Professional Documents
Culture Documents
Advertising’s Role in
Marketing
Part 1: Foundations
Chapter 2
Key Points
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
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What is Marketing?
4
Key Concepts in Marketing
The Marketing should focus
first on identifying the
marketing needs and wants of
the customer
concept To compete
effectively, marketers
Exchange must focus on the
customers’ problems
Branding and try to develop
products to solve them
Added value
5
Key Concepts in Marketing
The The act of trading a
desired product or
marketing service to receive
something of value in
concept return
Money is exchanged
Exchange for goods or services
Branding
Added value
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Key Concepts in Marketing
The The process of
creating a distinctive
marketing and special meaning
for a product
concept Brand equity is
reputation, meaning,
Exchange and value that the
brand name or symbol
Branding has acquired over time
Added value
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Key Concepts in Marketing
A marketing or
The advertising activity
marketing makes a product more
valuable, useful, or
concept appealing
Exchange
Branding
Added value
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The Key Players and Markets
The organization,
The company, or
marketer manufacturer
producing the product
and offering it for sale
Suppliers The advertiser or client
and vendors (from the agency’s
point of view)
Distributors
and retailers
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The Key Players and Markets
The Other companies that
manufacture the
marketer materials and
ingredients used in
Suppliers producing the product
and vendors
Distributors
and retailers
10
The Key Players and Markets
The Various companies
that are involved in
marketer moving a product from
its manufacturer to the
Suppliers buyer
and vendors
Distributors
and retailers
11
Types of Markets
Market
Where the exchange Business-
between buyer and
Consumer to-
seller takes place
business
A particular type of
buyer
Market share
The percentage of the
total market in a
product category that
Institutional Channel
buys a particular
brand
12
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
13
Marketing Mix Strategies
The product is both
Product the object of the
advertising and the
Place reason for
marketing
Price
Product category
Promotion A class of similar
products
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Marketing Mix Strategies
The channels used
Product in moving the
product from
Place manufacturer to
buyer
Price
Promotion
15
Marketing Mix Strategies
Based on the cost
Product of making and
marketing the
Place product and on
expected profit
Price Customary
Promotion Psychological
16
Marketing Mix Strategies
Use face-to-face
Product contact between
marketer and
Place prospective
customer
Price
Used to create
Promotion immediate sales
17
Question to Ponder
18
How Agencies Work
Full-Service Agencies Specialized Agencies
Include the four major Specialize in certain
staff functions functions, audiences,
Account management industries or markets
Creative services Creative boutique
Media planning and Media-buying
buying services
Account planning
Also have accounting,
traffic, production, and
HR departments
19
How Agencies Work
Account Creative
Management Development
Acts as a liaison People who write
between the client People who design
and the agency ideas for ads and
Responsible for commercials
interpreting the People who convert
client’s marketing these ideas into
strategy commercials
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How Agencies Work
Media Account Planning
Planning/Buying Gathers all
Recommends to information on the
the client the most market and
efficient means of consumers and
delivering the acts as the voice of
message the consumer
Responsible for Prepares
buying, planning, comprehensive
and research recommendations
21
How Agencies Work
Internal Agency Revenues and
Services Profits
Traffic department Commission
Print production Fee
department Retainer
22
Strawberry Frog
23
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
24
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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