Transcript Advertising`s Role in Marketing

Advertising’s Role in
Marketing
Part 1: Foundations
Chapter 2
Key Points
 Define the role of advertising within marketing
 Explain how the four key concepts in marketing
relate to advertising
 Identify the key players in marketing and how
the organization of the industry affects
advertising
 List and explain the six critical steps in the
marketing process
 Summarize the structure of the advertising
agency industry
 Analyze the changes in the marketing world
and what they portend for advertising
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What is Marketing?
The way a product is
designed, tested,
produced, branded,
packaged, priced,
distributed, and promoted
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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
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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 or services
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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
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Key Concepts in Marketing
The
marketing
concept
Exchange
Branding
Added value
 A marketing or
advertising activity
makes a product more
valuable, useful, or
appealing
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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)
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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
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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
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Types of Markets
 Market
 Where the exchange
between buyer and
seller takes place
 A particular type of
buyer
Consumer
Businesstobusiness
 Market share
 The percentage of the
total market in a
Institutional
product category that
buys a particular
brand
Channel
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The Marketing Process
1. Conduct research and develop a situation
analysis
2. Set objectives for the marketing effort
3. Assess consumer needs and wants
4. Differentiate and position the product
5. Develop the marketing mix strategy
6. Evaluate the effectiveness of the strategy
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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
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Marketing Mix Strategies
Product
Place
Price
Promotion
 The channels used
in moving the
product from
manufacturer to
buyer
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Marketing Mix Strategies
Product
Place
Price
Promotion
 Based on the cost
of making and
marketing the
product and on
expected profit
 Customary
 Psychological
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Marketing Mix Strategies
Product
Place
Price
Promotion
 Use face-to-face
contact between
marketer and
prospective
customer
 Used to create
immediate sales
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Question to Ponder
Which element of the marketing
mix does advertising and IMC
have the most impact on?
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How Agencies Work
Full-Service Agencies
 Include the four major
staff functions
 Account management
 Creative services
 Media planning and
buying
 Account planning
Specialized Agencies
 Specialize in certain
functions, audiences,
industries or markets
 Creative boutique
 Media-buying
services
 Also have accounting,
traffic, production, and
HR departments
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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
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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
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How Agencies Work
Internal Agency
Services
 Traffic department
 Print production
department
Revenues and
Profits
 Commission
 Fee
 Retainer
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Strawberry Frog
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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
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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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