1. Part 1 Enduring Principles in Times of Turmoil Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 2-1

2. 1. How is marketing defined, what is the marketing process, and what are marketing’s key concepts? 2. How does marketing communication contribute to the development of a brand? 3. What is integrated marketing communication, and what are its key concepts? 4. How is brand communication evolving during a time of change? Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 2-2

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4. Much of a product’s value is created by marketing decisions that determine its:  Design  Ease of use  Distribution  Pricing  Marketing communication Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 2-4

5. Marketing is designed to build brand and customer relationships that:  generate sales and profits.  for nonprofits: volunteers and donations. Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 2-5

6. Marketing is the way a product is:  Designed  Tested  Produced  Branded  Priced  Distributed  Promoted Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall2-6

7. “Marketing is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large.” The American Marketing Association Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 2-7

8.  Marketing also focuses on managing customer relationships to benefit all of a brand’s stakeholders.  Stakeholders are all individuals and groups who have a stake in the success of the brand.  Positive relationships create value for a brand. Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 2-8

9. Traditionally speaking…  The objective of most marketing programs has been to sell products, i.e, goods, services, or ideas.  This is done by matching a product’s availability to the consumer’s need, desire or demand. Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 2-9

10. What is a product category?  It is the classification to which the product is assigned. Consider: ◦ Apple Macintosh: the computer category ◦ Burger King: the fast-food category Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall2-10

11. Marketing managers manipulate the marketing mix, also called the four Ps: 1. Product 2. Price 3. Place 4. Promotion Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 2-11 Urban Decay product cosmetics project a street-smart attitude in their packaging and product names.

12. The concept of exchange  Marketing helps create demand for a product leading to an exchange – trading something of value for a desired product.  Demand drives the exchange. As a class: Consider the Wii launch described in this chapter. How did Nintendo manipulate demand in this case? Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 2-12

13. Who are the key players? There are five categories: 1. Marketers 2. Suppliers 3. Vendors 4. Distributors 5. Marketing partners How is this information important as a career guide? Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 2-13

14. A market is not only a place, but a type of buyer. They include: 1. Consumer 2. Business-to-business 3. Institutional 4. Channel Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 2-14

15. Why is services marketing important? Services are the dominant part of the economy in most developed countries. Many goods manufacturers also offer services such as parts, repair, and financing. Most companies have a customer service operation to provide follow-up services. Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 2-15

16. “In many economies, service marketing, which is intangible and creates a more personal relationship with the customer, dominates goods marketing.” Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 2-16

17. Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 2-17 This group of ads demonstrates advertising directed at three types of markets: consumer (Keds), institutional (GE aircraft engines), and channel (“Ka-ching”). What are the similarities and differences in these advertisements?

18. The seven steps: 1.Research the consumer market. 2.Set objectives for the marketing effort. 3.Segment the market and target specific markets. 4.Differentiate and position the product. 5.Develop the marketing mix strategy. 6.Execute the strategies. 7.Evaluate the effectiveness of the strategy. Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 2-18

19. The marketing concept says… “Marketing should focus first on identifying the needs and wants of the consumer, rather than just the company’s production capabilities.” Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 2-19

20.  Differentiation makes the brand stand out from its competition.  This is known as positioning.  How a brand is different and superior is called competitive advantage. Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall2-20

21. Maytag washers  How does Maytag differentiate its products?  How are they positioned relative to the competition?  What competitive advantages does Maytag enjoy? To learn more, go to www.maytag.comwww.maytag.com Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall2-21

22. Added value  Marketing communication activities are also useful because they add value to a product.  Added value makes a product more valuable, useful, or appealing to a consumer.  Consider the added value of: ◦ Harley-Davidson Motorcycles ◦ Idaho Potatoes Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 2-22

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24. The product  Design, performance, and quality are key elements.  Communication works to: ◦ build awareness of a brand. ◦ explain how the new product works. ◦ explain how it differs form competitors. Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 2-24

25. Pricing It is based on:  What the market will bear.  The competition.  What the consumer can afford.  The relative value of the product.  The consumer’s ability to gauge that value. The price sends a message! Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 2-25

26. Place (distribution)  It includes the channels used to make the product easily accessible to customers.  The distribution channel also sends a message.  The Internet raises new distribution questions related to “clicks or bricks.”  Marketers may use a “push” or “pull” strategy. Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 2-26

27. Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 2-27 Puma is a global brand that has left its paw prints in more than 80 countries. Go to www.puma.com to see Puma’s newest designs. How important is design to this manufacturer? How can you assess that and other marketing mix decisions from this website?

28. Marketing communication This includes:  Advertising  Public relations  Sales promotion  Direct response  Events and sponsorships  Point of sale  Digital media  And more Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 2-28

29. “Every part of the marketing mix, not just marketing communication, sends a message.” Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 2-29

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31. Let’s define “brand:” A brand is a perception, often imbued with emotion, which results from experiences with and information about a company or a line of products.” Products carry brands, but so do organizations… Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 2-31

32. “A Matter of Practice: The Complex World of Organization Branding”  In the early 21 st century, almost anything with a name is regarded as a brand.  Branding relates to all organizations and entities in society.  The brand is the linchpin between an organization and its stakeholders. Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 2-32

33. “A brand is a unified vision (the art) and a complex system (the science).” Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 2-33

34.  Meaning-making ideas and images are what marketing communication delivers to brands.  This perception, called brand meaning, is the one aspect of a brand that can’t be copied.  A brand, then, is a basically perception loaded with emotions and feelings. Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 2-34

35. “A brand transforms products into something more meaningful than the product itself.” Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 2-35

36. Successful brands:  Are distinctive  Create an association  Offer a benefit  Carry a heritage  Are simple  Are often based on a distinctive graphic: a logo, trademark, character or other visual cue Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 2-36

37. Brand position and promise  Brand position identifies the location a product or brand occupies in consumers’ minds relative to competitors.  Brand promise identifies key selling points for the product. Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 2-37

38. Brand image and personality  Brand image is a mental picture or idea about a brand that contains both associations and emotions.  Brand personality symbolizes the personal qualities of people you know Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 2-38

39. Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 2-39 Celestial Seasonings uses its distinctive packages to send messages to consumers about its brand image. In what way do packages like this reinforce the brand personality?

40. Brand value The value of branding lies in the power of familiarity and trust to win and maintain consumer acceptance. Brand value comes in two forms: 1. Value to a consumer 2. Value to the corporation Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 2-40

41. Brand equity defined “The intangible value of the brand based on the relationships with its stakeholders as well as its intellectual property value.” Brands have a financial value that can be plotted on a balance sheet. Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 2-41

42. “Brand relationships drive brand value.” Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 2-42

43. Leveraging brand equity  Brand extension The use of an established brand name with a related line of products.  Co-branding Uses two brand names owned by two separate companies to create a partnership offering.  Brand licensing The brand is rented to another business partner.  Ingredient branding The brand name is used in manufacturing, advertising or other promotion. Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 2-43

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45. IMC is the practice of unifying all marketing communication messages and tools, as well as the messages from the marketing mix decisions so that they send a consistent message promoting the brand’s strategy. Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 2-45

46. “You can’t be integrated externally if you are not integrated internally.” Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 2-46

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48. Managers are challenged to prove they are pursuing the most effective marketing strategies. Return on investment (ROI) What did the program cost, and what did it deliver? Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 2-48

49.  Global marketing is growing rapidly.  A local brand is marketed in a single country.  A regional brand is one marketed throughout a global region.  An international brand is available in many different countries.  A global brand is available virtually everywhere in the world. Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 2-49

50. In Chapter 3, we will:  Explore social responsibility.  Discuss issues related to the social impact of marketing communication.  Examine marcom ethics and regulation. Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 2-50

51. “Winning the Video Game War with ” Key lessons:  Leo Burnett’s campaign for Nintendo beat the competition at their own game.  The campaign aimed to fundamentally change how people experience video games.  Nintendo was recently judged tops in game ads for effectiveness in print, television, and digital media. As a class: What others can you think of? Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 2-51