Advertising’s Role in

Marketing

Part 1: Foundations
Chapter 2
Key Points
 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
2
What is Marketing?
 The way a product is
designed, tested,
produced, branded,
packaged, priced,
distributed, and promoted

3
Key Concepts in Marketing
 The  Marketing should focus
first on identifying the
marketing needs and wants of
the customer
concept  To compete effectively,
marketers must focus
 Exchange on the customers’
problems and try to
 Branding develop products to
solve them
 Added value
4
Key Concepts in Marketing
 The  The act of trading a
desired product or
marketing service to receive
something of value in
concept return
Money is exchanged
Exchange


for goods
 Branding
 Added value
5
Key Concepts in Marketing
 The  The process of creating
a distinctive and
marketing special meaning for a
product
concept  Brand equity is
reputation, meaning,
 Exchange and value that the
brand name or symbol
 Branding has acquired over time

 Added value
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Key Concepts in Marketing
A marketing or
The


advertising activity
marketing makes a product more
valuable, useful, or
concept appealing

 Exchange
 Branding
 Added value
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The Key Players and Markets
The organization,
The


company, or
marketer manufacturer
producing the product
 Suppliers 
and offering it for sale
The advertiser or client
and vendors (from the agency’s
point of view)
 Distributors
and retailers
8
The Key Players and Markets
 The  Other companies that
manufacture the
marketer materials and
ingredients used in
 Suppliers producing the product

and vendors
 Distributors
and retailers

9
The Key Players and Markets
 The  Various companies
that are involved in
marketer moving a product from
its manufacturer to the
 Suppliers buyer

and vendors
 Distributors
and retailers
10
Types of Markets
 Market
 Where the exchange Business-
between buyer and
Consumer to-
seller takes place
business
 A particular type of
buyer
 Market share
 The percentage of the
total market in a
Institutional Channel
product category that
buys a particular
brand

11
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

12
Marketing Mix Strategies
 Product  The product is both
the object of the
 Place advertising and the
reason for
 Price marketing
 Product category
 Promotion  A class of similar
products

13
Marketing Mix Strategies
 Product  The channels used
in moving the
 Place product from
manufacturer to
 Price buyer

 Promotion

14
Marketing Mix Strategies
 Product  Based on the cost
of making and
 Place marketing the
product and on
 Price expected profit
 Customary
 Promotion  Psychological

15
Marketing Mix Strategies
 Product  Use face-to-face
contact between
 Place marketer and
prospective
 Price customer
 Used to create
 Promotion immediate sales

16
Question to Ponder

Which element of the marketing

mix does advertising and IMC
have the most impact on?

17
How Agencies Work
Full-Service Agencies Specialized Agencies
 Include the four major  Specialize in certain
staff functions functions, audiences,
 Account management industries or markets
 Creative services  Creative boutique
 Media planning and  Media-buying
buying services
 Account planning
 Also have accounting,
traffic, production, and
HR departments

18
How Agencies Work
Account Creative
Management Development
 Acts as a liaison  People who write
between the client  People who design
and the agency ideas for ads and
 Responsible for commercials
interpreting the  People who convert
client’s marketing these ideas into
strategy commercials

19
How Agencies Work
Media Account Planning
Planning/Buying  Gathers all
 Recommends to information on the
the client the most market and
efficient means of consumers and
delivering the acts as the voice of
message the consumer
 Responsible for  Prepares

buying, planning, comprehensive

and research recommendations
20
How Agencies Work
Internal Agency Revenues and
Services Profits
 Traffic department  Commission
 Print production  Fee
department  Retainer

21
Strawberry Frog

22
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

23
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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