Advertising ’ s Role in Marketing

1. Advertising’s Role in Marketing Part 1: Foundations Chapter 2 ADVERTISING Principles and Effective IMC Practice

2. 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 Key Points ADVERTISING Principles and Effective IMC Practice

3. Roles of ad on marketing Marketing Mix & IMC Tools What is Marketing? The Key Players and Markets The Marketing Process How Agencies Work Chapter Outline ADVERTISING Principles and Effective IMC Practice

4. 4 roles of Advertising Marketing Communication Economic Societal ROLES OF ADVERTISING ADVERTISING Principles and Effective IMC Practice

5. Marketing Role: -Promote demand of the product ROLES OF ADVERTISING Increase SALES ADVERTISING Principles and Effective IMC Practice

6. The Communication Role Informs & transforms product Rather persuasive than informative Communicate 4p’s ROLES OF ADVERTISING ADVERTISING Principles and Effective IMC Practice

7. The Economic Role Advertising stimulates the economy ROLES OF ADVERTISING • Ad makes people buy the product • Ad helps people assess the value of the product • Ad creates competition between manufacturers ADVERTISING Principles and Effective IMC Practice

8. The Societal Role Informs about new & improved products Helps compare products & features Informs about innovations & issues Mirrors/reflect the society e.g. trend, fashion, culture Educate how to use the new products Shapes self-image; role models we identify with ROLES OF ADVERTISING Improve the quality of life ADVERTISING Principles and Effective IMC Practice

9. Integrated Marketing communication (IMC) is the practice of unifying all marketing communication tools consistent, persuasive message promoting co.’s goals Marketing Mix (4ps) & IMC tools ADVERTISING Principles and Effective IMC Practice

10. The way a product is designed, tested, produced, branded,packaged, priced, distributed, and promoted A process to satisfy consumer needs & wants - provide goods & services What is Marketing? ADVERTISING Principles and Effective IMC Practice

11. 1.MARKETING CONCEPT: CUSTOMER FOCUS Marketing:1) identify the needs & wants 2) develop the product Key Concepts in Marketing ADVERTISING Principles and Effective IMC Practice

12. 2.CONCEPT OF EXCHANGE Marketing: economic exchange: exchange of product (goods and services, ideas) for something of value Key Concepts in Marketing ADVERTISING Principles and Effective IMC Practice

13. 3. CONCEPT OF BRANDING Marketing: Branding: the process of creating special meaning for a product to make the product distinctive Brand Image ( special meaning): a result of branding Key Concepts in Marketing ADVERTISING Principles and Effective IMC Practice

14. 4. CONCEPT OF ADDED VALUE Marketing: add value to 4p’s (product, price, place, promotion) Ex: Detergent  create happy life Key Concepts in Marketing ADVERTISING Principles and Effective IMC Practice

15. Terms in Marketing Product – services, ideas & goods Product category - classification assigned to product e.g. Toyota, Honda automobile category Rolex, Casio wrist watch category Target market - consumers – potential customers for goods & services Brand: distinguish identity that makes the product different from other competitors Wells, Moriarty, Burnett & Lwin ADVERTISING Principles and Effective IMC Practice 1-15

16. 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) Suppliers and vendors Other companies that manufacture the materials and ingredients used in producing the product Distributors and retailers Various companies that are involved in moving a product from its manufacturer to the buyer The Key Players and Markets ADVERTISING Principles and Effective IMC Practice

17. General definition Place where the exchange between buyer and seller took place What is Market? Marketing Definition A particular type of buyer e.g. youth market, motorcycle market ADVERTISING Principles and Effective IMC Practice

18. Types of Market • Consumer People who buy products for household or personal use • Business-to-business (Industrial) is made of Company that buy product to use in their own business or in making other products e.g. factory • Institutional is made up of non-profit and profit organization which provides product for the benefit of society e.g. school, university • Channel • is made up of reseller or intermediary - retailers, wholesalers, distributor which buy product for resell e.g. Department Store, hypermarket ADVERTISING Principles and Effective IMC Practice

19. Conduct research and develop a situation analysis Set objectives for the marketing effort Assess consumer needs and wants, segment the market into groups and target specified markets Differentiate and position the product Develop the marketing mix strategy Implement the plan Evaluate the effectiveness of the strategy The Marketing Process Key strategic Directions OBJECTIVE Segmentation STRATEGY Target market Differentiation Positioning TACTIC ADVERTISING Principles and Effective IMC Practice

20. Market share • The percentage of the total market in a product category that buys a particular brand Example: Total market value:฿1,000,000 Brand A’s market share:฿400,000 ADVERTISING Principles and Effective IMC Practice

21. 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 Specialized Agencies Specialize in certain functions, audiences, industries or markets Creative boutique Media-buying services How Agencies Work ADVERTISING Principles and Effective IMC Practice

22. Account Management Acts as a liaison between the client and the agency Responsible for interpreting the client’s marketing strategy Focuses on research & strategy e.g. Management Supervisor, Account Supervisor, Account Executive Creative Development People who write People who design ideas for ads and commercials People who convert these ideas into commercials e.g. creative, copywriter,art director How Agencies Work ADVERTISING Principles and Effective IMC Practice

23. Media Planning/Buying Recommends to the client the most efficient means of delivering the message Responsible for buying, planning, and research e.g. media planner, media buyer Account Planning Gathers all information on the market and consumers and acts as the voice of the consumer Focuses on the planning Prepares comprehensive recommendations How Agencies Work ADVERTISING Principles and Effective IMC Practice

24. Internal Agency Services Traffic department Print production department Revenues and Profits Commission (percentage of the media cost) e.g. 15% Fee (hourly fee/ rate) Retainer (monthly or yearly) <-- amt of work+hourly rate How Agencies Work ADVERTISING Principles and Effective IMC Practice

25. Top Agencies ADVERTISING Principles and Effective IMC Practice