Advertisings Role in MarketingPart 1: FoundationsChapter 2

Advertising Principles and Practice

*Key PointsDefine the role of advertising within marketingExplain how the four key concepts in marketing relate to advertisingIdentify the key players in marketing and how the organization of the industry affects advertisingList and explain the six critical steps in the marketing processSummarize the structure of the advertising agency industryAnalyze the changes in the marketing world and what they portend for advertising

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

*Key Concepts in MarketingThe marketing conceptExchangeBrandingAdded valueMarketing should focus first on identifying the needs and wants of the customerTo compete effectively, marketers must focus on the customers problems and try to develop products to solve them

*Key Concepts in MarketingThe marketing conceptExchangeBrandingAdded valueThe act of trading a desired product or service to receive something of value in returnMoney is exchanged for goods or services

*Key Concepts in MarketingThe marketing conceptExchangeBrandingAdded valueThe process of creating a distinctive and special meaning for a productBrand equity is reputation, meaning, and value that the brand name or symbol has acquired over time

*Key Concepts in MarketingThe marketing conceptExchangeBrandingAdded valueA marketing or advertising activity makes a product more valuable, useful, or appealing

*The Key Players and MarketsThe marketerSuppliers and vendorsDistributors and retailersThe organization, company, or manufacturer producing the product and offering it for saleThe advertiser or client (from the agencys point of view)

*The Key Players and MarketsThe marketerSuppliers and vendorsDistributors and retailersOther companies that manufacture the materials and ingredients used in producing the product

*The Key Players and MarketsThe marketerSuppliers and vendorsDistributors and retailersVarious companies that are involved in moving a product from its manufacturer to the buyer

*Types of MarketsMarketWhere the exchange between buyer and seller takes placeA particular type of buyerMarket shareThe percentage of the total market in a product category that buys a particular brand

ConsumerBusiness-to-businessInstitutionalChannel

*The Marketing ProcessConduct research and develop a situation analysisSet objectives for the marketing effortAssess consumer needs and wantsDifferentiate and position the productDevelop the marketing mix strategyEvaluate the effectiveness of the strategy

*Marketing Mix StrategiesProductPlacePricePromotionThe product is both the object of the advertising and the reason for marketingProduct categoryA class of similar products

*Marketing Mix StrategiesProductPlacePricePromotionThe channels used in moving the product from manufacturer to buyer

*Marketing Mix StrategiesProductPlacePricePromotionBased on the cost of making and marketing the product and on expected profitCustomaryPsychological

*Marketing Mix StrategiesProductPlacePricePromotionUse face-to-face contact between marketer and prospective customerUsed to create immediate sales

*Question to PonderWhich element of the marketing mix does advertising and IMC have the most impact on?

*How Agencies WorkFull-Service AgenciesInclude the four major staff functionsAccount managementCreative servicesMedia planning and buyingAccount planningAlso have accounting, traffic, production, and HR departmentsSpecialized AgenciesSpecialize in certain functions, audiences, industries or marketsCreative boutiqueMedia-buying services

*How Agencies WorkAccount ManagementActs as a liaison between the client and the agencyResponsible for interpreting the clients marketing strategyCreative DevelopmentPeople who writePeople who design ideas for ads and commercials People who convert these ideas into commercials

*How Agencies WorkMedia Planning/BuyingRecommends to the client the most efficient means of delivering the messageResponsible for buying, planning, and researchAccount PlanningGathers all information on the market and consumers and acts as the voice of the consumerPrepares comprehensive recommendations

*How Agencies WorkInternal Agency ServicesTraffic departmentPrint production departmentRevenues and ProfitsCommissionFeeRetainer

*Strawberry Frog

*International MarketingAn international brand is available virtually anywhere in the worldThe shift requires new tools for advertisers, including one language, one control mechanism, and one strategic planThe choice of an agency depends on the decision to standardize messages or localize them to accommodate local cultures

*The Dynamics of Modern MarketingIntegrated marketingAll areas of the marketing mix work closely together to present the brand in a coherent and consistent wayRelationship marketingMarketing that considers all the firms stakeholdersPermission marketingInviting prospective customers to self-select into a brands target market in order to receive marketing communication

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