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Semiotics and Marketing Linköping University- Master Thesis Semiotics and Marketing LIU-IKK/MPLCE-A--11/03—SE Master Thesis Semiotics and Marketing A Case Study of the Renault Co. on Iranian Market Parisa Sepehr Supervisor: Pamela Vang Linköping University Department of Culture and Communication Language and Culture in Europe Spring 2011 - 1 - Linköping University- Master Thesis Semiotics and Marketing Title: Semiotics and Marketing A Case Study of the Renault Co. on Iranian Market A thesis on Master of Language and Culture in Europe Department of Culture and Communication Author: Parisa Sepehr ([email protected]) Supervisor: Pamela Vang Advisors: Dr. Firouzeh Khalatbari & Claude Ingaud Jaubert - 2 - Linköping University- Master Thesis Semiotics and Marketing This thesis is dedicated to: My mother, Mahin Behyan - Sepehr & My boss, Claude Ingaud Jaubert - 3 - Linköping University- Master Thesis Semiotics and Marketing Acknowledgments I would like to thank many people who have contributed to my thesis, encouraged me to continue my academic education and enriched my life. First and foremost I would like to thank my thesis supervisor and advisors who read my numerous revisions and guided me out of many confusing subjects scattered through my initial thesis draft. Supervisor Ms. Pamela Vang: Pamela, thank you so much for all of your support. I know well supervising a master student from long distance is not easy but you helped me and I had your full support when I was in Iran and also when I came back to Sweden. Advisors Dr. Firouzeh Khalatbari: Firouzeh, I know well you are extremely busy with many projects but you accepted to advise and guide me to my thesis. I would never ever forget the invaluable care and attention you extended to me throughout not only in my thesis but all these years in my personal life. Mr. Claude Ingaud Jaubert: Claude, you have a major role in my academic path. Because it was you who encouraged me to continue my education in master level and then you advised me to my thesis and supported me as a master student. Linköping University I am also very grateful to Dr. Ann-Sofie Persson and Prof. Jan Anward for all of their support during my stay in Sweden and for facilitating my thesis program. I also wish thank all of my lecturers particularly, Mr. Alireza Majlesi. I appreciate Dr. Jörgen Ljung for all of his kindness and support. The Renault Co. It is a great pleasure to thank the Renault Co. in Iran in particular Commercial Division headed by Mr. Claude Ingaud Jaubert as well as all the Marketing team headed by Mr. Max Missana, the Renault Human Resources Division and Mr. Philippe Martin head of Quality & Engineering Division, for providing me with some sources. Last but not least, my mother I would like to thank my great mother Mahin Behyan - Sepehr, for her endless support and generosity, and for the love and care she has given me. Linköping, May 2011 - 4 - Linköping University- Master Thesis Semiotics and Marketing Table of Contents Chapter 1 Introduction ………………………………………………. 3 1.1. Purpose of Study......................................................................... 8 1.2. Research Questions.................................................................... 9 1.3. Research Method........................................................................ 9 Chapter 2 Theoretical Background …………………………………... 10 2.1. A General Definition of Semiotics ……………………….. 10 2.2. Sign Specification………………………………………. 11 2.2.1. Denotation Versus Connotation……………………... 12 2.2.2. Coding and Conversion of Codes………………….... 13 2.3. Semiotics and Marketing.…………………….................. 14 2.4. Semiotic Analysis of a Product Structure………………….. 15 2.4.1. Creation of Economic Goods and Exchange Value........... 15 2.5. Semiotic Analysis of a Market.....…………......................... 16 2.6. Production Process …….................................................... 17 Chapter 3 Introducing the Renault Company............………….................. 18 3.1 Renault in One Glance..........................…………………….. 18 3.2 The Renault‟s Function in Iran..….……………………...... 19 3.2.1 The Renault Strategies Expectation in 2005...……….. 19 3.3. The Renault Commercial Division in Iran...……………….. 20 Chapter 4 An Analysis of the Renault Co. Semiotics and Marketing............ 22 4.1. The Renault Logo Semiotic Analysis.......................................... 23 4.1.1. Syntactic Analysis of the Renault Logo........................... 24 4.1.2. Semantic Analysis of the Renault Logo……………... 26 4.1.3. Pragmatic Analysis of the Renault Logo.......................... 28 4.1.3.1. Social Effect on Changing the Renault Logo…. 29 - 5 - Linköping University- Master Thesis Semiotics and Marketing 4.2. Semiotics and Marketing Process…………....……………. 31 4.2.1. The Renault Logo Relation with Customers……..…… 32 4.3. Semiotics Structure of the Renault Products………………. 36 4.3.1. Creating of Economic Goods and Exchange Value….... 37 4.4. Semiotic Analysis of Market....................................................... 45 4.4.1. Interpretation Process........................................................ 45 4.4.2. Observation of Signs.......................................................... 47 4.4.3. Interpretation of Meaning.................................................. 51 4.4.4. Store of Signs..................................................................... 52 4.4.5. Production Process............................................................. 53 Chapter 5 Discussion and Conclusions………………………………... 56 5.1. Suggestion for Future Study........................................................ 60 References ……………………………………………………………. 61 - 6 - Linköping University- Master Thesis Semiotics and Marketing List of Figures Figure 1 Saussure‟s Model of Sign................................................................... 11 Figure 2 Global locations of the Renault Function...……………………... 18 Figure 3 The Renault Pars structure …………………………………… 19 Figure 4 The Renault Four-colour Logo .....………………………...….... 24 Figure 5 The Renault Two-colour Logo ...………………………............ 24 Figure 6 The Renault Monochrome Logo ...…………………………...... 24 Figure 7 Colour combinations used in the Renault Logos....……………..... 25 Figure 8 Sign Composition.…………………………………………… 32 Figure 9 Denotation versus Connotation.…………………….................. 33 Figure 10 The Megane Technical Specification ...………………………… 39 Figure 11 The Logan Technical Specification ........………………….......... 40 Figure 12 Semiotic Analysis of Market............................................................... 45 Figure 13 Car Purchasing Budget in 2010 ……………………..……….... 48 Figure 14 Six Main Car Purchasing Factors for Iranian Customers…………. 53 Figure 15 Connection between Semiotics and Marketing.................................... 57 Figure 16 The Link between Sign, Product and Marketing................................. 57 List of Tables Table 1 The Semiotics Structure of a Product.................................................. 16 Table 2 The Renault Logo Evolution ............................................................... 29 Table 3 Denotation versus Connotation Extended ………..…………….. 36 Table 4 Semiotics Structure of the Renault Products ...................................... 44 Table 5 Customer Expectation According to the Car Price.............................. 48 - 7 - Linköping University- Master Thesis Semiotics and Marketing Chapter 1 Introduction Semiotics or the “study of signs” is a very broad science because everything can be taken as a sign (Chandler 2). The study of signs, and the application of semiotics in different sciences, shows there is an overlap between semiotics and other sciences; one of those sciences is marketing, and semiotics can be applied as tool in marketing. Marketing is very broad and covers different activities such as branding, communication, as well as product planning in order to create or modify economic goods, and semiotics can be applied in all these marketing activities. In this thesis, semiotics is applied as tool in the process of creating or modifying a product on the basis of customers‟ needs and expectations. In this case, the Renault function and products in Iran have been chosen to be studied within the frame of semiotic analysis of products and market. 1.1. Purpose of Study Jean Baudrillard (1968) suggests that “An object (Fr. objet) must become a „sign‟ in order to be consumed” (Umiker-Sebeok 46). Following Baudrillard, the aim of this study is to investigate how considering a product as sign is associated with product consumption and consequently how marketers apply semiotics to analyse a product and a market in order to know customer‟s needs and to understand the market potential. Manufacturers exploit customers‟ needs and the market potential to launch a new product or modify their current products. From this, the customers‟ buying intentions can be raised and a product will be consumed. In this case, the importance role of the semiotics as a tool in marketing comes into consideration. Moreover, the fundamental role of interpretation as culture specific in order to make signs meaningful is an important aspect of the semiotic analysis of product and market. - 8 - Linköping University- Master Thesis Semiotics and Marketing 1.2. Research Questions How is a product taken as a sign in the marketing context? How does a semiotic analysis of product and market provide a better understanding of customers‟ expectations? How do manufacturers exploit the semiotic analysis of a product and market to manufacture
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