The History of Marketing

1. The History of Marketing The Branding of North America

2. Essential Questions… • Why is marketing needed? • What is a brand? • Why do brands exist?

3. The Essence of Marketing • Satisfying consumers’ wants and needs is a common definition of marketing • However, the true essence of marketing is: Convincing consumers to do something • Marketers attempt to convince consumers that their organization has something the consumer wants or needs

4. Convincing Consumers • Products, services, and events are not the only things that are marketed. • You can also market ideas or causes. • For example: – Politicians – Not for Profit Organizations

5. Marketing in our Lives • Think…Pair…Share Activity • List examples of marketing in everyday life. Where do you see it? What does it look like? • List as many examples of marketing in our lives as you can on a sheet of paper. • Be prepared to share with the class.

6. Marketing in Our School • Many school boards accept exclusive deals from companies such as Pepsi or Coca-Cola to be the sole soft drink supplier in that particular board in exchange for cash or in-kind product. • As a consumer who is constantly bombarded by brands and marketing, do you think that these exclusive deals benefit or hurt students?

7. Brands • Brands are synonymous with marketing and seem to be everywhere in our global economy. • A good brand tells a story, it has a personality. • Think of McDonalds, Rolex, IBM, Google – • What images do you see when you think of these brands?

8. Name that logo

9. Multinationals and their Brands Proctor & Gamble Nestle Cascade Charmin Cheer Cover Girl Crest Hugo Boss Tide Pringles Mr. Clean Nescafe Perrier Powerbar Purina Smarties Kit Kat Rolo Coffee Crisp

10. The History of Marketing Where did it all begin?

11. Ancient Times • Farmers, craftspeople, and artisans worked with their hands and produced limited output • Consumers bought what was available, if they had money. If not, they made their own products • Marketing played a limited role because demand was greater than supply

12. The Industrial Revolution (1700’s) • The Industrial Revolution changed marketing forever. • Steam and eventually electricity, gas, and oil provided power to factories, railroads, homes, and automobiles.

13. The Industrial Revolution Contd’ • Factories could produce huge quantities of goods • Railroads could transport these goods all over the country.

14. How the Brand Came About • During the second half of the 19th Century, two occurrences contributed to the need for brands and advertising: 1. Many new inventions; and 2. The invention of the factory

15. New Inventions • Ads were used to inform consumers of new inventions. • As well as, to convince them that their lives would be better if they used these new inventions.

16. The Factory Effect • The market was being flooded with mass produced products that were indistinguishable • Brands differentiated these products • Advertisements communicated a perceived benefit of using one brand over another

17. The Factory Effect Contd’ • This was necessary because supply outweighed demand • Familiar brands such as Uncle Ben, Aunt Jemima, and Old GrandDad began to replace the shopkeepers generic products.

18. Industrial Revolution: Inventions and Factories • Marketing became essential for business survival • Without advertising the population would never know about or want the new inventions • Without branding these mass produced Products were just commodities

19. Branding in the 20th Century • 1940’s– an understanding that corporations manufacture products but consumers buy brands. • Mid 1980’s – The idea developed by management theorists, that successful corporations must primarily produce brands, as opposed to products.

20. 1988- Brand Equity Mania! • Philip Morris (Marlboro Cigarettes) bought Kraft for $12.6 billion (six times what the company was worth on paper) WHY?

21. 1988- Brand Equity Mania • Paying the premium for the word Kraft. • Advertising had become more than just a sales strategy it was an investment in cold hard equity

22. The Marlboro Brand • Owned by Philip Morris now a part of Altria Group • Leading Cigarette manufacturer in the US • The Marlboro Man is ranked the number one ad icon of all time by adage.com • Launched in 1954 • Longest running ad campaign in history

23. Marlboro Friday • April 2, 1993 • Philip Morris announced that they would slash prices of cigarettes by 20% to compete with bargain brands. So what?

24. Marlboro Friday Contd’ • If a prestige brand that had spent more than a billion dollars on advertising was desperate enough to compete with no names than clearly the whole concept of branding was dead.

25. The Effects of Marlboro Friday • Caused stocks to nosedive – Heinz, Quaker Oats, Coca-Cola, P&G, RJR Nabisco. • Loblaw’sPC, & Wal-Mart’s Great Value had doubled their market share. • Bargain conscious consumers hit by the recession were paying more attention to price than prestige.

26. It appeared we had come full circle –As if it had returned to the shopkeeper dishing out generic goods from the “prebranded” era.

27. However… • The companies that were branded to the bone were doing just fine. • These companies had the foresight to see that brands are more important than products.

28. The Real Legacy of Marlboro Friday • Brought the two most significant developments in nineties marketing and consumerism into sharp focus: 1) Big box bargain stores that provide the essentials of life and monopolize a disproportionate share of the market 2) Extra premium attitude brands that provide the essentials of lifestyle and monopolize ever expanding stretches of cultural space.

29. Big Box Stores and Premium Brands

30. Branding Images, logos, and slogans

31. The Consummate Brand Nike “Just Do It” Nike’s Mission: “To brings inspiration and innovation to every athlete in the world.”

32. Ad Icons

33. Ad slogans • “Diamonds are forever” ( DeBeers) • “Breakfast of champions” ( Wheaties) • “Just do it” ( Nike) • “Think different” ( Apple)

34. Classroom Brand Manager Activity • Take the role of a team of brand managers (Groups of 3 or 4) • Your task is to plan and create a “brand image” for the St. Pius X High School Business Department. You will have one class to complete the requirements of the activity. Your group will then present your brand, logo, and slogan to the class. • Tip: Think of why you took business or enjoy business and try to incorporate that image or feeling into your brand design • You need to develop: 1. A brand name 2. A logo 3. A slogan • Useful websites: www.adslogans.com www.interbrand.com