Beruflich Dokumente
Kultur Dokumente
2-2
2-3
WHAT IS ADVERTISING?
What is marketing?
Traditionally, marketing is the way a product is designed, tested, produced, branded, packaged, priced, distributed, and promoted. An organizational function and a set of processes for creating, communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders.American Marketing Association
Prentice Hall, 2009 2-4
Principle: An company that operates with a marketing concept philosophy focuses on satisfying its customers needs and wants.
Prentice Hall, 2009 2-6 6
2-7 7
2-8
Key Concepts:
Differentiation nad Competitive Advantage
A brands competitive advantage is where its different from its competitors and superior in some way. In marketing, this concept is called differentiation. Areas of differentiation include:
Price Design Performance Distribution Brand image Reliability (Maytags lonely repairman)
2-9
2-11
A Motorcycle is a Motorcycle
But a Harley is Something Different
2-12 12
Table 2.1
Brand
$56
$49 $32 $30 $28 $28 $28 $22
9. McDonalds
10. Mercedes-Benz
Source: Interbrand Group; quoted in Best Global Brands, Business Week, August 7, 2006, p. 54. Reprinted with permission.
Prentice Hall, 2009 2-13
2-14 14
Types of Markets
A market is a particular type of buyer. Share of market is the percentage of a product categorys total market that buys a particular brand.
2-15
How are the four ads different? How are they the same?
2-16 16
2-20
2-21
2-22
2-23
Pricing strategies:
Customary pricing (e.g., movie theaters) Psychological pricing for affluent customers
2-24
2-25
2-26
In theory, every member of the supply chain adds value. In practice, every member of the supply chain is a partner in creating the product and marketing the brand.
Ingredient branding acknowledges a suppliers brand as a product feature
Prentice Hall, 2009 2-27
The trade refers to upstream players (suppliers and vendors in the supply chain) and downstream players (companies in distribution chain)
2-28
2-29
Advertisers may have one agency of record (AOR) or several agencies Agencies offer clients:
Specialized services Objective advice Experienced staffing Management of all advertising activities and personnel
Prentice Hall, 2009 2-30
Table 2.2
Marketing Organization 1. Omnicom Group 2. WPP Group 3. Interpublic Group 4. Publicis Groupe 5. Dentsu 6. Havas 7. Aegis Group 8. Hakuhodo DY Holdings 9. aQuantive 10. Asatsu-DK
$6,190.9
$5,872.0 $2,950.7 $1,841.0
$1,825.8
$1,337.0 $442.2 $430.0
Source: Agency Report: Worlds Top 25 Marketing Organizations, Advertising Age, April 30, 2007: S-2.
Prentice Hall, 2009 2-31
Agencies have their own style and philosophy. In these three ads for the Navy, Army, and Air Force, can you perceive a difference in approach, style, and strategy? Which do you think would be most effective in recruiting volunteers?
Prentice Hall, 2009 2-32
Table 2.3
Agency 1. 2. 3.
4.
5. 6. 7. 8. 9.
New York New York New York New York Paris Chicago
Source: Agency Report: Top Ten Consolidated Agency Networks, Advertising Age, April 30, 2007: S-4.
Prentice Hall, 2009 2-33
Types of Agencies
Full-service Agencies
Offer account management, creative services, media planning, account planning, accounting, traffic, production, and HR
Specialized by:
Function (copy, art, media) Audience (minority, youth) Industry (healthcare, computers, agriculture) Market (minority groups)
Creative Boutiques
Small agencies focused on the creative product
Media-buying Services
Focused on purchasing media for clients
Prentice Hall, 2009 2-34
Fees
Hourly fee or rate plus expenses and travel
Retainers
Amount billed per month based on projected amount of work and hourly rate charged
Performance-based
Based on percentage of sales or marketing budget
Profit-based
Greater risk if campaign doesnt have desired impact
Value Billing
Based on value of creative strategy or ideas
Prentice Hall, 2009 2-36
Accountability
Senior managers want marketing managers to prove that their marketing is effective based on:
Sales increases Percentage share of the market the brand holds Return on Investment (ROI)
Agencies are creating departments to help marketers evaluate the efficiency and effectiveness of their marketing communication budgets.
2-37
2-38
2-39
Global Marketing
Most countries have local, regional, and international brands requiring international advertising to promote the same brand in several countries. Companies may have several international regional offices and/or a world corporate headquarters. Agencies must adapt with new tools including one language, one budget, and one strategic plan. The choice of an agency for international advertising depends on whether the brand message will be standardized or localized.
2-40
Discussion Questions
Discussion Question 1
Look through the ads in this textbook and find an example of an ad that you think demonstrates the marketing concept and another ad that you think does not represent an effective application of the marketing concept. Compare the two and explain why you evaluated them as you did.
Prentice Hall, 2009 2-42
Discussion Question 2
Coca-Cola is the most recognizable brand in the world. How did the company achieve this distinction? What has the company done in its marketing mix in terms of product, price, distribution, and marketing communications that has created such tremendous brand equity and loyalty? How has advertising aided in building the brand?
Prentice Hall, 2009 2-43
Discussion Question 3
Imagine you are starting a company to manufacture fudge based on your familys old recipe. Consider the following decisions:
Describe the marketing mix you think would be most effective for this company. Describe the marketing communications mix you would recommend for this company. How would you determine the advertising budget for your new fudge company?
Prentice Hall, 2009 2-44
Discussion Question 4
Three-minute debate: This chapter stressed integration of advertising with other components of the marketing mix. A classmate argues that advertising is a small part of the marketing process and relatively unimportant. If you were in marketing management for Kellogg cereals, how would you see advertising supporting the marketing mix? Does advertising add value to each of these functions for Kellogg? Do you think it is a major responsibility for the marketing manager? What would you say either in support or in opposition to your classmates view. Organize into small teams with pairs of teams taking one side or the other. In class, set up a series of 3-minute debates in which each side has half the time to argue its position. Every team of debaters must present new points not covered in the previous teams presentations until there are no arguments left to present. Then the class votes as a group on the winning point of view.
Prentice Hall, 2009 2-45
All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. Printed in the United States of America.
2-46