Chapter 3 Advertising and the Marketing Process Outline What is marketing? The marketing concept and relationship marketing The four tools of marketing Ad agencies: combining marketing and advertising

Chapter 3: Advertising and the Marketing Process 2 What is Marketing? Marketing: –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 –Advertising’s role in the marketing plan

Chapter 3: Advertising and the Marketing Process 3 Market –Where goods are sold and bought or –Particular type of buyer Consumer: Business-to-business Institutional Reseller Types of Markets

Chapter 3: Advertising and the Marketing Process 4 Approaching the Market Undifferentiated versus segmentation approaches Product differentiation Positioning

Chapter 3: Advertising and the Marketing Process 5 Marketing concept Integrated marketing Relationship marketing The Marketing Concept and Relationship Marketing

Chapter 3: Advertising and the Marketing Process 6 Product –Branding –Packaging Channel of distribution Pricing Four Tools of Marketing

Chapter 3: Advertising and the Marketing Process 7 Marketing communications –Personal selling –Advertising –Sales promotion –Public relations –Direct marketing –Point-of-sale/packaging Four Tools of Marketing

Chapter 3: Advertising and the Marketing Process 8 Why hire an ad agency? Why not hire an agency? Types of agencies Ad Agencies

Chapter 3: Advertising and the Marketing Process 9 Types of agencies –Full-service agencies –Specialized agencies –Industry-focused agencies –Minority agencies –Creative boutiques –Media buying services –Virtual agencies Ad Agencies

Chapter 3: Advertising and the Marketing Process 10 How agencies are organized –Account management –Creative development and production –Media planning and buying –Account planning and research –Internal services Ad Agencies

Chapter 3: Advertising and the Marketing Process 11 How agencies are paid The effect of technological changes on agencies Ad Agencies