Transcript Advertising’s Role in Marketing

Advertising’s Role in
Marketing
Part 1: Foundations
Chapter 2
What is Marketing?
The way a product is
designed, tested,
produced, branded,
packaged, priced,
distributed, and promoted
2
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
3
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
4
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
5
Key Concepts in Marketing
The
marketing
concept
Exchange
Branding
Added value
 A marketing or
advertising activity
makes a product more
valuable, useful, or
appealing
6
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)
7
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
8
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
9
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
10
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
11
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
12
Marketing Mix Strategies
Product
Place
Price
Promotion
 The channels used
in moving the
product from
manufacturer to
buyer
13
Marketing Mix Strategies
Product
Place
Price
Promotion
 Based on the cost
of making and
marketing the
product and on
expected profit
 Customary
 Psychological
14
Marketing Mix Strategies
Product
Place
Price
Promotion
 Use face-to-face
contact between
marketer and
prospective
customer
 Used to create
immediate sales
15
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
16
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
17
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
18
Top Agencies
19
Wells, Moriarty, Burnett & Lwin Xth Edition
ADVERTISING Principles and Effective IMC
Practice
1-19