marketing

1. Introduction to Advertising

2. Objectives
 Advertising and it key components
 Roles and functions of advertising
 Key players in advertising and their roles
 Discuss types of advertising
 Understand Advertising’s role in marketing
 Key concepts of marketing
 Advertising part of marketing mix
 How are agencies organized, and how do they work with their
clients

3. Advertising
 A complex form of communication using objectives and
strategies to impact consumer thoughts, feelings, and actions;
a form of marketing communication.

4. Principle:
An effective advertisement is one that can
be proven to meet its objectives
Defining modern advertising
Five Basic Factors of Advertising
1. Paid communication
2. Sponsor is identified
3. Tries to inform or persuade
4. Reaches a large audience
5. Message conveyed through many different
kinds of largely nonpersonal mass media.

5. Key concepts of advertising

6.  The logic and
planning behind the
ad
 Advertisers develop
ads to meet
objectives
 Advertisers direct
ads to identifies
audiences
 Create messages
that speak to the
Advertising
strategy
Creative Idea
Creative
Execution
Media

7. P & G: Thank you mom
https://www.youtube.com/watch?v=JSWyrR4gXkw
What was the
common
denominator
for a host of
brands that
ranged from
Pampers
diapers to
Bounty paper
towels and
Olay skincare?
All had moms
as their
primary
consumer
target.

8.  The central idea
that grabs the
consumer’s
attention
 Creativity drives the
entire field of
advertising
Advertising
strategy
Creative Idea
Creative
Execution
Media

10. Creative execution
 Effective ads adhere
to the highest
production values in
the industry
 Clients demand the
best production the
budget allows
Advertising
strategy
Creative Idea
Creative
Execution
Media

12. Its a tide ad
 https://www.youtube.com/watch?v=doP7xKdGOKs

13. Creative execution
 Television, Internet,
magazines, and other
media are used to reach
a broad audience.
 Deciding how to deliver
the message requires
creativity.
 Principle: In advertising
how you say something
and where you say it is
just as important as what
you say
Advertising
strategy
Creative Idea
Creative
Execution
Media

15. Roles of Advertising
 Marketing is satisfying
customer wants and
needs by providing
products (goods, services,
and ideas).
 The marketing department
is responsible for selling
the product using the four
Ps (product, price,
place/distribution, and
promotion) and brand
development.
 Principle: A product can be
services and ideas as well
as goods. Communication
Role:
 Marketing Role
 Communication
Role
 Economic Role
 Social Role

16.  Advertising is a message to a
consumer about a product,
designed to create a
response.
 It is also a form of marketing
communication.
 Advertising uses mass
communication to transmit
product information to connect
buyers and sellers in the
marketplace.
 Principle:One of advertising’s
most important strengths is its
ability to reach a large
audience.
 Marketing Role
 Communication
Role
 Economic Role
 Social Role
Roles of Advertising

17.  Because it reaches large
groups of people,
advertising makes
marketing more cost-
efficient and lowers
prices for consumers.
 Advertising creates a
demand for a brand
using hard sell
(persuading) and soft sell
(image building)
techniques.
 Marketing Role
 Communication
Role
 Economic Role
 Social Role
Roles of Advertising

18. HARD SELL SOFT SELL

19.  Informs consumers about
innovations and issues
 Helps us compare products and
features
 Mirrors fashion and design trends
 Teaches consumers about new
products and how to use them
 Helps shape consumer self-
image
 Facilitates self-expression
through purchases
 Presents images about diversity
in our world
 Marketing Role
 Communication
Role
 Economic Role
 Social Role
Roles of Advertising

20. Functions of ADVERTISING

21. Classification of advertising
 Brand Advertising
 Retail or local Advertising
 Direct response advertising
 B 2 B advertising
 Institutional Advertising
 Non profit Advertising
 Public service

22. Institutional
Advertising

23. Retail advertising

24. Non profit
Advertising

25. Public Service Ads

26. Players in advertising
 Advertiser or client
 Agency
 Media
 Supplier
 Audience

27. Key Player : Advertiser
 Wants to send out a message about its business
 Initiates effort by identifying a problem that advertising
can solve
 Selects the target audience, sets the budget, and
approves the ad plan
 Hires the agencyAgency of record (AOR) does the most
business; manages other agencies

28. Media
 Media are channels of communication that carry
the message to the audience
 They’re vehicles, but also large media
conglomerates like Time Warner and Viacom.
 Principle: Mass media advertising can be cost
effective because the costs are spread over the
large number of people the ad reaches.

29. Agency
 Agencies have the strategic and creative expertise, media knowledge,
talent, and negotiating abilities to operate more efficiently than the
advertiser.
 Some large advertisers have in-house departments.

30. Advertising’s role in marketing
 What is marketing and what are its key
concepts?
 What are the different components of
marketing mix?
 How are agencies organized, and how do
they work with their clients?

31. An organizational function and a set of processes for
creating, communicating, and delivering value to
customers and for managing customer relationships in
ways that benefit the organization and its
stakeholders.
What is marketing
Traditionally, marketing is the way a product is
designed, tested, produced, branded, packaged,
priced, distributed, and promoted.

32. Marketing concepts
• The Marketing
Concept
• Exchange
• Differentiation &
Competitive
Advantage
• Added Value
• Branding
• Marketing should focus first
on identifying the needs
and wants of the consumer,
rather than building
products the consumer
may not want.
• Two steps of the marketing
concept:
– Determine customer needs
and wants through research.
– Develop, manufacture,
market, and service goods
that fill those needs and
wants—solve customers’
problems.

33. Marketing concepts
• The Marketing
Concept
• Exchange
• Differentiation &
Competitive
Advantage
• Added Value
• Branding
• Exchange is the act of
trading a product or service
for something of value
(money)
• Two types of exchange:
economic and
communication

34. Marketing concepts
• The Marketing
Concept
• Exchange
• Differentiation &
Competitive
Advantage
• Added Value
• Branding
• A brand’s competitive advantage
is where it’s different from its
competitors and superior in
some way.
• In marketing, this concept is
called differentiation.
• Price
• Design
• Performance
• distribution
• Brand image
• Reliability

35. Marketing concepts
• The Marketing
Concept
• Exchange
• Differentiation &
Competitive
Advantage
• Added Value
• Branding
• Added value is a
marketing or advertising
activity that makes the
product more valuable,
useful or appealing to
consumers.
• Other ways to add value:
• More convenient to buy
• Lower price
• More useful features
• Higher quality
• Status symbol
• More knowledgeable
employees

36. Marketing concepts
• The Marketing
Concept
• Exchange
• Differentiation &
Competitive
Advantage
• Added Value
• Branding
• Branding is the way
marketers create a special
meaning for a product.
• Brand image is based on
communication and on the
consumer’s personal
experiences with the
product.
• Brand equity refers to the
financial value based on
the reputation and meaning
the brand name has
acquired over time.

37. Marketing Mix
• Product
• Distribution/Pla
ce
• Pricing
• Marketing
Communication
• Includes product design
and development,
product operation and
performance, branding,
and physical packaging.
• Product design,
performance, and quality
are key to a product’s
success.

38. Marketing Mix
• Product
• Distribution/plac
e
• Pricing
• Marketing
Communication
• The channels used to move
a product from
manufacturer to buyer.
• Types of distribution:
– Direct marketing to consumer
– Channel marketing through
resellers and retailers
• Strategic distribution
decisions:
– Market coverage strategy
– Push strategies
– Pull strategies

39. Marketing Mix
• Product
• Distribution/Pla
ce
• Pricing
• Marketing
Communication
• Price is based on:
– Cost of making and marketing
the product and seller’s
expected profit level.
– Also, based on what the
market will bear, competition,
economic well-being of
customer, value of product,
and the consumer’s ability to
gauge the value.
• Pricing strategies:
– Customary pricing—movies
– Psychological pricing for
affluent customers

40. Marketing Mix
• Includes personal selling,
advertising, public
relations, sales promotion,
direct marketing, events
and sponsorships, point of
sale, packaging.
• Personal sales uses face-
to-face contact with
customers to create
immediate sales.
• Marketing communication is
about “Big Ideas.”
• Product
• Distribution/Plac
e
• Pricing
• Promotion/Mark
eting
Communication

41. 2-41
The Agency-Client Relationship
• Agencies and agency networks (holding companies)
• Companies have internal advertising departments who act
as a liaison between the marketing department and
advertising agency(ies).
• Advertisers may have one agency of record (AOR) or
several agencies.
• Agencies offer clients:
– Specialized services
– Objective advice
– Experienced staffing
– Management of all advertising activities and personnel

42. 2-42
• Full-service Agencies
– Account management, creative services, media planning,
account planning, accounting, traffic, production, and human
resources
• Specialized by:
– Function (copy, art, media)
– Audience (minority, youth)
– Industry (healthcare, computers, agriculture)
– Market (minority groups)
• Creative Boutiques
– Small agencies focused on the creative product
• Media-buying Services
– Focused on purchasing media for clients
Types of Agencies

43. 2-43
• Account Management
– Serves as a liaison between the client and agency
– Three levels: management supervisor, account supervisor, account executive
• Account Planning and Research
– Acts as the voice of the consumer
• Creative Development and Production
– People who create and people who inspire
– Creative directors, copywriters, art directors, producers
• Media Planning and Buying
– Recommend most efficient means of delivering the message
• Internal Agency Services
– Traffic, print production, financial services, human resources
How Agency Jobs Are Organized

44. 2-44
• Commissions
– A percentage of the media cost
• Fees
– Hourly fee or rate plus expenses and travel
• Retainers
– Amount billed per month based on projected amount of work and hourly
rate charged
• Performance-based
– Based on percentage of sales or marketing budget
• Profit-based
– Greater risk if campaign doesn’t have desired impact
• Value Billing
– Based on value of creative strategy or ideas
How Agencies Are Paid

45. 2-45
Integrated Marketing Communication
 Focused on better coordinating all marketing efforts
to maximize customer satisfaction.
 All areas of the marketing mix work together to
present the brand in a coherent and consistent way.
 The goal is to manage all the messages delivered by
all aspects of the marketing mix to present a
consistent brand strategy.
Current developments in Marketing

46. 2-46
GLOBAL MARKETING
 Most countries have local, regional, and international brands
requiring international advertising to promote the same brand
in several countries.
 Companies may have several international regional offices
and/or a world corporate headquarters.
 Agencies must adapt with new tools including one language,
one budget, and one strategic plan.
 The choice of an agency for international advertising depends
on whether the brand message will be standardized or localized.