Advertising and the Marketing Process

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Chapter 3

• Advertising and the Marketing Process

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What is Marketing?

• The American Marketing Association Defines
  Marketing as the Process of 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.

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The Marketing Plan
A Marketing Plan is a Blueprint of Planned
Marketing Activity That Strives to Create a
Competitive Advantage for an Individual Product,
a Product Line, or an Idea.
Research Stage Analyze Marketing Environment
Strategic Stage Develop Objectives and Strategies
Tactical Stage Specific Tools Are Selected
Implementation Stage Coordinate Strategy With
Marketing Activities
Evaluation Stage Assess How Well Objectives Were
Achieved
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Advertisings Role in the Marketing Plan (Fig.
3.1)
Advertising is One of Several Marketing
Communication Options.
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The Four Main Types of Marketing (Fig. 3.2)
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Approaching the Market
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Product Differentiation

• A Competitive Marketing Strategy Designed to
• Create Product Differences in the Eyes
• of the Consumer.

Intangible Differences Image That Implies
Difference such as Status, Enjoyment or
Masculinity
Tangible Differences Product Features, Color,
Size, Quality of Performance, Options or Price
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Marketing Concept

• The marketing concept suggests that marketing
  should focus first on the needs and wants of the
  customer, rather than finding ways to sell
  products that may or may not meet customers
  needs.
• Step 1. Determine what the customer needs and
  wants.
• Step 2. Develop, manufacture, market, and
  service the goods and services that fill those
  particular needs and wants.

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Integrated and Relationship Marketing

• Integrated marketing has emerged as the strategic
  approach with the greatest potential to implement
  the marketing concept.
• Relationship marketing identifies high-value
  customers and prospects and bonds them to the
  brand through personal attention.
• Advertising, along with other communication
  tools, can play an important role in maintaining
  relationships.

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Four Tools of Marketing
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Product Branding
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Channel of Distribution Influencers
Market Coverage?
Push, Pull or Combo Strategy?
Channel Direct or Indirect?

• Exclusive Distribution Only one distributor is
  allowed to sell the brand in a market area.
  i.e.Ethan Allen
• Selective Distribution Increased number of
  outlets, but limit number to most profitable.
  i.e. Timex
• Intensive Distribution Places product in every
  possible outlet. i.e. soft drinks

• Push Strategy Directs marketing efforts at
  resellers.
• Pull Strategy Directs marketing efforts to the
  ultimate consumer.
• Combination Strategy Most often used and
  combines push and pull strategies.

• Direct Marketing Companies that distribute
  products without the use of a reseller.
• Indirect marketing product is distributed
  through a channel structure that includes one or
  more resellers.

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Pricing
The Price a Seller Sets for a Product is Based
Not Only on the Cost of Making and Marketing the
Product, But Also on the Sellers Expected Profit
Level.
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Marketing Communication Mix
Advertising
Personal Selling
Packaging
How the Marketer May Communicate With Target
Markets.
Point-of- Sale
Sales Promotion
Public Relations
Direct Marketing
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Marketing Communication

• Personal Selling
• Face-to-face contact between the marketer and a
  prospective customer.
• Most important for companies that sell products
  requiring explanation, demonstration, and
  service.
• Advertising
• Has a greater ability to reach a larger number of
  people simultaneously.
• Has less ability to prompt an immediate change in
  behavior.
• Sales Promotion
• Communication devices offered for a limited
  period of time to generate immediate sales.

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Marketing Communication

• Public Relations
• Set of activities intended to enhance the image
  of the marketer to create goodwill.
• Direct Marketing
• Interactive system that allows two-way
  communication.
• Provides a mechanism for the prospect to respond.
• Can occur at any location.
• Provides a measurable response.
• Requires a database of consumer information.
• Point-of-Sale/ Packaging
• All the communication devices and marketing
  messages found at the place where the product is
  sold.

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Why Hire an Agency?

• Hiring an agency can result in several benefits
• Offer objective advice.
• Draw on the collective experience and training of
  its staff.
• Provide people and management skills to
  accomplish advertising objectives.
• Provide supportive environment for professional
  advertising people.