The Larger Marketing Context of Advertising WTUC ge source: http://www.kinesisinc.com/images/web_images/marketing.jp
Nov 07, 2014
The Larger Marketing Context of Advertising
WTUC
Image source: http://www.kinesisinc.com/images/web_images/marketing.jpg
Advertisers’ perennial challenge
• How to present their products, services, and ideas effectively through the media to buyers– Must comprehend the important relationship
between the product and the marketplace
– That RELATIONSHIP is MARKETING
• Marketers must know what products or services to produce
• Where to distribute them?
http://www.ducttapemarketing.com/blog/wp-content/uploads/2008/06/istock_000005682006xsmall.jpg
4 Ps of Marketing
Image Source: http://www.netmba.com/images/marketing/mix/mix.gif
Company Prosperity
• Ability to attract and keep customers who are willing to pay for the firm’s goods and services
• Able to locate prospective customers
• Create products and services that satisfy their desires
• Communicate that information that resonates with them
http://www.fibre2fashion.com/daewooInternational/images/vision.jpg
Marketing
• Business process that management uses to plan and execute conception, pricing, distribution, or even ideas.
http://ocw.mit.edu/NR/rdonlyres/Global/1/1F127262-3695-46DF-9564-298BA53E4411/0/chp_4pofmarketing.jpg
Ultimate Purpose of Marketing
• Create exchanges that satisfy the perceived needs and want of individuals and organizations
Customer Needs and Product Utility
• Utility is the product’s ability to satisfy both functional needs and symbolic (or psychological) wants.
• Advertising communicates this utility.– How well a product works (function)– Shows glamour, sex appeal, status
(symbolism)
http://www.finntrack.co.uk/finntrack.com/images/images1/research_defined.gif
Ford Focus• Low-priced
sporty car to woo Gen Xers and Echo Boomers (the children of baby boomers)
http://www.adsneeze.com/media/2008/03/ford-focus-ads2.jpg
Exchanges: The Purpose of Marketing and Advertising
• A transaction between a person or organization
• Trade something of value with someone else
• Usually for PROFIT
How?
• Developing goods and services we might want
• Pricing them affordably
• Distributing them to convenient locations
• Informing us about them through advertising and other communication tools
5 + 1 types of functional utility
• Form
• Task
• Possession
• Time
• Place
• Psychic
[1] Form utility
• Produce tangible good i.e. bicycle
http://www.infovisual.info/05/033_en.html
[2] Task Utility
• Performing task for others i.e. wanting to buy it, require repair, to satisfy need
• Marketing decisions should guide the production side of business, too
[3] Possession Utility
• How consumers can take possession of the product– Distribution– Pricing strategies– Shelf availability– Purchase agreements– delivery
• An antique bicycles on display, but not for sale, lacks possession utility because the customer cannot purchase it.
[4] Time Utility
• Providing the customer the product when he/she wants it– Ample supply
[5] Place Utility
• Having the product available where the customer can get it– Customers won’t travel far out of their way– Use of branches– 24-hour convenience markets
+1 Psychic Utility
• Product offers symbolic or psychological need satisfaction such as status or sex appeal
• Achieved through product promotion (advertising)
• Fulfill self-esteem and self-actualization needs
In-class Workshop 3-1Wiki time
• Find a print ad and identify the utility that is communicated in the ad.
• Does it address a function need or symbolic want?
• Describe that need or want
• [psychic utility and/or the functional utilities of form, task, possession, time, and place]