CHAPTER 1

HISTORY OF ADVERTISING

 Advertising is a paid form of communication intended to information, persuade, and remind an

audience to take some kind of action.
 Advertising has been around of many centuries. It has changed to reflect the times. It and magazines in
the 18th and 19th centuries, with radio and TV ads making an appearance in 20th century. The Internet is
playing a big role of advertising in the 21th century.
 Trends that had a big impact on advertising include and introduction of mass production to produce
mass quantities of branded products. Advertising agencies grew out of the need to sell the mass-
produced products.
 Four inventions that have influenced advertising include the printing press, radio, television/cable
television, and the Internet.

INFLUENCES ON ADVERTISING
 Because of increased efforts to protect the environment, advertisements attempt to present
businesses as good stewards of the environment.
 Advertising is greatly influenced by social and political issues.
 Advertisement can be used to promote a charitable cause and ‘’politically-correct’’ views. Advertising is
a major of component of political candidates’ campaigns.
 Consumer behaviour refers to how and why people make purchase decisions. Marketers need to
examine consumer motivation and choose the best media to deliver the message.

THE ADVERTISING INDUSTRY AND CAREERS

 There are three common types of advertising-product, brand, and corporate advertising.
 Advertisers are clients that need creative message (advertisements) and advertising campaigns to
reach target markets.
 The advertising agency is a marketing for other businesses(clients)
 Workers in a advertising agency provide many services, including creative, media, marketing research,
account management, and production services.
 Advertising agencies often outsource tasks to media companies and other support organizations, such
as brand specialist, market researchers, and social media marketers

CHAPTER 2

THE CONSUMER IS IN CHARGE

 To succeed, a business must study consumer behaviour to learn how to consumers make buying
decisions.
 All consumers have wants and needs. There are five levels of needs in Maslow’s Hierarchy of needs,
including physiological, security, social, esteem, and self-actualization needs.
 Consumers typically use a five-step consumer decision-making process; (1) recognize the problem, (2)
search for information, (3) evaluate alternatives, (4) make the purchase, and (5) evaluate the purchase.
 Generally, consumers used three types of decision making; (1) routine, (2) limited, and (3) extensive.

CONSUMER PURCHASE CLASSIFICATIONS

  A new purchase involves buying a product or service for the first time. New purchases tend to be
infrequent.
 A modified perchance occurs when the must make new decisions about a product or service that they
have previously purchased.
 A repeat purchased over and over again.
 Factors that affect the level of consumer involvement in buying decisions include past experiences,
interest, perceived risk, circumstances, and self- image.
 Consumer purchases can be classified as convenience products, shopping products, specialty products,
and sought products

INFLUENCES ON CONSUMER BEHAVIOR

 Motivation is the driving force behind consumer purchases. Consumer make purchases
based on emotional, rational, and patronage motives.
 Individual influences on consumer buying decisions includes a person’s personality, gender, age, culture,
and ethnicity.
 Social influences on consumer buying decisions consist of reference groups, which are organizations or
groups of people that the people consumer identifies with admires.
 Marketing influences on consumer buying decisions can be take the form of advertising and promotions.
Both forms of marketing try to increase demand for a product or service.

CHAPTER 3

THE MARKETING CONCEPT

 Marketing involves all of the processes used to identify, create, and maintain exchange relationship that
satisfy individuals and organization.
 The marketing concept is used by businesses today to focus on how to deliver a product or service that
has value for costumers. At one time, businesses were product-oriented, meaning they were more
concerned about producing products efficiently and profitably and less concerned about consumers;
needs.
 The marketing mix is the blending of the product, price, distribution (place), and promotion by a business
to sell products and services.
 Marketing functions include market planning, product and service management, distribution, pricing,
promotion, selling, marketing information management, financing, and risk management.

THE TARGET MARKET

 Every business has a specific group of consumer (target market) to which it means to sell its products
to services.
 Businesses can follow several target market strategies, including the undifferentiated strategy (one
big market), concentrated strategy ( niche markets) and multiple- segment strategy ( two or more
market)
 Effective target markets have common needs that can be satisfied with a product or service, are able
to afford the product or service, and have a high demand for product or service.

MARKETS SEGMENTATION
 Market segmentation involves dividing a market into subgroups of individuals who share one or
more characteristics. Mass marketing focuses on the whole market and aims to reach the largest
number of consumer.
 Five common categories for segmenting markets include geography, demographics, psychographics,
product usage, and benefit expectations.
  Market segments must be identified and analysed for market potential (profitability). Steps involved
in identifying market segment includes; (1) select a market to study, (2) choose a basis for
segmenting, (3) collect and analysed date, (4) identify market segment, (5) select market segments
that have the most potential.

CHAPTER 4

PRODUCT DEVELOPMENT
 When creating a marketing mix, a business usually start with the product. A new product must be
entirely new or change in an important and noticeable way. Most new product involve changes and
improvements to existing products.
 The six stages of new product planning include (1) generating ideas, (2) screening ideas, (3)
preparing a business analysis, (4) developing a market strategy (5) developing and testing the
product, and (6) marketing the product.
 The product mix many include various level of a product, including a basic product, an enhanced
product, and an extended product. Additional components of the product mix to consider are the
product line, package and label, and brand.

PRODUCT LIFE CYCLE

 During the introduction stage of the product of life cycle, there is little competition, sales are low,
prices are generally high, distribution is selective, and promotion is used to create product
awareness.
 During the growth stage of the product life cycle, competition is increasing, sales are growing prices
way remain high or be reduced, distribution is expanded, and promotion is used to build brand
preference.
 During the maturity stage, completion is high, sales are increasing at a slower pace, product are
priced competitively, distribution is widespread, and promotion emphasizes product differentiation
and brand loyalty.
 During the decline stage, sales are shrinking, prices are lowered to reduce inventory, and distribution
and promotion efforts are reduced while the business decides whether to continue production of
the product.

PRICE PLANNING
 A business sets pricing objectives on the basis of maximizing profits, earning a return on investment,
increasing sales or market share, or creating a price-quality image.
 When setting prices, factors to consider include the stages of the product life cycle, the competition,
and supply and demand.
 Businesses often extend credit to consumer to help them make purchases, especially high-priced
purchases.

CHAPTER 5

CHANNEL OF DISTRIBUTION
 The channel of distribution is the path in which products and services flow the procedure to the
final consumer.
 Channel members include producers (manufactures), retailers, wholesalers, transportation
companies, warehouse, agents and brokers, and consumer.