Muhammad Waqas Recap Define advertising and explain its key components Discuss the roles and functions of advertising within society and business Identify the key players and their roles in creating advertising Explain the different types of advertising Summarize the characteristics of effective advertising and explain why it is always goal directed Analyze the changes affecting the advertising industry

Muhammad Waqas An Effective Ad 1.If it creates an impression for a product or brand 2.If it influences people to respond in some way 3.If it separates the product or brand from the competition in the mind of the consumer 2

Muhammad Waqas The Evolution of Advertising Age of Print Industrial Revolution and Emergence of Consumer Society Modern Advertising Era Accountability Era 3

Muhammad Waqas The Current Advertising Scene 4 Expanded view Integrated Marketing Communication Globalization Electronic media are changing the media landscape New media are more personal and interactive

Muhammad Waqas The Current Advertising Scene 5 Expanded view Integrated Marketing Communication Globalization The practice of unifying all marketing communication tools so they send a consistent, persuasive message Coordination of IMC tools creates synergy

Muhammad Waqas The Current Advertising Scene 6 Expanded view Integrated Marketing Communication Globalization Increasing globalization of marketing programs Advertisers are moving into global markets and agencies are forming huge multinational operations

Muhammad Waqas BMW Films-Ambush

Muhammad Waqas References Wells, W., Burnett, J. and Moriarty, S. (2006), Advertising Principles and Practice, Prentice-Hall, New Delhi, ND.

Muhammad Waqas Next Session Session 2: Advertising Role in Marketing 9

Muhammad Waqas Recap Define advertising and explain its key components Discuss the roles and functions of advertising within society and business Identify the key players and their roles in creating advertising Explain the different types of advertising Summarize the characteristics of effective advertising and explain why it is always goal directed Analyze the changes affecting the advertising industry

Muhammad Waqas Advertising’s Role in Marketing Session 2

Muhammad Waqas Chapter 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

Muhammad Waqas What is Marketing? The way a product is designed, tested, produced, branded, packaged, priced, distributed, and promoted. According to American Marketing Association “an organisational function and a set of processes for creating, communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organisation and its stake holders”.

Muhammad Waqas Play… Clever Little Bag by PUMA and Fuse Project- Video

Muhammad Waqas 2-15 Key Concepts in Marketing The marketing concept Exchange Branding Added value 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

Muhammad Waqas 2-16 Key Concepts in Marketing The marketing concept Exchange Branding Added value The act of trading a desired product or service to receive something of value in return Money is exchanged for goods

Muhammad Waqas 2-17 Key Concepts in Marketing The marketing concept Exchange Branding Added value 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

Muhammad Waqas 2-18 Key Concepts in Marketing The marketing concept Exchange Branding Added value A marketing or advertising activity makes a product more valuable, useful, or appealing

Muhammad Waqas 2-19 The Key Players and Markets The marketer Suppliers and vendors Distributors and retailers The organization, company, or manufacturer producing the product and offering it for sale The advertiser or client (from the agency’s point of view)

Muhammad Waqas 2-20 The Key Players and Markets The marketer Suppliers and vendors Distributors and retailers Other companies that manufacture the materials and ingredients used in producing the product

Muhammad Waqas 2-21 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

Muhammad Waqas 2-22 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

Muhammad Waqas 2-23 Types of Markets Consumer Business-to-business (Industrial) Institutional Channel

Muhammad Waqas 2-24 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

Muhammad Waqas 2-25 Marketing Mix Strategies Product Place Price Promotion The product is both the object of the advertising and the reason for marketing Product category – A class of similar products

Muhammad Waqas 2-26 Marketing Mix Strategies Product Place Price Promotion The channels used in moving the product from manufacturer to buyer

Muhammad Waqas 2-27 Marketing Mix Strategies Product Place Price Promotion Based on the cost of making and marketing the product and on expected profit – Customary – Psychological

Muhammad Waqas 2-28 Marketing Mix Strategies Product Place Price Promotion Use face-to-face contact between marketer and prospective customer Used to create immediate sales

Muhammad Waqas 2-29 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

Muhammad Waqas 2-30 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

Muhammad Waqas 2-31 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

Muhammad Waqas 2-32 How Agencies Work Internal Agency Services Traffic department Print production department Revenues and Profits Commission Fee Retainer

Muhammad Waqas 2-33 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

Muhammad Waqas 2-34 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

Muhammad Waqas References Wells, W., Burnett, J. and Moriarty, S. (2006), Advertising Principles and Practice, Prentice-Hall, New Delhi, ND.

Muhammad Waqas Summary Define the role of advertising within marketing Explain how the four key concepts in marketing relate to advertising Identify the key players in marketing and how the organization of the industry affects advertising List and explain the six critical steps in the marketing process Summarize the structure of the advertising agency industry Analyze the changes in the marketing world and what they portend for advertising