Advertising’s Role in Marketing

Advertising’s Role in Marketing

Chapter 2

What is Marketing?

•    The way a product is designed, tested, produced, branded, packaged, priced, distributed, and promoted

Key Concepts in Marketing

•    The marketing concept

•    Exchange

•    Branding

•    Added value

•      Marketing should focus first on identifying the needs and wants of the customer

•      To compete effectively, marketers must focus on the customers’ problems and try to develop products to solve them

Key Concepts in Marketing

•    The marketing concept

•    Exchange

•    Branding

•    Added value

•      The act of trading a desired product or service to receive something of value in return

•      Money is exchanged for goods

Key Concepts in Marketing

•    The marketing concept

•    Exchange

•    Branding

•    Added value

•      The process of creating a distinctive and special meaning for a product

•      Brand equity is reputation, meaning, and value that the brand name or symbol has acquired over time

Key Concepts in Marketing

•    The marketing concept

•    Exchange

•    Branding

•    Added value

•      A marketing or advertising activity makes a product more valuable, useful, or appealing

The Key Players and Markets

•    The marketer

•    Suppliers and vendors

•    Distributors and retailers

•      The organization, company, or manufacturer producing the product and offering it for sale

•      The advertiser or client (from the agency’s point of view)

The Key Players and Markets

•    The marketer

•    Suppliers and vendors

•    Distributors and retailers

•      Other companies that manufacture the materials and ingredients used in producing the product

The Key Players and Markets

•    The marketer

•    Suppliers and vendors

•    Distributors and retailers

•      Various companies that are involved in moving a product from its manufacturer to the buyer

Types of Markets

•      Consumer

•      Business-to-business (Industrial)

•      Institutional

•      Channel

The Marketing Process

•             Conduct research and develop a situation analysis

•             Set objectives for the marketing effort

•             Assess consumer needs and wants

•             Differentiate and position the product

•             Develop the marketing mix strategy

•             Evaluate the effectiveness of the strategy

Marketing Mix Strategies

•    Product

•    Place

•    Price

•    Promotion

•      The product is both the object of the advertising and the reason for marketing

•      Product category

–    A class of similar products

Marketing Mix Strategies

•    Product

•    Place

•    Price

•    Promotion

•      The channels used in moving the product from manufacturer to buyer

Marketing Mix Strategies

•    Product

•    Place

•    Price

•    Promotion

•      Based on the cost of making and marketing the product and on expected profit

–    Customary

–    Psychological

Marketing Mix Strategies

•    Product

•    Place

•    Price

•    Promotion

•      Use face-to-face contact between marketer and prospective customer

•      Used to create immediate sales

How Agencies Work

Full-Service Agencies

•      Include the four major staff functions

–    Account management

–    Creative services

–    Media planning and buying

–    Account planning

•      Also have accounting, traffic, production, and HR departments

Specialized Agencies

•      Specialize in certain functions, audiences, industries or markets

–    Creative boutique

–    Media-buying services

How Agencies Work

Account Management

•      Acts as a liaison between the client and the agency

•      Responsible for interpreting the client’s marketing strategy

Creative Development

•      People who write

•      People who design ideas for ads and commercials

•      People who convert these ideas into commercials

How Agencies Work

Media Planning/Buying

•      Recommends to the client the most efficient means of delivering the message

•      Responsible for buying, planning, and research

Account Planning

•      Gathers all information on the market and consumers and acts as the voice of the consumer

•      Prepares comprehensive recommendations

How Agencies Work

Internal Agency Services

•      Traffic department

•      Print production department

Revenues and Profits

•      Commission

•      Fee

•      Retainer

International Marketing

•      An international brand is available virtually anywhere in the world

•      The shift requires new tools for advertisers, including one language, one control mechanism, and one strategic plan

•      The choice of an agency depends on the decision to standardize messages or localize them to accommodate local cultures

The Dynamics of Modern Marketing

•      Integrated marketing

–    All areas of the marketing mix work closely together to present the brand in a coherent and consistent way

•      Relationship marketing

–    Marketing that considers all the firm’s stakeholders

•      Permission marketing

–    Inviting prospective customers to self-select into a brand’s target market in order to receive marketing communication

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