The Marketing of Advertising

Marketing and Advertising Marketing- the process of planning and executing the conception, pricing, distribution, and promotion of ideas, goods and services to create exchanges that satisfy the perceived needs, wants and objectives of individuals and organizations. Marketing- the process of planning and executing the conception, pricing, distribution, and promotion of ideas, goods and services to create exchanges that satisfy the perceived needs, wants and objectives of individuals and organizations. Advertising’s role is to inform, persuade, and remind customers of the need-satisfying value of the goods. Advertising’s role is to inform, persuade, and remind customers of the need-satisfying value of the goods.

The 4 P’s of Marketing Product Product Price Price Place Place Promotion Promotion The fifth P is positioning- the way a product is marketed in a consumer’s mind The fifth P is positioning- the way a product is marketed in a consumer’s mind Advertising deals with Promotion and Positioning. Advertising deals with Promotion and Positioning.

Marketing and Advertising Target market-a particular segment of the population at which marketing efforts are aimed. Target market-a particular segment of the population at which marketing efforts are aimed. Target audience- particular group at which ads are aimed Target audience- particular group at which ads are aimed 2 types of audiences 2 types of audiences Consumers Consumers Businesses Businesses

Consumer Market Most of what we see is directed toward this market Most of what we see is directed toward this market Retail ads Retail ads Public service announcements (PSA’s) Public service announcements (PSA’s)

Industrial (Business) Markets Businesses also consume goods and services Businesses also consume goods and services Business to Business (B2B) Business to Business (B2B) Types of B2B Types of B2B Trade advertising Trade advertising Retailers, wholesalers, dealers Retailers, wholesalers, dealers Professional advertising Professional advertising Teachers, lawyers, doctors etc Teachers, lawyers, doctors etc Agricultural advertising Agricultural advertising farmers farmers

Where does B2B advertising take place? Business publications Business publications Professional journals Professional journals Direct mail Direct mail Trade shows Trade shows

Integrated Marketing Communications (IMC) The process of using promotional tools in a unified way so that a synergistic communications effect is created. ( A unified campaign with a single message) The process of using promotional tools in a unified way so that a synergistic communications effect is created. ( A unified campaign with a single message)

Advertising History Pre- Industrial Age (up to the 19th century) Pre- Industrial Age (up to the 19th century) Signs outside of stores Signs outside of stores Developments Developments Paper (Chinese 1200’s) Paper (Chinese 1200’s) Printing Press (Germany, 1440’s) Printing Press (Germany, 1440’s) Posters, handbills, signs, newspapers Posters, handbills, signs, newspapers 1472-first ad in English (prayer book) 1472-first ad in English (prayer book) 1600’s first newspaper ad (reward for stolen horses) 1600’s first newspaper ad (reward for stolen horses) Ben Franklin- the father of advertising art Ben Franklin- the father of advertising art First American to use illustration in ads First American to use illustration in ads

Advertising History Industrializing Age (19th century to end of World War I) Industrializing Age (19th century to end of World War I) Primarily done by wholesalers Primarily done by wholesalers Price currents-let retailers know about supply sources and distributions schedule) Price currents-let retailers know about supply sources and distributions schedule) Retailers advertised directly to consumers Retailers advertised directly to consumers Ad Profession started in 1841 in Philadelphia (Volney B Palmer) Ad Profession started in 1841 in Philadelphia (Volney B Palmer) Contracted with Newspapers for ad space and then resold it to advertisers for a profit. Contracted with Newspapers for ad space and then resold it to advertisers for a profit.

Advertising History US’s oldest ad agency- N.W. Ayers & Sons US’s oldest ad agency- N.W. Ayers & Sons Planned, created and executed ad campaigns Planned, created and executed ad campaigns Developments Developments Photography Photography Telegraph, telephone, typewriter, phonograph, and motion picture Telegraph, telephone, typewriter, phonograph, and motion picture Magazine advertising Magazine advertising

Advertising History Industrial age (post WWI through 1970’s) Industrial age (post WWI through 1970’s) Product differentiation became the norm Product differentiation became the norm USP (unique selling position) focus ad on features that differentiate it from competitors’ USP (unique selling position) focus ad on features that differentiate it from competitors’ Market segmentation-searching for unique groups of consumers Market segmentation-searching for unique groups of consumers Shift from product features to brand image Shift from product features to brand image

Advertising History The positioning era-what is important is how the brand ranks in the consumer’s mind The positioning era-what is important is how the brand ranks in the consumer’s mind The UnCola (7up) The UnCola (7up) Think Small (Volkswagen) Think Small (Volkswagen) We’re only #2 (Avis Rent a Car) We’re only #2 (Avis Rent a Car)

Advertising History Post Industrial age (1980’s) Post Industrial age (1980’s) De Marketing-using advertising to slow the demand for products De Marketing-using advertising to slow the demand for products Tobacco Tobacco Energy consuming products Energy consuming products Political candidates Political candidates Opening up of markets Opening up of markets Mega mergers-buying companies up to be able to compete globally Mega mergers-buying companies up to be able to compete globally

Advertising History Downsizing Downsizing Result of economy slowing down Result of economy slowing down Advertising budgets were reduced Advertising budgets were reduced Advertising went back to the basics Advertising went back to the basics

Advertising History Global Interactive Age (last 15 years) Global Interactive Age (last 15 years) More foreign advertising More foreign advertising Eastern Europeans and China Eastern Europeans and China New Technologies New Technologies Cable TV Cable TV Satellite receivers Satellite receivers Now advertisers can reach a very select audience (ex. Home and garden TV) Now advertisers can reach a very select audience (ex. Home and garden TV)

Advertising History Much more interactivity among consumers Much more interactivity among consumers Can research products Can research products A return to the thought that advertising should be less about entertainment and more about helping the advertiser SELL its product A return to the thought that advertising should be less about entertainment and more about helping the advertiser SELL its product