Advertising’s Role in Marketing
Agenda
• Advertising’s Role in Marketing
• Key Concepts
• Key Players & Markets
• Marketing Process
• How Agencies Work
• Changing Trends in Marketing
Marketing
• Definition– An organizational function and a set
of processes for creating, communicating & delivering value to customers & for managing customer relationships in a way that benefits the organization & its stakeholders
• Marketing objective To Sell (product, service or idea)
Advertising
Key Concepts
• Marketing Concept
• Concept of Exchange
• Concept of Branding
• Concept of Added Value
Marketing Concept
• Customer focus vs. Product focus
• Examples– Dell Computers (www.dell.com)– Dood
• Application in Advertising– Focus of Ad
Concept of Exchange
• The act of trading a desired product to receive something of value in return
• Application in Advertising– Information exchange
(communication)
Concept of Added Value
• Value comes from:– Better P’s of marketing– Better business practices (Ex: Dell exchange offer)– Brand Image
• Brand– A distinctive name, term, design, or symbol that
identifies the goods, services, institution, or idea sold by a marketer and differentiates it from other products
– Brands Examples
Concept of Added Value
• Brand Image:– Impression in the consumers' mind of a
brand's total personality• Communication + Experience
• Application in Advertising– Showcases value– Adds value
• Example: Nike
Key Players
1. Marketer
2. Suppliers & Vendors
3. Distributors & Retailers
4. Agencies
Marketer
• Organization, company, manufacturer producing the product & offering it for sale– Top Marketers
• 3 organizational structures– Skill-centric– Product-centric– Market-centric
Marketing Director
Manager (Research)
Manager (Sales)
Manager (Advertising)
Manager (CRM)
Marketing Director
Brand Manager (Confectionaries)
Brand Manager (Dairies)
Brand Manager (Toiletries)
Brand Manager (Baby Products)
Marketing Director
Manager (Corporate)
Manager Consumer)
Manager (Affluent)
Manager (Agriculture)
Market-Centric
Product-Centric
Skill-Centric
Suppliers / Vendors
• Network of suppliers producing materials, ingredients used in producing the product
• Add Value– Determine product quality– Determine product price– Partners in communication
• Ingredient branding– Acknowledging a supplier’s brand as an important feature– Ex: Intel
Distributors & Retailers
• Distribution Chain– Network of companies involved in moving
product from manufacturer to buyers– Add value
• Marketing & Advertising» Example: Wal Mart
Types of Markets
• Market – Buyer– Groups of people or
organizations
• Market Share• 4 types of markets
– Different
advertising needs– Examples
Institutional
Consumer
B2B Reseller
Professional & trade advertising
Consumer Advertising
Advertising’s Role in Marketing
Marketing Process
1. Situation Analysis SWOT/PO Analysis
2. Set Objectives
3. Identify Needs/Wants, Segment & Target
4. Product Differentiation & Positioning
Marketing Process
5. Develop Marketing Mix (the P’s)• Product• Place (Market Coverage, Push/Pull)• Price (Customary/Psychological)• Promotion (Ad, PR, SP, PS, DM)
6. Evaluate Effectiveness
How Agencies Work
• Why Hire Agency?– Creative & artistic expertise – Dedicated workforce – Media contacts & knowledge – Objective advice– Saves money
How Agencies Work
• Geographic Presence / Size / Specialization
• Specialization• Full-Service• Specialized Agencies
– Creative Hotshops– Media Buying Agencies– Activation Agencies– Outdoor Media Sellers– Digital Media Agencies– Production Companies
Agency Departments
• Account Management– Agency-Client liaison– Relationship & project management– Business acquisition & retention
• Creative Department– Inspire, write, design– Participate in production – Make or break an agency
Agency Departments
• Media Planning & Buying– Plan, negotiate, buy & do research– Targets of media PR efforts
• Account Planning– Strategic specialists / Researchers– Consumer-Brand relationship– Market & consumer insights– Communication Brief
Organizational StructureCEO
Directors
Planning Head
Creative Director
Media Head
Operations Head
Art Directors, Creative
Group Heads, Traffic
Manager
Account Director
Group Account Managers, NBD
Managers
Media Planners, Buyers,
Researchers
Account Planners / Strategists
Finance, Admin, HR
Copywriters, Visualizers, Mechanical
& Digital Artists,
Illustrator
Account Managers, Account
Executives, AAE
Research Assistants,
Junior Planners
Media Assistants, Dispatchers
Executives & Assistants
The Hiring Process
1. Newspaper Ad / Contacts / Referrals
2. Pitch (creative/Strategy/IMC)
3. Shortlisting
4. Final pitch
5. Selection
6. Contractual Agreement (AoR)
Agency Compensation
• Commission % – 15% ?– 12.5% creative vs. 2.5% media
• Tariff
• Retainer
• Combination
• % of Client Sales
Trends in Modern Marketing
• Increase in international brands– International advertising
• Standardization vs. Adaptation debate– Economies of Scale, consistent message,
safeguard global image Standardize– Culturally congruent advertising,
Less cultural blunders, less hierarchy in decision making Adapt
– Affects agency selection
Trends in Modern Marketing
• New Marketing Concepts– Integrated marketing– Relationship marketing– Permission marketing
Funny Blunders
• Coors Beer in Mexico – Actual Turn It Loose– Spanish Suffer From Diarrhea
• KFC in China– Actual Finger lickin’ good!– Translated Eat your fingers off!
• Coca Cola in China– Pronounced Ke-kou-ke-la Bite the wax tadpole– Changed later to ko-kou-ko-le Happiness in the
mouth
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Brand We Pay For
Electronics
Watches
Shoes
Top 10 Global Marketers
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