I A Lecture-1N DT VR EO RD TUC I Prepared By: Kazi Mashfiq Uddin AhmedT SI I TO O NN
Learning Objective:Industries all over the world oncedominated by very few marketers arenow crowded with many new competitorsthat span the globe. Often newbusinesses can compete more easilybecause they are small, more flexible &target specific rather than mass market.Thanks to new technology that makesadvertising more cost effective.Advertising is now available to marketersof all sizes.
After studying lecture–1 you should be able to Know: What is Marketing & what is Relationship Marketing, Know what is Marketing MIX, Know what is Advertising & why Advertising is Important, Identify various types of Advertising, Understand the Roles of Advertising,Identify the Functions of Advertising & Identify the players of Advertising world, Identify the Current Advertising Issues
Marketing: (Special Topic) : Marketing is a process of Planning and Executing the Pricing, Promotion and Distribution of Ideas, Goods & Services to create connections that satisfy individual & firm’s objectives.Relationship Marketing: (Special Topic): Companies these days are developing and sustaining Relationship with their customers. Studies have shown that reducing customer Complains/Problems by just 5% can increase future profit by as much as 30-90%.Practicing Relationship Marketing depends on several factors: Consumers desire Superior Customer Value which includes; Quality Products & Services, Competitive Price, Convenient to Purchase, Delivered on Time, New Technology and Excellent Customer Service etc.Marketing MIX: (Special Topic): Marketing Mix consists of 4 Ps available and the basic task of marketing is to combine these 4 Elements into a marketing program to attract potential customers. 4 Ps are: Product Price Place/Distribution
Advertising is a PAID Non-Personal communication from an identified sponsor usingMass Media to persuade or influence an audience. Sometime for public serviceannouncement Space & Time may be donated.Importance of Advertising: (See Text Book; Page # 06) :Advertising is the best-known and most widely discussed Form of Promotion, probablybecause of its popularity. It is an important tool particularly for companies whoseproducts & services are targeted at mass consumer market, it can be a very cost-effective method for communicating with large audiences,………..See Text.
Brand Advertising Retail or Interactive local Advertising AdvertisingPublic Service Political Advertising Advertising Types Of Advertising Institutional Directory Advertising Advertising Business –To Direct – Business Response Advertising Advertising
4 Roles Of Advertising The Marketing RoleThe Communication Role The Economic Role The Societal Role
The Marketing RoleMarketing is the process a business uses to satisfy consumer needs and wantsthrough goods and services. The particular customers at whom the companydirects its marketing effort constitute/refers the Target Market. The toolsavailable in marketing include Product, Price, Place and Promotion/MarketingCommunication. These 4 tools are collectively referred to as the Marketing Mix Communication RoleAdvertising is a form of Mass Communication. It transmitsdifferent types of market information to match buyers and sellersin the marketplace. Advertising both Informs and Transforms theproduct by creating an image to the Target Market.
Economic RoleAdvertising reduces the price elasticity of demand. So an Ad should focus on ProductQuality, Variety of Selection and would avoid mentioning Price or Discounts. Advertisingcan increase Price Elasticity by increasing the number of brands considered. The moresubstitutes consumers believe exist, the more price sensitive they are. Price Elasticity Isa measure of the sensitivity of demand to changes in Price. Social RoleAdvertising has a number of Social Roles. It informs us about new and improvedproducts and teaches us how to use these innovations. It helps us compare productsand features and make informed consumer decisions. Example: To be discussed in thetutorial session.
Functions of Advertising:Provide product and brand information: (See Page # 11) Many Ads are full ofinformation, providing with relevant information that will aid decision making to purchaseand is still the main function of Advertising.Provide incentive to take action: (See Page # 11) Even though consumers aredissatisfied with their current Products or Services but they’re Scare to Adopt newproducts or services.Provide reminder and reinforcement: (See Page # 11) Some consumers forget Whatand Why they bought a particular brand like; Microwave or Automobile. Advertising mustremind the consumer constantly about the Name of the Brand, its Benefits, Value etc.Most TV Advertising seems to provide this function.
FIVE players of Advertising: The Advertiser The Advertising Agency The Media The Vendor The Target Audience
Advertising can be defined in terms of those who play important roles in brining Ads tothe consumer.The Advertiser: (See Page # 11) Advertiser is the person/organization which usuallyinitiates the Advertising process. The Advertiser also makes the final decisions about theTarget Audience and the Media that will carry the Advertising, the Size of the AdvertisingBudget and the Length of the Advertising Campaign.The Advertising Agency: (See Page # 11) 2nd player in the Advertising world is theAdvertising Agency. Usually the Advertiser hires independent Agencies to Plan andImplement part or all of their Advertising efforts. This working arrangement is known asthe Agency-Client partnership.The Media: (See Page # 11) The third player in the Advertising world is the Media. TheMedia are the Channels of Communication that carry the messages from the Advertiserto the Audience. Medias are responsible to do the following.The Vendor: (See Page # 11) 4th player in the world of Advertising is The Vendor whoassists Advertisers, Advertising Agencies and the Media. Members of this group are alsocalled Consultants or Self-Employer Professionals. Vendors usually deal with Copy-
The Target Audience: (See Page # 11) Final player in the Advertising process is theTarget Audience. All strategy starts with the customer. Current Advertising Issues:Today Advertising Industry is affected by Changing Technology. Additionalchanges involve customer orientation in a truly Global World. Here we willexamine several following current trends:Interactive Advertising: Today some experts believe that technology, especiallyInteractive Technology will change the face of Advertising completely. But it is not yetavailable to majority customers. Even when it becomes available, its main purpose willbe to gather and evaluate Information, Not Advertise. However Advertise will need adifferent kind of creativity. Traditional Advertising is Mass Media will continue to beappropriate in a number of situationsIntegrated Marketing Communication (IMC): (See Page # 22) IMC is the practice ofunifying all marketing communication tools so that the company can send a persuasivemessage to Target Audiences that promotes company goals. Marketing Communicationtools include such marketing areas as Advertising, Sales Promotion, Direct Marketing,Public Relations, Packaging and Personal Selling
Globalization: (See Page # 23) Another trend that continues to affect Advertising isGlobalization. The Advertising challenge is to practice Global and Local AdvertisingSimultaneously. So the standard of the Ad must be acceptable in all cultures of theworld.Niche Marketing: (See Page # 23) Although Advertising has gone global manyAdvertisers have moved toward tighter & tighter Niche Marketing. So instead of Massmarketing they target market segments. New technologies enable advertisers to reachselect groups of consumers with selected media. Marketers now search for andimplement media and marketing plans aimed at special selective markets.
Probable Questions• What is Marketing? Describe Relationship Marketing and Marketing MIX.• What is Advertising? Why Advertising is Important? Describe types of Advertising.• Describe the Roles of Advertising. Identify the Functions of Advertising.• Describe FIVE players of Advertising.• Describe Current Advertising Issues.