A new service proposition as a brand extension for P. H. U. Color company

Abstract

The purpose of this thesis was to study the advertising psychology and the brand image subjects and to apply them in order to provide the brand image enhancement and brand extension combined with the proposition of a new service for Color, company. Moreover, according to the result of marketing research, examining the possible success of the new service and indicate the leading persuasive advertising tools in the market. The outcomes may help Color to verify if the new service can be applied and will it provide successful advertisements services.

The theoretical part of the thesis consists of subjects such as brand image, advertising psychology, the Elaboration Likelihood Model and marketing mix of 7Ps. The marketing research was done with the intention of obtaining approximate information about respondents' interests, opinions and demands for a new service 'Airbrush Artistic Painting and Design'. Furthermore, the research aimed at classification of the most significant elements of advertising persuasive tools. The group of 75 people took part in the research and all their answers were taken into consideration.

The application part of the thesis was combined with the theoretical studies. This part involved the evaluation of Color company brand image and the suggestions for its enhancement and advertising in social media, according to the results of an interview with the company owner. The introduction of the new service was based on the 7Ps marketing mix framework. The marketing research included questions based on the theory of advertising psychology. According to the research, it can be assessed, whether there is an opportunity for the new service to success and how persuasive advertising tools are perceived by respondents.