic of this article, we will see interesting practical examples. In
conclusion, we can note the mistakes and strong points that The
Coca Cola Company used in the process of promoting its
products based on 4Ps marketing theory.
Keywords: PR campaign, marketing theory, promotion, Internet
marketing, brand, advertising, price, product, place,
communications, marketing mix

Marketing is simplistically defind as “putting the right product in


the right place, at the right price, at the right time”. Although this
sounds like a fairly easy suggestion, a lot of effort and research is
needed to create this simple definition. And if even one element
did not correspond to reality a promising product or service can
fail completely and ultimately cost the company.
Using a marketing 4P marketing theory is a great way to help
ensure that “putting the right product in the right place, …” will
happen. A successful product offering may help to understand
what the product or service can offer. The marketing complex is
most often implemented using four main areas of marketing:
price, product, promotion and place.

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4Ps theory serve a great place to start product planning or even to
evaluate an existing product offering.

History of 4Ps marketing theory and terminology.

The 4Ps marketing theory became popular after the article


headline “The Concept of the Marketing Mix” by Neil Borden
published in 1964. Borden explained how he started using a term
inspired by James Culliton, who described the marketing
manager as a “mixture of ingredients” in the 1940s. Borden's
article detailed such ingredients as product, planning, price,
branding, distribution, demonstration, packaging, advertising,
promotions, personal sales, and many others. Finally, E. Jerome
McCarthy grouped these numerous elements into four high-level
categories, which we now call the 4 marketing positions. “Its
elements are the main tactical component of a marketing plan”.
Together, the elements in these four categories help develop
marketing strategies and tactics.
4Ps marketing theory have been formalized and developed over
the years by experts to ensure the creation and implementation of
a successful marketing strategy. By means of the using of this
tool, an attempt is made to satisfy both the buyer and the seller.

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With proper understanding and use, this combination has proven
to be a key factor in product success.
Let us continue with a direct review of the Coca-Cola PR
campaigns where we can see how important to use in appropriate
way each 4Ps components.
Product
A product is either a touchable product or an intouchable service
that seems to satisfy a specific need or demand of a customer. All
products follow the logical life cycle of the product, so it is
important for marketers to plan the divers stages and their unique
goals. This is the key to understanding the problems that the
product is trying to solve. The advantages offered by the product
and all its features should be understood, and the unique selling
proposition of the product should be studied. In addition,
potential buyers of the product must be identified and understood.
Negative Coca-Cola product campaign
On April 25th 1985 The Coca Cola Company took maybe one of
the biggest risk in consumar goods history, announcing that it
was changing the formula for the worlds most popular soft drink.
New Coke was the unofficial name for the reformulation of Coca-
Cola.
The Coca-Cola had been losing market share to diet soft drinks
for many years. Blind taste tests showed that consumers prefer
the sweeter taste of rival Pepsi-Cola, and so the Coca-Cola recipe
was reformulated. However, the American public's reaction to the
change was negative, and "New Coke" was considered a major
failure. The company reintroduced Coke's original formula within
three months, rebranded "Coca-Cola Classic", as a result was a
significant sales boost. Everyone thought that it was a marketing
ploy to stimulate sales of original Cola, which the company has
denied.
Price
The price covers the actual amount that the end user must pay for
the product. How a product is evaluated directly affects its sale.
This is due to the fact that it is perceived as the value of the

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product for the buyer, and not as the objective value of the
proposed product. If the price of the goods is higher or lower than
its estimated value, then it will not be sold.
Negative Coca-Cola price campaign
One more Coca-Cola PR campaign, now we will talk about an
unsuccessful attempt to increase the price of soda.
A few years back, M. Douglas Ivester, the chief executive of
Coca-Cola, said he thought it would be fair to raise the price of
soda on summer days. Vending machines could be equipped with
thermometers, and when demand for a cold soda rose with the
temperature, the price would rise too.
As you can imagine, it was not one of the great marketing
moments in the company's history. Angry Coke drinkers
denounced the idea. Pepsi accused its rival of exploiting
consumers.
Coke tried running away from this idea as fast as possible.
Company spokesmen said that Mr. Ivester was talking
hypothetically and there were no plans to add a summer
surcharge.
Promotion
Strategies and methods of marketing communications are subject
to promotion. These may include advertising, promotions, special
offers, and public relations. Whatever channel is used, it must be
suitable for the product, price, and the end user on which it is
sold. It is important to distinguish between marketing and
promotion. Promotion is simply the communication aspect of the
entire marketing function.
Positive Coca-Cola promotion campaign
Now we will consider one of the most successful Coca-cola PR
campaigns. I think everyone remembers the bright coca cola
Christmas trucks?
The campaign was developed through the 1990s, and met
resounding popularity.

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The 1998 ad was broadcast to millions of viewers in more than
100 different countries, and in 2014 the campaign was voted as
the UK’s favorite Christmas advertisement ever.
Such favor was demonstrated in 2007 when, after a six-year
absence, The Coca-Cola company was persuaded to re-introduce
the campaign after receiving requests from consumers who
identified bright red trucks and soundtrack ‘holidays are coming’
with the beginning of Christmas.
Place
The place or placement is related to how the product will be
provided to the buyer. Distribution is a key element of placement.
A placement strategy will help you evaluate which channel is best
for your product. The end-user access to the product should also
complement the rest of the product strategy.
Positive Coca-Cola place campaign
One more successful Coca-Cola PR campaign is “Share a Coke”
campaign.
Share a Coke is a multi-national marketing campaign. It debrands
the traditional Coke’s logo, replacing "Coca-Cola" from one side
of a bottle with the phrase "Share a Coke with" followed by a
person's name. The campaign, which uses a list containing 250 of
the country's most popular names, aims to have people go out and
find a bottle with their name on it, then share it with their friends.
The campaign began in Australia in 2011 and rolled out in over
80 countries.
In Australia, the advertising agency, Ogilvy have estimated that
the campaign increased Coke's share of the category by 4%.
The “Share a Coke” campaign received multiple awards at the
Creative Effectiveness Lion Awards at Cannes.
Based on the foregoing materials, we can come to the following
conclusions. If we are talking about the mistakes made by the
Coca-Cola Company during the implementation of the above
reviewed campaigns, we can distinguish the following:
the company did not underestimate consumer confidence in the
original product, thereby incurring large costs;

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the company wanted to make a fortune by increasing seasonal
consumption of food, thereby undermining consumer confidence
and its reputation.
If we are talking about the strong points that were used by the
Coca-Cola Company in the course of product promotion, I would
like to note:
creating an unforgettable holiday mood through a well-
implemented campaign;
the original idea that involves in the process.

References
1. Серегина Т. К., Титкова Л. М. Реклама в бизнесе: Учеб.
пособ. - М.: Маркетинг, 2014. – 427 с.
2. Фролов С. С. Связи с общественностью в работе фирмы.
Стратегия, коммуникации, имидж, брендинг – М.: Либроком,
2014. – 368 с.
3. E. Jerome McCarthy Basic Marketing. A Managerial
Approach, 1960. – 25.
4. https://www.cleverism.com/understanding-marketing-mix-
concept-4ps/ [Дата обращения: 29.10.2019].
5. https://econsultancy.com/digital-marketing-campaigns-coca-
cola/ [Дата обращения: 27.09.2019].

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THE USAGE OF COMMUNICATION CHANNELS
ON THE EXAMPLE OF NIKE PR-CAMPAIGNS

Alina A. Kardanova

graduate student of Public Relations


Institute of Foreign Languages
Peoples’ Friendship University of Russia
Moscow, Russia
e-mail: linakardanova@mail.ru

Abstract: This article is aimed at the study of communication


channels and their application in PR-campaigns. The choice of
the communication channels depends on the target audience that
needs to be reached. The examples are based on the PR-
campaigns conducted by Nike. The most successful and
commonly used communication channels were allocated on the
basis of the above-mentioned examples.
Keywords: communication channels, PR-campaign, media,
outdoor advertising, the Internet, social networks, events, target
audience

Communication channels are used for the distribution of PR-


campaigns. All the communication channels have both
disadvantages and advantages. A channel or the set of channels
that fulfill the requirements to the maximum extent are chosen for
the achievement of certain goals and objectives of the PR-
campaign.
There are five main channels for the distribution of PR-
campaigns: television, the press, outdoor (street) media, radio and
cinema.
With the development of computer networks and the widespread
dissemination of the Internet, the Internet should also be included
in the list of main distribution channels of PR-campaigns.

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Sometimes these communication channels are called media
channels for the distribution of PR-campaigns, since they all
constitute a generally accepted concept - the media space. Work
with these distribution channels is carried out by specialized
media advertising agencies.
Other distribution channels - mail advertising, indoor advertising,
events - are more specialized and often used in specific, rather
than mass, cases of PR-campaigns distribution, for example,
when it comes to industrial (professional) advertising.
Let us consider the concept of a PR campaign. A PR-campaign is
a purposeful, systematically organized and completed set of PR-
operations and the events that support them, united by a common
strategic plan, aimed at solving a specific organizational problem
(a basic PR-subject) and carried out by a technological subject
(subjects) of PR at a certain stage of the organization's activities.
In the organizational plan, a PR campaign is a set of
organizational measures implemented in parallel and sequentially
according to a single plan.
To make a PR-campaign successful PR-specialists should study
the target audience and create or adjust it according to their
needs. Big companies dispose special departments that are
responsible for public relations and the performance of PR-
campaigns. Sometimes firms do not need to create a wholly new
PR-campaign, they may integrate the existing one. As the
statistics shows, it is more difficult to integrate a PR-campaign
than to create a new one. To reach the target audience and make
the campaign successful specialists use the communication
channels. The success of the PR-campaign depends on the right
choice of the communication channels.
We will illustrate this rule on the example of one well-known
company. Let us have a look at the communication channels used
in Nike PR-campaigns.
Nike is the biggest sports goods manufacturer in the world. Each
year Nike earns 34,5 billion dollars. Its main concepts are

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challenge, rebellion and innovation. Let's have a look at how PR-
channels worked in some of Nike PR-campaigns.
First campaign we are going to analyse is "Better for It" PR-
campaign («Я только лучше» for Russia).
Nike launched the "Better for It" PR-campaign in April. The
campaign was based on the theory of Bill Bowerman, one of the
founders of Nike, which states: "If you have a body, you are
already an athlete".
The adaptation of the campaign in Russia is significantly
different from the original idea of the project in the USA. The
goal in America is to make women stronger and more confident,
able to protect themselves (relevant in connection with Trump's
politics). In Russia this PR-campaign caused such a lively
response because today great attention is paid to an active
lifestyle and one of the campaign’s aims is to create it. One more
goal in Russia is to engage in sports. The idea was chosen
correctly to attract the Russian audience, and the PR-campaign
was correctly composed.
The integrated PR-campaign in Russia includes commercials that
are broadcast on federal channels and on the Internet, the
participants of the commercials are mainly Russian athletes: for
example, everyone knows Olympic champion in figure skating
Adelina Sotnikova (fig. 1).

Figure 1. Adelina Sotnikova presenting Nike PR-campaign

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The campaign also includes outdoor advertising in unusual
formats: graffiti on the walls of Moscow buildings as well as the
placement of outdoor media advertising, it cost Nike 1 million
dollars, but it helped to reach success. Speaking about social
networks, Nike gave GIF images on social networks for free and
launched contests and prizes with hashtags #BetterforIt and
#ятольколучше on Instagram. In addition, as a part of the
campaign Nike’s international master trainers held a series of
diverse trainings, like open-air yoga and first women's maraphon
in Gorky Park.
This campaign has no disadvantages, Nike successfully and
competently used all available communication channels: media,
outdoor advertising, the Internet, social networks and events and
managed to reach the target audience. This PR-campaign has
already brought Nike millions in revenue.
Now we are going to have a look at Nike’s "Just Do It:
Possibilities" PR-campaign and we will analyse why it was a
success in the USA and a failure in Russia.
Nike’s new "Just Do It: Possibilities" PR-campaign inspires
viewers to set new goals with their encouraging slogan: “If you
can run a mile, run a race”. Also, it introduces Nike+System and
Nike+Running app.
The campaign encourages viewers to go beyond their capabilities
with the Nike + system, which recently introduced the new
“challenge” feature. This system allows users of the Nike +
Running app to set long-term goals, challenge friends and
compete with them, to chat in real time. It also helps to identify
the winners of the challenge. Also, you can see your jogging
route, track results, and get friends support when you need it. The
Nike + Running app is available for free on iOS and Android.
What do Americans like doing in the mornings especially in
parks, for example, in Central Park (according to movies)? Yes,
jogging. And what is the most popular mobile phone brand in the
USA? Right, "Apple". This PR-campaign was launched back in
2013 and was a huge success in the USA. So, Nike combined

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these two things. Sneakers were connected to the telephone
application and it collected statistics and offered training options.
This PR-campaign was a huge success.
The video was played on many channels, hashtag contests were
launched in social networks, races were held in the parks
dedicated to the release of the long-awaited sneakers and
application.
In Russia the same response was not received. Although the
communication channels were the same, the PR-campaign was
not successful in Russia, as it was not initially designed for the
Russian market. Facebook, Twitter and MySpace were chosen as
social networks, and they were not very popular among young
people or the older generation. Also, the weather conditions
didn’t allow daily jogging in Russia in most regions. Moreover in
2013 a healthy lifestyle and outdoor activities were not at the
peak of popularity, a sports boom occurred only in 2018. And the
Apple giant was just beginning to storm the Russian mass market.
In order to adapt the advertising campaign to the Russian market,
it was necessary to choose a different integration path. In Russia
these products have not been accepted.
Let’s analyse the disadvantages and advantages of this PR-
campaign.
The disadvantages of the campaign: incorrectly selected
communication channels and the concept for the Russian market.
The advantages: in the USA advertising channels, target audience
and concepts were chosen correctly. The revenues in the USA
were ten times higher than in Russia (fig. 2).

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25 20
20
15
10
5 2
0

Russia The
USA
Figure 2. The revenues of Nike in 2013
On the basis of the aforementioned PR-campaigns we may
conclude that communication channels play an important, we can
even say a key role in the success of every PR-campaign. The
most useful and productive communication channels are media,
outdoor advertising, the Internet, social networks and events. The
experience of Nike illustrates the importance of the
communication channels choice which depends on the target
audience the PR-campaign is aimed at.

References
1. Kelly St. Jr. Professional Public Relations and Public Power.
Baltimore: Johns Hopkins, 1956.
2. Nike Powers Women To Be Better For It URL:
https://news.nike.com/news/nike-powers-women-to-be-betterforit
[Reference date: 28.09.2019]
3. Being Able To Say: "I Did It" URL:
https://www.vogue.co.uk/article/being-able-to-say-i-did-it-nike-
better-for-it-campaign [Reference date: 29.09.2019]
4. Nike Redefines "Just Do It" with New Campaign
https://news.nike.com/news/nike-evolves-just-do-it-with-new-
campaign [Reference date: 29.09.2019]
5. Nike marks 25 years of the Just Do It campaign with ad
challenging public to take on its stars, Serena Williams, LeBron

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James and Gerard Pique https://www.dailymail.co.uk/femail/
article-2398358/Nike-marks-25-years-Just-Do-It-campaign-ad-
starring-Serena-Williams-LeBron-James-Gerard-Pique.html
[Reference date: 01.10.2019]

POSITIVE AND NEGATIVE EXAMPLES


OF PR-CAMPAIGNS ON THE EXAMPLE
OF NESQUIK COMPANY

Esenia S. Korolyova

graduate student of Public Relations


Institute of Foreign Languages
Peoples’ Friendship University of Russia
Moscow, Russia
e-mail: sandy97@bk.ru

Abstract: The purpose of this article is to identify unsuccessful


and successful PR campaigns of Nesquik Company through
communication channels with digital consumers in order to
clarify mistakes made by the company when choosing marketing
tools for promotion. The conclusion summarizes all the mistakes
made by Nesquik during the strategies and choice of channels
that the company used during the promotion their business.
Keywords: PR-campaign, communication channels, digital
interaction, corporate identity, Internet marketing, promoting,
promotional tools

Despite the rapid development of the Internet these days, many


companies make mistakes when choosing and using
communication channels and interacting with consumers or “end
users”. This article presents the main channels and tools of
communication, their appropriate and inappropriate usage in the
digital space.

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“Marketing communications are the means by which companies
attempt to inform, pesuade, and remind consumers - directly or
indirectly - about the products and brands that they sell” [1,
p. 57]. This statement can be considered absolutely correct, then
we will explain why.
First of all, personal and nonpersonal communication channels
can be used for marketing communications as well. Within both
of them there are many subchannels. The marketing
communications mix is now thought of as consisting six major
modes or types of communication alternatives.
• Advertising
• Sales promotion
• Events and experiences
• Public relations and publicity
• Direct marketing
• Personal selling and meetings
Nonpersonal communication channels include media,
atmospheres, and events.
There are basically four types of marketing channels:
• Direct selling
• Selling through intermediaries
• Distribution via the Internet
• Reverse channels
Media channels include print media (newspaper, magazines,
souvenirs, proceedings of conferences), broadcast media (radio,
television), display media (billboards, signs, posters) and
electronic media (audiotape, videotape, videodisk etc.) [2, p. 1-5].
Atmosphere is what firms create in their office environment. The
office interiors and exteriors have a meaning to the potential
buyers.
Events are occurrences designed to communicate particular
messages to target audiences or audiences. Company arranged
news conferences, opening ceremonies of various kinds, and
sponsorships of various events come under event

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communications channels. Communication through mass media
stimulates personal communication channels.
Advertising is a public mode of communication. Because it is
communicated simultaneously to large number of people and
people know that the same communication is going to many
people, they feel their motives for buying are understood by the
advertiser.
Advertising messages can be repeated number of times. Buyers
also can compare advertisements of various companies selling the
same product. The media offers the facility to add color, sound
etc. to the message and dramatize the message. But advertising
cannot have dialogue with the people. People may not see and
pay attention to the advertisement.
Advertising is an efficient way to reach geographically dispersed
potential buyers at a low cost per exposure.
Advertising has two recent variants. Advertorials are offer
editorial content and while it is paid for by the advertiser and it
will be difficult for the reader to easily make out that it is an
advertisement. Similarly, infomercials are TV programs that are
meant for promoting the products of the company. They discuss
the working of the product, benefits of the products, and user
experience etc. and they may beam the message to buy the
product and the address to be contacted [3, p. 57].
Sales promotion tools like coupons, contests, premiums, and the
like act as communication medium and promote sales.
They gain attention and provide information that may lead the
consumer to the product. They include a distinct invitation to the
consumer to do the transaction in a short period.
News stories and feature articles are more authentic and credible
than advertisements to readers. The articles act as testimonials.
The message gets through to the potential buyers as news and
they may not turn away from it as they turn away from the
advertisements.
Personal selling as a communicative channel involves a live,
immediate, and interactive relationship between persons. Personal

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selling leads to relationships. The listener feels obligated to
respond to the salesperson at least with a polite “thank you.”
The alternatives are direct mail, Email, and telemarketing. In
these cases the message is addressed to a specific person. The
message can be customized. Even though mailing folders and
email are normally standardized to gain efficiency. The message
can be up to date. In case of telemarketing, message can be
altered depending on the response. In the case of other
alternatives subsequent communication can be altered depending
on the response. Let's move on to specific examples of using
marketing communication channels [4, p. 101-103].
Everybody knows such a familiar taste of childhood from the
American company Nestle. It is their chocolate drink Nesquik.
NESTLÉ's communication with customers is based on the
following Basic principles:
• NESTLÉ should support the principles of moderation in
nutrition and not encourage overeating in its communications
with consumers. This is especially important when it comes to
children's nutrition.
• We must show children examples of healthy and energetic
living and avoid demonstrating a sedentary lifestyle combined
with an improper diet.
• We must reflect the principles of a healthy, balanced diet.
Advertising our products should not imply the replacement of
regular meals with a light snack, as well as encourage excessive
consumption of products.
• Messages containing information about the health benefits of
NESTLÉ products should have a reliable dietary justification.
• In communications with consumers should not be exploited
themes of violence, indecent behavior and obscene language.
Russian advertising agency Progression (Progression Group) has
made an example of a successful digital-campaign of chocolate
drink on the online service Дневник.ру (Diary.ru) – a popular
learning environment for teachers, pupils and their parents). This

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can be an example of a successful PR-campaign as the main
target audience of this drink is school-age children, moreover its
placement in the online service meets modern criteria, as the
Internet plays an integral role in the lives of people and even
children.
On the service, using their corporate identity of the brand, there
were published various articles about a healthy lifestyle. And they
also wrote how Nesquik chocolate drink has a positive effect on
the health of a child, because of various useful elements of cocoa
drink. Also there were released animated videos in the framework
of this campaign, which talked about the positive impact of
Nesquik.
Besides, Progression Company has held a vebinar – online
seminar, where a higly-qualified dietitian talked about the
problem of proper nutrition. This suggests that Nestle company
cares about its customers and clients and binds human
consciousness to the fact that Nesquik invites a dietitian, so they
are not afraid to talk about their product, so it is really useful.
The final element of the PR-company was an entertaining test for
parents and their children, which determines who your child may
become.
A well thought out advertising campaign gave its results soon. It
is estimated that more than 1,000 people took the online test in
less than a day, more than 10,000 people read published articles
about healthy eating in a month, 5,000 people watched animated
videos, and more than 4,500 people participated in the online
webinar.
National Rabbit Ears Day by Nesquik
However, there are negative examples of digital interaction with a
consumer. By the way, contrary to popular belief, marketing
failures in the digital space are not only about newcomers, but
also quite experienced players in the business area. With the ever-
changing Internet, companies need to focus on a "digital
consumer" and on its rapidly changing attitudes and needs.
Generally speaking, a company should be focused on the "digital

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user", but also do not forget about the needs of the audience
outside the digital space.
Nesquik company, a part of the transnational corporation Nestle,
which has established itself as one of the most influential
manufacturer, supplier and distributor of cocoa drinks, breakfast
cereals, chocolate, candy bars, etc. These are beloved and well-
known breakfasts, which also delight mothers with the content of
many useful and healthy ingredients in them. Despite all the
advantages on the market, the company still had down days.
Nesquik tried to increase brand awareness on the Internet and, in
fact, their original idea was really good. The campaign was called
"National Day of the Rabbit Ears". Nesquik has developed a
mobile application by which you can add funny rabbit ears like
Quickie rabbits, the Nesquik symbol, to your photos.

Figure 1. National Rabbit Ears Day by Nesquik


The company asked subscribers to share rabbit-ear photos on
Twitter and Instagram using the hashtag #nationalbunnyearsday.
But in the end, the hashtag was mentioned only twice on
Instagram and nine times on Twitter.

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Experts believe that if Nesquik connected their idea with a larger
event or holiday (and not with a farfetched day that they thought
up themselves) or coupled with an interesting commercials, it
would probably work. But it soon disappeared from the news
feed of fans and subscribers of Nesquik, and soon they
completely forgot about it.
Based on the foregoing materials, we can draw the following
conclusions. If we are talking about key mistakes made by
Nesquick’s marketers, there are the most important ones:
• The company attempted to cover a large number of online
audience, not relying on an offline audience. Things done the
wrong way. Since in most successful PR-campaigns, special
attention has always been paid to an online audience.
• They use only one communication channel - the Internet,
namely, the mobile application and social networks – Instagram
and Twitter, instead of using and combining several channels (for
example, a commercial; event: party or exhibition; interaction
with the media: issue a press release, give an interview; to
establish individual contacts: organize meetings with potential
users and partners, send letters, etc).

References
1. Бхимани Р., Блэк С., Бернейз Э. Л. Паблик рилейшнз. Что
это такое? - М.: Агентство печати "Новости", 1990. – 240 с.
2. Kotler Philip. Marketing Management. Thirteenth Edition.
2009. – 200 с.
3. Браун Л. Имидж - путь к успеху: Пер. с англ. - СПб.:
Питер-пресс, 1996.
4. Фролов, С. С. Связи с общественностью в работе фирмы.
Стратегия, коммуникации, имидж, брендинг. - М.: Либроком,
2014. - 368c.

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POSITIVE EXAMPLE OF PR-CAMPAIGN
FOR NESTLE AND THEIR PRODUCT NESQUIK

Daria I. Romanyuk

graduate student of Public Relations


Institute of Foreign Languages
Peoples’ Friendship University of Russia
Moscow, Russia
e-mail: DariaRo-libre@yandex.ru

Abstract: The main aim of this article is to determine the role of


PR in the creation and maintenance of a brand image and to
illustrate the successful PR-campaign through communication
channels. The aim is also consists in identifying of such an
important feature as promoting a product, creating an image and
maintaining the popularity of a product on the market.
Keywords: communication channels, PR-campaign, promotion
of a product, corporate identity of the brand, Internet interaction

The relevance of this article is in the fact that any product has its
own face, its own corporate identity, which can ensure its market
success or become a complete failure. The face of the product is a
unique image that exists deeply in the minds of clients and
customers. It occurs from the combination of many components.
Moreover, the consumers perceive all these components as a
whole: the name of the product, packaging, price, style of
advertising and so on. The face of a product can be created due to
various attributes: tangible and intangible, practical and symbolic,
visible and invisible. The plexus of all these components around
the base of a product turns it into a brand. Each brand has its own
place on the market. However, even the most famous brands
often need a good and successful PR-campaign, which will
increase brand awareness and attract even more customers.

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Brand identity and corporate identity are very important, as they
indicate the distinctive qualities of a brand and its functional and
emotional features. It is commonly known, that good and highly
qualitied advertising has a huge impact on the target audience. It
motivates them (consciously or not) to purchase a certain product.
Even if consumers try to control this process and avoid the
impact of big players of the market, they inevitably fall under the
influence of other brands, even if they are not so noticeable.
Public relations or commonly used as PR is the practice of
deliberately managing the spread of information between an
individual or an organization and the public. PR is the idea of
creating coverage for clients for free, rather than marketing or
advertising. PR works by using multiple channels and techniques
to help companies develop, maintain and enhance their
relationships with their many publics, whomever they are.
Without those relationships, no company can succeed. Poorly
managed, those relationships can force a company out of
business. When it’s done well, public relations is both invisible
and the secret to some of the world’s most successful companies
[3].
There is a curious phenomenon; it consists in the fact that any
brand is advertised at least twice. Firstly, PR-campaign is
launched by an advertising agency, and secondly, the initiative
goes to the loyal customers of this or that brand. In other words,
the word of mouth starts working. The users boast about the
product they bought to their friends, thereby increasing brand
awareness on the market.
The usage of PR in creating and leading a brand is a powerful
tool that manages the reputation of the brand and public opinion
that helps to promote a brand and strengthen its position (and
gain the foothold) on the market.
In branding practice, PR is used everywhere, being a key
marketing tool in brand promotion. PR agencies are used by the
brands as widely as common advertising agencies as a permanent
and effective part of a marketing team. The approach to the PR-

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campaign should be competent and professional, because even a
little mistake in PR can be perceived by the public with
dissonance, which can ruin a brands reputation at all. And it is
well-known fact that to spoil the reputation is easier than to
improve it and create from the nothing again.
In a strategy of brand promotion with the help of PR we can
indicate some staps [4]:
1. Analysis and problem statement;
2. Identification of competitors of a brand;
3. The development of PR activities;
4. Implementation of PR-campaign, including interaction with
the media;
5. Capacity-building;
The effect of PR campaign is slower and more gradual than, for
example, advertising, which acts instantly. That is why a client
should realize a PR program in advance, before starting branding
campaign.
6. Analysis and evaluation of the results of PR-campaign;
7. Launching a brand on the market.
On this stage an advertising campaign starts playing a very
important role [1].
And now let’s illustrate how PR works in real life, showing the
example of Nestle company.
Everybody knows such a familiar taste of childhood from the
Swiss company Nestle. It is their chocolate drink Nesquik.
NESTLÉ's communication with customers is based on the
following Basic principles:
1. NESTLÉ should support the principles of moderation in
nutrition and not encourage overeating in its communications
with consumers. This is especially important when it comes to
children's nutrition.
2. We must show children examples of healthy and energetic
living and avoid demonstrating a sedentary lifestyle combined
with an improper diet.

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3. We must reflect the principles of a healthy, balanced diet.
Advertising our products should not imply the replacement of
regular meals with a light snack, as well as encourage excessive
consumption of products
4. Messages containing information about the health benefits of
NESTLÉ products should have a reliable dietary justification.
5. In communications with consumers should not be exploited
themes of violence, indecent behavior and obscene language.
Russian advertising agency Progression (Progression Group) has
made an example of a successful digital-campaign of chocolate
drink on the online service Дневник.ру (Diary.ru) – a popular
learning environment for teachers, pupils and their parents). This
can be an example of a successful PR-campaign as the main
target audience of this drink is school-age children, moreover its
placement in the online service meets modern criteria, as the
Internet plays an integral role in the lives of people and even
children.
On the service, using their corporate identity of the brand, there
were published various articles about a healthy lifestyle (“Healthy
child: lifestyle and nutrition”, “The diet of a young schoolboy and
schoolgirl”, “how to make a good and kind morning”, “How to
teach a child to have breakfast”). And they also wrote how
Nesquik chocolate drink has a positive effect on the health of a
child, because of various useful elements of cocoa drink. Also
there were released animated video in the framework of this
campaign, which talked about the positive impact of Nesquik.

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Besides, Progression company has held a webinar – online
seminar, where a highly-qualified dietitian talked about the
problem of proper nutrition. This suggests that Nestle company
cares about its customers and clients and binds human
consciousness to the fact that Nesquik invites a dietitian, so they
are not afraid to talk about their product, so it is really useful.
The final element of the PR-company was an entertaining test for
parents and their children, which determines who your child may
become.
A well-thought-out advertising campaign gave its results soon. It
is estimated that more than 1,000 people took the online test in
less than a day, more than 10,000 people read published articles
about healthy eating in a month, 5,000 people watched animated
videos, and more than 4,500 people participated in the online
webinar.
As a conclusion, there is a way to say that choosing a right place
for campaign (Internet service), targeting the specific audience,
who were school-age children and their parents; diverse PR-

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campaign (articles, animated-video, webinar, test) have made this
campaign a successful one. It was so as the steps of the
Progression agency were structured and carried out gradually.

References
1. Батра Р., Майерс Дж., Аакер Д., Рекламный менеджмент.
– М.: СПб.; Киев, Вильямс, 1999. – 784 с.
2. Gregory, Anne, 1953 Planning and managing public relations
campaign a strategic approach / Anne Gregory. – 3rd ed., 188 p.
3. https://www.axiapr.com/blog/how-does-pr-work-2 [Дата
обращения: 15.10.2019]
4. http://be5.biz/ekonomika1/r2011/00023.htm [Дата
обращения: 17.10.2019]

COMMUNICATION CHANNELS AS THE ELEMENTS


OF A SUCCESSFUL PR-CAMPAIGN ON THE EXAMPLE
OF NIKE PR-CAMPAIGNS

Anastasia A. Sorokina

graduate student of Public Relations


Institute of Foreign Languages
Peoples’ Friendship University of Russia
Moscow, Russia
e-mail: anastasijasorokina@ro.ru

Abstract: This article deals with the components of a successful


PR-campaign. It talks about the aims of PR-campaign and how to
fix them correctly to achieve better results. The article also
reveals the links between the target audience and types of
communication channels, classifies communication channels by
different types and shows on the example of real PR-campaigns
how to use mixed communication channels to increase the
number of real customers and brand awareness.

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Keywords: channels of communication, PR-campaign, target
audience

An effective PR-campaign is one the most important elements of


the successful sales of a product. It requires investment and
correct approach. When you work on the PR-campaign it’s
essential to define what message your audience will receive and
what kind of communication channels you have to use to do it by
the most effective way.
Specialists recommend answering 3 questions before you start to
create the promotional campaign:
1) What is the aim of your message, what is its impact on your
target audience?
2) Who represent your target audiences that receive this
message?
3) What communication channels will be used for interaction
with defined target audiences?
Usually PR-campaigns have different aims, but for the most part
brands want to increase brand awareness and bring new products
to the customers’ attention by convincing people that they need a
promoted product.
If the PR-campaign aim is to convince people that they need a
particular type of a product, this PR-campaign has to teach the
audience that they need, for example, a body lotion, because all
people that live in cities has dry skin and they have to moisturize
it.
Media channels can be different: for example television, Internet,
press, outdoor ad and events, such as promotional activities in
shops.
If the aim is to increase brand awareness it is better to use mass
channels of communication such as TV, press and radio.
In order to create loyalty among customers, specialists
recommend using social networks, the Internet and applications.

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If there are customers who are already aware of your brand, but
you want them to buy your products the best way to do it is to
offer them free samples and gifts.
Each type of media channels requires customization because of
the difference of the audience and the way of how the
information is presented.
At the same time, we can’t use only one communication channel
because it is not effective. We have to define a group of channels
providing the best coverage of representatives of the target
audience.
Channels of communication can also be classified as controlled
and uncontrolled ones. Controlled types of communication mean
that a brand fully controls the information and the message given
to its target audience. Usually a brand pays for display of
advertisements, but it decides what information is available for
consumers and how products are promoted. Controlled types of
communication are represented by press, television, official
leaflets and brochures etc.
In contrast with that uncontrolled type of communication suppose
that a brand can’t influence what type of information end-users
will receive and it usually means a risk for a company.
Advertisement in uncontrolled types of communication can be
free, but you have to realise that it can destroy the image of a
company. Uncontrolled types of communications are represented
by independent journalists or independent press, bloggers etc. In
all cases it means that the final information about your product
will be given independently and you can influence the final
opinion about the product.
If you know how to use different types of communication and if
you know your target audience you can create an effective PR-
campaign. Let us analyse it on some of the most controversial
PR-campaign, created by Nike brand.
The first campaign is ‘Write the Future’ PR-campaign. It was
launched before the beginning of the 2010 World football Cup
(fig. 1).

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Figure 1. Outdoor ad for ‘Write the Future’ PR-campaign
The aims of this campaign were to increase brand awareness and
to overtake Adidas and to become the number 1 producer of
football sportswear and boots.
For this PR-campaign Nike used controlled and uncontrolled
types of communication. Controlled types of communication
were TV and the Internet, because Nike’s commercial had a
message, created and controlled by themselves.
At the same time the Internet, especially social networks
represented uncontrolled communication, because Nike could not
predict the reaction of social networks’ users and the opinion they
would post in their accounts and blogs, influencing by this way
the opinion of other people.
Nike commercial was a well-made video and it had a credible
message: Nike boots and sportswear would give you the power to
carve your own athletic destinies as you favourite sportsmen.
Nike wanted to make the commercial very appealing, that’s why
they invested a lot in this video. It was directed by Mexican

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filmmaker Alejandro González Iñárritu. The faces of this PR-
campaign were famous football players, such as Didier Drogba,
Fabio Cannavaro, Wayne Rooney, Franck Ribéry, Ronaldinho,
and Cristiano Ronaldo etc. There is dramatic music in this video,
fans cheer their favourites and football players drop goals. This
commercial looked expansive and incredible. The audience
highly appreciated the video and liked it.
If the audience liked this video, why it is considered as a
controversial one?
‘Write the Future’ campaign was launched before the beginning
of the World Cup 2010. Football players that were the faces of
this PR-campaign were shown as the real heroes, and two other -
countries Spain and the Netherlands - were shown as losers.
Unfortunately, during the real games these players didn’t show
any good results, some of them even did not take part in the
Championship. Moreover, the countries that were shown as losers
in the video took the 1st place (Spain), and the 2nd (the
Netherlands). After the end of the World Cup this commercial
was ridiculous, and what is important, Nike lost its customers
from Spain and the Netherlands. End users could not believe
anymore in the PR-campaign message that Nike’s boots and
sportswear can help them.
Thanks to the fact that the PR-campaign was launched before
becoming an object of ridicule, Nike achieved its aims: they
boosted social media following and became the most shared
brand online in that year. And what is the most important Nike
overtook Adidas and became number 1 football brand.
The next campaign was titled ‘Dream Crazy’. Its face is Colin
Kaepernick, NFL quarterback (fig. 2). He became famous in
2016, when he refused to stand up during the pre-game American
anthem in a protest at racial injustice in the USA. Kaepernick was
highly criticised for his actions by politicians as well as by
ordinary people. When Nike announced that he would be the face
of the 30st PR-campaign, the reaction of social network users was

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extremely aggressive. They started to burn Nike boots and
sportswear and post these photos with hashtag ‘JustBurnIt’.
As in the previous PR-campaign here Nike also used controlled
and uncontrolled types of communication. Controlled types of
communication were commercial and outdoor ad, as Nike fully
controlled its message showing its customers that the brand
shared their values and was ready to support them, and
uncontrolled ones were social networks – Nike had to deal with
aggressive reaction of users, that were burning Nike clothes and
writing posts with attacking Nike choice for the PR-campaign.

Fig. 2. Colin Kaepernick in Dream Crazier PR-campaign


Despite such aggressive reaction, this PR-campaign was
successful. And there are some reasons for it.
First of all, Nike knows its target audience. They are men of 18-
29 years old, and among them there are a lot of African-
Americans. It was important to show that the brand shares the
values and ideals of its target audience and wants to support
them. Moreover, this PR-campaign included other sportsmen
whose example showed that you should never give up.

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The second reason: Nike chose the right communication channel
– social networks where everyone wants to express themselves
and their opinion. The hashtag “Just burn it” became very popular
– even the President Donald Trump expressed his opinion on the
actions of Kaepernick and the Nike decision. ‘Dream crazier’ PR-
campaigned was discussed everywhere: in social networks, press
and on TV. First TV channels released programmes criticizing
Colin Kaepernick, then, when it turned out that Nike sales were
growing, channels made programs analysing the reasons for the
PR-campaign success.
Thanks to hashtags a lot of people were aware of the brand. It
means that when people had a choice between Nike production
and for example Reebok production, they preferred to choose
Nike, because they were aware of this brand. Thousands of
people followed Nike’s social network, as the result Nike’s stocks
increased by 7% and sales by 61%.

References
1. Vasiljev G.A., Poljakov V.A. Osnovy reklamnoj dejatel’nosti:
Uchebnoe posobie dlja vuzov. - M.: Juniti-Dana, 2004. – 414 p.
2. Nike's 'Dream Crazy' advert starring Colin Kaepernick wins
Emmy. URL:
https://www.theguardian.com/sport/2019/sep/16/nikes-dream-
crazy-advert-starring-colin-kaepernick-wins-emmy (reference
date: 29.09.2019)
3. Nike’s Colin Kaepernick ad sparked a boycott - and earned $6
billion for Nike URL:
https://www.vox.com/2018/9/24/17895704/nike-colin-
kaepernick-boycott-6-billion (reference date: 29.09.2019)
4. One year later, what did we learn from Nike’s blockbuster
Colin Kaepernick ad? URL:
https://www.fastcompany.com/90399316/one-year-later-what-
did-we-learn-from-nikes-blockbuster-colin-kaepernick-ad
(reference date; 01.10.2019)

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5. The strange case of Nike’s ‘Write the Future’ Campaign
https://opportunitymarketing.co.uk/blog/the-strange-case-of-
nikes-write-the-future-campaign (reference date; 01.10.2019)

PEPSI PR-CAMPAIGNS AS EXAMPLES


OF SUCCESSFUL AND UNSUCCESSFUL
MARKETING-MIX REALIZATION

Valery M. Fedorova

graduate student of Public Relations


Institute of Foreign Languages
Peoples’ Friendship University of Russia
Moscow, Russia
e-mail: jinny05@rambler.ru

Abstract: The article is devoted to research of the marketing mix


theory and its role in brand awareness boosting. It defines the
main elements of the four Ps model (product, price, place,
promotion) and their importance in the creation of good image of
the Pepsi company. Real Pepsi ad-campaigns are analyzed and
grouped according to their effectiveness and negative and
positive consequences for the company and its popularity among
customers. The article may be useful for those who work in
Public Relations and Marketing as well as for students taking
their first step in these spheres.
Keywords: brand awareness, PR-campaign, advertisement,
marketing-mix, Pepsi

In general, brand awareness represents the ability of consumers


to recall and recognize a brand, or simply to be aware of its
existence [1, p. 8].
This ability is directly connected to main reasons why consumers
prefer this exact product to another. The explanation is quite
simple: brands which people know are very likely to be included

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in their consideration set. So, even if consumers do not have any
need of buying this or that brand’s product at this moment, then
when the time is right, they subconsciously are more probable to
choose one they know rather than that they see for the first time.
Thus, brand awareness may considerably improve the brand’s
market performance as well as its image.
There are many factors which may influence the brand’s status.
In this article the association between the marketing mix
components and brand awareness are examined. Specifically, it
investigates the impact of right or wrong choice of each of them
on the whole brand success.
The marketing mix (also known as the four Ps) is the range of
specific marketing tools that are used by an organization in order
to produce a favorable response from its target audience. It
includes everything that an organization can do in order to affect
demand for its product and to promote it [2, pp. 67-70].
The marketing mix consists of:
1. Product - particular goods or services offered by an
organization that satisfy some people’s needs.
2. Price - money paid by people in order to buy some of the
brand’s products or services.
3. Place - specific activities making the brand products and
services accessible to their audience.
4. Promotion - the process of passing information about all of the
product’s (service’s) advantages and of convincing people to buy
it.
Each of these four Ps has its own tools which also play a great
role in the process of boosting the brand’s image:
• Product: brand name, quality, design, packaging.
• Price: payment terms, discounts, credit agreement.
• Place: location, coverage, channels, logistics.
• Promotion: public relations, advertising, sales promotion.
All of these marketing-mix components and tools are important.
They may function successfully only if they come together. So, if

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something is wrong with one of these four main elements, it may
negatively affect and even ruin the whole campaign as well as the
brand image.
This fact becomes more evident while analyzing real PR-
campaigns of a well-known company. The Pepsi brand with its
long history of advertising is perfect for this task.
First P - Price (positive example)
During the difficult economic times of the Great Depression
when the purchase power dropped significantly, Pepsi-Cola
became very popular. It happened thanks to the launching in 1934
of a new ad campaign - “Twice as much for a nickel too” - along
with a new bottle, which was bigger than previous Pepsi and
Coca-Cola servings, but the price was the same (a nickel - about
5 cents).
With its popular “Nickel, Nickel” jingle, Pepsi motivated price-
conscious consumers to increase the volume of the drink that
their money could buy.
“Pepsi-Cola hits the spot, 12 full ounces, that’s a lot,
Twice as much for a nickel too,
Pepsi-Cola is the Drink for you! [6]”
Thus, the Pepsi brand decided to focus on tools (slogans, jingles)
which emphasized Value for Money.
They offered twice as much Pepsi-Cola for the same price as
other sodas, due to which the campaign managed to boost the
Pepsi's status.

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Figure 1. Pepsi-Cola printed advertisement
Second P - Product (positive example)
A good instance of a product-oriented campaign is “Pepsi
Perfect”.
In 2015 PepsiCo released “Pepsi Perfect” - the fantastic soft drink
which became known thanks to the film “Back to the Future Part
2”. It was briefly shown in the movie, when one of the main
characters travels from his present (the eighties) to the year 2015.
The Pepsi brand decided to launch that new version of the drink
in response to fan demands. The exclusive feature about that soda
was its packaging: it was as similar to the one featured in the
movie as possible (fig. 2).
What is more, these bottles were launched in limited edition: only
6 500 items that people were able to buy online and also at New
York Comic Con. All of them were purchased immediately,
which was a great success for the company.

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Figure 2. A “Pepsi Perfect” bottle
Third P - Promotion (negative example)
As for unsuccessful Pepsi projects, “Live for Now” campaign
should be mentioned.
“Live for Now” is a video commercial which showed reality TV
star and model Kendall Jenner. In this short clip the celebrity
joined a social protest action. The viewers could see that tensions
were growing between protesters and the Police Service, but
everything changed when the model opened a Pepsi for one
police officer.
Even though the video may seem quite harmless, people were
furious. The creators of that campaign were strongly criticized on
social media for having intension of capitalizing on public
protests, in other words, on important social issues. That step
turned out to be a big mistake (fig. 3).
The company said that “Pepsi was trying to project a global
message of unity, peace and understanding” [5]. However, no one
understood that and the company had to apologize for that new ad
campaign.

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Figure 3. Reaction to “Live for Now” video on Facebook
Fourth P - Place (negative example)
Also Pepsi has quite a controversial project regarding place
component – “The Pepsi Generation” campaign.
The “Pepsi Generation” with its famous slogan “Come Alive!
You're the Pepsi Generation!” represents one of the most known
examples of lifestyle marketing. It focused on portraying Pepsi
consumers as people who have some desirable qualities such as
youth, energy and spirit of adventure, rather than on the drink and
its unique features.
This campaign successfully managed to spread the Pepsi drink in
the USA. Thus, the company intended to expand the distribution
area to the Chinese market. Unfortunately, the result of that
decision was different. The slogan, which attracted many people
in America, was not admired by the Chinese. The reason is the
element of translation.

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The slogan was translated into Chinese as “Pepsi Brings Your
Ancestors Back from the Dead!”. The reaction of the local public
was to refuse to buy Pepsi. Moreover, they were competing on
media making fun of this slogan and the product in general
(fig. 4).

Figure 4. An example of mocking at the slogan translation


All these examples confirm the statement that each element of the
marketing-mix is vital for every brand. In order to boost the brand
image its PR-specialists, marketers and the other workers should
take this fact into consideration and try to avoid making any
mistakes at this or that stage. Only in this case the brand will
increase its popularity among customers and will be able to
become a big player in the market.

References
1. Keller K. L. Building Customer-Based Brand Equity: A
Blueprint for Creating Strong Brands. Cambridge, MA:
Marketing Science Institute, 2001. 38 p.
2. Kotler P., Armstrong G., Cunningham P.H. Principles of
Marketing. Toronto: Pearson Education Canada, 2005. 768 p.
3. At NY Comic Con, Pepsi takes fans “Back to the Future” with
“Pepsi Perfect”. URL: https://www.campaignlive.com/article/ny-
comic-con-pepsi-takes-fans-back-future-pepsi-perfect/1367761
(reference date: 27.09.2019)

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4. Pepsi Brings Back Ancestors. URL:
https://www.snopes.com/fact-check/come-alive/ (reference date:
25.09.2019)
5. Pepsi Pulls Ad Accused of Trivializing Black Lives Matter.
URL: https://www.nytimes.com/2017/04/05/business/kendall-
jenner-pepsi-ad.html (reference date: 25.09.2019)
6. 1939 Radio Commercial (Twice as Much for a Nickel).
Archived from the original on June 15, 2007. Retrieved August
13, 2012. URL:
https://web.archive.org/web/20070615171027/http://www.oldradi
ofun.com/downloads/Commercials.19xx.xx.xx_Pepsi_Cola.mp3
(reference date: 25.09.2019)

OCCUPATIONAL CHARACTERISTICS, DURING


A PERIOD OF CHANGE, IN THE ISRAELI LABOR
MARKET

Lama Mashal

Ph. D student in Institute of International Relations of Moldova (IRIM)


Kaye College, Beer – Sheva, Israel
e-mail: lamamashal@gmail.com

Abstract: At a time when the world is undergoing significant


changes in the world of employment, and robotics and computing
are replacing the employee, we are aware of economic and social
policies in various countries. This policy brings to light the social
- economic - occupational characteristics that are tailored to each
country. This article will try to examine the social occupational
characteristics that the State of Israel is facing towards the third
millennium.
Keywords: Labor Market, Globalization, Knowledge Economy,
Economic – Social Characteristics

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1. Introduction
The Israeli labour market has improved markedly over the last
decade, with the employment rate reaching historically high
levels. While this partly reflects remarkable progress for older
workers due to the retirement age increase [13], more and more
Haredim and Israeli-Arabs have also found jobs, though their
employment rates remain low [15]. This problem is especially
severe for Haredi men and Israeli-Arab women; indeed, progress
has stalled for both groups. However, there is no guarantee that
gains will continue much longer, since the stock of remaining
inactive adults in these communities no doubt includes some of
the most resistant to joining the labour market Moreover, the
labour market is still characterize by severe duality.
Moreover, job mobility towards high-productivity sectors is
declining, which means that the probability that low-educated
individuals will get jobs in high value-added, high-wage
industries has decreased over time [12]. This is worrying; as such,
industries are facing increasing skilled-labour shortages,
undermining their growth and competitiveness. More than half of
their companies recently reported difficulty filling jobs,
particularly for engineers [21]. A special visa exists for skilled
workers where there is no local expertise. Despite strong demand,
the employment share of the high-tech sectors has remained
stable around 12% of employment in the business sector for a
decade, and they are said to lack more than 10 000 engineers [7].
Israeli-Arabs comprise only about 3% of the high-tech workforce,
and Haredim are also under-represented.
2. The Financial Sectors
The situation is similar in many other sectors such as financial
and professional services [5]. This reflects a number of
difficulties and barriers including education and transportation
issues, but also other obstacles such as language barriers, cultural
and social norms – as well as insufficient inclusiveness of
policies and program [4]. More needs to be done to improve the
outcomes of these groups, not only in terms of employment, but

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also of wages and productivity. In addition; support programs for
Israeli-Arab and Haredi entrepreneurs should also be introduced
[1].
These measures should be complemented by better enforcement
of existing anti-discrimination regulation. It may worthwhile
using public procurement to increase incentives for firms to hire
more Israeli-Arab and Haredi workers [9]. Gender equality also
requires policy attention. The median gender wage gap, which is
close to 22%, is higher than the OECD average.
This gap explained by lower working hours for women, but also
by their choice of education field and industry [20]: women
account for only about 25% of high-tech jobs [13] were related to
the lack of childcare facilities, although corrective efforts are
underway. Although expenditure on child-care and pre-school
education relative to GDP is slightly above the OECD average, it
is comparatively lower when measured per child under four,
given Israel’s large share of this population age group. Increasing
the number of subsidized crèche places for these children would
foster labour force participation and would help women to pursue
better careers, with higher wages [2]. This would be beneficial
particularly for Arab women with low labour force participation
[10] and Haredi women with large share of part-time work, who
currently end up doing much unpaid work for their families. On
the other hand, the existing eligibility for subsidized childcare
facilities for Haredi families whose father is studying in a yeshiva
is likely to be counterproductive for labour-market integration
and takes available spaces from two-earner working families.
Inequality and poverty in Israel remain high, despite some
improvement resulting from the rising employment rate and
recent measures to address the problem, such as increases in the
minimum wage and in the Earned Income Tax Credit (EITC).
In recent years both gross and net income inequality have come
down, returning the net measure to the levels seen in the early
2000s, implying important savings on transfer payments.
Inequality, as measured by standard Gini coefficient, has

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decreased from 0.36 in 2011 to 0.34 in 2016. Nevertheless, the
fact remains that average disposable income of the 10% richest
households was 13.3 times that of the poorest, against a multiple
of 9.4 for the average OECD country. Almost one-fifth of the
population live in relative poverty the highest rate in the OECD.
All age groups are affected, with a particularly heavy prevalence
among children, but also among the elderly. Around half of Arabs
and Haredim are poor, against 13.5% of non-Haredi Jews [20].
3. The Social disparities - poverty
One of the reasons for high poverty rates is the low level of social
transfers (BoI, 2016c). While poverty measured before taxes and
transfers is lower than in many other OECD countries, poverty
after taxes and transfers is higher. As in other OECD countries,
transfers do not include in-kind benefits such as free education
and health-care services. Israeli social policy follows a “welfare-
to-work” approach to tackling poverty in order to avoid measures
that may harm work incentives among the Haredi, who value the
time dedicated to religious studies, and the Arabs, who have
cultural barriers to female employment [6]. Policy- makers are
concerned that, although easing economic distress in the short
term, higher transfers would perpetuate it in the long term by
slowing the progress of their employment integration. The critical
challenge they face is that many of those subject to (relative)
poverty (specifically: Haredi men) do not want to work and are
satisfied with a very low material standard of living. The Israeli
government’s strategy of encouraging employment among
previously nonworking families has met with substantial success.
Moreover, the average real income of poor households has risen
by 2.7-2.9% in the last six years, while the average real income of
wealthier households has increased by only 2.2% [16]. Many
households with only one provider and a persistent and
widespread problem of poor job-related skills, it is just a first step
whose benefits have been limited so far by the increase in the
working-poor phenomenon. Many disadvantaged workers have
been able to find jobs, but their families remain poor, since in

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most cases these jobs are low-paid. Indeed, the share of the
working poor has risen in recent years and is internationally high.
This is particularly true for the Haredim and Israeli-Arabs, for
whom the increased number of breadwinners per family in the
last decade has had only a limited impact on their poverty risks.
Therefore, the authorities should focus more on decreasing
poverty among those in work. Improving the education system to
enhance equity Extensive poverty and inequality in Israeli society
are to a significant extent due to the wide dispersion of skills.
Israel has one of the largest gaps between adults with outstanding
competences and those with weak outcomes. The share of adults
with top-notch numeracy skills is comparable to the OECD
average, but the proportion of low-skilled adults is exceptionally
high: for example, almost one-third of Israelis lack basic math's
skills. These differences particularly pronounced between
communities, which exacerbates already strong socio-economic
divisions in Israeli society. Large wage gaps between Israeli-
Arabs, Haredim, and the rest of the population for the most part
explained by differences in skills (BoI, 2016d): the relation
between wages and skills proficiency is relatively strong in Israel.
Education plays a central role in the acquisition of skills at an
early age and is a powerful lever to make society more inclusive.
However, international assessments of Israeli students’ outcomes
(including PISA) show significant differences among students.
Hebrew-speaking students have similar or better scores than the
average OECD student, while Arabs lag behind. The share of
poorly performing Arabic-speaking students was 45%, against
12% for Hebrew speakers. Almost no Arabic speakers reached
the top performing cut-off. Particularly poor performance is
found in the Bedouin community, whose children (below the age
of 14) currently comprise almost one fifth of all Israeli-Arab
children.
4. The Gaps in Education & Training Systems
This large dispersion in skills and students’ outcomes is related to
the segregated education system, which comprises four streams:

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one for Arabic speakers and three for the Hebrew-speaking
communities, including Haredi, state-religious and state schools.
In the Arabic stream the instruction language is Arabic, and
Hebrew is taught as an additional subject, while all teachers are
Arabs. The situation in Haredi schools reflects an explicit choice
of studying religious rather than secular subjects. Haredi boys
aged 13 usually continue only with religious studies without
secular core subjects, while girls spend much more time on
secular subjects. These systemic features weaken skills formation
in the Haredi and Israeli-Arab communities and contribute to the
considerable inequality in socioeconomic outcomes. Since
merging all the streams into a single system built around a
common core curriculum is politically unrealistic, improving the
education system requires building bridges between existing
streams with the objective of raising the outcomes of low
achievers, especially among Israeli-Arabs and Haredim. This will
require higher public education spending, particularly on
disadvantaged schools (see below). Despite significant increases
in recent years, expenditures per student remain low. Moreover,
budget allocations do not provide enough support for
disadvantaged groups. Schools receive a basic budget that equally
distributed according to student numbers and a grant (6% of the
total budget) that reflects the school’s socioeconomic profile.
Additional financing comes from the municipalities, Better
endowed local governments can provide 10-20 times higher
funding per student than their less affluent counterparts, though
the amounts involved are small (OECD, 2016d). Consequently,
schools in disadvantaged areas comparatively underfunded,
although the nature of this problem is different between Arab and
Haredi schools Disadvantaged schools need much greater
funding. Adjustments planned, and the five-year Economic and
Development Plan for the Arab Sector, mentioned above,
includes education measures, which if properly implemented, can
help reduce these gaps. However, much more needed .

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5. International Comparisons
For example, in Chile, a weighted voucher system allocates 50%
higher resources for students from low socio-economic
backgrounds [7] to provide extra teaching time or specialized
learning materials. The authorities can also increase salaries for
teachers working in disadvantaged schools. International
experience suggests that much higher salaries are required to
attract the best teachers to such institutions, but that financial
incentives will be effective only if teachers given the means to be
successful, such as by complementing higher wages with other
incentives like smaller classes. Korea offers multiple incentives
to candidates working in high-needs schools, including higher
pay, smaller classes and additional credits towards future
promotion [8]. A cost-efficient option that has had some success
abroad is to set up a system allowing teachers to share good
teaching practices. Above all, there is a need to reduce the
curricular differences between the education streams, which
contribute to wide dispersion of average skills and educational
outcomes among students from different communities. In the
Arab stream, the government should keep trying to improve the
teaching of Hebrew, as only 60% of Arabs have a good
understanding of it. A better command of Hebrew would help
Israeli-Arabs integrate into the job market [14]. While the
government recognizes the problem and expanding the number of
hours dedicated to teaching Hebrew in Arab schools. Ensuring
substantial teaching of practical Hebrew and/or teaching some
core subjects in Hebrew would be desirable. A complementary
approach should include expanding pre-school education to
children between zero and three and increasing their exposure to
Hebrew.
Many voices were called It is necessary to improve vocational
education and training; this is another problem that exacerbates
skills differences is the low quality of the initial Vocational
Education and Training (VET) system. Firms regularly express
concern about VET graduates’ lack of professional and technical

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skills (Musset et al., 2014). Particularly weak outcomes are found
among students from the lower vocational track, which have
much lower probabilities of qualifying for the Bagrut and higher
dropout rates [10]. Moreover, studying on the lower VET track
worsens graduates’ labour market outcomes compared to those
following the academic track [12] and relative rates of return to
VET prior to military service, may be low over the long run
(Hanushek et al., 2015). Many young people who pursue lower
vocational tracks are poorly equipped for entry to the labour
market. In this regard substantial components of work-based
learning can be beneficial as it not only helps students to acquire
practical skills, but also to develop key soft skills, such as work
discipline, teamwork and problem-solving skills, which can be
more effectively learnt in workplaces than in classrooms [3].
One-way forward is to expand apprenticeship and workplace-
based learning, coordinating with industry partners. In Spain
making workplace training mandatory in VET programs
facilitated the transition of VET graduates to jobs [4].
For summery, Israel is at a crossroads. It has one of the lowest
productivity levels and the highest poverty rates in the developed
world. With roughly half of its children receiving a Third World
education, future economic sustainability is not a foregone
conclusion. On the other hand, the country’s leading universities
are excellent, and they are converging with the top American
universities. The knowledge needed to raise Israel to viable
economic trajectories exists within its borders. An extremely
inadequate education system is unable to channel this knowledge
effectively to the primary and secondary schools, which in turn
limits the ability to enter quality institutions of higher learning.
The important question is what plan to bring a large number of
creative learners and investors in Israel, what is the Israel policy
to improve the educational system? How Did Israel Become a
Hub for Innovation? Does she will be innovation country with
her employment stability?

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References
1. Abhijit, B. E. et -al. A multifaceted program causes lasting
progress for the very poor: Evidence from six countries. In
OECD Economic Surveys: Israel 2018. Paris: OECD publisher,
Science, Vol. 348, Issue 6236. 2018, 65 – 67 p. Available at:
www.econ.yale.edu/~cru2/pdf/Science-2015-TUP.pdf.
2. Annual Report – 2015, Box 8.2. The effect of Subsidized Child
Care on Maternal Employment.
www.boi.org.il/en/NewsAndPublications/RegularPublications/Pa
ges/DochBankIsrael2015.aspx. (Date of visit: 1.10.2019).
3. Annual Report – 2016, March, www.boi.org.il/en/NewsAnd
Publications/RegularPublications/Pages/Doch Bank
Israel2016.aspx. (Date of visit: 27.9.2019).
4. Araújo, S., Sutherland, D. Public-Private Partnerships and
Investment in Infrastructure. Paris: OECD Economics
Department Working Papers, No. 803. 2010, 167 p. Available at:
http:// dx.doi. org/10.1787/5km7jf6q8f0t-en
5. Bar-Eli, A. Israeli experiment shows that offering drivers
sweeteners can cut traffic jams. Tel Aviv: Israeli Economic News
Paper – "Haaretz" press. 2016, 12 – 25 p. Available at:
www.haaretz.com/israel-news/business/1.749964
6. Barkat, A. Kahlon unveils national nursing care insurance plan.
Tel Aviv: Tel Aviv: Israeli Economic News Paper – "Globes".
2017, 23 – 26 p. Available at: www.globes.co.il/en/article-
kahlon-unveils-national-nursing-care-insurance-plan-1001212568
7. Barkat, A. S&P upgrades Israel’s rating outlook. Tel Aviv:
Israeli Economic News Paper – "Globes". 2017, 19 – 21 p.
www.globes.co.il/en/articlesp-rating-outlook-for-israel-changed-
from-neutral-to-positive-1001200055
8. Ben-David, D. Labor Productivity in Israel, in D. Ben-David
(ed.), State of the Nation Report: Society, Economy and Policy in
Israel. Tel Aviv: Taub Center for Social Policy Studies in Israel.
2013, 120 – 128 p. Available at:
https://m.tau.ac.il/~danib/index_israel.html

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9. Ben-David, D., Kimhi, A. Israel’s primary socioeconomic
challenges and policy areas requiring Core treatment. Jerusalem:
Shoresh policy briefs publisher. 2017, 12 – 15 p. Available at:
http://shoresh.institute/research-paper-eng-Ben-David-Kimhi-
EducOverview.pdf
10. Blanchard, O. Giavazzi, F. Improving the SGP through A
Proper Accounting of Public Investment. London: CEPR
Discussion Paper, No. 4220. 2004, 62 – 64 p.
[11] Blank, C., Shavit, Y., Yaish, M. Tracking and attainment in
Israeli secondary education. Jerusalem: Taub Center for Social
Policy in Israel. 2015, 5-12 p. Available at: http:/
/taubcenter.org.il/wp-
content/files_mf/trackingandattainmentinsecondaryeducationengl
ish .pdf
12. Brand, G., Regev, E. The Dual Labor Market: Trends in
Productivity, Wages and Human Capital in the Economy - 2015.
Jerusalem: Taub Center. 2015, 19 – 31 p. Available at: http://
taubcenter.org.il/wp-
content/files_mf/theduallabormarketenglish.pdf
13. Financial Stability Report December 2016, January:
www.boi.org.il/en/NewsAndPublications/RegularPublications/
Research%20Department%20Publications/Financial%20Stability
%20Report/FSR201602e.pdf. (Date of visit: 1.10.2019)
14. Financial Stability Report for the first half of 2017, June.
www.boi.org.il/en/NewsAndPublications/RegularPublications/
Pages/FSR2017h.aspx. (Date of visit: 26.9.2019).
15. Financial Stability Report, 2016, June:
www.boi.org.il/en/NewsAndPublications/RegularPublications/
Research%20Department%20Publications/Financial%20Stability
%20Report/june-2016.pdf. (Date of visit: 30.9.2019).
16. Fiscal Survey and Selected Research Analyses. Jerusalem:
Bank of Israel, Research Department.
www.boi.org.il/en/NewsAndPublications/RegularPublications/Re
search%20Department%20Publications/RecentEconomicDevelop
ments/red141e.pdf. (Date of visit: 27.9.2019).

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17. Fiscal Survey and Selected Research Analyses.
www.boi.org.il/en/ NewsAndPublications /Regular Publication
s/Research%20Department %20Publications/RecentEconomic
Developments/red142e.pdf. (Date of visit: 22.9.2019).
18. Israel’s Banking System Annual Survey – 2016,
www.boi.org.il/en/NewsAnd Publications/PressReleases
/Pages/24-05-17.aspx (Date of visit: 22.9.2019).
19. Monetary Committee Decision
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/10-1-18-InterestRate.aspx. (Date of visit: 50.9.2019).
20. Report by the Research Team Monitoring the Earned Income
Tax Credit Program. www.bankisrael .gov.il/en/NewsAnd
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of visit: 1.10.2019).
21. The composition of those joining the labour market in the first
decades of the century. Fiscal Survey and Selected Research
Analyses, Research Department. www.boi.org.il/en/NewsAnd
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Publications/RecentEconomicDevelopments/red142e.pdf. (Date
of visit: 15.9.2019).
22. The Development of the Electricity Market in Israel: Toward
a Sustainable Electricity Market www.boi.org.il/en/NewsAnd
Publications/PressReleases/Pages/27-9-17.aspx. (Date of visit:
10.9.2019).

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BRANDS IN THE LIGHT INDUSTRY OF MOLDOVA
AND THEIR INTERACTION WITH PR PROJECTS

Elena I. Chernova1, Ekaterina N. Mironenko2


1
Industrial College, Tiraspol
2
ULIM PhD Student, Moldova
1
e-mail: alena.chernobelkina@mail.ru
2
e-mail katya_mironenko_14@mail.ru

Abstract: The aim of the study was to study the problem of


brands in the light industry of Moldova in their interaction with
PR projects based on specific examples in the country's economy.
The research methodology uses scientific abstraction, observation
and fact-finding methods, a systematic approach, analysis and
synthesis methods, etc. The research results indicate a significant
interest of branded product owners in the market of the Republic
of Moldova both in the sphere of consumption and in production
potential. It is important that such a study in two sectors of the
light industry of the Republic of Moldova (textile, clothing and
footwear) has not been previously conducted, nor has the country
conducted a study of the relationship of brands with PR projects
in economic sectors. The scope of the research results is in a wide
range from the national economy as a whole (for public
authorities and administration), to individual industries, groups of
enterprises and individual enterprises. The paper provides
conclusions and recommendations on the research topic.
Key words: brand, PR projects, Moldova, light industry

Study the problem


In the modern world economy, the marketing system and such
components as brands and public relations (PR) occupy an
increasingly important place. In the economic science of
developed countries brand and PR have firmly taken one of the
leading places in the terminological space, and such terms as

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Brand Marketing, Brand Management, Brand Equity, Store
Brands, Brand Communication, Brand Awareness, Brand
Loyalty, Brand Valuation, Commodity Brand, Corporate Brand
Identity, Brand Personality, Brand Awareness and Brand
Recognition, as well as many others, have become an integral
part of business practice. A similar situation is with the
theoretical and practical use of the term PR.
However, in modern Russian-language economic science and the
educational environment, in our opinion, insufficient attention is
paid to the issue of brands and public relations. Thus, in the
textbook on international management by N.O. Kolchina the
terms brand and public relations are used once each (p. 111 and
p. 105) [5]. In the textbook on international marketing by O.V.
Fedotova and O.A. Tabekina the term brand has already been
encountered 7 times [8]. Moreover, in two of the seven mentions
of brands, the texts (p. 13 and pp.17-18) are identical to those set
out in the previously published textbook by R.B. Nozdreva (p. 48
and p. 61) [6]. In the textbook on international management for
bachelors by L.O. Anikeeva-Naumenko and E.B. Peresvetova the
brand has already been mentioned 10 times, although the term
branding is mentioned again [4]. However, in general, in our
opinion, the coverage of the problem of brand and branding in
this educational literature by profession does not provide full
perception by students of the essence and significance of the
brand in the modern economic mechanism of successful
entrepreneurship. The situation is similar in setting out
mechanisms for influencing business performance, especially in
export markets, as a strategic component of international
marketing - public relations.
At the same time, a study of the markets of the Republic of
Moldova and, in particular, the market of light industry products
indicates a significant interest of owners of international branded
goods and services in promoting their products to Moldovan
consumers. At the same time, they widely and diversely use the
capabilities of brands and progressive components of PR theory.

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To promote brands on the Moldovan market are widely used the
Internet, television, radio, printed materials, outdoor advertising
(on transport, billboards, illuminated and light advertising on
buildings, etc.), advertising on workplaces, etc. In cable
television alone, at least 40 of the approximately 200 channels
(including 45 HD channels) [7] carry out targeted advertising
activities primarily of international branded products.
Almost all international brands of light industry products in the
categories of women, men, children, youth, premium, sports, for
pregnant women, large sizes are present in the Moldovan market
to varying degrees. Specialized trading companies sell branded
products by Adidas, Nike, Reebok, Puma, Hugo Boss, Levi’s,
Ponti, Lacoste, MilaVitsa and others. Salamander men's, women's
and children's shoes are sold centrally in a chain of stores
(Chisinau, Balti). Is presented a wide assortment of shoes Agatha,
Buffalo, Bugatti, Caprice, Garvalin, Marco Tozzi, Skechers,
Unisa and others.
Along with direct sales, clothing of international brands is
produced at enterprises of light industry of Moldova. For
example, the Tricon Cahul garment factory sews clothes for
brands such as Miroglio Fashion, Gerry Weber, Max Mara,
Penny Black. Chisinau sewing factory Artizana collaborates with
Versace, Max & Co, Penny Black, Byblos and Calvin Klein. At
the same time, factory Maglia Est in Hincesti, which was
specializing in sewing clothes by Benetton, Armani and other
foreign brands has closed [2]. Simultaneously, at the end of 2018,
the start of the construction of a factory that will sew clothes
under the Nike brand in Taraclia was announced; is taken the
decision of the Spanish company Inditex, which manages such
brands as Zara, Massimo Dutti, Bershka, Stradivarius and others,
on the production and sale of these brands in Moldova [3]. On the
whole, the current situation in the market of international sewing
brands indicates the instability of Moldova’s interaction with
them.

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The activity of the National Shoe Center is aimed, among others,
at developing interaction with international brands. It can be
noted that the shoe enterprises of Moldova interact with the
famous German brand Romika.
In our opinion, it is necessary to organize a wider participation of
the largest international brand structures in production activities
on the territory of Moldova. First of all, this concerns cooperation
in the sphere of free economic zones of Moldova. There are
currently 7 free economic zones in Moldova (FEZ “Expo-
Business-Chisinau”, “Balti”, “Ungheni-Business”, “Valkanes”,
“Tvardita”, “Otaci-Business” and “Taraclia”) and 34 subzones
[1]. They are designed to provide preferential tax and customs
conditions for foreign investors, including attracting branded
projects and developing their activities in Moldova.
The experience of Moldova shows that transnational corporations
have firmly adopted the basic principles of activity in foreign
markets. Mostly they avoid threats related to the specifics of the
local market.
International corporations have gained some experience in
developing PR mechanisms in the Republic of Moldova. This
applies to Orange (telecommunications services), Efes (drinks),
Kaufland (wholesale and retail trade), etc. In particular,
international brand corporations take an active part in organizing
and conducting music festivals of national, modern, electronic
music, rock music (Must Fest, Underland, etc.), wine, beer
festivals (Stary Melnik), etc. They take part in sporting events -
an annual marathon, hiking, etc. They make a significant
contribution to sponsoring the activities of cultural objects.
With a large number of world brands of light industry operating
(carrying out production and trade activities on the territory of
Moldova), their weaker participation in the mechanisms for
promoting goods, works and services based on PR methods is
noticeable. The experience gained by the leading brand
corporations in Moldova can be successfully used in the country
by owners of light industry brands, both clothing and textile, as

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well as footwear. However, this requires appropriate efforts from
public authorities.
In our opinion, in Moldova the place and role of rebranding in the
modern economy, which are important for the country, is not
sufficiently studied. Examples of rebranding of the Chisinau
Hotel Intourist (National), Chisinau Tractor Plant (JSC Tracom),
Moldovan wines and drinks (champagne, cognac, Sherry, Port,
Cahors, etc.) led to catastrophic consequences up to the
liquidation of certain economic entities. At the same time, the
experience of rebranding GoldStar (modern LJ) was successful
and should be used in the Moldovan economy, including light
industry enterprises.
Conclusions and recommendations
1. The study showed that among the owners of branded products
there is a certain interest in the market of the Republic of
Moldova, both in the sphere of consumption and in the
production potential for branded products.
2. The bodies of state power and administration of the Republic
of Moldova should:
• direct more efforts to attract international brands to the
country's manufacturing sector, developing and deepening with
their participation the practice of functioning of free economic
zones in Moldova;
• summarize the experience of brand owners using PR project
mechanisms to promote their products (goods and services) in
Moldova;
• develop, on the basis of generalized international experience,
recommendations for Moldovan exporters on promoting their
products to foreign markets using the mechanisms of PR project.

Reference
1. Free Economic Areas. Ministry of Economy and Infrastructure
URL: https://mei.gov.md/en/content/free-economic-areas
2. Locals URL: https://locals.md/2015/vsemirno-izvestnyie-
brendyi-odezhdyi-uhodyat-iz-moldovyi/.

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3. Moldova business week 2018: перспективы лёгкой
промышленности. URL:
https://mybusiness.md/ru/categories/analitika-i-
rassledovaniya/item/9544-moldova-business-week-2018-
perspektivy-ljogkoj-promyshlennosti.
4. Аникеева-Науменко Л.О., Пересветова Е.Б. Международный
маркетинг: Учебное пособие для бакалавров по направлению
«Экономика», «Менеджмент». – М.: МГУПС (МИИТ), 2015.
– 79 с.
5. Колчина Н.О. Международный маркетинг: учебное
пособие / Н.О. Колчина, Е.А. Леоненко – Саранск:
ЮрЭксПрактик, 2016. – 132 с. ISBN 978-5-9906800-4-3.
6. Ноздрева Р. Б. Международный маркетинг: учебник / Р. Б.
Ноздрева. - М.: Экономиста, 2005. - 990 с. - (Homo faber).
ISBN 5-98118-085-4.
7. Список каналов. https://moldtelecom.md/canale-TV.
8. Федотова О.В. Международный маркетинг [Текст]:
учебное пособие / О.В. Федотова, О.А. Табекина; Нижегород.
гос. архит.-строит. ун-т – Н. Новгород : ННГАСУ, 2012. –
194 с.

NATIONAL BRAND AS AN INNOVATIVE DIRECTION


IN THE TOURISM SECTOR OF THE REPUBLIC
OF MOLDOVA

Elena L. Zhigareva

ULIM PhD student


Republic of Moldova
e-mail: mollitia-tir2010@mail.ru

Abstract: The aim of this work is to study the national brand in


modern conditions as an innovative direction in the tourism
sector using the example of the Republic of Moldova. The
research methodology includes such methods of scientific

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knowledge as analysis, synthesis, induction, deduction,
abstraction and statistical analysis. The results of the study reflect
the relevance of the problem of brand formation at the country
level. The scientific novelty of the study lies in the fact that the
study examined aspects of the formation of the country's tourist
brand as an innovative direction. Application area of the research
results includes state organizations at the national and local level,
specialized organizations and specialists in the field of tourism,
innovation and marketing, and higher education institutions. In
the article are formulated conclusions and recommendations on
the research topic.
Keywords: national brand, tourism, tourist brand, innovations,
Republic of Moldova

In the modern global economy brand awareness is necessary not


only for companies, goods and services, but also for countries.
The image of the country has become no less important factor in
international relations than natural resources, human or scientific
and technical potential of the state. In its turn, the sphere of the
economy which is influenced by the presence or absence of a
country's brand in the first place, is tourism, one of the most
dynamically developing and promising sectors of the world
economy in the 21st century.
International corporations and their brands are penetrating
Moldova for all elements of the tourism industry. In particular:
• hotel brands – Savoy, Radisson Blu Leogrand Hotel;
• trade brands – Kaufland, Metro, Fourchette;
• airline brands – Wizz Air, Tarom, Austrian Airlines;
• banking brands – Visa, Mastercard;
• brands of the telecommunications industry – Orange, Telia
Company (Moldcell), etc.
The brand of the company is not a new phenomenon, however,
the brands of countries began to appear relatively recently in
response to modern challenges and global competition. Thus, the

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formation of a tourist brand in Moldova has become an
innovative solution aimed at raising the awareness of foreign
tourists about the country and its wider recognition in the world.
The brand of the national tourism sector of Moldova was
officially launched in 2014. As part of the implementation of the
provisions of the Strategy “Tourism 2020”, the Tourism Agency
of the Republic of Moldova, in partnership with industry
associations and with the assistance of local and international
experts, developed a program for promoting tourism products
under the general name “National Brand of the Tourism
Industry”. The purpose of this program was to increase the
number of tourists visiting Moldova. The program included a
number of strategic initiatives for the tourism sector, including:
• analysis of target markets and competitive tourism products;
• positioning of the national tourist offer;
• annual marketing plan;
• unique visual style, etc.
The implementation of this program allows Moldova to compete
as an authentic tourist destination, offering unique cultural
experiences in the very heart of Europe, setting an example of
maintaining cultural values and promoting them using modern
marketing methods. The implementation of the “National Brand
of the Tourism Industry” program is aimed not only at increasing
the flow of foreign tourists, but also at enhancing domestic
tourism. It is also intended to help improve the country's image to
attract foreign investment in the industry.

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Figure 1. Tourism Brand of the Republic of Moldova
– “Tree of Life” [1]

As the new tourism brand of the Republic of Moldova was


chosen the collective symbol of national culture – Tree of Life
(fig. 1). The brand in this form is already actively used at various
events aimed at attracting tourists and increasing the recognition
of Moldova as a tourist destination abroad. In particular, were
produced souvenirs: cups, T-shirts, badges, magnets, etc., which
are presented at various exhibitions, tourist events, national
holidays – such as Wine Day, etc. Accompanied by the slogan
“Discover the routes of life”, the brand presents the
characteristics of Moldova as a tourist destination: hospitality,
naturalness, authenticity, gastronomy and Moldavian traditions.
This slogan is actively promoted abroad, as in most countries of
the world it is formulated in English and is a short concise phrase.
Earlier, Moldova already had a logo. It was placed in the
Sustainable Tourism Development Strategy 2003-2015, but was
not promoted enough and was not widely distributed.
Simultaneously with the international launch of the updated
tourist brand, a video clip was presented urging tourists to visit
Moldova – the most unexplored tourist destination in Europe [1].

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Another innovative solution in the framework of the campaign to
popularize the Moldavian tourist destination was the launch of
the mobile application “Moldova Holiday” in 2015 [4]. It allows
travellers to get acquainted with the best tourist attractions of
Moldova, find out their location on the map and provides all the
useful information for visiting them (description, photos, opening
hours, prices, route, contact details, etc.). The application presents
such attractions as wine cellars (Chateau Vartely, Cricova,
Milestii Mici), rock monasteries (Saharna, Tsypova), museums,
monuments, etc.
During the existence of the country's brand, it was repeatedly
used at international exhibitions, appeared in presentations,
commercials, articles, on Internet sites and social networks, and
the number of foreign tourists visiting Moldova increased by 34%
from 2014 to 2018 [2]. The success of the tourism brand “Tree of
Life” contributed to the creation in 2018 of the “Grow in
Moldova” brand to attract investment, as its continuation [3].
As a result of the study, we came to the conclusion that:
1. In modern economic conditions the creation of a competitive
brand is an integral element of international economic relations.
In addition, a recognizable brand enhances the country's image on
the world stage.
2. The innovative concept of the renewed tourism brand of
Moldova allowed to increase the number of tourists in the
country, attract investments in the industry, expand foreign
economic relations and make the country's image more modern.
3. In our opinion, it is advisable for the state authorities and
governing bodies of the Republic of Moldova, and in particular,
those aimed at organizing and promoting of national tourism, to
further develop the potential of the national brand, using the
accumulated international experience in this field.

Reference
1. Agenţia Turismului a Republicii Moldova. De astăzi, Moldova
are un nou brand turistic national.

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http://turism.gov.md/index.php?pag=noutati&opa=view&id=644
&start=20&l=.
2. Biroul Național de Statistică. Turism receptor organizat de
agentiile de turism si turoperatori. http://statbank.statistica.md.
3. Ministerul Economiei și Infrastructurii. A fost lansat brandul
de țară pentru atragerea investițiilor, cu sloganul „Grow in
Moldova”. https://mei.gov.md/ro/content/fost-lansat-brandul-de-
tara-pentru-atragerea-investitiilor-cu-sloganul-grow-moldova-
creste.
4. ГИА MOLDPRES. Запущено первое мобильное
приложение с туристическими направлениями Республики
Молдова. http://www.moldpres.md/ru/news/2015/04/06/
15002271.

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