Advertisings 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

2-2

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
2-3

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

2-4

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

2-5

Key Concepts in Marketing

The marketing concept Exchange Branding Added value

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

2-6

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 agencys point of view)

2-7

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

2-8

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

2-9

Types of Markets
Market
Where the exchange between buyer and seller takes place A particular type of buyer

Consumer

Business-tobusiness

Market share
The percentage of the total market in a product category that buys a particular brand

Institutional

Channel

2-10

Types of Markets
Consumer Business-to-business (Industrial) Institutional Channel

2-11

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
2-12

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

2-13

Marketing Mix Strategies

Product Place Price Promotion

The channels used in moving the product from manufacturer to buyer

2-14

Marketing Mix Strategies

Product Place Price Promotion

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

2-15

Marketing Mix Strategies

Product Place Price Promotion

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

2-16

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

2-17

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

2-18

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

2-19

How Agencies Work

Revenues and Profits Commission Fee Retainer

2-20

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
2-21

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

2-22