Advertising’s Role
in Marketing
WHAT IS MARKETING?
• TRADITIONALLY, MARKETING IS THE WAY A PRODUCT IS DESIGNED, TESTED, PRODUCED, BRANDED, PACKAGED, PRICED,
DISTRIBUTED, AND PROMOTED.
• “AN ORGANIZATIONAL FUNCTION AND A SET OF PROCESSES FOR CREATING,
COMMUNICATING, AND DELIVERING VALUE TO CUSTOMERS AND FOR MANAGING
CUSTOMER RELATIONSHIPS IN WAYS THAT BENEFIT THE ORGANIZATION AND ITS
STAKEHOLDERS.”—AMERICAN MARKETING
ASSOCIATION
Key Concepts:
The Marketing Concept
• MARKETING SHOULD FOCUS FIRST ON
IDENTIFYING THE NEEDS AND WANTS OF THE CONSUMER, RATHER THAN BUILDING
PRODUCTS THE CONSUMER MAY NOT WANT.
(OLD FASHION MARKETING)
• TWO STEPS OF THE MARKETING CONCEPT:
• DETERMINE CUSTOMER NEEDS AND WANTS THROUGH RESEARCH.
• DEVELOP, MANUFACTURE, MARKET, AND SERVICE
GOODS THAT FILL THOSE NEEDS AND WANTS—SOLVE
CUSTOMERS’ PROBLEMS.
KEY CONCEPTS:
DIFFERENTIATION AND COMPETITIVE ADVANTAGE
• A BRAND’S COMPETITIVE ADVANTAGE IS WHERE IT’S DIFFERENT FROM ITS COMPETITORS AND
SUPERIOR IN SOME WAY.
(EG. TCELL TÜM ADADA ÇEKER)• IN MARKETING, THIS CONCEPT IS CALLED DIFFERENTIATION.
• AREAS OF DIFFERENTIATION INCLUDE:
• PRICE
• DESIGN
• PERFORMANCE
• DISTRIBUTION
• BRAND IMAGE
• RELIABILITY
2-4
A Motorcycle is a Motorcycle…
A Motorcycle is a Motorcycle…
But a Harley is Something Different But a Harley is Something Different
5
Types of Markets
2-8
• A market is a particular type of buyer.
• Share of market is the percentage of a product
category’s total market that buys a particular brand.
THE MARKETING MIX
2-9
THE MARKETING MIX: PRODUCT
• CONSIDERATIONS INCLUDE PRODUCT DESIGN AND DEVELOPMENT, PRODUCT OPERATION AND
PERFORMANCE, BRANDING, AND PHYSICAL PACKAGING.
• PRODUCT DESIGN, PERFORMANCE, AND QUALITY ARE KEY TO A PRODUCT’S SUCCESS.
• DESIGN IS IMPORTANT FOR FASHION AND CLOTHING ITEMS
• PERFORMANCE IS IMPORTANT FOR CARS AND COMPUTERS
• QUALITY IS IMPORTANT FOR UPSCALE BRANDS
THE MARKETING MIX: DISTRIBUTION
• THE CHANNELS USED TO MOVE A PRODUCT FROM MANUFACTURER TO BUYER.
• TYPES OF DISTRIBUTION:
• DIRECT MARKETING TO CONSUMER
• CHANNEL MARKETING THROUGH RESELLERS AND RETAILERS
• STRATEGIC DISTRIBUTION DECISIONS:
• MARKET COVERAGE STRATEGY
• PUSH STRATEGIES DIRECT MARKETING TO THE CONSUMER
• PULL STRATEGIES DIRECT MARKETING TO RESELLERS
THE MARKETING MIX: PRICING
• PRICE IS BASED ON:
• COST OF MAKING AND MARKETING THE PRODUCT AND SELLER’S EXPECTED PROFIT LEVEL
• ALSO, BASED ON WHAT THE MARKET WILL BEAR, COMPETITION, ECONOMIC WELL-BEING OF
CUSTOMER, VALUE OF PRODUCT, AND THE CONSUMER’S ABILITY TO GAUGE THE VALUE
• PRICING STRATEGIES:
• CUSTOMARY PRICING (E.G., MOVIE THEATERS) - ALIŞILMIŞ
• PSYCHOLOGICAL PRICING FOR AFFLUENT CUSTOMERS
THE MARKETING MIX:
MARKETING COMMUNICATIONS
• INCLUDES PERSONAL SELLING, ADVERTISING, PUBLIC RELATIONS, SALES PROMOTION, DIRECT MARKETING, EVENTS AND SPONSORSHIPS, POINT OF SALE, PACKAGING
• PERSONAL SALES USES FACE-TO-FACE CONTACT WITH CUSTOMERS TO CREATE IMMEDIATE SALES
• AN AD OR DIRECT MAIL PIECE MAY INVITE A POTENTIAL CUSTOMER TO CONTACT THE COMPANY AND THE SALES STAFF FOLLOWS UP ON THE “LEAD.”
• MARKETING COMMUNICATION IS ABOUT “BIG IDEAS”
• CREATIVE CONCEPTS THAT GET ATTENTION AND STICK IN MEMORY
TYPES OF AGENCIES
• FULL-SERVICE AGENCIES
• OFFER ACCOUNT MANAGEMENT, CREATIVE SERVICES, MEDIA PLANNING, ACCOUNT PLANNING, ACCOUNTING, TRAFFIC, PRODUCTION, AND HR
• SPECIALIZED AGENCİES
• FUNCTION (COPY, ART, MEDIA)
• AUDIENCE (MINORITY, YOUTH)
• INDUSTRY (HEALTHCARE, COMPUTERS, AGRICULTURE)
• MARKET (MINORITY GROUPS)
• CREATIVE BOUTIQUES
• SMALL AGENCIES FOCUSED ON THE CREATIVE PRODUCT
• MEDIA-BUYING SERVICES
• FOCUSED ON PURCHASING MEDIA FOR CLIENTS
HOW AGENCY ARE PAID
• Commissions
– A Percentage Of The Media Cost
• Fees
– Hourly Fee Or Rate Plus Expenses And Travel
• Retainers
– Amount Billed Per Month Based On Projected Amount Of Work And Hourly Rate Charged
• Performance-based
– Based On Percentage Of Sales Or Marketing Budget
• Profit-based
– Greater Risk If Campaign Doesn’t Have Desired Impact
• Value Billing
– Based On Value Of Creative Strategy Or Ideas
