The History of Marketing

The Branding of North AmericaThe History of MarketingEssential QuestionsWhy is marketing needed?

What is a brand?

Why do brands exist?The Essence of MarketingSatisfying consumers wants and needs is acommon definition of marketing

However, the true essence of marketing is:Convincing consumers to do something

Marketers attempt to convince consumers that their organization has something the consumer wants or needsConvincing ConsumersProducts, services, and events are not the onlythings that are marketed.

You can also market ideas or causes.

For example: Politicians Not for Profit OrganizationsMarketing in our LivesThinkPairShare Activity

List examples of marketing in everyday life. Where do you see it? What does it look like?

List as many examples of marketing in our lives as you can on a sheet of paper.

Be prepared to share with the class.

Marketing in Our SchoolMany school boards accept exclusive deals from companies such as Pepsi or Coca-Cola to be the sole soft drink supplier in that particular board in exchange for cash or in-kind product.

As a consumer who is constantly bombarded by brands and marketing, do you think that these exclusive deals benefit or hurt students?BrandsBrands are synonymous with marketing and seem to be everywhere in our global economy.

A good brand tells a story, it has a personality.

Think of McDonalds, Rolex, IBM, Google

What images do you see when you think of these brands?

Name that logo

Multinationals and their BrandsProctor & GambleNestleCascadeCharminCheerCover GirlCrestHugo BossTidePringlesMr. CleanNescafePerrierPowerbarPurinaSmartiesKit KatRoloCoffee Crisp

Where did it all begin?The History of MarketingAncient TimesFarmers, craftspeople, and artisans worked with their hands and produced limited output

Consumers bought what was available, if they had money. If not, they made their own products

Marketing played a limited role because demand was greater than supplyThe Industrial Revolution (1700s)The Industrial Revolution changed marketing forever.

Steam and eventually electricity, gas, and oil provided power to factories, railroads, homes, and automobiles.

The Industrial Revolution ContdFactories could produce huge quantities of goods

Railroads could transport these goods all over the country.

How the Brand Came AboutDuring the second half of the 19th Century, two occurrences contributed to the need for brands and advertising:

1. Many new inventions; and2. The invention of the factory

New InventionsAds were used to inform consumers of new inventions.

As well as, to convince them that their lives would be better if they used these new inventions.

The Factory EffectThe market was being flooded with mass produced products that were indistinguishable

Brands differentiated these products

Advertisements communicated a perceived benefit of using one brand over anotherThe Factory Effect ContdThis was necessary because supply outweighed demand

Familiar brands such as Uncle Ben, Aunt Jemima, and Old GrandDad began to replace the shopkeepers generic products.

Industrial Revolution: Inventions and FactoriesMarketing became essential for business survival

Without advertising the population would never know about or want the new inventions

Without branding these mass produced Products were just commoditiesBranding in the 20th Century1940s an understanding that corporations manufacture products but consumers buy brands.

Mid 1980s The idea developed by management theorists, that successful corporations must primarily produce brands, as opposed to products.

1988- Brand Equity Mania!Philip Morris (Marlboro Cigarettes) bought Kraft for $12.6 billion (six times what the company was worth on paper)

WHY?

1988- Brand Equity ManiaPaying the premium for the word Kraft.

Advertising had become more than just a salesstrategy it was an investment in cold hard equity

The Marlboro BrandOwned by Philip Morrisnow a part of Altria Group

Leading Cigarette manufacturer in the US

The Marlboro Man isranked the number one adicon of all time by adage.com

Launched in 1954

Longest running adcampaign in history

Marlboro FridayApril 2, 1993

Philip Morris announced that they would slash prices of cigarettes by 20% to compete with bargain brands.

So what?Marlboro Friday ContdIf a prestige brand that had spent more than a billion dollars on advertising was desperate enough to compete with no names than clearly the whole concept of branding was dead.The Effects of Marlboro FridayCaused stocks to nosedive Heinz, Quaker Oats, Coca-Cola, P&G, RJR Nabisco.

Loblaws PC, & Wal-Marts Great Valuehad doubled their market share.

Bargain conscious consumers hit by the recession were paying more attention to price than prestige.

It appeared we had come full circle As if it had returned to the shopkeeper dishing out generic goods from the prebranded era.

However The companies that were branded to the bonewere doing just fine.

These companies had the foresight to see thatbrands are more important than products.

The Real Legacy of Marlboro FridayBrought the two most significant developmentsin nineties marketing and consumerism intosharp focus:

1) Big box bargain stores that provide the essentials of life and monopolize a disproportionate share of the market

2) Extra premium attitude brands that provide theessentials of lifestyle and monopolize ever expanding stretches of cultural space.Big Box Stores and Premium Brands

Images, logos, and slogansBrandingThe Consummate BrandNike

Just Do It

Nikes Mission: To brings inspiration and innovation to every athlete in the world.

Ad Icons

Ad slogansDiamonds are forever ( DeBeers)

Breakfast of champions ( Wheaties)

Just do it ( Nike)

Think different ( Apple)Classroom Brand Manager ActivityTake the role of a team of brand managers (Groups of 3 or 4)

Your task is to plan and create a brand image for the St. Pius X High School Business Department. You will have one class to complete the requirements of the activity. Your group will then present your brand, logo, and slogan to the class.

Tip: Think of why you took business or enjoy business and try to incorporate that image or feeling into your brand design

You need to develop:1. A brand name2. A logo 3. A slogan

Useful websites:www.adslogans.comwww.interbrand.com