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LG
1.
2. Life’s Good
‘We believe that technological innovation is the key to success
in the marketplace. Founded in 1958, we've led the way in
bringing advanced digital products and applied technologies to
our customers. With our commitment to innovation and
assertive global business policies we aim to become a
worldwide leader in advanced digital technology.’
(LG Electronics, 2010)
3. Life’s Good
LG’s Vision is to deliver innovative digital products and services that
make customers’ lives better, easier and happier through increased
functionality and fun.
LG’s Brand Identity focuses on self-expression and a promise of
satisfaction to its customers. LG strives to enhance its customer’s life
and lifestyle with intelligent product features, intuitive functionality,
and exceptional performance.
Four basic elements: VALUES, PROMISE, BENEFITS, PERSONALITY
4. Life’s Good
‘Our customers take pride in owning an object of excellence
and take comfort in knowing they’ve made a smart, informed
purchase, every time.’
(LG Electronics, 2010)
5. Corporate objective
To continue to pursue its 21st century vision of becoming a worldwide
leader aiming to rank among the world’s top three
electronics, information, and telecommunications firms by
2010, while ensuring customer satisfaction through innovative
products and superior service
LG strives for greatness in their three core capabilities: Product
Leadership, Market Leadership, and People Leadership—each
strength a key part of realizing growth strategies for "fast
innovation" and "fast growth".
6. Mobile
– largest division within LG Electronics
– world’s third largest manufacturer of
mobile handsets
Key attributes of products:
• Design
• Innovation
• Technology
• Style
7. Challenges in 2007
• Competitors were ahead of LG in most European markets
• LG-aided and unaided awareness among consumers was low
• LG Mobile brand perception in the eyes of consumers was neutral
• The marketing resources were smaller than those of competitors
• Major new handsets were released nearly exclusively in spring
and autumn
8. Solution
Need to Goal to
Consumers
sustain long- change
less trusting
term perception
and less
relationships and
responsive
with behaviour
to brand
consumers messages
Little to no
Relatively activity from
tight budget competitors
in social
Public Relations media
Online communication (blogging)
9. Why this approach?
• Much of the consideration stage in the purchase cycle takes place
online
• Joining the community allows the insight into and a better
understanding of the consumer
• Online communication is cheaper
• Blogging allows more control than traditional PR through
traditional media
• Spontaneous and conversational approach wins over scheduled
and one direction communication
• The volume and sentiment of online debate has been proven to
be a key indicator in future sales and market share (Dellarocas, et
al., 2007)
10. Why this approach?
´The Internet is a massive resource of expertise, and online
relationships form a powerful peer group. For these reasons the
Internet has become a very effective arena for the development of
endorsement. Few organizations can ignore this potential, especially
as it can be powerful as both a positive and negative influence.´
(Phillips, 2001, p.28)
11. Why this approach?
Organizations enter the blogosphere for four reasons:
1. To achieve real-time communication with key stakeholders.
2. To enable passionate, knowledgeable people to talk about the
organization, as well as its products and services.
3. To foster conversation among audiences with an affinity for, or
connection with, the organization.
4. To facilitate more interactive communication and encourage
audience feedback.
(Walton cited in Wilcox, p.235)
12. Why this approach?
´By engaging in online dialogue, companies are showing their
customers that they care about their opinions, value their respect,
and plan to rightfully earn their repeat business.’
(Katz cited in Wilcox, p.236)
´The exchange of links, comments and trackbacks knits individual
blogs into a dense network of mutual reference and endorsement,
providing a giant boost in traffic for bloggers who get it right.’
(Ben King cited in Wilcox, p.234)
13. Strategic role of PR
• To build awareness and create buzz around the brand, but on a
limited budget
• To communicate in a conversational and generally accepted
manner with primary publics
• To influence the perception and change behaviour among the
consumers through communication with key opinion-leaders
• To enhance LG’s image and reputation in the eyes of ‘premium
seekers’
14. Campaign objectives
• Primarily, to create long term, credible and influential
relationships with key online influencers. The end goal is to
increase consideration of LG products to parity with its
competitors by:
– Increasing the buzz around its products
– Creating positive sentiment towards its products
• Secondarily, to further bolster LG’s brand promise of stylish design
backed by innovative technology
(The Outside Line Limited, 2009)
15. Communications strategy
– How do you have a credible, long term and influential relationship
with an online community when product release schedules mean
there may be little to say?
– You become part of the community and join in the existing
conversation.
( The Outside Line Limited, 2009)
16. PR activities
Building relationships online:
• Creating and managing the blog on well-known WordPress
• Creating an LG persona online
• Ratio of 1 to 4 posts being directly about LG products
• Commenting on the blogs of those wished to influence
• Dealing with questions and comments on behalf of LG
• Developing relationships with bloggers by using more familiar
tone and approach
• Having earned the right to be in the community, more openly
influence and utilize more overt marketing
17. PR activities
Encouraging independent product reviews:
• Sending phones to the bloggers to keep and, if wished, to review
Extending relationships offline:
• Creating events specifically for bloggers to provide direct
interaction between bloggers and LG
• Encouragement of informal discussion
• Feedback obtained, dialogue for further collaboration opened
18. Key rules of communication
When in Rome, do as the Romans do.
19. Key rules of communication
• look and feel of authenticity;
• transparency of motives;
• Active and regular participation in the community, including
friends on Facebook, followers on Twitter, usage of Flickr,
YouTube;
• keeping in contact between product releases;
• providing exclusive content for content creators;
• being interested in and reading their blog;
• personalised approach.
TRUST and CREDIBILITY improved IMAGE and REPUTATION
20. Key rules of communication
´When the power of the Internet is used to build trust, reputation is
enhanced and organizations are able to build powerful relationships.
Trusted partners are much more likely to be able to do new things
such a change prices, add services, streamline operations, etc. This
means that with a trusted reputation, they are freer to compete.
Through trust, we build reputation and commercial freedom.
Anything that reduces the level of trust between an organization and
its constituency is bad news and requires immediate remedial
attention.´
(Phillips, 2001, p.29)
21. Organisation’s achievements
• In 2008 introduces new global brand identity: ‘Stylish design
and smart technology, in products that fit our consumer's
lives.’