Advertising’s Role in Marketing

Agenda

• Advertising’s Role in Marketing

• Key Concepts

• Key Players & Markets

• Marketing Process

• How Agencies Work

• Changing Trends in Marketing

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

Key Concepts

• Marketing Concept

• Concept of Exchange

• Concept of Branding

• Concept of Added Value

Marketing Concept

• Customer focus vs. Product focus

• Examples– Dell Computers (www.dell.com)– Dood

• Application in Advertising– Focus of Ad

Concept of Exchange

• The act of trading a desired product to receive something of value in return

• Application in Advertising– Information exchange

(communication)

Concept of Added Value

• Value comes from:– 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

Concept of Added Value

• Brand Image:– Impression in the consumers' mind of a

brand's total personality• Communication + Experience

• Application in Advertising– Showcases value– Adds value

• Example: Nike

Key Players

1. Marketer

2. Suppliers & Vendors

3. Distributors & Retailers

4. Agencies

Marketer

• Organization, company, manufacturer producing the product & offering it for sale– Top Marketers

• 3 organizational structures– Skill-centric– Product-centric– Market-centric

Marketing Director

Manager (Research)

Manager (Sales)

Manager (Advertising)

Manager (CRM)

Marketing Director

Brand Manager (Confectionaries)

Brand Manager (Dairies)

Brand Manager (Toiletries)

Brand Manager (Baby Products)

Marketing Director

Manager (Corporate)

Manager Consumer)

Manager (Affluent)

Manager (Agriculture)

Market-Centric

Product-Centric

Skill-Centric

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

Distributors & Retailers

• Distribution Chain– Network of companies involved in moving

product from manufacturer to buyers– Add value

• Marketing & Advertising» Example: Wal Mart

Types of Markets

• Market – Buyer– Groups of people or

organizations

• Market Share• 4 types of markets

– Different

advertising needs– Examples

Institutional

Consumer

B2B Reseller

Professional & trade advertising

Consumer Advertising

Advertising’s Role in Marketing

Marketing Process

1. Situation Analysis SWOT/PO Analysis

2. Set Objectives

3. Identify Needs/Wants, Segment & Target

4. Product Differentiation & Positioning

Marketing Process

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

6. Evaluate Effectiveness

How Agencies Work

• Why Hire Agency?– Creative & artistic expertise – Dedicated workforce – Media contacts & knowledge – Objective advice– Saves money

How Agencies Work

• Geographic Presence / Size / Specialization

• Specialization• Full-Service• Specialized Agencies

– Creative Hotshops– Media Buying Agencies– Activation Agencies– Outdoor Media Sellers– Digital Media Agencies– Production Companies

Agency Departments

• Account Management– Agency-Client liaison– Relationship & project management– Business acquisition & retention

• Creative Department– Inspire, write, design– Participate in production – Make or break an agency

Agency Departments

• Media Planning & Buying– Plan, negotiate, buy & do research– Targets of media PR efforts

• Account Planning– Strategic specialists / Researchers– Consumer-Brand relationship– Market & consumer insights– Communication Brief

Organizational StructureCEO

Directors

Planning Head

Creative Director

Media Head

Operations Head

Art Directors, Creative

Group Heads, Traffic

Manager

Account Director

Group Account Managers, NBD

Managers

Media Planners, Buyers,

Researchers

Account Planners / Strategists

Finance, Admin, HR

Copywriters, Visualizers, Mechanical

& Digital Artists,

Illustrator

Account Managers, Account

Executives, AAE

Research Assistants,

Junior Planners

Media Assistants, Dispatchers

Executives & Assistants

The Hiring Process

1. Newspaper Ad / Contacts / Referrals

2. Pitch (creative/Strategy/IMC)

3. Shortlisting

4. Final pitch

5. Selection

6. Contractual Agreement (AoR)

Agency Compensation

• Commission % – 15% ?– 12.5% creative vs. 2.5% media

• Tariff

• Retainer

• Combination

• % of Client Sales

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

Trends in Modern Marketing

• New Marketing Concepts– Integrated marketing– Relationship marketing– Permission marketing

Funny Blunders

• Coors Beer in Mexico – 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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Brand We Pay For

Electronics

Watches

Shoes

Top 10 Global Marketers

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