Advertising’s Role in Marketing

1
Advertisings Role in Marketing

• Part 1 Foundations
• Chapter 2

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

3
What is Marketing?

• The way a product is designed, tested, produced,
  branded, packaged, priced, distributed, and
  promoted

4
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

5
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

6
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

7
Key Concepts in Marketing

• The marketing concept
• Exchange
• Branding
• Added value

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

8
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)

9
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

10
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

11
Types of Markets

• Market
• Where the exchange between buyer and seller takes
  place
• A particular type of buyer
• Market share
• The percentage of the total market in a product
  category that buys a particular brand

12
The Marketing Process

• Conduct research and develop a situation analysis
• Set objectives for the marketing effort
• Assess consumer needs and wants
• Differentiate and position the product
• Develop the marketing mix strategy
• Evaluate the effectiveness of the strategy

13
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

14
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
• Also have accounting, traffic, production, and HR
  departments

• Specialized Agencies
• Specialize in certain functions, audiences,
  industries or markets
• Creative boutique
• Media-buying services

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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

20
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

21
How Agencies Work

• Internal Agency Services
• Traffic department
• Print production department

• Revenues and Profits
• Commission
• Fee
• Retainer

22
Strawberry Frog
23
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

24
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