Transcript Session 2.pptx

Muhammad Waqas
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
Muhammad Waqas
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
The Evolution of
Advertising
Muhammad Waqas
• Age of Print
• Industrial Revolution and Emergence of
Consumer Society
• Modern Advertising Era
• Accountability Era
3
The Current
Advertising Scene
Muhammad Waqas
• Expanded view
• Integrated
Marketing
Communication
• Globalization
• Electronic media are
changing the media
landscape
• New media are more
personal and
interactive
4
The Current
Advertising Scene
Muhammad Waqas
• 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
5
The Current
Advertising Scene
Muhammad Waqas
• Expanded view
• Integrated
Marketing
Communication
• Globalization
• Increasing
globalization of
marketing programs
• Advertisers are moving
into global markets
and agencies are
forming huge
multinational
operations
6
Muhammad Waqas
BMW Films-Ambush
References
Muhammad Waqas
• Wells, W., Burnett, J. and Moriarty, S. (2006),
Advertising Principles and Practice, Prentice-Hall,
New Delhi, ND.
Next Session
Muhammad Waqas
Session 2: Advertising Role in
Marketing
9
Muhammad Waqas
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
Advertising’s Role in
Marketing
Muhammad Waqas
Session 2
Muhammad Waqas
Chapter Outline
I.
II.
III.
IV.
V.
VI.
What is Marketing?
The Key Players and Markets
The Marketing Process
How Agencies Work
International Marketing
The Dynamics of Modern Marketing
Muhammad Waqas
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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Muhammad Waqas
Clever Little Bag by PUMA and Fuse ProjectVideo
Muhammad Waqas
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
2-15
Muhammad Waqas
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
2-16
Muhammad Waqas
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
2-17
Muhammad Waqas
Key Concepts in
Marketing
• The marketing
concept
• Exchange
• Branding
• Added value
• A marketing or
advertising activity
makes a product more
valuable, useful, or
appealing
2-18
Muhammad Waqas
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)
2-19
The Key Players and
Markets
Muhammad Waqas
• The marketer
• Suppliers and
vendors
• Distributors
and retailers
• Other companies that
manufacture the
materials and
ingredients used in
producing the product
2-20
Muhammad Waqas
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
2-21
Types of Markets
• Market
– Where the exchange
between buyer and
seller takes place
– A particular type of
buyer
Consumer
Business-tobusiness
Institutional
Channel
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• Market share
– The percentage of the
total market in a
product category that
buys a particular brand
2-22
Types of Markets
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•
•
•
•
Consumer
Business-to-business (Industrial)
Institutional
Channel
2-23
Muhammad Waqas
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
2-24
Marketing Mix
Strategies
Muhammad Waqas
• 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
2-25
Marketing Mix
Strategies
Muhammad Waqas
• Product
• Place
• Price
• Promotion
• The channels used in
moving the product
from manufacturer to
buyer
2-26
Marketing Mix
Strategies
Muhammad Waqas
• Product
• Place
• Price
• Promotion
• Based on the cost of
making and marketing
the product and on
expected profit
– Customary
– Psychological
2-27
Marketing Mix
Strategies
Muhammad Waqas
• Product
• Place
• Price
• Promotion
• Use face-to-face
contact between
marketer and
prospective customer
• Used to create
immediate sales
2-28
How Agencies Work
Full-Service Agencies
• Include the four major
staff functions
Muhammad Waqas
– Account management
– Creative services
– Media planning and
buying
– Account planning
Specialized Agencies
• Specialize in certain
functions, audiences,
industries or markets
– Creative boutique
– Media-buying services
• Also have accounting,
traffic, production, and
HR departments
2-29
How Agencies Work
Muhammad Waqas
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
2-30
How Agencies Work
Muhammad Waqas
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
2-31
How Agencies Work
Muhammad Waqas
Internal Agency Services
• Traffic department
• Print production
department
Revenues and Profits
• Commission
• Fee
• Retainer
2-32
Muhammad Waqas
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
2-33
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
Muhammad Waqas
• Permission marketing
– Inviting prospective customers to self-select into a
brand’s target market in order to receive marketing
communication
2-34
References
Muhammad Waqas
• Wells, W., Burnett, J. and Moriarty, S. (2006),
Advertising Principles and Practice, Prentice-Hall,
New Delhi, ND.
Muhammad Waqas
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