Advertising’s Role in Marketing

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

Key Concepts: The Marketing Concept MARKETING SHOULD FOCUS FIRST ON IDENTIFYING THE NEEDS AND WANTS OF THE CONSUMER, RATHER THAN BUILDING PRODUCTS THE CONSUMER MAY NOT WANT. (OLD FASHION MARKETING) TWO STEPS OF THE MARKETING CONCEPT: DETERMINE CUSTOMER NEEDS AND WANTS THROUGH RESEARCH. DEVELOP, MANUFACTURE, MARKET, AND SERVICE GOODS THAT FILL THOSE NEEDS AND WANTS—SOLVE CUSTOMERS’ PROBLEMS.

KEY CONCEPTS: DIFFERENTIATION AND COMPETITIVE ADVANTAGE A BRAND’S COMPETITIVE ADVANTAGE IS WHERE IT’S DIFFERENT FROM ITS COMPETITORS AND SUPERIOR IN SOME WAY. (EG. TCELL TÜM ADADA ÇEKER) IN MARKETING, THIS CONCEPT IS CALLED DIFFERENTIATION. AREAS OF DIFFERENTIATION INCLUDE: PRICE DESIGN PERFORMANCE DISTRIBUTION BRAND IMAGE RELIABILITY 2-4

A Motorcycle is a Motorcycle… But a Harley is Something Different 5

Types of Markets 2-8 A market is a particular type of buyer. Share of market is the percentage of a product category’s total market that buys a particular brand.

THE MARKETING MIX 2-9

THE MARKETING MIX: PRODUCT CONSIDERATIONS INCLUDE PRODUCT DESIGN AND DEVELOPMENT, PRODUCT OPERATION AND PERFORMANCE, BRANDING, AND PHYSICAL PACKAGING. PRODUCT DESIGN, PERFORMANCE, AND QUALITY ARE KEY TO A PRODUCT’S SUCCESS. DESIGN IS IMPORTANT FOR FASHION AND CLOTHING ITEMS PERFORMANCE IS IMPORTANT FOR CARS AND COMPUTERS QUALITY IS IMPORTANT FOR UPSCALE BRANDS

THE MARKETING MIX: DISTRIBUTION THE CHANNELS USED TO MOVE A PRODUCT FROM MANUFACTURER TO BUYER. TYPES OF DISTRIBUTION: DIRECT MARKETING TO CONSUMER CHANNEL MARKETING THROUGH RESELLERS AND RETAILERS STRATEGIC DISTRIBUTION DECISIONS: MARKET COVERAGE STRATEGY PUSH STRATEGIES DIRECT MARKETING TO THE CONSUMER PULL STRATEGIES DIRECT MARKETING TO RESELLERS

THE MARKETING MIX: PRICING PRICE IS BASED ON: COST OF MAKING AND MARKETING THE PRODUCT AND SELLER’S EXPECTED PROFIT LEVEL ALSO, BASED ON WHAT THE MARKET WILL BEAR, COMPETITION, ECONOMIC WELL-BEING OF CUSTOMER, VALUE OF PRODUCT, AND THE CONSUMER’S ABILITY TO GAUGE THE VALUE PRICING STRATEGIES: CUSTOMARY PRICING (E.G., MOVIE THEATERS) - ALIŞILMIŞ PSYCHOLOGICAL PRICING FOR AFFLUENT CUSTOMERS

THE MARKETING MIX: MARKETING COMMUNICATIONS INCLUDES PERSONAL SELLING, ADVERTISING, PUBLIC RELATIONS, SALES PROMOTION, DIRECT MARKETING, EVENTS AND SPONSORSHIPS, POINT OF SALE, PACKAGING PERSONAL SALES USES FACE-TO-FACE CONTACT WITH CUSTOMERS TO CREATE IMMEDIATE SALES AN AD OR DIRECT MAIL PIECE MAY INVITE A POTENTIAL CUSTOMER TO CONTACT THE COMPANY AND THE SALES STAFF FOLLOWS UP ON THE “LEAD.” MARKETING COMMUNICATION IS ABOUT “BIG IDEAS” CREATIVE CONCEPTS THAT GET ATTENTION AND STICK IN MEMORY

TYPES OF AGENCIES FULL-SERVICE AGENCIES OFFER ACCOUNT MANAGEMENT, CREATIVE SERVICES, MEDIA PLANNING, ACCOUNT PLANNING, ACCOUNTING, TRAFFIC, PRODUCTION, AND HR SPECIALIZED AGENCİES 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

HOW AGENCY ARE PAID Commissions –A Percentage Of The Media Cost 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 Doesn’t Have Desired Impact Value Billing –Based On Value Of Creative Strategy Or Ideas