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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

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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

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The Evolution of Advertising

• Age of Print• Industrial Revolution and Emergence

of Consumer Society• Modern Advertising Era• Accountability Era

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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

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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

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The Current Advertising Scene

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• Expanded view• Integrated

Marketing Communication• Globalization

• Increasing globalization of marketing programs

• Advertisers are moving into global markets and agencies are forming huge multinational operations

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BMW Films-Ambush

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References

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

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Next Session

Session 2: Advertising Role in Marketing

9

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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

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Advertising’s Role in Marketing

Session 2

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Chapter Outline

I. What is Marketing?II. The Key Players and MarketsIII. The Marketing ProcessIV. How Agencies WorkV. International MarketingVI. The Dynamics of Modern Marketing

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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”.

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Play…

Clever Little Bag by PUMA and Fuse Project- Video

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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

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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

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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

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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

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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)

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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

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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

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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

Institutional Channel

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2-23

Types of Markets

• Consumer• Business-to-business (Industrial)• Institutional• Channel

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2-24

The Marketing Process

1. Conduct research and develop a situation analysis

2. Set objectives for the marketing effort3. Assess consumer needs and wants4. Differentiate and position the product5. Develop the marketing mix strategy6. Evaluate the effectiveness of the strategy

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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

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2-26

Marketing Mix Strategies

• Product• Place• Price• Promotion

• The channels used in moving the product from manufacturer to buyer

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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

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2-28

Marketing Mix Strategies

• Product• Place• Price• Promotion

• Use face-to-face contact between marketer and prospective customer

• Used to create immediate sales

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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

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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

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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

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2-32

How Agencies Work

Internal Agency Services• Traffic department• Print production department

Revenues and Profits• Commission• Fee• Retainer

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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

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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

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References

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

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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