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Advertising’s Role in Marketing

Advertising’s Role in Marketing. Agenda. Advertising’s Role in Marketing Key Concepts Key Players & Markets Marketing Process How Agencies Work Changing Trends in Marketing. Marketing. Definition

larissa-reid
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Advertising’s Role in Marketing

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  1. Advertising’s Role in Marketing

  2. Agenda • Advertising’s Role in Marketing • Key Concepts • Key Players & Markets • Marketing Process • How Agencies Work • Changing Trends in Marketing

  3. Marketing • Definition • An organizational function and a set of processes for creating, communicating & delivering value to customers & for managing customer relationships in a way that benefits the organization & its stakeholders • Marketing objective  To Sell (product, service or idea) Advertising

  4. Key Concepts • Marketing Concept • Concept of Exchange • Concept of Branding • Concept of Added Value

  5. Marketing Concept • Customer focus vs. Product focus • Examples • Dell Computers (www.dell.com) • Dood • Application in Advertising • Focus of Ad

  6. Concept of Exchange • The act of trading a desired product to receive something of value in return • Application in Advertising • Information exchange (communication)

  7. Concept of Added Value • Value comes from: • Better P’s of marketing • Better business practices (Ex: Dell exchange offer) • Brand Image • Brand • A distinctive name, term, design, or symbol that identifies the goods, services, institution, or idea sold by a marketer and differentiates it from other products • Brands Examples

  8. Concept of Added Value • Brand Image: • Impression in the consumers' mind of a brand's total personality • Communication + Experience • Application in Advertising • Showcases value • Adds value • Example: Nike

  9. Key Players • Marketer • Suppliers & Vendors • Distributors & Retailers • Agencies

  10. Marketer • Organization, company, manufacturer producing the product & offering it for sale • Top Marketers • 3 organizational structures • Skill-centric • Product-centric • Market-centric

  11. Marketing Director Manager (CRM) Manager (Advertising) Manager (Research) Manager (Sales) Marketing Director Brand Manager (Baby Products) Brand Manager (Toiletries) Brand Manager (Confectionaries) Brand Manager (Dairies) Marketing Director Manager (Agriculture) Manager (Affluent) Manager (Corporate) Manager Consumer) Skill-Centric Product-Centric Market-Centric

  12. Suppliers / Vendors • Network of suppliers producing materials, ingredients used in producing the product • Add Value • Determine product quality • Determine product price • Partners in communication • Ingredient branding • Acknowledging a supplier’s brand as an important feature • Ex: Intel

  13. Distributors & Retailers • Distribution Chain • Network of companies involved in moving product from manufacturer to buyers • Add value • Marketing & Advertising • Example: Wal Mart

  14. Market Buyer Groups of people or organizations Market Share 4 types of markets Different advertising needs Examples Institutional B2B Reseller Consumer Types of Markets Professional & trade advertising Consumer Advertising

  15. Advertising’s Role in Marketing

  16. Marketing Process • Situation Analysis  SWOT/PO Analysis • Set Objectives • Identify Needs/Wants, Segment & Target • Product Differentiation & Positioning

  17. Marketing Process • Develop Marketing Mix (the P’s) • Product • Place (Market Coverage, Push/Pull) • Price (Customary/Psychological) • Promotion (Ad, PR, SP, PS, DM) • Evaluate Effectiveness

  18. How Agencies Work • Why Hire Agency? • Creative & artistic expertise • Dedicated workforce • Media contacts & knowledge • Objective advice • Saves money

  19. How Agencies Work • Geographic Presence / Size / Specialization • Specialization • Full-Service • Specialized Agencies • Creative Hotshops • Media Buying Agencies • Activation Agencies • Outdoor Media Sellers • Digital Media Agencies • Production Companies

  20. Agency Departments • Account Management • Agency-Client liaison • Relationship & project management • Business acquisition & retention • Creative Department • Inspire, write, design • Participate in production • Make or break an agency

  21. Agency Departments • Media Planning & Buying • Plan, negotiate, buy & do research • Targets of media PR efforts • Account Planning • Strategic specialists / Researchers • Consumer-Brand relationship • Market & consumer insights • Communication Brief

  22. Organizational Structure CEO Directors Media Head Planning Head Operations Head Account Director Creative Director Art Directors, Creative Group Heads, Traffic Manager Media Planners, Buyers, Researchers Group Account Managers, NBD Managers Account Planners / Strategists Finance, Admin, HR Account Managers, Account Executives, AAE Copywriters, Visualizers, Mechanical & Digital Artists, Illustrator Research Assistants, Junior Planners Executives & Assistants Media Assistants, Dispatchers

  23. The Hiring Process • Newspaper Ad / Contacts / Referrals • Pitch (creative/Strategy/IMC) • Shortlisting • Final pitch • Selection • Contractual Agreement (AoR)

  24. Agency Compensation • Commission % • 15% ? • 12.5% creative vs. 2.5% media • Tariff • Retainer • Combination • % of Client Sales

  25. Trends in Modern Marketing • Increase in international brands • International advertising • Standardization vs. Adaptation debate • Economies of Scale, consistent message, safeguard global image  Standardize • Culturally congruent advertising, Less cultural blunders, less hierarchy in decision making  Adapt • Affects agency selection

  26. Trends in Modern Marketing • New Marketing Concepts • Integrated marketing • Relationship marketing • Permission marketing

  27. Funny Blunders • Coors Beer in Mexico • Actual  Turn It Loose • Spanish  Suffer From Diarrhea • KFC in China • Actual  Finger lickin’ good! • Translated  Eat your fingers off! • Coca Cola in China • Pronounced Ke-kou-ke-la  Bite the wax tadpole • Changed later to ko-kou-ko-le  Happiness in the mouth Back

  28. Brand We Pay For

  29. Electronics Watches Shoes

  30. Top 10 Global Marketers Back

  31. Back

  32. Back

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