Wells, Burnett, Moriarty

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Chapter 3Advertising and the Marketing Process

• Outline
• What is marketing?
• The marketing concept and relationship marketing
• The four tools of marketing
• Ad agencies combining marketing and advertising

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What is Marketing?

• Marketing
• Planning and executing the conception, pricing,
  promotion, and distribution of ideas, goods, and
  services to create exchanges that satisfy the
  perceived needs, wants, and objectives of the
  customer and the organization
• Advertisings role in the marketing plan

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What is a Market?

• Market
• Where goods are sold and bought or
• Particular type of buyer

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Four Types of Markets

• 1. Consumer
• 2. Business-to-business (industrial)
• 3. Institutional
• 4. Reseller

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Approaching the Market

• Undifferentiated versus segmentation approaches
• Generally segmented most receptive markets
  become target markets
• Product differentiation distinguishes one
  product from another in same category
• Positioning place held in market

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The Marketing Concept and Relationship Marketing

• Marketing concept heart of marketing
• Integrated marketing understanding consumer,
  coordinating efforts for unified message
• Relationship marketing long-term contact
  through personal attention

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Four Tools of Marketing

• 1. Product- physical and psychological
  attributes that deliver benefits and satisfaction
• Branding identifies product
• Packaging contains product, communicates

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• Channel of distribution move products
• resellers
• wholesalers
• retailers
• Can be exclusive, selective, intensive

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• Pricing setting the cost for consumers
• Considerations
• a. cost of production and marketing
• b. competition
• c. psychological pricing cost to influence
  perceptions

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• 4. Promotion
• - Personal selling
• - Advertising
• - Sales promotion
• - Public relations
• - Direct marketing
• - Point-of-sale/packaging
• IMC coordination of these efforts

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Ad Agencies
Agencies are businesses that provide advertising
expertise
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Why hire an ad agency?
Provide objectivity Expertise Management of
advertising activities
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Why not hire an agency?

• In-house are cheaper
• Easier to control
• Mostly focused on your company
• Keep costs internal, controllable
• May have ad department coordinate vendors

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Types of Ad Agencies

• Full-service agencies
• Specialized agencies
• Industry-focused agencies
• Minority agencies
• Creative boutiques
• Media buying services
• Virtual agencies non-traditional
• office settings

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How agencies are organized

• Account management - liaison
• Creative development and production
• Media planning and buying
• Account planning and research
• Internal services

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How agencies are paid

• Commissions 15
• Fees

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The effect of technological changes on agencies