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Role of advt.


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Role of advt.

  1. 1. Advertising’s Role in Marketing Part 1: Foundations Chapter 2
  2. 2. Chapter Outline <ul><li>Chapter Key Points </li></ul><ul><li>What is Marketing? </li></ul><ul><li>The Key Players and Markets </li></ul><ul><li>The Marketing Process </li></ul><ul><li>How Agencies Work </li></ul><ul><li>International Marketing </li></ul><ul><li>The Dynamics of Modern Marketing </li></ul>
  3. 3. Key Points <ul><li>Define the role of advertising within marketing </li></ul><ul><li>Explain how the four key concepts in marketing relate to advertising </li></ul><ul><li>Identify the key players in marketing and how the organization of the industry affects advertising </li></ul><ul><li>List and explain the six critical steps in the marketing process </li></ul><ul><li>Summarize the structure of the advertising agency industry </li></ul><ul><li>Analyze the changes in the marketing world and what they portend for advertising </li></ul>
  4. 4. What is Marketing? <ul><li>The way a product is designed, tested, produced, branded, packaged, priced, distributed, and promoted </li></ul>
  5. 5. Key Concepts in Marketing <ul><li>The marketing concept </li></ul><ul><li>Exchange </li></ul><ul><li>Branding </li></ul><ul><li>Added value </li></ul><ul><li>Marketing should focus first on identifying the needs and wants of the customer </li></ul><ul><li>To compete effectively, marketers must focus on the customers’ problems and try to develop products to solve them </li></ul>
  6. 6. Key Concepts in Marketing <ul><li>The marketing concept </li></ul><ul><li>Exchange </li></ul><ul><li>Branding </li></ul><ul><li>Added value </li></ul><ul><li>The act of trading a desired product or service to receive something of value in return </li></ul><ul><li>Money is exchanged for goods </li></ul>
  7. 7. Key Concepts in Marketing <ul><li>The marketing concept </li></ul><ul><li>Exchange </li></ul><ul><li>Branding </li></ul><ul><li>Added value </li></ul><ul><li>The process of creating a distinctive and special meaning for a product </li></ul><ul><li>Brand equity is reputation, meaning, and value that the brand name or symbol has acquired over time </li></ul>
  8. 8. Key Concepts in Marketing <ul><li>The marketing concept </li></ul><ul><li>Exchange </li></ul><ul><li>Branding </li></ul><ul><li>Added value </li></ul><ul><li>A marketing or advertising activity makes a product more valuable, useful, or appealing </li></ul>
  9. 9. The Key Players and Markets <ul><li>The marketer </li></ul><ul><li>Suppliers and vendors </li></ul><ul><li>Distributors and retailers </li></ul><ul><li>The organization, company, or manufacturer producing the product and offering it for sale </li></ul><ul><li>The advertiser or client (from the agency’s point of view) </li></ul>
  10. 10. The Key Players and Markets <ul><li>The marketer </li></ul><ul><li>Suppliers and vendors </li></ul><ul><li>Distributors and retailers </li></ul><ul><li>Other companies that manufacture the materials and ingredients used in producing the product </li></ul>
  11. 11. The Key Players and Markets <ul><li>The marketer </li></ul><ul><li>Suppliers and vendors </li></ul><ul><li>Distributors and retailers </li></ul><ul><li>Various companies that are involved in moving a product from its manufacturer to the buyer </li></ul>
  12. 12. Types of Markets <ul><li>Market </li></ul><ul><ul><li>Where the exchange between buyer and seller takes place </li></ul></ul><ul><ul><li>A particular type of buyer </li></ul></ul><ul><li>Market share </li></ul><ul><ul><li>The percentage of the total market in a product category that buys a particular brand </li></ul></ul>Channel Institutional Business-to-business Consumer
  13. 13. Types of Markets <ul><li>Consumer </li></ul><ul><li>Business-to-business (Industrial) </li></ul><ul><li>Institutional </li></ul><ul><li>Channel </li></ul>
  14. 14. The Marketing Process <ul><li>Conduct research and develop a situation analysis </li></ul><ul><li>Set objectives for the marketing effort </li></ul><ul><li>Assess consumer needs and wants </li></ul><ul><li>Differentiate and position the product </li></ul><ul><li>Develop the marketing mix strategy </li></ul><ul><li>Evaluate the effectiveness of the strategy </li></ul>
  15. 15. Marketing Mix Strategies <ul><li>Product </li></ul><ul><li>Place </li></ul><ul><li>Price </li></ul><ul><li>Promotion </li></ul><ul><li>The product is both the object of the advertising and the reason for marketing </li></ul><ul><li>Product category </li></ul><ul><ul><li>A class of similar products </li></ul></ul>
  16. 16. Marketing Mix Strategies <ul><li>Product </li></ul><ul><li>Place </li></ul><ul><li>Price </li></ul><ul><li>Promotion </li></ul><ul><li>The channels used in moving the product from manufacturer to buyer </li></ul>
  17. 17. Marketing Mix Strategies <ul><li>Product </li></ul><ul><li>Place </li></ul><ul><li>Price </li></ul><ul><li>Promotion </li></ul><ul><li>Based on the cost of making and marketing the product and on expected profit </li></ul><ul><ul><li>Customary </li></ul></ul><ul><ul><li>Psychological </li></ul></ul>
  18. 18. Marketing Mix Strategies <ul><li>Product </li></ul><ul><li>Place </li></ul><ul><li>Price </li></ul><ul><li>Promotion </li></ul><ul><li>Use face-to-face contact between marketer and prospective customer </li></ul><ul><li>Used to create immediate sales </li></ul>
  19. 19. How Agencies Work <ul><li>Full-Service Agencies </li></ul><ul><li>Include the four major staff functions </li></ul><ul><ul><li>Account management </li></ul></ul><ul><ul><li>Creative services </li></ul></ul><ul><ul><li>Media planning and buying </li></ul></ul><ul><ul><li>Account planning </li></ul></ul><ul><li>Also have accounting, traffic, production, and HR departments </li></ul><ul><li>Specialized Agencies </li></ul><ul><li>Specialize in certain functions, audiences, industries or markets </li></ul><ul><ul><li>Creative boutique </li></ul></ul><ul><ul><li>Media-buying services </li></ul></ul>
  20. 20. How Agencies Work <ul><li>Account Management </li></ul><ul><li>Acts as a liaison between the client and the agency </li></ul><ul><li>Responsible for interpreting the client’s marketing strategy </li></ul><ul><li>Creative Development </li></ul><ul><li>People who write </li></ul><ul><li>People who design ideas for ads and commercials </li></ul><ul><li>People who convert these ideas into commercials </li></ul>
  21. 21. How Agencies Work <ul><li>Media Planning/Buying </li></ul><ul><li>Recommends to the client the most efficient means of delivering the message </li></ul><ul><li>Responsible for buying, planning, and research </li></ul><ul><li>Account Planning </li></ul><ul><li>Gathers all information on the market and consumers and acts as the voice of the consumer </li></ul><ul><li>Prepares comprehensive recommendations </li></ul>
  22. 22. How Agencies Work <ul><li>Internal Agency Services </li></ul><ul><li>Traffic department </li></ul><ul><li>Print production department </li></ul><ul><li>Revenues and Profits </li></ul><ul><li>Commission </li></ul><ul><li>Fee </li></ul><ul><li>Retainer </li></ul>
  23. 23. International Marketing <ul><li>An international brand is available virtually anywhere in the world </li></ul><ul><li>The shift requires new tools for advertisers, including one language, one control mechanism, and one strategic plan </li></ul><ul><li>The choice of an agency depends on the decision to standardize messages or localize them to accommodate local cultures </li></ul>
  24. 24. The Dynamics of Modern Marketing <ul><li>Integrated marketing </li></ul><ul><ul><li>All areas of the marketing mix work closely together to present the brand in a coherent and consistent way </li></ul></ul><ul><li>Relationship marketing </li></ul><ul><ul><li>Marketing that considers all the firm’s stakeholders </li></ul></ul><ul><li>Permission marketing </li></ul><ul><ul><li>Inviting prospective customers to self-select into a brand’s target market in order to receive marketing communication </li></ul></ul>