1. Products, Markets and Advertising Products, Markets and Advertising

2. Product Differentiation n The importance of non-price competition < product differentiation < product development < advertising and marketing n Features of a product < technical standards < quality standards < design standards < service characteristics < mix of attributes in different brands n The importance of non-price competition < product differentiation < product development < advertising and marketing n Features of a product < technical standards < quality standards < design standards < service characteristics < mix of attributes in different brands

3. Product Differentiation n Vertical and horizontal product differentiation < vertical product differentiation F importance of quality F importance of price < horizontal product differentiation F importance of specific features < market segmentation F targeting specific parts of the market F niche markets n Vertical and horizontal product differentiation < vertical product differentiation F importance of quality F importance of price < horizontal product differentiation F importance of specific features < market segmentation F targeting specific parts of the market F niche markets

4. Marketing the Product n Product / market strategy < alternative approaches < a growth vector matrix F market penetration F product development F market development F diversification n Product / market strategy < alternative approaches < a growth vector matrix F market penetration F product development F market development F diversification

5. Present New Present New Product Market A A B B C C D D Growth vector components Market penetration Market penetration Diversification Market development Market development Product development Product development

6. Marketing the Product n The marketing mix < product considerations < pricing considerations < place considerations < promotion considerations n The marketing mix < product considerations < pricing considerations < place considerations < promotion considerations

7. Target market segment Product line PackageProduct services Brand Shipping facilities Channel networks Inventory control Storage facilities Public relations Adverts Special promotions Personal promotions Basic price Transport and handling terms Credit terms Price alterations Product considerations Place considerations Promotion considerations Pricing considerations Considerations when marketing a product

8. Advertising n Background < advertising and the state of the economy n Background < advertising and the state of the economy

9. Total UK advertising expenditure

10. Advertising n Background < advertising and the state of the economy < distribution of advertising between media n Background < advertising and the state of the economy < distribution of advertising between media

11. UK total Advertising Expenditure (% of total) Source: Advertising Statistics Yearbook 2003(NTC Publications Ltd). 19381948195819681978198819982002 National newspapers25.413.918.919.715.814.412.711.5 Regional newspapers27.131.624.1 25.820.316.617.1 Consumer magazines15.312.713.39.98.56.34.94.7 Business and professional 11.916.510.09.110.19.58.46.5 Directories0.0 1.21.62.74.85.45.9 Press production costs5.17.65.24.65.14.74.33.8 Total press 84.782.372.769.068.059.752.249.6 Television0.0 19.325.625.827.928.025.8 Direct mail0.0 7.011.614.2 Outdoor and transport8.513.96.04.03.63.24.34.8 Radio3.40.00.40.21.91.83.23.3 Cinema3.43.81.61.20.70.40.71.1 Internet0.0 0.11.2 Total100.0

12. Advertising n Background < advertising and the state of the economy < distribution of advertising between media < advertising expenditure by product sector n Background < advertising and the state of the economy < distribution of advertising between media < advertising expenditure by product sector

13. UK advertising expenditure by product sector (% of total advertising expenditure) 19861990199419982002 Retail13.812.416.418.913.8 Industrial8.77.47.88.912.8 Financial10.210.510.28.310.6 Government3.33.22.22.32.8 Services8.510.810.411.111.4 Durables20.519.619.421.424.1 Consumables35.036.133.529.424.6 Total100.0 Source: Advertising Statistics Yearbook 2003(NTC Publications Ltd).

14. Advertising n Background < advertising and the state of the economy < distribution of advertising between media < advertising expenditure by product sector n The intensity of advertising n Background < advertising and the state of the economy < distribution of advertising between media < advertising expenditure by product sector n The intensity of advertising

15. Advertising n Background < advertising and the state of the economy < distribution of advertising between media < advertising expenditure by product sector n The intensity of advertising < the advertising / sales ratio n Background < advertising and the state of the economy < distribution of advertising between media < advertising expenditure by product sector n The intensity of advertising < the advertising / sales ratio

16. Advertising/sales ratio: 2002 (ranked by advertising/sales ratio) Advertising/sales ratio: 2002 (ranked by advertising/sales ratio)

17. Advertising n Background < advertising and the state of the economy < distribution of advertising between media < advertising expenditure by product sector n The intensity of advertising < the advertising / sales ratio < causes of differences in advertising intensity between the different sectors of the economy n Background < advertising and the state of the economy < distribution of advertising between media < advertising expenditure by product sector n The intensity of advertising < the advertising / sales ratio < causes of differences in advertising intensity between the different sectors of the economy

18. Advertising n Background < advertising and the state of the economy < distribution of advertising between media < advertising expenditure by product sector n The intensity of advertising < the advertising / sales ratio < causes of differences in advertising intensity between the different sectors of the economy F differences in market structure n Background < advertising and the state of the economy < distribution of advertising between media < advertising expenditure by product sector n The intensity of advertising < the advertising / sales ratio < causes of differences in advertising intensity between the different sectors of the economy F differences in market structure

19. Advertising n Background < advertising and the state of the economy < distribution of advertising between media < advertising expenditure by product sector n The intensity of advertising < the advertising / sales ratio < causes of differences in advertising intensity between the different sectors of the economy F differences in market structure F differences in product characteristics n Background < advertising and the state of the economy < distribution of advertising between media < advertising expenditure by product sector n The intensity of advertising < the advertising / sales ratio < causes of differences in advertising intensity between the different sectors of the economy F differences in market structure F differences in product characteristics

20. Advertising n Aims of advertising < shifting the demand curve < making the demand curve less elastic n Aims of advertising < shifting the demand curve < making the demand curve less elastic

21. P QO D1D1 Effect of advertising on the demand curve Q1Q1 P1P1

22. D2D2 P QO D1D1 Q2Q2 Q1Q1 P1P1

23. Q2Q2 D2D2 P QO D1D1 Q3Q3 Q1Q1 P2P2 P1P1

24. Advertising n Aims of advertising < shifting the demand curve < making the demand curve less elastic n Effects of advertising n Aims of advertising < shifting the demand curve < making the demand curve less elastic n Effects of advertising

25. Advertising n Aims of advertising < shifting the demand curve < making the demand curve less elastic n Effects of advertising < advertising and the long run n Aims of advertising < shifting the demand curve < making the demand curve less elastic n Effects of advertising < advertising and the long run

26. Advertising and the long run Sales Habit salesDirect effect on sales Long-term effect Sales (weekly) Time Advertising campaign t1t1 t2t2 t3t3 t4t4 t5t5 s2s2 s3s3 s1s1 Sales

27. Advertising n Aims of advertising < shifting the demand curve < making the demand curve less elastic n Effects of advertising < advertising and the long run < advertising and company growth n Aims of advertising < shifting the demand curve < making the demand curve less elastic n Effects of advertising < advertising and the long run < advertising and company growth

28. Product image and company reputation Relative quality of offering Relative price Advertising expenditure relative to competitors (Relative) customer value Real market growth Growth Market share Profit margins Advertising, profit margins and company growth

29. Advertising n Assessing the effects of advertising < benefits of advertising F to firms F to consumers < costs of advertising F to firms F to consumers and society generally n Assessing the effects of advertising < benefits of advertising F to firms F to consumers < costs of advertising F to firms F to consumers and society generally