Marketing and Advertising Lecture 2. What is Marketing? The process of planning and executing the conception, pricing, promotion and distribution of ideas,
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What is Marketing? The process of planning and executing the conception, pricing, promotion and distribution of ideas, goods and services to fulfill/satisfy the needs and wants of consumers and the organisation.
Marketing vs. Advertising Marketing: The process by which goods and services are introduced to the selected market. Perception of a good or service is vital for a marketing strategy. Advertising: Persuasive presentation of a good, idea or service.
Types of Market Consumer Market Business to Business Markets Institutional Markets Reseller Markets
The Marketing Mix PRODUCTPLACEPRICEPROMOTION Quality Features Options Style Brand Name Packaging Distribution Channels Coverage Locations Inventory Transportation List price Discounts Allowances Payment period Credit terms Advertising Copy & Art Media Personal Selling Sales PR Direct Mktng Integrated Mktng Event Mktng Local-area Mktng
Elements of market approach Market Segmentation: Selecting a group of people of similar characteristics who are most likely to respond to the product/service. E.g. Target Market Product Differentiation: Setting the product apart from its competitor via pricing, packaging or promotion. Positioning: The ‘ place ’ by which a product/service occupies.
Marketing Concept Where emphasis is placed on satisfying the needs and wants of consumers through the product/service, rather than focusing on selling the product/service.
Integrated Marketing Communications A planned holistic approach that combines a series of linked yet varied marketing channels (mediums and/or vehicles) to deliver and maintain a message. The integrated approach influences all marketing decisions and is most effective in satisfying the needs,wants and goals of both the consumer and advertiser.
Basic elements of IMCs Advertising:Set attention to the existence of a product/service. Personal Selling: Face-to-face contact between the marketer and a prospective customer. Sales Promotion: Generate immediate sales for a limited period of time.
Basic elements of IMCs (contd.) Public Relations: Maintains the perceived image,relationship and publicity of the product. Direct Marketing: Allows the consumer to purchase the product directly. Point-of-sale/Packaging: Attempt to drive sales at the place where the product is sold.
Relationship Marketing Process of maintaining and enhancing relationships with key consumers to endow brand loyalty through personal attention.
Branding The process where a product is identified through a design, name or symbol that bests describe it. A brand name is the part of the brand that is identified through words, letters or numbers. A trademark is a patented brand name or brand mark. Brand equity refers to the reputation and/or brand value of the product or service.
Short history on Branding When shipping goods, barrels where embedded with the ship ’ s insignia. First product to be trademarked was the British ‘ Bass beer ’ James Walter Thompson initiated the concept of branding in an early advertisement to what was then called ‘ trademark advertising ’. Leo Burnett best developed branding through the use of mascots such as his famous Jolly Green Giant, the Marlboro Man, Toucan Sam, Charlie the Tuna, Morris the Cat, the Pillsbury Doughboy, the 7up "Spot", and Tony the Tiger.
Packaging A marketing tool whereby it is much more than a container, but carries forward the message of the product.
Elements of good packaging Attractive Design reflects the brand image and delivers advertising messages Functionality Fulfills the criteria of the advertising message.
Channels of distribution People and institutions that move products from producers to consumers make up the channels of distribution.
Types of distribution Direct Marketing: Delivers the message directly to the consumers without the need of intermediaries. Indirect Marketing: Distributed through more than one reseller. Cooperative Advertising: Where the producers and wholesalers cooperate in the advertising cost and process.
Pull and Push Strategy Pull Strategy: Directs marketing efforts to the consumers and pulls the product through the channel. E.g. coupons, rebates, free samples and sweepstakes. Push Strategy: Directs marketing efforts at resellers, whom in turn push the product through advertising to the consumers.
Types of Agencies Full service: Includes all four major functions; account management, creative, media planning and buying, and account planning. Specialized: Specializes in certain functions Industry-focused: Concentrate on certain fields of the industry.
Types of Agencies (contd.) Minority agencies: Focus on ethnic groups. Creative boutiques: Small ad agencies focused only on the creative process. Media-buying services: Purchase of media. Virtual agencies: Hire freelancers to perform tasks online.
Organisation of an agency Account Management: Ensures that the agency fulfils the client ’ s needs Creative Development & Production: Where the creative process is conducted and executed. Account Planning and Research: Conduct market research and analysis. Internal Services: Traffic department, print production, financial services and human resources or personnel
Components of an Advertisement Art direction: Determining the visual execution/layout of advertisement. Copywriting: The text/words involved in illustrating the creative concept of an advertisement.