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Part 1
Enduring Principles in Times of Turmoil
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How is marketing defined, what is the marketing
process, and what are marketing’s key concepts?
How does marketing communication contribute
to the development of a brand?
What is integrated marketing communication, and
what are its key concepts?
How is brand communication evolving during a
time of change?
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Much of a product’s value is created by marketing
decisions that determine its:
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Design
Ease of use
Distribution
Pricing
Marketing
communication
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Marketing is designed to build brand and
customer relationships that:
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generate sales and profits.
for nonprofits: volunteers and donations.
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Marketing is the way a product is:
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Designed
Tested
Produced
Branded
Priced
Distributed
Promoted
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“Marketing is the activity, set of institutions, and
processes for creating, communicating, delivering,
and exchanging offerings that have value for
customers, clients, partners, and society at large.”
The American Marketing Association
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Marketing also focuses on managing
customer relationships to benefit all of a
brand’s stakeholders.
Stakeholders are all individuals and groups
who have a stake in the success of the brand.
Positive relationships create value for a brand.
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Traditionally speaking…
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The objective of most marketing programs has
been to sell products, i.e, goods, services, or
ideas.
This is done by matching a product’s availability
to the consumer’s need, desire or demand.
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What is a product category?
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It is the classification to which the product is
assigned. Consider:
◦ Apple Macintosh: the computer category
◦ Burger King: the fast-food category
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Marketing managers manipulate the marketing
mix, also called the four Ps:
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Product
Price
Place
Promotion
Urban Decay product cosmetics project
a street-smart attitude in their
packaging and product names.
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The concept of exchange
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Marketing helps create demand for a product leading
to an exchange – trading something of value for a
desired product.
Demand drives the exchange.
As a class: Consider the Wii launch described in this
chapter. How did Nintendo manipulate demand in this
case?
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Who are the key players?
There are five categories:
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Marketers
Suppliers
Vendors
Distributors
Marketing partners
How is this information important as a career guide?
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A market is not only a place, but a type of
buyer. They include:
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4.
Consumer
Business-to-business
Institutional
Channel
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Why is services marketing important?
Services are the dominant part of the economy in most
developed countries.
Many goods manufacturers also offer services such as
parts, repair, and financing.
Most companies have a customer service operation to
provide follow-up services.
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“In many economies, service marketing, which
is intangible and creates a more personal
relationship with the customer, dominates
goods marketing.”
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This group of ads demonstrates advertising directed at three types of
markets: consumer (Keds), institutional (GE aircraft engines), and
channel (“Ka-ching”). What are the similarities and differences in
these advertisements?
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The seven steps:
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Research the consumer market.
Set objectives for the marketing effort.
Segment the market and target specific markets.
Differentiate and position the product.
Develop the marketing mix strategy.
Execute the strategies.
Evaluate the effectiveness of the strategy.
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The marketing concept says…
“Marketing should focus first on identifying the
needs and wants of the consumer, rather
than just the company’s production
capabilities.”
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Differentiation makes the
brand stand out from
its competition.
This is known as positioning.
How a brand is different and
superior is called competitive
advantage.
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Maytag washers
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How does Maytag differentiate its products?
How are they positioned relative to the
competition?
What competitive advantages does Maytag enjoy?
To learn more, go to www.maytag.com
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Added value
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Marketing communication activities are also
useful because they add value to a product.
Added value makes a product more valuable,
useful, or appealing to a consumer.
Consider the added value of:
◦ Harley-Davidson Motorcycles
◦ Idaho Potatoes
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The product
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Design, performance, and quality are key
elements.
Communication works to:
◦ build awareness of a brand.
◦ explain how the new product works.
◦ explain how it differs form competitors.
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Pricing
It is based on:
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What the market will bear.
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The competition.
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What the consumer can afford.
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The relative value of the product.
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The consumer’s ability to gauge that value.
The price sends a message!
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Place (distribution)
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It includes the channels used to make the product
easily accessible to customers.
The distribution channel also sends a message.
The Internet raises new distribution questions
related to “clicks or bricks.”
Marketers may use a “push” or “pull” strategy.
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Puma is a global brand that has left its paw prints in more than 80
countries. Go to www.puma.com to see Puma’s newest designs.
How important is design to this manufacturer? How can you assess
that and other marketing mix decisions from this website?
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Marketing communication
This includes:
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Advertising
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Public relations
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Sales promotion
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Direct response
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Events and sponsorships
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Point of sale
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Digital media
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And more
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“Every part of the marketing mix, not just
marketing communication, sends a message.”
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Let’s define “brand:”
A brand is a perception, often imbued with
emotion, which results from experiences with
and information about a company or a line of
products.”
Products carry brands, but so do organizations…
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“A Matter of Practice: The Complex World of
Organization Branding”
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In the early 21st century, almost anything with a
name is regarded as a brand.
Branding relates to all organizations and entities in
society.
The brand is the linchpin between an organization
and its stakeholders.
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“A brand is a unified vision (the art) and a
complex system (the science).”
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Meaning-making ideas and images are what
marketing communication delivers to brands.
This perception, called brand meaning, is the one
aspect of a brand that can’t be copied.
A brand, then, is a basically perception loaded
with emotions and feelings.
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“A brand transforms products into something
more meaningful than the product itself.”
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Successful brands:
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Are distinctive
Create an association
Offer a benefit
Carry a heritage
Are simple
Are often based on a distinctive graphic:
a logo, trademark, character or other visual cue
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Brand position and promise
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Brand position identifies the location a product
or brand occupies in consumers’ minds relative
to competitors.
Brand promise identifies key selling points for
the product.
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Brand image and personality
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Brand image is a mental picture or idea about a
brand that contains both associations and
emotions.
Brand personality symbolizes the personal
qualities of people you know
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Celestial Seasonings uses its distinctive packages to send
messages to consumers about its brand image. In what way
do packages like this reinforce the brand personality?
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Brand value
The value of branding lies in the power of
familiarity and trust to win and maintain
consumer acceptance.
Brand value comes in two forms:
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Value to a consumer
Value to the corporation
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Brand equity defined
“The intangible value of the
brand based on the
relationships with its
stakeholders as well as its
intellectual property value.”
Brands have a financial value
that can be plotted on a
balance sheet.
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“Brand relationships drive brand value.”
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Leveraging brand equity
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Brand extension
The use of an established brand name with a
related line of products.
Co-branding
Uses two brand names owned by two separate
companies to create a partnership offering.
Brand licensing
The brand is rented to another business partner.
Ingredient branding
The brand name is used in manufacturing,
advertising or other promotion.
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IMC is the practice of unifying all marketing
communication messages and tools, as
well as the messages from the marketing
mix decisions so that they send a
consistent message promoting the
brand’s strategy.
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“You can’t be integrated externally if you are
not integrated internally.”
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Managers are challenged to prove they are
pursuing the most effective marketing
strategies.
Return on investment (ROI)
What did the program cost, and what did it
deliver?
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Global marketing is growing rapidly.
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A local brand is marketed in a single country.
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A regional brand is one marketed throughout a
global region.
An international brand is available in many
different countries.
A global brand is available virtually everywhere
in the world.
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In Chapter 3, we will:
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Explore social responsibility.
Discuss issues related to the social impact of
marketing communication.
Examine marcom ethics and regulation.
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“Winning the Video Game War with
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Key lessons:
Leo Burnett’s campaign for Nintendo beat the
competition at their own game.
The campaign aimed to fundamentally change how
people experience video games.
Nintendo was recently judged tops in game ads for
effectiveness in print, television, and digital media.
As a class: What others can you think of?
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