Advertising’s Role in Marketing LECTURE-25

Chapter Questions  The Key Players and Markets  The Marketing Process  How Agencies Work  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  Conduct research and develop a situation analysis.  Set objectives for the marketing effort.  Assess consumer needs and wants.  Differentiate and position the product.  Develop the marketing mix strategy.  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

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

 Marketing Management – A South Asian Perspective by Philip Kotler, Kevin Lane Keller, Abraham Koshy & Mithileshwar Jha, 13th Edition, Published by Pearson Education, Inc.  Advertising Principles & Practice by Wells, Moriarty & Burnett Published by Pearson Education, Inc.  Principles of Advertising & IMC by Tom Duncan 2 nd Edition, Published by McGraw-Hill Irwin.  Principles of Marketing by Philip Kotler & Gary Armstrong Thirteenth Edition, Published by Prentice Hall Bibliography

The End: Learn to listen. Opportunity some times knocks very softly.