Advertisings 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
2

What is Marketing?

The way a product is

designed, tested,
produced, branded,
packaged, priced,
distributed, and promoted
3

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 or services

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 agencys
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

10

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

11

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

12

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

13

Marketing Mix Strategies

Product
Place
Price
Promotion

The channels used

in moving the
product from
manufacturer to
buyer

14

Marketing Mix Strategies

Product
Place
Price
Promotion

Based on the cost

of making and
marketing the
product and on
expected profit
Customary
Psychological

15

Marketing Mix Strategies

Product
Place
Price
Promotion

Use face-to-face
contact between
marketer and
prospective
customer
Used to create
immediate sales

16

Question to Ponder

Which element of the marketing

mix does advertising and IMC
have the most impact on?

17

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

18

How Agencies Work

Account
Management
Acts as a liaison
between the client
and the agency
Responsible for
interpreting the
clients marketing
strategy

Creative
Development
People who write
People who design
ideas for ads and
commercials
People who convert
these ideas into
commercials
19

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
20

How Agencies Work

Internal Agency
Services
Traffic department
Print production
department

Revenues and
Profits
Commission
Fee
Retainer

21

Strawberry Frog

22

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
23

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 firms
stakeholders

Permission marketing
Inviting prospective customers to self-select into
a brands target market in order to receive
marketing communication
24