Download The Marketing of Advertising Marketing and Advertising

The Marketing of
Advertising
Marketing and Advertising
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Marketing- the process of planning and
executing the conception, pricing, distribution,
and promotion of ideas, goods and services to
create exchanges that satisfy the perceived
needs, wants and objectives of individuals and
organizations.
Advertising’s role is to inform, persuade, and
remind customers of the need-satisfying value
of the goods.
The 4 P’s of Marketing
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Product
Price
Place
Promotion
The fifth P is positioning- the way a product is
marketed in a consumer’s mind
Advertising deals with Promotion and
Positioning.
Marketing and Advertising
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Target market-a particular segment of the
population at which marketing efforts are
aimed.
Target audience- particular group at which ads
are aimed
2 types of audiences
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Consumers
Businesses
Consumer Market
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Most of what we see is directed toward this
market
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Retail ads
Public service announcements (PSA’s)
Industrial (Business) Markets
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Businesses also consume goods and services
Business to Business (B2B)
Types of B2B
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Trade advertising
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Professional advertising
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Retailers, wholesalers, dealers
Teachers, lawyers, doctors etc
Agricultural advertising
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farmers
Where does B2B advertising take
place?
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Business publications
Professional journals
Direct mail
Trade shows
Integrated Marketing
Communications (IMC)
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The process of using promotional tools in a
unified way so that a synergistic
communications effect is created. ( A unified
campaign with a single message)
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http://www.entarga.com/mktgplan/imc.htm
Advertising History
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Pre- Industrial Age (up to the 19th century)
Signs outside of stores
Developments
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Paper (Chinese 1200’s)
Printing Press (Germany, 1440’s)
Posters, handbills, signs, newspapers
1472-first ad in English (prayer book)
1600’s first newspaper ad (reward for stolen horses)
Ben Franklin- the father of advertising art
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First American to use illustration in ads
Advertising History
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Industrializing Age (19th century to end of World
War I)
Primarily done by wholesalers
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Price currents-let retailers know about supply sources and
distributions schedule)
Retailers advertised directly to consumers
Ad Profession started in 1841 in Philadelphia
(Volney B Palmer)
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Contracted with Newspapers for ad space and then resold it
to advertisers for a profit.
Advertising History
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US’s oldest ad agency- N.W. Ayers & Sons
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Planned, created and executed ad campaigns
Developments
Photography
Telegraph, telephone, typewriter, phonograph,
and motion picture
Magazine advertising
Advertising History
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Industrial age (post WWI through 1970’s)
Product differentiation became the norm
USP (unique selling position) focus ad on
features that differentiate it from competitors’
Market segmentation-searching for unique
groups of consumers
Shift from product features to brand image
Advertising History
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The positioning era-what is important is how
the brand ranks in the consumer’s mind
The UnCola (7up)
Think Small (Volkswagen)
We’re only #2 (Avis Rent a Car)
Advertising History
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Post Industrial age (1980’s)
De Marketing-using advertising to slow the
demand for products
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Tobacco
Energy consuming products
Political candidates
Opening up of markets
Mega mergers-buying companies up to be able
to compete globally
Advertising History
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Downsizing
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Result of economy slowing down
Advertising budgets were reduced
Advertising went back to the basics
Advertising History
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Global Interactive Age (last 15 years)
More foreign advertising
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Eastern Europeans and China
New Technologies
Cable TV
Satellite receivers
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Now advertisers can reach a very select audience
(ex. Home and garden TV)
Advertising History
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Much more interactivity among consumers
Can research products
A return to the thought that advertising should
be less about entertainment and more about
helping the advertiser SELL its product