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Ming Chuan University Department of Applied English Thesis Advisor: 黃鎮平 Peter Huang Presenters: 陽其瑩 Iris Yang 郭雅琳 Celeste Kuo Chapter One: Introduction Chapter Two: Literature Review Chapter Three: Case Study Chapter Four: Conclusion Chapter One Rapidly change in science and technology. Investigate the change of quality in human life. Different market strategies . Advertisement and Promotion. Effect on celebrities. Due to the Taiwanese teenagers increased spending, and they will pay for goods what so ever as long as its endorsed by their favorite idol. To investigate the relationship between Idol Promotion and Buying Intention. To investigate the effect on how well the teenagers can remember the commodity. Is advertisement influences consumers’ merchandises buying intention? How the effect the purchase intention among the belief, emotion and value judgment of idol? Chapter Two A celebrity endorser is “any individual who enjoys public recognition and who uses this recognition on behalf of a consumer good by appearing with it in an advertisement. McCracken (1989) Canonical texts on stardom.(Sofia Johansson) Representations of stars and on aspects of the Hollywood star system. (Boorstin,1971), (Alberoni ,1972) and (Dyer,1979) Using celebrities to endorse a product could increased young customer’s preference for that product and their belief that the celebrity was an expert on its subject. (Ross et al,1984). When celebrities endorse a product, the meaning developed around a particular celebrity will – or at least it is hoped for by advertisers – transfer to a company,brand, or product. (Erdogan,1999). One of the shortest definitions of marketing is “meeting needs profitably” Marketing management as the art and science of choosing target markets and getting, keeping , and growing customers through creating delivering, and communicating superior customer value. (Kotler, 2008). Celebrity endorsement announcements in subsequent studies motivates us to investigate whether the market views celebrity endorsements as positive events (Agrawal and Kamakura , 1995). A celebrity can associate herself with many different brands. This active leaded to consumers questioning celebrity's true motives (Mowen & Brown 1981). There were no significant main effects of gender in her study of the impact of gender on consumers’ perceptions of a celebrity’s attractiveness, trustworthiness, or expertise, or on the likelihood of purchasing a product that was endorsed by a celebrity. (Ohanian ,1991). Factor of asp rational group showed us that human wish to become one of the group in this society, no one likes to be alone.(Kotler,2008). Chapter Three French company. The largest luxury goods company in the world, controlling over 60 subsidiaries. LVHM and Dior shares a same CEO whose name is Bernard Arnault. Louis Vuitton Fashion and Leather Goods Marc Jacobs Fashion and Leather Goods Loewe Fashion and Leather Goods Céline Fashion and Leather Goods Fendi Fashion and Leather Goods Donna Karan Fashion and Leather Goods Givenchy Fashion and Leather Goods Parfums Christian Dior Perfumes and Cosmetics Guerlain Perfumes and Cosmetics DFS Selective Retailing Le Bon Marché Selective Retailing Biography of Louis Vuitton. In 1835,Louis Vuitton founder of the company was born in the department of Jura, France. From foundations to World War II. In 1867, the company participated in the universal exhibition in Paris. Louis Vuittion opened a largest travel-goods store in the world at 1913. 1945 through 2000 After 1945, LV started to incorporate its leather into most of its products Louis Vuitton today Advertising campaigns Products Brand 2006[6] Financial Data (in million euros) 2007[6] 2008[6] 2009[6] 2010[1] Sales 15,306 16,481 17,193 17,053 20,320 Net profit 2,160 2,331 2,318 1,973 3,032 Total equity 11,594 12,528 13,887 14,785 18,204 Definition of Gantt chart a type of bar chart that illustrates a project schedule, illustrate the start and finish dates of the terminal elements and summary elements of a project. Definition of Product life cycle Like human beings, products also have a life-cycle. From birth to death, human beings pass through various stages e.g. birth, growth, maturity, decline and death. 4p of Kotler’s Mega-Marketing Describing the type of marketing activity required when it is necessary to manage elements of the firm's external environment --governments, the media, pressure groups, etc Product Promotion Price Place ( Channel) Strategy Product Task R&D Design Sample Lean Production FMS Milt- domestic Strategy Sop Standardized Performance Efficiency Reduce Cost CIMS + Milt-domestic= Transnational, Price Price of Research proposal Define position Sales GST BEP Koontz & O’Donell’s Controlling (focus on the sales) Market position Steady Customer group promotion Brand issue setting relevant costs-Celebrity selection or Advertisement Place Material location setting Supply chain management Vertical integration Sunk Cost Emerge Grown Mature Decline Define of Lean Production, FMS, and Milt- domestic Strategy Lean Product is a production practice that considers the expenditure of resources for any goal other than the creation of value for the end customer to be wasteful, and thus a target for elimination. Multi domestic strategy is a strategy by which companies try to achieve maximum local responsiveness by customizing both their product offering and marketing strategy to match different national conditions. Define of SOP Process Using in a variety of different contexts, such as healthcare, education, industry or the military. CIMS + Milt-domestic= Transnational Economic transnationalism, commonly known as Globalization was spurred in the latter half of the 20th century by the development of the internet and wireless communication, as well as the reduction in global transportation costs caused by containerization. "Goals provide a sense of direction and purpose“- proverb (Goldstein, 1994, p. 96). Sales of Goal Setting Theory For making progress by ensuring that participants in a group with a common goal are clearly aware of what is expected from them if an objective is to be achieved. Account Break-Even Point A technique for which identifying the point where the total revenue is just sufficient to cover the total cost. PLC 4Ps Gantt chart Strategy Product Task R&D Design Sample Lean Production FMS Milt- domestic Strategy Sop Standardized Performance Efficiency Reduce Cost CIMS + Milt-domestic= Transnational, Price Price of Research proposal Define position Sales GST BEP Koontz & O’Donell’s Controlling (focus on the sales) Market position Steady Customer group promotion Brand issue setting relevant costs-Celebrity selection or Advertisement Place Material location setting Supply chain management Vertical integration Sunk Cost Emerge Grown Mature Decline Relevant costs- Celebrity selection Strategy Task Sunk Cost Emerge Grown Mature Decline Brand issue Promotion setting Promotion relevant costsCelebrity selection or Advertisement A relevant cost is a cost that differs between Alternatives being considered. Brand imagine established to contact the society change and customer’s intention. Promotion strategy Strategy Task Sunk Cost Emerge Grown Mature Decline Brand issue Promotion setting Promotion relevant costsCelebrity selection or Advertisement The most sunk cost in the firm is the most invest. Brand imagine established to contact the society change and customer’s intention. Reason for customers to purchase LV product Brand logo. Wear-resisting quality. Customer perceptive unvalued. Strong anti-counterfeit system. Social loafing: The phenomenon of people making less effort to achieve a goal when they work in a group than when they work alone. Chapter Four The Buying intention is related by famous idol. The Customer’s purchase behavior is influenced by idol. The amount of participants is too limited to make an effective result. Making a questionnaire from customer before the select the famous idol. Agrawal, J., & Kamakura, W. A. (1995).The economic worth of celebrity endorsers: an event study analysis. Journal of Marketing, 59(3), 56–62. Bailey, A.A. (2007). Public information and consumer skepticism effects on celebrity endorsements: studies among young consumers. Journal of Marketing Communications, 13(2), 85-107. Biswas, D., A. Biswas, and N. Das. 2006. The differential effects of celebrity and expert endorsements on consumer risk perceptions. Journal of Advertising, 35(2), 17-31. Cho, Hae-Joang (2005).Reading the “Korean Wave” as a Sign of Global Shift.Korea Journal, 45 (4), 147-182. Choi, S. M., & Rifon, N. J. (2007). Who is the celebrity in advertising? Understanding dimensions of celebrity images. Journal of Popular Culture, 40(2), 304–325. Choi, Sejung Marina, Wei-Na Lee and Hee-Jung Kim (2005).Lessons from the Rich and Famous: A Cross-Cultural Comparison of Celebrity Endorsement in Advertising. Journal of Advertising, 34 (2), 85-98. Erdogan, B. Z. (1999). Celebrity endorsement: a literature review. Journal of Marketing Management, 15(4), 291–314. Friedman, H. H., Termini, S., & Washington, R. (1976). The effectiveness of advertising utilizing four types of endorsers. Journal of Advertising, 6, 22-24. Friedman, H. H., & Friedman, L. (1979). Endorser effectiveness by product type. Journal of Advertising Research, 19, 63-71. Heider, F. (1958). The Psychology of Interpersonal Relations. New York: Wiley. Kolter, P., & Armstrong, G. (2001). Principles of marketing (9th ed.). Upper Saddle River, NJ: Prentice Hall. McCracken, G. (1989). Who is the celebrity endorser? The Journal of Consumer Research, 16(3), 310–321. Thanks for your attention! 36