When you have completed this chapter, you should be able to
1. Discuss and define marketing and how advertising relates to marketing strategy 2. Explain the marketing concept
3. Outline the four tools of marketing and explain advertising’s relationship to them 4. Describe the role of the advertising agency. Its organization and compensation methods.
What is Marketing?
* The American Marketing Association defines marketing as the process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchange that satisfy the perceived needs, wants, and objectives of the customer and the organization. Effective marketing is the process of finding, satisfying, and retaining customers while the business meets its goal. * An exchange is the act of trading a desired product or service for something of value in return. How do marketers prompt the exchange process? They must market effectively from start to finish.
The Marketing Plan
First, marketers develop a marketing plan- a blueprint of planned marketing activity-that strives to create a competitive advantage for an individual product, a product line, or an idea. Consumers (that is, potential purchasers of the product) believe a product has a competitive advantage when they judge that the product meets their needs better than a competitor’s product does.
A marketing plan typically involves five different stages:
1. A research stage, during which the planner analyzes the marketing environment, including the consumer. 2. A strategic stage, during which the planner develops objectives, along with the enduring strategy for achieving them. 3. A tactical stage, during which specific tools are selected. 4. An implementation stage, which involves the coordination of the marketing strategy with actual marketing activities 5. The evaluation stage, when the marketer assesses how well it achieved its objectives.
The Marketing Plan
Creative Evaluation Response Evaluation
Marketing Public Relations
Point of Sale Packaging
Strategic Decisions Marketing Mix
Advertising Role in the Marketing Plan
* Advertising is an integral but relatively small part of the marketing plan, as shown in Figure 3.1. Traditionally, businesses plan their marketing activities by examining the marketing mix, a blend of activities such as designing the product and its package, pricing the product, distributing the product so that it is accessible to customers, and promoting or communicating about the product. * Marketing communication (also known as promotion), is an umbrella term for many types of promotional activities: advertising, public relations, sales promotion, personal selling, packaging, point of sale, and direct marketing. * To plan marketing communication effectively, marketers must understand the strengths and weakness of each marketing communication technique. Advertising can persuade customers to change their attitudes, beliefs, or behavior. * Superior advertising cannot save an inferior marketing plan or rescue a bad product- at least not for long- but inferior advertising can destroy an excellent plan or product.
Types of Markets
The word market originally meant the place where the exchange between seller and buyer took place. Today we speak of a market as either a region where goods are sold and bought or a particular type of buyer.
When marketing strategists speak of markets, they generally refer to groups of people or organizations. As...