1. Advertising’s Role in Marketing

2. Agenda Advertising’s Role in Marketing Key Concepts
Key Players & Markets
Marketing Process
How Agencies Work
Changing Trends in Marketing

3. Marketing
Definition
An organizational function and a set of processes for creating, communicating & delivering value to customers & for managing customer relationships in a way that benefits the organization & its stakeholders
Marketing objective  To Sell (product, service or idea)
Advertising

4. Key Concepts Marketing Concept Concept of Exchange Concept of Branding
Concept of Added Value

5. Marketing Concept Customer focus vs. Product focus Examples
Dell Computers (
Dood
Application in Advertising
Focus of Ad
Historically.. Make product then find market
Marketers add customers in the process of product design & Development
Marketing concept… solutions to customers’ problems…2 steps first find customers’ needs and wants second develop, manufacture, market and service goods that fill those particular needs and wants
Dell computers customer focus
Dood product focus
2 ads are to be shown

6. Concept of Exchange
The act of trading a desired product to receive something of value in return
Application in Advertising
Information exchange (communication)

7. Concept of Added Value Value comes from: Brand Better P’s of marketing
Better business practices (Ex: Dell exchange offer)
Brand Image
Brand
A distinctive name, term, design, or symbol that identifies the goods, services, institution, or idea sold by a marketer and differentiates it from other products
Brands Examples
Marketing and advertising add value to product for both marketer and customer
Advertising makes product valuable, useful and appealing
Brand image is a psychological value

8. Concept of Added Value Brand Image: Application in Advertising
Impression in the consumers' mind of a brand's total personality
Communication + Experience
Application in Advertising
Showcases value
Adds value
Example: Nike
Branding is the process of creating a special meaning for a product, one that makes it distinctive in the market place and in its product category.
Branding transforms a product into the brand
We buy familiar brands
Brand equity is the reputation, meaning and value that brand name or symbol has acquired over time. It measure the financial value the brand contributes to the company.

9. Key Players Marketer Suppliers & Vendors Distributors & Retailers
Agencies

10. Marketer
Organization, company, manufacturer producing the product & offering it for sale
Top Marketers
3 organizational structures
Skill-centric
Product-centric
Market-centric
Marketing department manages brands, products and products’ lines, marketing services like research companies, marketing communication agencies
P&G established the concept of brand management concept
Brand manager is responsible for all the strategic decisions relating to product design and manufacture as well as pricing, distribution and marketing communication

11. Skill-Centric Product-Centric Market-Centric
Marketing Director
Manager (Research)
Manager (Sales)
Manager (Advertising)
Manager (CRM)
Skill-Centric
Marketing Director
Brand Manager (Confectionaries)
Brand Manager (Dairies)
Brand Manager (Toiletries)
Brand Manager (Baby Products)
Product-Centric
Marketing Director
Manager (Corporate)
Manager Consumer)
Manager (Affluent)
Manager (Agriculture)
Market-Centric

12. Suppliers / Vendors
Network of suppliers producing materials, ingredients used in producing the product
Add Value
Determine product quality
Determine product price
Partners in communication
Ingredient branding
Acknowledging a supplier’s brand as an important feature
Ex: Intel

13. Distributors & Retailers
Distribution Chain
Network of companies involved in moving product from manufacturer to buyers
Add value
Marketing & Advertising
Example: Wal Mart
Also called Resellers or intermediaries
Distribution chain- distributor, whole sellers, brokers, dealers and retailers.
Dealers and retailers are capable of influencing, supporting and delivering advertising messages.
Cable ads of retailers even makro
Wholesalers use direct mail, trade papers, or catalogues

14. Types of Markets Market Market Share 4 types of markets Buyer
Groups of people or organizations
Market Share
4 types of markets
Different
advertising needs
Examples
Professional & trade advertising
Institutional
Consumer
B2B
Reseller
Market broad meaning: particular set of buyer Youth market, motorcycle market
Share of market refers to the % of the total market in a product category that buys a particular brand
Marketing strategist refers markets to group of people or organizations
Mass media for consumer market
Trade journals, professional magazines and direct mail.
Consumer Advertising

15. Advertising’s Role in Marketing

16. Marketing Process Situation Analysis  SWOT/PO Analysis Set Objectives
Identify Needs/Wants, Segment & Target
Product Differentiation & Positioning
Marketing is a process for doing business
Research the consumer market and the competitive marketplace and develop situation analysis (consumer behavior)
Set objectives for marketing efforts

17. Marketing Process Develop Marketing Mix (the P’s)
Product
Place (Market Coverage, Push/Pull)
Price (Customary/Psychological)
Promotion (Ad, PR, SP, PS, DM)
Evaluate Effectiveness

18. How Agencies Work Why Hire Agency? Creative & artistic expertise
Dedicated workforce
Media contacts & knowledge
Objective advice
Saves money

19. How Agencies Work Geographic Presence / Size / Specialization
Full-Service
Specialized Agencies
Creative Hotshops
Media Buying Agencies
Activation Agencies
Outdoor Media Sellers
Digital Media Agencies
Production Companies
Every Marketing communication tool like Personal Selling, PR, Outdoor etc has separate and special/dedicated agencies
Specializations may be in terms of industries these agencies serve, markets (consumer, B2B), audiences (youth, minorities)

20. Agency Departments Account Management Creative Department
Agency-Client liaison
Relationship & project management
Business acquisition & retention
Creative Department
Inspire, write, design
Participate in production
Make or break an agency

21. Agency Departments Media Planning & Buying Account Planning
Plan, negotiate, buy & do research
Targets of media PR efforts
Account Planning
Strategic specialists / Researchers
Consumer-Brand relationship
Market & consumer insights
Communication Brief

22. Organizational Structure
CEO
Directors
Account Director
Creative Director
Media Head
Planning Head
Operations Head
Group Account Managers, NBD Managers
Art Directors, Creative Group Heads, Traffic Manager
Media Planners, Buyers, Researchers
Account Planners / Strategists
Finance, Admin, HR
Account Managers, Account Executives, AAE
Copywriters, Visualizers, Mechanical & Digital Artists, Illustrator
Media Assistants, Dispatchers
Research Assistants, Junior Planners
Executives & Assistants

23. The Hiring Process Newspaper Ad / Contacts / Referrals
Pitch (creative/Strategy/IMC)
Shortlisting
Final pitch
Selection
Contractual Agreement (AoR)

24. Agency Compensation Commission % Tariff Retainer Combination
15% ?
12.5% creative vs. 2.5% media
Tariff
Retainer
Combination
% of Client Sales

25. Trends in Modern Marketing
Increase in international brands
International advertising
Standardization vs. Adaptation debate
Economies of Scale, consistent message, safeguard global image  Standardize
Culturally congruent advertising, Less cultural blunders, less hierarchy in decision making  Adapt
Affects agency selection

26. Trends in Modern Marketing
New Marketing Concepts
Integrated marketing
Relationship marketing
Permission marketing

27. Funny Blunders Coors Beer in Mexico KFC in China Coca Cola in China
Actual  Turn It Loose
Spanish  Suffer From Diarrhea
KFC in China
Actual  Finger lickin’ good!
Translated  Eat your fingers off!
Coca Cola in China
Pronounced Ke-kou-ke-la  Bite the wax tadpole
Changed later to ko-kou-ko-le  Happiness in the mouth
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28. Brand We Pay For

29. Electronics
Watches
Shoes

30. Top 10 Global Marketers
Advertising Age – Global Marketers 2008
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