Advertising and

its role in
Marketing Process
Presented By Dr. Swati Yadav
 Key Points
 Define the role of advertising within marketing
 Explain how the four key concepts in marketing
relate to advertising
 Find the key players in marketing and how the
organization of the industry affects advertising
 List and explain the six critical steps in the
marketing process
 Review the structure of the advertising agency
industry
 Investigate the changes in the marketing world
and what they portend for advertising
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What is Marketing?

The way a product is

designed, tested,
produced, branded,
packaged, priced,
distributed, and
promoted
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Key Concepts in Marketing

The marketing  Marketing should focus

first on identifying the
concept needs and wants of the
customer
Exchange  To compete effectively,
marketers must focus on
Branding the customers’ problems
and try to develop
Added value products to solve them

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Key Concepts in Marketing

The marketing  The act of trading a

desired product or service
concept to receive something of
value in return
Exchange  Money is exchanged for
goods or services
Branding
Added value

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Key Concepts in Marketing

The marketing  The process of creating a

distinctive and special
concept meaning for a product
 Brand equity is reputation,
Exchange meaning, and value that
the brand name or symbol
Branding has acquired over time

Added value

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Key Concepts in Marketing

The A marketing or advertising

marketing

activity makes a product
concept more valuable, useful, or
appealing
Exchange
Branding
Added value

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The Key Players and Markets

The The organization,

marketer

company, or manufacturer
producing the product and
Suppliers and offering it for sale
vendors  The advertiser or client
(from the agency’s point
Distributors of view)

and retailers

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The Key Players and Markets

The marketer  Other companies that

manufacture the materials
Suppliers and and ingredients used in
producing the product
vendors
Distributors
and retailers

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The Key Players and Markets

The marketer  Various companies that

are involved in moving a
Suppliers and product from its
manufacturer to the buyer
vendors
Distributors
and retailers

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Types of Markets

 Market
 Where the exchange Business-
between buyer and seller Consumer to-
takes place
business
 A particular type of buyer
 Market share
 The percentage of the
total market in a product
category that buys a Institutional Channel
particular brand

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The Marketing Process

1. Conduct research and develop a

situation analysis
2. Set objectives for the marketing effort
3. Assess consumer needs and wants
4. Differentiate and position the product
5. Develop the marketing mix strategy
6. Evaluate the effectiveness of the
strategy
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 Marketing Process Model
Opportunit Identifying Product Promotion
y markets decisions to final
analysis Promotional buyer
decisions
• Advertisin
Pricing g
Market decisions • Direct
segmentatio marketing Ultimate
Competitiv n consumer
• Interactive
e marketing • Consumer
Internet/
analysis Channel- s
• Sales Interactiv
of-
promotion e • Businesses
distributio
Selecting a n • Publicity
target decisions and public
relations Promotio
Target market
n to
marketing • Personal trade
selling

Positioning Resellers
through
marketing
strategies Purchase
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Marketing Mix Strategies

Product  The product is both

the object of the
Place advertising and the
reason for marketing
Price  Product category
 A class of similar
Promotion products

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The Target Marketing Process

Identify
Identify markets
markets with
with unfulfilled
unfulfilled needs
needs

Determine
Determine market
market segmentation
segmentation

Select
Select market
market to
to target
target

Position
Position through
through marketing
marketing strategies
strategies
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 Product
Product Decisions
Decisions

BRANDING
BRANDING PACKAGING
PACKAGING

Brand
Brand Advertising
Advertising Has
Has become
become Often
Often
name
name creates
creates and
and increasingly
increasingly customers’
customers’
commun-
commun- maintains
maintains important
important first
first
icates
icates brand
brand exposure
exposure to
to
attributes
attributes equity
equity product
product
and
and
meaning
meaning
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Marketing Mix Strategies

Product  The channels used in

moving the product
Place from manufacturer to
buyer
Price
Promotion

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 Brokers
Brokers

Distribution Distributors
Distributors
Distribution
Channel
Channel
Intermediaries
Intermediaries Wholesalers
Wholesalers

Retailers
Retailers
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The Marketing Segmentation
Process
Find
Find ways
ways to
to group
group consumers
consumers
according
according to their needs
to their needs

Find
Find ways
ways to
to group
group marketing
marketing actions
actions
available to the organization
available to the organization

Develop
Develop aa market/product
market/product gridgrid to
to relate
relate the
the market
market
segments
segments toto the
the firm’s
firm’s products
products andand actions
actions

Select
Select the
the product
product segments
segments toward
toward which
which the
the
firm
firm will
will direct
direct its
its marketing
marketing actions
actions

Take
Take marketing
marketing actions
actions to
to reach
reach target
target segments
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segments
Marketing Mix Strategies

Product  Based on the cost of

making and marketing
Place the product and on
expected profit
Price  Customary
 Psychological
Promotion

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 Pricing Decisions
What
What consumers
consumers give
give
Factors
Factors the
the firm
firm must
must up
up to
to purchase
purchase aa
consider
consider product
product oror service
service

Costs Price
Price Variable
Variable
Costs Time
Time

Demand
Demand
Mental
Mental activity
activity
Competition
Competition

Behavioral
Behavioral effort
effort
Perceived
Perceived value
value

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 Pricing
Pricing Price
Price must
must be
be consistent
consistent with
with
Considerations perceptions
perceptions of
of the
the product
product
Considerations
Higher
Higher prices
prices communicate
communicate higher
higher
product
product quality
quality

Lower
Lower prices
prices reflect
reflect bargain
bargain or
or
“value”
“value” perceptions
perceptions

Price,
Price, advertising
advertising and
and distribution
distribution
be
be unified
unified in
in
identifying
identifying product
product position
position

AA product
product positioned
positioned as as high
high quality
quality
while
while carrying
carrying aa lower
lower price
price than
than
competitors
competitors will
will confuse
confuse
22 customers
customers
Marketing Mix Strategies

Product  Use face-to-face

contact between
Place marketer and
prospective customer
Price  Used to create
immediate sales
Promotion

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Promotional Strategy: Push or Pull?

Push
Push Policy
Policy Pull
Pull Policy
Policy

Producer
Producer Producer
Producer

Wholesaler
Wholesaler Wholesaler
Wholesaler

Retailer
Retailer Retailer
Retailer

Consumer
Consumer Consumer
Consumer

Information Flow 24
Question to Ponder

Which element of the marketing

mix does advertising and IMC
have the most impact on?

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How Agencies Work

Full-Service Agencies Specialized Agencies

 Include the four major  Specialize in certain
staff functions functions, audiences,
 Account management industries or markets
 Creative services
 Creative boutique
 Media planning and
 Media-buying services
buying
 Account planning
 Also have accounting,
traffic, production, and HR
departments

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How Agencies Work

Account Management Creative Development

 Acts as a liaison  People who write
between the client  People who design
and the agency ideas for ads and
 Responsible for commercials
interpreting the  People who convert
client’s marketing these ideas into
strategy commercials

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How Agencies Work

Media Planning/Buying Account Planning

 Recommends to the  Gathers all
client the most information on the
efficient means of market and consumers
delivering the message and acts as the voice
 Responsible for of the consumer
buying, planning, and  Prepares
research comprehensive
recommendations

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How Agencies Work

Internal Agency Revenues and Profits

Services  Commission
 Traffic department  Fee
 Print production  Retainer
department

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International Marketing

 An international brand is available

virtually anywhere in the world
 The shift requires new tools for
advertisers, including one language, one
control mechanism, and one strategic
plan
 The choice of an agency depends on the
decision to standardize messages or
localize them to accommodate local
cultures
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The Dynamics of Modern
Marketing
 Integrated marketing
 All areas of the marketing mix work closely
together to present the brand in a coherent
and consistent way
 Relationship marketing
 Marketing that considers all the firm’s
stakeholders
 Permission marketing
 Inviting prospective customers to self-select
into a brand’s target market in order to
receive marketing communication

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