module 3- adv mgmt

8/7/2019 MODULE 3- ADV MGMT

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RELATIONSHIP BETWEEN ADVERTISING

AND MARKETING

Christ University, Bangalore


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Agenda

Marketing Concepts

Marketing Process

Marketing Tools Advertising Agencies

Synergy between

Marketing and

Advertising

Christ Universit , Ban alore 2


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Evolution of Marketing Concept

1. The Production Concept: holds thatconsumers will prefer products that are

widely available and inexpensive.

Production is considered to be an ultimate

aim. Whatever is produced is fed into themarket. In such a situation, consumers

readily accepts the product that is made

available.

2. The Product Concept: holds that a

consumer will favor those products thatoffer the most quality performance or

innovative features. Managers in product-

oriented organizations focus their energy on

making superior products and improving

them over time


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3. The Selling Concept: holds that consumers and business if left alone,

will ordinarily not buy enough of the organizations products. The

organization must therefore undertake an aggressive selling and

promotion effort.



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4. The Marketing Concept:

accepts the customer as the king. It

holds that the key to achieving its

organizational goal consists of the

company being more effectivethan competitors in creating and

delivering and communicating

customer value to its chosen target

markets. In the marketing-

orientation stage, companiesidentify what consumers want and

tailor all of the activities of the

firm to satisfy those needs as

efficiently and effectively aspossible



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5. The Societal/ Social Marketing

Concept: is broadened marketing

concept. It holds that the

organizations task is to determine

the needs, wants and interests oftarget markets and to deliver the

desired satisfactions more effectively

and efficiently than competitors in a

way that preserves or enhances the

consumers and the societys well-being. Societal marketing concept is

a management philosophy that

considers the welfare of society as

well as the interests of the firm andits customers.



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Christ University, Bangalore 4

Benefits of Marketing Concept

5. It ensures effective utilization of physical and human resources. Under

a market- minded firm, management has the responsibility to create

value- satisfying goods and services that consumers will want to buy

6. Demand side of the equation of exchange is honored more and supply

is adjusted to changing demand


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5Christ University, Bangalore

Definition of Marketing Concept

According to Philip Kotler, The

marketing concept is a consumerorientation backed by integrated

marketing aimed at generating

customer satisfaction as the key

to satisfying organizational

goals


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Definition of Marketing

The American Marketing

Association defines Marketing as

the process of planning and

executing the conception, pricing,

promotion, and distribution ofideas, goods, and services to

create exchanges that satisfy the

perceived needs, wants, and

objectives of the customer and the

organization In simple words, Marketing is the

process of finding, satisfying, and

retaining customers while the

business meets its goals


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Selling V/s Marketing

Selling Marketing

1. Emphasis is on the product 1. Emphasis is on the

customers needs

2. Internal- company (seller) 2. External- marketorientation (customer) orientation

3. Emphasis is on the sellers needs 3. Emphasis is on the

buyers needs

4. Narrow in scope 4. Wider in scope


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Marketing Management

According to Philip Kotler, Marketing

management is the art and science of

choosing target markets and getting,

keeping, and growing customers

through creating, delivering, andcommunicating superior customer

value

According to William J. Stanton,

Marketing Management is the

marketing concept in action Marketing Management is a wider term

and it includes Sales Management also

Sales Management refers to the overall

management of sales


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Advertisings Role in the Marketing Plan

Advertising is an integral but relatively

small part of the marketing plan

Advertising is one of several marketing

communication techniques

It is capable of reaching a mass audiencerepeatedly

It also effectively informs customers

about new products, explains important

changes in existing products, reminds

customers to buy, and reinforces pastpurchases

Finally, advertising can persuade

customers to change their attitudes,

beliefs, or behavior


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Superior advertising cannotsave an inferior marketing

plan or rescue a bad product-

at least not for long- but

inferior advertising candestroy an excellent plan or

product

The advertising director must

thoroughly understand

marketing and advertisingsrole in the marketing plan

The marketing manager, too,

must understand the role

advertising plays in the

marketing effort

Advertisings Role in the Marketing Plan


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Types of Markets

The word market originally meant the place where the exchange

between seller and buyer took place

When marketing strategists speak of markets, they generally refer to

groups of people or organizations

The four main types of markets are (1) consumer, (2) business- to-business (industrial), (3) institutional and (4) reseller

Refer the diagram on Page 65 in Wells, Burnett and Moriarty Text


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1. Consumer Markets: consist of people who buy products andservices for personal or household use

2. Business- to- Business (Industrial) Markets: consist of companies

that buy products or services to use in their own businesses or in

making other products

3. Institutional Markets: include a wide variety of profit and non-

profit organizations- such as hospitals, government agencies, and

schools- that provide goods and services for the benefit of society.

For example, Universities are in the market for furniture, cleaning

supplies, computers, office supplies, groceries, audio- visual materialetc.

4. Reseller Markets: are made up of what we call intermediaries.

Resellers are wholesalers, retailers, and distributors who buy finished

or semi- finished products and resell them for a profit

Types of Markets


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Basics in Marketing

Refer Chapter 3Advertising and the

Marketing Process in Wells

and Moriarty Text for

studying some of basicconcepts in Marketing

IMC (Integrated Marketing

Communication)- Refer

Page 80 of the above Text

Approaching the Market-Page 67 of the above text

The Marketing Concept and

Relationship Marketing-

Refer Page 69 of the above

text


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Push Strategy V/s Pull Strategy

Push strategy: when the

manufacturer uses its sales force and

trade promotion money to induce

intermediaries to carry, promote, andsell the product to end- users

Pull strategy: when the manufacturer

uses advertising and promotion to

persuade consumers to ask

intermediaries for the product, thusinducing the intermediaries to order it

Most marketers use a Combination

Strategy of push and pull


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An advertising agency is an independent concern acting as a

specialist in advertising.

It acts as an agent or consultant of the advertiser who is a

manufacturer, wholesaler or retailer An adverting agency helps in planning, creation and placing of

advertisement

Examples of popular Indian ad agencies- Hindustan Thompson

Associates Ltd, Lintas India Ltd, Mudra Communications Ltd, Ogilvy

& Mather Ltd, Ultra Advertising Private Ltd

Advertising Agency


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Copy writing

Art- picture, photographs

Media planning and buying of space

Conducting market research

Public relations

Merchandising

Sales promotion devices

Forwarding advertising material to the clients and

the media owners on time

Evaluating the effectiveness of the advertisement

Functions of Advertising Agencies


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Ad Agencies: Combining Marketing and

Advertising

Why hire an Agency? Why not hire an Agency?

An in- house agency is a group of advertising specialists that operates

its own profit center and handles all the advertising work for its

primary client- the company with which it is affiliated. In- houseagencies may also handle outside work, particularly for suppliers,

vendors, and distributors who work with the company

Advantages of in- house agencies are:

1. They allow individuals to become technical experts on the product

being advertised2. The in- house agency works only for the client and gives priority to

the clients needs, and,

3. Minimum staffing is required because all the work is focused on one

client


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Advertising Department

An advertising department is

somewhat of a hybrid in that it

acts as a facilitator between

outside vendors and advertising

management It may contain a handful of client

employees who have expertise in

all tools of advertising

So their responsibilities may

include selecting all agencies,assigning tasks to these agencies,

and doing the same with other

communication specialists, such as

media providers, event planners,

and fulfillment houses


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Types of Advertising Agencies

Full- Service Agencies: are those that includes the four major stafffunctions- account management, creative services, media planning and

buying, and account planning, which is also known as research. A full-

service advertising agency will also have its own accounting

department, a traffic department to handle internal tracking on

completion of projects, a department for broadcast and print

production (usually organized within the creative department), and a

human resources department.


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Specialized Agencies: They eitherspecialize in certain functions (writing

copy, producing art, or media buying),

audiences (minority, youth), or industries

(health care, computers, agriculture,business- to- business communication). In

addition, there are specialized agencies in

all marketing communications areas, such

as direct marketing, sales promotion,

public relations, events and sportsmarketing, and packaging and point- of-

sale. There are also one- client agencies

such as the Focus agency in Dallas that

serves only GTE



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Industry- FocusedAgencies:Numerous

agencies concentrate on

certain fields or industries,

such as agriculture,

medicine and

pharmaceuticals, health

care, and computers. These

agencies handle a variety of

clients from within thatfield, so they are able to

apply their particular

expertise in those areas,

making them essentially full

service.



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Minority Agencies: Agencies

that focus on an ethnic group, or

minority agencies, grew

substantially in the 1980s asmarketers realized that African

Americans and Hispanics, the

two largest minorities, had

preferences and buying patterns

that differed from those of thegeneral market. These agencies

are organized in much the same

way


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Creative Boutiques: are adagencies, usually small (two

or three people to a dozen

more), that concentrate

entirely on preparing the

creative execution of client

marketing communications.

The focus of the organization

is entirely on the idea, the

creative product. A creativeboutique will have one or

more writers or artists on

staff.


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Media- Buying Services: specializein the purchase of media for clients.

They are in high demand for many

reasons. First, media has become

more complex as the number of

choices grows- think of the

proliferation of new cable channels,

magazines and radio stations. Second,

the cost of maintaining a competent

media department has escalated.Third, media- buying services often

buy, media at a low cost because they

can group several clients purchases

together to develop substantial buying

power.


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Virtual Services: A recent phenomenon is the agency that operates asa group of freelancers and is paid accordingly. This type of agency

does not use conventional office space. Chiat/ Day pioneered an

approach called team workroom, or a virtual office. In a virtual

agency like Chiat/ Day, staff members do not have fixed offices, they

work at home, in their cars, or at their clients offices. Modern

technology allows team members to work in environments other than

a conventional office.


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