Role of advertising in Marketing

Role of advertising

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Role of advertising in Marketing


• Introduction to marketing- Meaning-Definition-concept of branding- concept of added value. Key players and markets- marketer, suppliers and vendors, distributors and retailers, types of markets. Marketing process- marketing research, Strategic research process – Evaluative research process – Message Development research – Strategic planning – The Advertising Plan. Key strategic decisions- Segmentation, Targeting, Positioning strategy of tourism product. Marketing Mix strategies- product, distribution, pricing, marketing communication and personal sales, marketing strategy evaluation


• “A social and managerial process by which individuals and groups obtainwhat they need and want through creating and exchanging products and value with others”

- Philip Kotler

It is the way a product is designed, tested, produced, branded, packaged, priced, distributed and promoted.

Why markets were created?

Scarcity of raw materials, specialisation of labour and consumption satisfaction.

Marketing concept?

An approach that suggests marketing should focus first on identifying customers needs and wants than finding ways to sell products.

Two steps in marketing concepts

1. Determine the needs and wants

2. Create solutions (develop, manufacture,market and servive goods)

Both steps are used in advertising planning through consumer research and understanding consumer decision making

Evolution of marketing

• Stages

1.Production era

2.Sales era

3.Marketing era

4.Relationship era

Key players

• Marketer• suppliers and vendors,• distributors and retailers

“Value proposition”

• set of benefits the marketing people promise to the consumers.

What does marketing offer?

• Products• Services• Information• Experiences and events

Examples ======

Persons – celebrities, models, film stars, cricketers, bussinessmen, politicians ,,….

States and countries (tourism)Organisations (before issue of shares, building

public image)Information --- news channels, Microsoft Encarta

(an encyclopedia)Ideas --- enhancing sociability after use of a

product (Lux, fairever)Experiences and events – recreation and

enjoyment (theme park, exhibitions, trade shows)

Types of markets 1. Consumer markets2. Bussiness markets3. Institutional (non profit) markets (schools,religious

and charitable orgns)4. Govt markets – PWD, irrigation, defense,…5. Global - pepsi, coke, HP, P&G,…6. Meta markets – offers a cluster of complimentary

products/ closely related products – normally available through different company/ industry. Making available through single source.

e bay --- for buying a new/ used car – from magazines ads … insurance, financing, mechanics,…..to service centres

Marketing process/ Strategy -

1. Annalysing market opportunities

2. Selecting target markets

3. Developing marketing mix

4. Managing marketing effort

(diagram sent thru watsapp!)

Marketing research process

• Choose a problem• Review the literature• Evaluate the literature• State the research question or hypothesis• Select the research approach• Determine how the variables are going to be measured• Select a sample• Select a data collection method• Collect and code the data• Analyze and interpret the data• Write the report• Disseminate the report

Strategic research process

1. Understanding Consumers• Most successful products and brands start with a focus on

consumers., who will decide the ultimate success or failure of any market introduction. Just "know your customer" means more than just gathering data. It means recognizing customers as a dynamic, evolving force. It means developing a "gut feel" that helps you think like they do, that helps you anticipate how they'll change and how they'll stay the same. One can't constantly be testing at every decision point, so companies have to learn to think like they think.

There are many approaches to understanding consumers. The best offer a "real world" perspective, focusing on people's behaviors, attitudes and environments.

Strategic research process (contd)

2.Investigating market• Fully understanding a key topic or market is an

excellent way to start a project. These investigations can provide fundamental knowledge about opportunities prior to investing significant time and money in product development. Market mapping, demand estimation and feasibility studies are essential. The shared learning and guidelines from these investigations can establish a common language and viewpoint particularly important for collaboration and team building.

Strategic research process (contd)

3. Developing concept• There are millions of good ideas that are developed

into thousands of products and services every year. Most of them fail, miserably. Many of them could succeed if they just got the details right. But, in an effort to get to market quickly or to conserve money, product developers often skip research or do only cursory studies with a few consumers. Product development research can be very efficient and very cost effective, particularly when you compare it to the cost of failure.

Strategic research process (contd)

• In an ever-dynamic market what success takes is more than a good idea. It requires the development of a strong, unique personality that grabs attention and motivates customers. It requires the right mix of features and benefits and the right balance of price and value.

Strategic research process (contd)for development / growth of a product/ service

• Refining product/ service• Positioning• Naming• Visual identity• Communication • Packaging • Advertising• Merchandising• Relationship

Advertising plan?

• Detailed outline of a firm's or a product's advertising campaign which shows what are the advertising objectives, how they will be achieved, and what commitment of resources is required.

How to do an advertising plan?1. Create or review your business plan. marketing objectives, along

with financial, website support and a calendar of company objectives. Review your broader marketing timeline and goals for marketing team.

2. Review your marketing plan. The marketing plan takes into account all modes of business strategy to increase sales,

3. Create an advertising strategy i. Increase awareness of a new productii. Reach new demographiciii. Increase market shareiv. Increase brand awarenessv. Slow downward trend in sales4. Propose your advertising strategy to your advertising agency or

department5. Establish the duration of the plan and the budget

Mass marketing?

• Offering same product and marketing mix to all consumers.

• Henry Ford” in any colour they wanted, as long as it was black”

• Coca cola – initially sold in bottles of same size.

• Useful when all consumers are alike.


• “Process of dividing markets into various sub groups, with distinct needs, characteristics and behaviour, who might require separate products or marketing mixes”

- Philip Kotler


• Target market – consists of buyers of a set of buyers who share common needs or characteristics.

• It’s done in 4 levels

• 4 levels of target marketing:

1.Mass /undifferentiated marketing (coca cola, Ford’s ‘T’ model)

2.Segment/ differentiated marketing (hope for higher sales and stronger position in each segment) GM – “A car for every purse, purpose and personality”. Nike shoes - - for running, golf, cycling , basketball. P&G - - 8 brands of laundry detergents.

3.Niche/ concentrated marketing (small but profitable market segment).

Features :

i. A narrowly defined customer group looking for distinctive set of benefits.

ii. Identified into dividing sub segments.

iii. premium pricing

iv. Not likely to attract competitors

v. Economies of scale through specialisation

vi. Good profitability and growth potential.(Shahnaz Hussain’s cosmetic herbal products,) (Logitech – mouse for

left and right handed people, optical, cordless and 3D mouse,,,)

• 4. Micro/local/individual marketing• Practice of tailoring products and marketing

programmes to suit the needs of specific individuals and locations or stores.

• One to one marketing/ customised marketing• Mass customisation – a process through which

companies interact on one to one basis with customers. (dell computers, Levi – Strauss jeans (Levi Original Spin)


• ‘The results of your campaign depend less on how we write your advertising, than how your product is positioned’

---- David Ogilvy

Position is a perception it brings about in the minds of the target customer reflecting it’s functional / non functional benefits in the minds of customer

Positioning … contd

• Better to be first than late ::::::: McDonalds, ThumsUp, Amul, Xerox…. Still in the minds.

• If not first… create a new category by making even a small change in marketing mix elements. ( AIWA, AKAI, Maruthi Udyog)

• To reposition --- should know Competitors strengths and weakenesses (Britannia - "Eat healthy, think better!"/ Tata Nano/ Shaktiman from Parle G)

Segmentation, Targeting, Positioning strategy of tourism product

• Segmentation is the 1st step. Segment into homogeneous clusters. Select one or more segments to target.

• Target market is the 2nd step. Process of evaluating each segment’s attractiveness and selecting one or more segments to enter, using different marketing mix to different segments.

• Positioning 3rd step. Arranging for a product to occupy a clear, distinctive, desirable place relative to competitive products.

Types of segmentation

• Geographic• Demographic• Psychographic• Behavioural

Targeting, Positioning strategy of tourism product


Branding ?

• Branding refers to the concrete symbols (a name, logo, slogan, design, fonts, color scheme, symbols and sound for easy identification of the product)

• It helps to differentiate one product from another.

• The American Marketing Association defines a Brand as "A name, term, design, symbol or any other feature that identifies one seller's goods and services as distinct from those of the other sellers".

• The new logo cost Pepsi $1 million.

• They hired Arnell Associates to come up with it

• As a result, Pepsi had to spend millions more to rebrand everything.

• Then Arnell’s 27 page document was leaked and it was entitled, “Breathtaking Design Strategy.”

• It proposes that the new logo is some sort of Da Vinci Code.

• The logo draws on Feng Shui, the Renaissance, the earth’s Geodynamo, the theory of relativity, and much more


It is an art of creating and maintaining a brand.

"A Brand that captures your mind gains behavior. A brand that captures your heart gains commitment“

- Scott Talgo


• If a brand is widely known in the market and minds of the consumer it is termed as Brand Recognition.

????????????? Brand!!!!!!!!

• "Why",,,,, she asked "did you put two x's in Exxon",

• "Why ask", he asked• "Because", she said, "I couldn't help noticing",• "Well", he responded, "that's the answer".

These three concepts

• brand promise• brand attributes • brand personality


Brand Promise • A commitment made to prospects and customers. It

answers the question on every customer's mind • "If I engage in a relationship with you, your product or

your company, what can I expect?" • The answer to this question must address the big problem

solved or the compelling need fulfilled • Companies with the clearest brand promises have the

strongest brands. And the simplest idea is often the most powerful

• A set of differentiating promises that link a product to its customers

Eg – brand promise

• 1.The safest cars in the world ?• 2. Frequent, low cost flights ?• 3. Everyday low prices ?• 4. Fun entertainment for the whole family ?• 5. Advanced processors with continually

improving cost and speed performance ?• 6. A unique coffee experience ?• 7. Low cost computers with minimal hassle ?• 8. Time-certain delivery ?• 9. Refreshment ?

Answers …..• 1. Volvo• 2. Southwest Airlines• 3. Wal-Mart• 4. Disney• 5. Intel• 6. Starbucks• 7. Dell• 8. Federal Express• 9. Coke

Brand Attributes

• Include all the unique ways you deliver brand promise.

• These comprise the feature set that describes the customer's experience with the company.

• Common attributes might include your unique versions of quality, customer service, innovation and flexibility

Brand Personality

• Brand personality has to do with the emotional connection people have on a brand.

• It manifests itself in many different ways. It can be portrayed in the pictures and visual imagery of the brand or it can be communicated in the "tone" or "voice" of the communication


• Often a company's brand personality matches the customer's self-perception of their own personality or a personality they aspire to.

• Common brand personalities include ruggedness, sophistication, excitement, competence or sincerity.

• Southwest Airlines, knows that their employees directly reinforce their brand personality. they hire only those people whose personalities exactly matches a carefully defined profile:

• A commitment to customer service• Self-motivated and energetic personality• Team-oriented/ Ability to work equally well

alone or with others• Sense of humor/ Positive attitude

• Flexibility to work in a dynamic, fast-paced environment

• Statistically, it is easier to get into Harvard University than it is to get a job at Southwest Airlines. If you don't match this profile, you don't work for Southwest -- period. Of course, this isn't the only reason for Southwest's phenomenal track record of success. But their fanatical devotion to their brand personality and the people who deliver it has played a major role in their ability to maintain a consistently strong brand image

concept of added value

• customers receive something that has value to them.

• Added value can mean repeat customers, brand loyalty and choosing your product over the competition.

• Understanding the customer base and what is important to them is key to deciding what can be given to them that they will regard as a value.

Marketing mix strategies