The Marketing of Advertising. Marketing and Advertising Marketing- the process of planning and...

The Marketing of The Marketing of AdvertisingAdvertising

Marketing and AdvertisingMarketing and Advertising

Marketing- the process of planning and Marketing- the process of planning and executing the conception, pricing, distribution, executing the conception, pricing, distribution, and promotion of ideas, goods and services to and promotion of ideas, goods and services to create exchanges that satisfy the perceived create exchanges that satisfy the perceived needs, wants and objectives of individuals and needs, wants and objectives of individuals and organizations.organizations.

Advertising’s role is to inform, persuade, and Advertising’s role is to inform, persuade, and remind customers of the need-satisfying value remind customers of the need-satisfying value of the goods.of the goods.

The 4 P’s of MarketingThe 4 P’s of Marketing

ProductProduct PricePrice PlacePlace PromotionPromotion The fifth P is positioning- the way a product is The fifth P is positioning- the way a product is

marketed in a consumer’s mindmarketed in a consumer’s mind Advertising deals with Promotion and Advertising deals with Promotion and

Positioning.Positioning.

Marketing and AdvertisingMarketing and Advertising

Target market-a particular segment of the Target market-a particular segment of the population at which marketing efforts are population at which marketing efforts are aimed.aimed.

Target audience- particular group at which ads Target audience- particular group at which ads are aimedare aimed

2 types of audiences2 types of audiences ConsumersConsumers BusinessesBusinesses

Consumer MarketConsumer Market

Most of what we see is directed toward this Most of what we see is directed toward this marketmarket Retail adsRetail ads Public service announcements (PSA’s)Public service announcements (PSA’s)

Industrial (Business) MarketsIndustrial (Business) Markets

Businesses also consume goods and servicesBusinesses also consume goods and services Business to Business (B2B)Business to Business (B2B) Types of B2BTypes of B2B

Trade advertisingTrade advertising Retailers, wholesalers, dealersRetailers, wholesalers, dealers

Professional advertisingProfessional advertising Teachers, lawyers, doctors etcTeachers, lawyers, doctors etc

Agricultural advertisingAgricultural advertising farmersfarmers

Where does B2B advertising take Where does B2B advertising take place?place?

Business publicationsBusiness publications Professional journalsProfessional journals Direct mailDirect mail Trade showsTrade shows

Integrated Marketing Integrated Marketing Communications (IMC)Communications (IMC)

The process of using promotional tools in a The process of using promotional tools in a unified way so that a synergistic unified way so that a synergistic communications effect is created. ( A unified communications effect is created. ( A unified campaign with a single message)campaign with a single message)

http://www.entarga.com/mktgplan/imc.htmhttp://www.entarga.com/mktgplan/imc.htm

Advertising HistoryAdvertising History

Pre- Industrial Age (up to the 19th century)Pre- Industrial Age (up to the 19th century) Signs outside of storesSigns outside of stores DevelopmentsDevelopments

Paper (Chinese 1200’s)Paper (Chinese 1200’s) Printing Press (Germany, 1440’s)Printing Press (Germany, 1440’s) Posters, handbills, signs, newspapersPosters, handbills, signs, newspapers

1472-first ad in English (prayer book)1472-first ad in English (prayer book) 1600’s first newspaper ad (reward for stolen horses)1600’s first newspaper ad (reward for stolen horses) Ben Franklin- the father of advertising artBen Franklin- the father of advertising art

First American to use illustration in adsFirst American to use illustration in ads


Industrializing Age (19th century to end of World Industrializing Age (19th century to end of World War I)War I)

Primarily done by wholesalersPrimarily done by wholesalers Price currents-let retailers know about supply sources and Price currents-let retailers know about supply sources and

distributions schedule)distributions schedule) Retailers advertised directly to consumersRetailers advertised directly to consumers Ad Profession started in 1841 in Philadelphia Ad Profession started in 1841 in Philadelphia

(Volney B Palmer)(Volney B Palmer) Contracted with Newspapers for ad space and then resold it Contracted with Newspapers for ad space and then resold it

to advertisers for a profit.to advertisers for a profit.


US’s oldest ad agency- N.W. Ayers & SonsUS’s oldest ad agency- N.W. Ayers & Sons Planned, created and executed ad campaignsPlanned, created and executed ad campaigns

DevelopmentsDevelopments PhotographyPhotography Telegraph, telephone, typewriter, phonograph, Telegraph, telephone, typewriter, phonograph,

and motion pictureand motion picture Magazine advertisingMagazine advertising


Industrial age (post WWI through 1970’s)Industrial age (post WWI through 1970’s) Product differentiation became the normProduct differentiation became the norm USP (unique selling position) focus ad on USP (unique selling position) focus ad on

features that differentiate it from competitors’features that differentiate it from competitors’ Market segmentation-searching for unique Market segmentation-searching for unique

groups of consumersgroups of consumers Shift from product features to brand imageShift from product features to brand image


The positioning era-what is important is how The positioning era-what is important is how the brand ranks in the consumer’s mindthe brand ranks in the consumer’s mind

The UnCola (7up)The UnCola (7up) Think Small (Volkswagen)Think Small (Volkswagen) We’re only #2 (Avis Rent a Car)We’re only #2 (Avis Rent a Car)


Post Industrial age (1980’s)Post Industrial age (1980’s) De Marketing-using advertising to slow the De Marketing-using advertising to slow the

demand for productsdemand for products TobaccoTobacco Energy consuming productsEnergy consuming products Political candidatesPolitical candidates

Opening up of marketsOpening up of markets Mega mergers-buying companies up to be able Mega mergers-buying companies up to be able

to compete globallyto compete globally


DownsizingDownsizing Result of economy slowing downResult of economy slowing down Advertising budgets were reducedAdvertising budgets were reduced

Advertising went back to the basicsAdvertising went back to the basics


Global Interactive Age (last 15 years)Global Interactive Age (last 15 years) More foreign advertisingMore foreign advertising

Eastern Europeans and ChinaEastern Europeans and China New TechnologiesNew Technologies Cable TVCable TV Satellite receiversSatellite receivers

Now advertisers can reach a very select audience Now advertisers can reach a very select audience (ex. Home and garden TV)(ex. Home and garden TV)


Much more interactivity among consumersMuch more interactivity among consumers Can research productsCan research products A return to the thought that advertising should A return to the thought that advertising should

be less about entertainment and more about be less about entertainment and more about helping the advertiser SELL its producthelping the advertiser SELL its product

The Marketing of Advertising. Marketing and Advertising Marketing- the process of planning and...

Documents

Transcript of The Marketing of Advertising. Marketing and Advertising Marketing- the process of planning and...