Transcript 01-MKT-PROMO

Marketing
 Promotion
 Advertising
JOMC 170
Principles of Advertising
01-MKT-PROMO-ADV.ppt
Marketing (1)
• Marketing is the process of planning
and executing the conception, pricing,
promotion and distribution of ideas,
goods and services to create
exchanges that satisfy individual and
organizational goals. (AMA - 1985)
Marketing (2)
• Marketing is the core business
philosophy which directs the processes
of identifying and fulfilling the needs of
individuals and organizations through
exchanges which create superior value
for all parties. (World Marketing Association)
Marketing (3)
• Marketing is the management process
for identifying, anticipating and
satisfying customer requirements
profitably. (Chartered Institute of Marketing - UK)
Marketing (4)
• Marketing means solving customers'
problems profitably. (Randall Chapman, 2003)
Marketing (5)
• Marketing and innovation are the two
chief functions of business. You get paid
for creating a customer, which is
marketing. And you get paid for creating
a new dimension of performance, which
is innovation. Everything else is a cost
center. (Peter Drucker)
Marketing (6)
• Marketing is an organizational function
and a set of processes for creating,
communicating, and delivering value to
customers and for managing customer
relationships in ways that benefit the
organization and its stakeholders.
(AMA - adopted 2004)
Value
• The power of any good to command
other goods in peaceful and voluntary
exchange. (AMA)
– Create Value
– Communicate Value
– Deliver Value
Customer
• The actual or prospective purchaser of
products or services. (AMA)
– Create value for customers
– Communicate value to customers
– Deliver value to customers
Organization
• When used as a noun, organization
implies the framework or structure
within which people are assigned to
positions and their work coordinated in
order to carry out plans and achieve
goals. (AMA)
– Marketing benefits the organization in addition to
the customer.
Stakeholder
• One of a group of publics with which a
company must be concerned. Key
stakeholders include consumers,
employees, stockholders, suppliers, and
others who have some relationship with
the organization. (AMA)
– Marketing benefits other stakeholders in addition
to the customer.
4 Key Points
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Marketing is a process/function.
Marketing is value-oriented.
Marketing is consumer-oriented.
Marketing seeks to satisfy
organizational objectives.
Marketing Mix
• The mix of controllable marketing variables
that the firm uses to pursue the desired level
of sales in the target market. (AMA)
• The most common classification of these
factors is the four-factor classification called
the "Four Ps"-price, product, promotion, and
place (or distribution). (AMA)
Marketing Mix (cont.)
• Optimization of the marketing mix is achieved
by assigning the amount of the marketing
budget to be spent on each element of the
marketing mix so as to maximize the total
contribution to the firm. (AMA)
• Contribution may be measured in terms of
sales or profits or in terms of any other
organizational goals. (AMA)
Product
• A bundle of attributes (features, functions,
benefits, and uses) capable of exchange or
use; usually a mix of tangible and intangible
forms.
• Thus a product may be an idea, a physical
entity (a good), or a service, or any
combination of the three.
• It exists for the purpose of exchange in the
satisfaction of individual and organizational
objectives. (AMA)
Product (cont.)
• Occasional usage today implies a definition of
product as that bundle of attributes for which the
exchange or use primarily concerns the physical or
tangible form, in contrast to a service, in which the
seller, buyer, or user is primarily interested in the
intangible.
• Though to speak of "products" and "services" is
convenient, it leaves us without a term to apply to the
set of the two combined.
• The term for tangible products is goods, and it should
be used with services to make the tangible/ intangible
pair, as subsets of the term product. (AMA)
An Example
• Products
– Goods
• General Motors
– Cars, Trucks, Parts
(Buick, Pontiac, etc.)
• Packaged goods
• AC Delco parts
• Durable goods
• Hummer H3
– Services
– Mr. Goodwrench,
GMAC, OnStar
Price
• The formal ratio that indicates the
quantities of money goods or services
needed to acquire a given quantity of
goods or services. (AMA)
Place (Distribution)
• (marketing definition) The marketing
and carrying of products to consumers.
(AMA)
• (business definition) The extent of
market coverage. (AMA)
Promotion Mix
• The various communication techniques
such as
– advertising,
– personal selling,
– sales promotion, and
– public relations/product publicity
available to a marketer that are combined
to achieve specific goals. (AMA)
Personal Selling
• Selling that involves a face-to-face
interaction with the customer. (AMA)
Sales Promotion
• The media and nonmedia marketing
pressure applied for a predetermined,
limited period of time at the level of
consumer, retailer, or wholesaler in
order to stimulate trial, increase
consumer demand, or improve product
availability. (AMA)
Public Relations
• That form of communication management
that seeks to make use of publicity and other
nonpaid forms of promotion and information
to influence the feelings, opinions, or beliefs
about the company, its products or services,
or about the value of the product or service or
the activities of the organization to buyers,
prospects, or other stakeholders. (AMA)
Publicity
• The non-paid-for communication of
information about the company or
product, generally in some media form.
(AMA)
Advertising
• Advertising may be described as the
science of arresting human intelligence
long enough to get money from it.
(Stephen Leacock)
• Advertising is the rattling of a stick
inside a swill bucket. (George Orwell)
• Advertising is legalized lying. (H.G. Wells)
Advertising
• The placement of announcements and
persuasive messages in time or space
purchased in any of the mass media by
business firms, nonprofit organizations,
government agencies, and individuals
who seek to inform and/ or persuade
members of a particular target market or
audience about their products, services,
organizations, or ideas. (AMA)
Advertising
• Any paid form of nonpersonal
communication about an organization,
product, service, or idea by an identified
sponsor. (Belch & Belch)
• Marketing messages in paid media.
(Bendinger, et. al.)
• A paid, mass-mediated attempt to
persuade. (O'Guinn, Allen, Semenik)
Key Points
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•
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•
Paid
Mediated
Identified
Marketing message
Recommended Resource
•
AMA - American Marketing Association
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For an excellent dictionary of marketing, promotion, and advertising terms, go to
http://www.marketingpower.com/mg-dictionary.php