21st Century Marketing Understanding the New Marketing Realities

Marketing = Advertising /

Marketing “A strategic aggregatation of functions involved in moving goods from producer to consumer…” Source: Webster’s New Collegiate Dictionary

Successful Advertising Tactical execution of the Marketing Strategy Questions and more questions Local research National research Finding the real truth

Ten Reasons To Advertise Create Store TrafficCreate Store Traffic –Increase sales –Expand base of shoppers –Time Poverty –Impulse purchases 1.

Ten Reasons To Advertise Attract New CustomersAttract New Customers –Increase households –Changing demographics –Changing lifestyles 2.

Ten Reasons To Advertise Encourage Repeat BusinessEncourage Repeat Business –Decrease in Store and Brand Loyalty –Increased Mobility 3.

Ten Reasons To Advertise Generate Continuous BusinessGenerate Continuous Business –Not just special sales –Every day is a “sale” day 4.

Ten Reasons To Advertise Is An Investment In SuccessIs An Investment In Success –Long Term beats sporadic –5 year = 100% –Cut = < 50% 5.

Ten Reasons to Advertise Keeps You in the Competitive RaceKeeps You in the Competitive Race –# Customers –# Choices –Expand Market Share 6.

Ten Reasons to Advertise Keeps your Business Top- of-Mind With ShoppersKeeps your Business Top- of-Mind With Shoppers –Recency –Comparison Shopping 7.

Ten Reasons to Advertise Gives Your Business a Successful ImageGives Your Business a Successful Image –Economic Conditions –Perception = Reality 8.

Ten Reasons to Advertise Advertising Maintains MoralAdvertising Maintains Moral –Competitive Advantage –Sense of Belonging –Recruitment 9.

Ten Reasons to Advertise Brings in Big BucksBrings in Big Bucks –Advertising Works! 10.

Marketing “A strategic aggregatation of functions involved in moving goods from producer to consumer…” Source: Webster’s New Collegiate Dictionary

Definitions Marketing: –Integrated Promotional Opportunities –Aggregated to Produce the Sale of Product or Service

Common Marketing Goals? Auto Dealer Snowmobile Dealer Jeweler

Definitions Marketing: –Increasing Demand through: Improved “want” Improved “need” Improved “perception”

Supply and Demand (1) Quantity Price

Supply and Demand (2) Quantity Price

Supply and Demand (3) Quantity Price

Definitions Commodity: –Quantity Lots –Comparable Items –Similar Value –Price driven by supply

Who Cares? “The further down the marketing ladder you go, the greater the misunderstanding of the marketing goal.” Mark H. McCormack, CEO, IMG

Operating Goals Client Agency AE Planner Media Buyer Make the Business Work Keep the Client Marketing Plan Cost Per Point

Your Role Today Operate at all levels –Find options for clients –Not a commodity broker –Help beyond advertising –The Marketing Strategist

The New Reality Positioning yourself with the client assures you some degree of control. The need is greater today for new and greater revenues Waiting for the media buyer to call leaves you more vulnerable

The Marketing Plan The Four P’s Ô Product

Product Marketability Quality/condition of product Consumer’s perception Rolex doesn’t sell watches

Product Issues Purpose? Idea behind it? Relationship to the customer? Perception? Intangible assets?

The Marketing Plan The Four P’s Ô Product Ô Price

Price : Driven by Demand Influences on Price: –Perception of value –Competition –Glut or Shortages –Position in Market

The Marketing Plan The Four P’s Ô Product Ô Price Ô Place

Place (Distribution) Customer Behavior –Repeat business –One-time transaction Business Image –Warehouse, high-traffic location, website, catalogue, discount, upscale site

The Marketing Plan The Four P’s Ô Product Ô Price Ô Place Ô Promotion

The Elements of Promotion Customer Relations Publicity Promotion Advertising

Critical Stages Unawareness Awareness Comprehension Conviction Action

Failed Advertising... Caused by poor marketing strategies Resulting from flawed information

Tactics Follow Strategy Strategic issues: –vertical integration –line extension –distribution –promotion budget Tactical issues: –increase unit price –brand awareness –media selection –creative execution

Your Role as Advertising Expert Know how to use advertising at the tactical level in order to: Have advantage as a marketing strategist.

AOL –Salespeople are trained to look at a customers’ businesses as if they are their own. 12 Technologies –Value based selling ensuring that customers don’t pay unless they see measurable results. Finding the Real Truth:

JOHNSON CONTROLS, INC. (auto parts) –Salespeople add value to customer relationships by giving clients market research on their consumers. MERCK AND COMPANY, INC. (pharmaceuticals) –Train it’s salespeople to understand medicine, so they can communicate as peers, even if that means suggesting a competitors product on occasion. Finding the Real Truth