Role of Advertising in Marketing

Brief Given
To make a presentation on the role of Advertising in Marketing after referring the book Advertising Principle and Practice

Objective
To understand the role of Advertising in marketing To study the concepts to help to put into practice

Research Material Used

Primary Advertising Principles and Practice book, Internet, Grad School notes

What is Marketing?
The way a product is designed, tested, produced, branded, packaged, priced, distributed, and promoted Marketing used to - Identify customers - Satisfy their needs - Keep the customers

Key Concepts in Marketing

Focus on customers Exchange Branding Added value

Focus on Customers
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

Exchange
The act of trading a desired product or service to receive something of value in return Marketing - Economic Exchange - Communication Exchange Advertising provides - Information - Customer company interaction

Branding
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 Brand equity is reputation, meaning, and value that the brand name or symbol has acquired over time Advertising Make the brand familiar

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Which of these two soaps would you buy when your in a Super market?

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Added Value
A marketing or advertising activity makes a product more valuable, useful, or appealing Branding Psychological Value Advertising Makes the product more desirable

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The key players

The marketer Suppliers and vendors Distributors and retailers

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The Marketer
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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Supplier & Vendors

Other companies that manufacture the materials and ingredients used in producing the product Supply Chain Ingredient Branding : Acknowledging a supplier s brand as an important feature

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Distributors & Retailers

Various companies that are involved in moving a product from its manufacturer to the buyer

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Types of Market
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-tobusiness

Institutional

Channel

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Types of Market
Consumer Market : People who buy products and services for personal or household use Business to Business :Companies that buys products or services to use in their own business Institutional Markets : NGO s, Schools, Hospitals etc Channel Markets : Resellers, Wholesalers

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The Marketing Process

Conduct research and develop a situation analysis Set objectives for the marketing effort Assess consumer needs and wants Differentiate and position the product Develop the marketing mix strategy Evaluate the effectiveness of the strategy

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Marketing Research
Objective of Research: To know about market place Research Primary & Secondary Situational Analysis SWOT analysis Strength, Weakness, Opportunities & Threat

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Key Strategic Decisions

Objective Set objectives for marketing effort Segmenting and Targeting Audience Segmentation : Demographic, Physiographic Differentiation and Positioning

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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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Marketing Mix Strategies

Product Place Price Promotion

The channels used in moving the product from manufacturer to buyer

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Push Policy
Producer Wholesaler Retailer Consumer

Pull Policy
Producer Wholesaler Retailer Consumer Information Flow
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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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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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Types of Agencies
Full-Service Agencies Specialized Agencies

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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

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How Agencies Work

Account Management Acts as a liaison between the client and the agency Responsible for interpreting the client s marketing strategy

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How Agencies Work

Creative Development People who write People who design ideas for ads and commercials People who convert these ideas into commercials

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How Agencies Work

Media Planning/Buying Recommends to the client the most efficient means of delivering the message Responsible for buying, planning, and research

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How Agencies Work

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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Specialized Agencies
Specialize in certain functions, audiences, industries or markets Creative boutique Media-buying services

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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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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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Inference
Got a purview on the Role of advertising within marketing Four key concepts in marketing relate to advertising The key players in marketing The critical steps in the marketing process The structure of the advertising agency industry

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THANK YOU

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