1. Chapter 2 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

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

3. 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

4. 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

5. 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

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

7. 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)

8. 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

9. 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

10. Types of Markets Consumer Business-to-business (Industrial)
Institutional
Channel

11. 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

12. 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

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

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

15. Marketing Mix Strategies
Product
Place
Price
Promotion
Contact between marketer and prospective customer
Used to create awareness, desire, sales

16. Full-Service Agencies
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

17. 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

18. Media Planning/Buying
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

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

20. 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

21. 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