Advertising’s Role In Marketing

Lecture Outline I.What is Marketing? II.The Key Players and Markets III.The Marketing Process IV.How Agencies Work V.International Marketing VI.The Dynamics of Modern Marketing

What is Marketing? The way a product is designed, tested, produced, branded, packaged, priced, distributed, and promoted.

Key Concepts in Marketing The marketing concept Marketing should focus first on identifying the needs and wants of the customer To compete effectively, marketers must focus on the customers’ problems and try to develop products to solve them

Key Concepts in Marketing The marketing concept Exchange The act of trading a desired product or service to receive something of value in return Money is exchanged for goods

Key Concepts in Marketing The marketing concept Exchange Branding The process of creating a distinctive and special meaning for a product Brand equity is reputation, meaning, and value that the brand name or symbol has acquired over time

Key Concepts in Marketing The marketing concept Exchange Branding Added value A marketing or advertising activity makes a product more valuable, useful, or appealing

The Key Players and Markets The marketer The organization, company, or manufacturer producing the product and offering it for sale The advertiser or client (from the agency’s point of view)

The Key Players and Markets The marketer Suppliers and vendors Other companies that manufacture the materials and ingredients used in producing the product

The Key Players and Markets The marketer Suppliers and vendors Distributors and retailers Various companies that are involved in moving a product from its manufacturer to the buyer

Types of Markets Market –Where the exchange between buyer and seller takes place –A particular type of buyer Market share –The percentage of the total market in a product category that buys a particular brand Consumer Business-to- business InstitutionalChannel

The Marketing Process 1.Conduct research and develop a situation analysis 2.Set objectives for the marketing effort 3.Assess consumer needs and wants 4.Differentiate and position the product 5.Develop the marketing mix strategy 6.Evaluate the effectiveness of the strategy

Marketing Mix Strategies Product The product is both the object of the advertising and the reason for marketing Product category –A class of similar products

Marketing Mix Strategies Product Place The channels used in moving the product from manufacturer to buyer

Marketing Mix Strategies Product Place Price Based on the cost of making and marketing the product and on expected profit –Customary –Psychological

Marketing Mix Strategies Product Place Price Promotion Use face-to-face contact between marketer and prospective customer Used to create immediate sales

How Agencies Work Full-Service Agencies Include the four major staff functions –Account management –Creative services –Media planning and buying –Account planning Also have accounting, traffic, production, and HR departments Specialized Agencies Specialize in certain functions, audiences, industries or markets –Creative boutique –Media-buying services

How Agencies Work Account Management Acts as a liaison between the client and the agency Responsible for interpreting the client’s marketing strategy Creative Development People who write People who design ideas for ads and commercials People who convert these ideas into commercials

How Agencies Work Media Planning/Buying Recommends to the client the most efficient means of delivering the message Responsible for buying, planning, and research Account Planning Gathers all information on the market and consumers and acts as the voice of the consumer Prepares comprehensive recommendations

How Agencies Work Internal Agency Services Traffic department Print production department Revenues and Profits Commission Fee Retainer

International Marketing An international brand is available virtually anywhere in the world The shift requires new tools for advertisers, including one language, one control mechanism, and one strategic plan The choice of an agency depends on the decision to standardize messages or localize them to accommodate local cultures

The Dynamics of Modern Marketing Integrated marketing –All areas of the marketing mix work closely together to present the brand in a coherent and consistent way Relationship marketing –Marketing that considers all the firm’s stakeholders Permission marketing –Inviting prospective customers to self-select into a brand’s target market in order to receive marketing communication

 Principles of Advertising & IMC by Tom Duncan 2 nd Edition, Published by McGraw-Hill Irwin.  Event Management For Tourism, Cultural, Business and Sporting Events by Lynn Van Der Wagen Brenda R. Carlos Published by Pearson Prentice Hall.  Advertising Principles and Practice by W. Wells, S. Moriarty and J. Burnett, Published by Prentice Hall International.  Integrated Marketing Communications by David Pickton & Amanda Broderick Published by Prentice Hall. Bibliography

The End “Don’t use time or words carelessly. Neither can be retrieved.”