ADVERTISING

Yasser ElFar

WHAT IS MARKETING?

Financial success often depends on marketing ability. Finance, operations, accounting, and other business functions will not really matter if there is not sufficient demand for products and services so the company can make a profit. Many companies have now created a Chief Marketing Officer, or CMO, position to put marketing on a more equal footing with other C-level executives. Press releases from organizations of all kinds, release their latest marketing achievements and can be found on their Web sites.

WHAT IS MARKETING?

To prepare to be a marketer, you need to understand:

What marketing is?

How it works?
What is marketed?

Who does the marketing?

WHAT IS MARKETING?

Marketing deals with identifying and meeting human and social needs. Meeting needs profitably. Marketing is 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 stake holders.

WHAT IS MARKETING?

The aim of marketing is to make selling superfluous. The aim of marketing is to know and understand the customer so well that the product or service fits him and sells itself. Ideally, marketing should result in a customer who is ready to buy. All that should be needed then is to make the product or service available. When Sony designed its Play Station, when Gillette launched its Mach III razor, and when Toyota introduced its Lexus automobile, these manufacturers were swamped with orders because they had designed the "right" product based on careful marketing homework.

WHAT IS MARKETING?

Frequently asked questions: 1. How can we spot and choose the right market segment(s)? 2. How can we differentiate our offerings? 3. How should we respond to customers who buy on price? 4. How can we compete against lower-cost, lower- competitors? 5. How far can we go in customizing our offering for each customer? 6. How can we grow our business? 7. How can we build stronger brands? 8. How can we reduce the cost of customer acquisition? 9. How can we keep our customers loyal for longer? 10. How can we tell which customers are more Important? 11. How can we measure the payback from advertising, sales promotion, and public relations? 12. How can we improve sales force productivity 13. How can we establish multiple channels and yet manage channel conflict? 14. How can we get the other company departments to be more customeroriented?

WHAT IS MARKETED?

1. 2.

3.
4.

5.

GOODS Physical goods constitute the bulk of most countries' production and marketing effort. Goods also could be marketed effectively through the Internet, or individuals. SERVICES As economies advance, a growing proportion of activities is through production of services. The U. S. economy today consists of a 70-30 services-to-goods mix. At a fast-food restaurant, for example, the customer consumes both a product and a service. EVENTS Marketers promote time-based events, such as major trade shows, artistic performances, and company anniversaries. Global sporting events such as the Olympics or World Cup. EXPERIENCES By orchestrating several services and goods, a firm can create, stage, and market experiences. Walt Disney World's Magic Kingdom, the Hard Rock Cafe, where customers can enjoy a meal or see a band in a live concert, climbing Mount Everest. PERSONS Celebrity marketing is a major business. Today, every major film star has an agent, a personal manager, and ties to a public relations agency. It is to advised each person to become a "brand"

WHAT IS MARKETED?

6.

PLACES Cities, states, regions, and whole nations compete actively to attract tourists, factories, company headquarter, and new residents. Place marketers include Economic development specialists, Real estate agents, commercial banks Local business associations Advertising and public relations. 7. PROPERTIES are intangible rights of ownership of either real property or financial property (stocks and bonds). Properties are bought and sold, and this requires marketing. 8. ORGANIZATIONS actively work hard to build a strong, favorable, and unique image. Marketing is used to boost this for audiences & funds. 9. Information can be produced and marketed as a product. This is what schools and universities produce and distribute at a price to parents, students, and communities. Encyclopedias and most nonfiction books market information. 10. IDEAS Every market offering includes a basic idea. In the factory, we make cosmetics; in the store we sell hope." Products and services are platforms for delivering some idea or benefit.

WHO MARKETS?

A Marketers is someone seeks a response (attention, purchase, vote, or donation) from another party, called the prospect. They are skilled in stimulating demand for a company's products. Marketers are responsible for demand management. Possible Demand states are:
1. 2. 3. 4. 5. 6. 7. 8. Negative demand -- Consumers dislike the product and may even pay a price to avoid it. Nonexistent demand - Consumers may be unaware or uninterested in the product. Latent demand - Consumers may share a strong need that cannot be satisfied by an existing product. Declining demand - Consumers begin to buy the product less frequently or not at all. Irregular demand - Consumer purchases vary on a seasonal, monthly, weekly, daily, or even hourly basis. Full demand - Consumers are adequately buying all products put into the marketplace. Overfull demand- More consumers would like to buy the product than can be satisfied. Unwholesome demand - Consumers may be attracted to products that have undesirable social consequences.

In each case, marketers must identify the underlying cause(s) of the DEMAND state and then determine a plan for action to shift the demand to a more desired state.

THE MARKETS?

KEY CUSTOMER MARKETS Consider the following key customer markets: 1. Consumer Markets Companies selling mass consumer goods and services such as soft drinks, cosmetics, air travel, and athletic shoes and equipment spend a great deal of time trying to establish a superior brand image. Much of a brand's strength depends on developing a superior product and packaging, ensuring its availability, and backing it with engaging communications and reliable service. 2. Business Markets Companies selling business goods and services often face well-trained and well-informed professional buyers who are skilled in evaluating competitive offerings. Business buyers buy goods in order to make or resell a product to others at a profit. Business marketers must demonstrate how their products will help these buyers achieve higher revenue or lower costs. Advertising can play a role, but a stronger role may be played by the sales force, price, and the company's reputation for reliability and quality.

THE MARKETS?

KEY CUSTOMER MARKETS Consider the following key customer markets: 3. Global Markets Companies selling goods and services in the global marketplace face additional decisions and challenges. They must decide which countries to enter; how to enter each country; how to adapt their product and service features to each country; how to price their products in different countries; and how to adapt their communications to fit different cultures. Nonprofit and Governmental Markets Companies selling their goods to nonprofit organizations such as churches, universities, charitable organizations, or government agencies need to price carefully because these organizations have limited purchasing power. Lower prices affect the features and quality that the seller can build into the offering. Much government purchasing calls for bids, with the lowest bid being favored, in the absence of extenuating (justifying)factors.

4.

THE MARKETS?

MARKETPLACES, MARKETSPACES, AND METAMARKETS Marketplace is physical, as when you shop in a store. Marketspace is digital, as when you shop on the Internet.

Metamarket is to describe a cluster of complementary products and services that are closely related in the minds of consumers but are spread across a diverse set of industries. The automobile metamarket consists of automobile manufacturers, new car and used car dealers, financing companies, insurance companies, mechanics, spare parts dealers, service shops, auto magazines, classified auto ads in newspapers, and auto sites on the Internet.

THE OUTLINE OF MARKETING

Marketing Business Philosophy

Marketing Strategies

Marketing Tactics

Marketing Concept STP Marketing Marketing Mix

Customer needs Target market Profitability Segmentation Targeting Product Pricing

Integrated marketing Positioning

Promotion
Place

VALUE & SATISFACTION

Value =

Benefits = Costs

Functional benefits + Emotional benefits

Monetary + Time + Energy + Psychic

Marketers can increase the value by: Raise benefits Reduce costs Raise benefits by more than the raise in costs Lower benefits by less than the reduction in costs

THE MARKETING PROCESS

1. Analyzing Marketing Opportunities.

2. Choosing Target Markets.

3. Formulating Marketing Strategies.

4. Planning the Marketing Mix. 5. Managing the Marketing Effort.

THE MARKETING MIX

Seven Ps Product Place Price Promotion People Process Physical evidence Positioning

Four Cs Customer solution Customer cost Convince Communication Care (with which I am treated) Consumption (of my time and energy required) Confirmation (that your product really exists) Clarity (with respect to what you are offering vs. the
competition)

MARKETING COMMUNICATIONS

The Role of Marketing Communications Marketing communications are the means by which firms attempt to inform, persuade, and remind consumersdirectly or indirectlyabout the products and brands that they sell. Marketing communications represent the "voice" of the brand and are a means by which it can establish a dialogue and build relationships with consumers. Consumers can be told or shown how and why a product is used, by what kind of person, and where and when;

MARKETING COMMUNICATIONS

The Role of Marketing Communications Consumers can learn about who makes the product and what the company and brand stand for; and consumers can be given an incentive or reward for trial or usage.

Marketing communications allow companies to link their brands to other people, places, events, brands, experiences, feelings, and things.
Marketing communications can contribute to brand equity by establishing the brand in memory and crafting a brand image.

MARKETING COMMUNICATIONS

Marketing Communications MIX

in terms of building brand equity. The marketing communications mix consists of six major modes of communication: 1. Advertising - Any paid form of non-personal presentation and promotion of ideas, goods, or services by an identified sponsor. 2. Sales promotion -A variety of short-term incentives to encourage trial or purchase of a product or service. 3. Events and experiences - Company-sponsored activities and programs designed to create daily or special brand-related interactions. 4. Public relations and publicity - A variety of programs designed to promote or protect a company's image or its individual products. 5. Direct marketing - Use of mail, telephone, fax, e-mail, or Internet to communicate directly with or solicit response or dialogue from specific customers and prospects. 6. Personal selling - Face-to-face interaction with one or more prospective purchasers for the purpose of making presentations, answering questions, and procuring orders.

MARKETING COMMUNICATIONS

MARKETING COMMUNICATIONS

Building Brand Equity

THE COMMUNICATIONS PROCESS

1. Macromodel
Nine Elements 2 represent the major parties in a communicationsender and receiver 2 represent the major communication toolsmessage and media. 4 represent major communication functionsencoding, decoding, response, and feedback. The last element in the system is noise

THE COMMUNICATIONS PROCESS

2. Micromodel
Concentrate on consumers' specific responses to communications. All these models assume that the buyer passes through a cognitive, affective, and behavioral stage, in that order. By choosing the right sequence, the marketer can do a better job of planning communications
Appropriate learn-feel-do when the audience has high involvement with a product category perceived to have high differentiation, Example as in purchasing an automobile or house

do-feel-learn

is relevant when the audience has high involvement but perceives little or no differentiation within the product category
when the audience has low involvement and perceives little differentiation within the product category,

as in purchasing an airline ticket or personal computer

learn-do-feel

as in purchasing salt or batteries

THE COMMUNICATIONS PROCESS

Generally
To show how fragile the whole communications process is, assume that the probability of each of the six steps being successfully accomplished is 50 percent. The probability would be .5 x .5 x .5 x .5 x .5 x .5, which equals 1.5625 percent. To increase the odds for a successful marketing communications campaign, marketers must attempt to increase the likelihood that each step occurs. For example, from an advertising standpoint, the ideal ad campaign would ensure that: The right consumer is exposed to the right message at the right place and at the right time. The ad causes the consumer to pay attention to the ad but does not distract from the intended message. The ad properly reflects the consumer's level of understanding about the product and the brand. The ad correctly positions the brand in terms of desirable and deliverable points- of difference. The ad motivates consumers to consider purchase of the brand. The ad creates strong brand associations with all of these stored communications effects so that they can have an impact when consumers are considering making a purchase.

THE COMMUNICATIONS PROCESS

Develop Effective Communication

1. Identify the Target Audience: The process must start with a clear target audience in mind: potential buyers of the company's products, current users, deciders, or influencers; individuals, groups, particular publics, or the general public. The target audience is a critical influence on decisions on what to say, how to say it, when to say it, where to say it, and to whom to say it. It is often useful to define target audience in terms of usage and loyalty.

Process

THE COMMUNICATIONS PROCESS

Develop Effective Communication

1. Identify the Target Audience: The process must start with a clear target audience in mind: potential buyers of the company's products, current users, deciders, or influencers; individuals, groups, particular publics, or the general public. The target audience is a critical influence on decisions on what to say, how to say it, when to say it, where to say it, and to whom to say it. It is often useful to define target audience in terms of usage and loyalty.

Process

THE COMMUNICATIONS PROCESS

Develop Effective Communication

1. Identify the Target Audience: Communication strategy will differ depending on the usage and loyalty involved. Image analysis can be conducted to profile the target audience in terms of brand knowledge familiarity scale:
Never Heard Of Heard Of Only Know A Little Bit Know A Fair Know Very Amount Well

Process

favorability scale:
Very Somewhat Indifferent Unfavorable Unfavorable Somewhat Favorable Very Favorable

THE COMMUNICATIONS PROCESS

Develop Effective Communication

1. Identify the Target Audience:
Favorable
less familiar to most Most people know people, but those it and like it who know it like it. Is viewed negatively Is seen as poor, and by those who know everyone knows it! it, but (fortunately) not too many people know it

Process

Low Familiarity

must find out why people dislike it and take steps to improve its quality while keeping a low profile should lower its profile, improve its quality, and then seek public attention

Must maintaining its good reputation and high awareness.

High Familiarity

Must gain the attention of more people.

Unfavorable

THE COMMUNICATIONS PROCESS

Develop Effective Communication

2. Determine The communication Objective: A. Category Need Establishing a product or service category as necessary to remove or satisfy a perceived discrepancy between a current motivational state and a desired emotional state. A new-to-the-world product such as electric cars would always begin with a communications objective of establishing category need. B. Brand Awareness - Ability to identify (recognize or recall) the brand within the category, in sufficient detail to make a purchase. Recognition is easier to achieve than recallconsumers are more likely to recognize Stouffer's distinctive orange packages than recall the brand if asked to think of a brand of frozen entrees. Brand recall is important outside the store; brand recognition is important inside the store. Brand awareness provides a foundation for brand equity.

Process

THE COMMUNICATIONS PROCESS

Develop Effective Communication

2. Determine The communication Objective: C. Brand Attitude - Evaluation of the brand with respect to its perceived ability to meet a currently relevant need. Relevant brand needs may be negatively oriented (problem removal, problem avoidance, incomplete satisfaction, normal depletion) or positively oriented (sensory gratification, intellectual stimulation, or social approval). Household cleaning products often use problem-solution; food products, on the other hand, often use sensoryoriented ads emphasizing appetite appeal. D. Brand Purchase Intention - Self-instructions to purchase the brand or to take purchase-related action. Promotional offers in the form of coupons or two-for-one deals encourage consumers to make a mental commitment to buy a product. But many consumers do not have an expressed category need and may not be in the market when exposed to an ad, making intentions less likely to be formed. For example, in any given week, only about 20 percent of adults may be planning to buy detergent; only 2 percent may be planning to buy a carpet cleaner; and only 0.25 percent may be planning to buy a car The most effective communications often can achieve multiple objectives

Process

THE COMMUNICATIONS PROCESS

Develop Effective Communication

3. Design Communication:
Formulating the communication requires solving three problems: what to say (Message Strategy), how to say it (Creative Strategy), Informational Appeal Transformational Appeal and who should say it (Message Source)

Process

THE COMMUNICATIONS PROCESS

Develop Effective Communication

4. Select Channels: Personal (advocate, expert, and social channels, testimonials, Word of Mouth, ) or Non-personal (media, atmospheres, and events) 5. Establish the Total Marketing Communications Budget:
AFFORDABLE METHOD Many companies set the promotion budget at what they think the company can afford. PERCENTAGE-OF-SALES METHOD Many companies set promotion expenditures at a specified % of sales (either current or anticipated) or of the sales price. COMPETITIVE-PARITY METHOD Some companies set their promotion budget to achieve share-of-voice parity with competitors.

Process

THE COMMUNICATIONS PROCESS

Develop Effective Communication

5. Establish the Total Marketing Communications Budget:
OBJECTIVE-AND-TASK METHOD The objective-and-task method calls upon marketers to develop promotion budgets by defining specific objectives, determining the tasks that must be performed to achieve these objectives, and estimating the costs of performing these tasks. The sum of these costs is the proposed promotion budget.

Process

THE COMMUNICATIONS PROCESS

Develop Effective Communication

6. Deciding on the Marketing Communications Mix: Depend upon the following factors:
TYPE OF PRODUCT MARKET Communications mix allocations vary between consumer and business markets. Consumer marketers tend to spend comparatively more on sales promotion and advertising; Business marketers tend to spend comparatively more on personal selling. Although advertising is used less than sales calls in business markets, it still plays a significant role: Advertising can provide an introduction to the company and its products. If the product has new features, advertising can explain them. Reminder advertising is more economical than sales calls. Advertisements offering brochures and carrying the company's phone number are an effective way to generate leads for sales representatives. Sales reps can use tear sheets of the company's ads to legitimize their company and products. Advertising can remind customers of how to use the product and reassure them about their purchase

Process

THE COMMUNICATIONS PROCESS

Develop Effective Communication

6. Deciding on the Marketing Communications Mix: Depend upon the following factors:
BUYER-READINESS STAGE Communication tools vary in cost-effectiveness at different stages of buyer readiness. Advertising and publicity play the most important roles in the awareness-building stage. Customer comprehension is primarily affected by advertising and personal selling. Customer conviction is influenced mostly by personal selling. Closing the sale is influenced mostly by personal selling and sales promotion. Reordering is also affected mostly by personal selling and sales promotion, and somewhat by reminder advertising

Process

THE COMMUNICATIONS PROCESS

Develop Effective Communication

6. Deciding on the Marketing Communications Mix: Depend upon the following factors:
PRODUCT LIFE-CYCLE STAGE Communication tools also vary in cost-effectiveness at different stages of the product life cycle. In the introduction stage, advertising, events and experiences, and publicity have the highest cost effectiveness, followed by personal selling to gain distribution coverage and sales promotion and direct marketing to induce trial. In the growth stage, demand has its own momentum through word of mouth. In the maturity stage, advertising, events and experiences, and personal selling all grow more important. In the decline stage, sales promotion continues strong, other communication tools are reduced, and salespeople give the product only minimal attention.

Process

THE COMMUNICATIONS PROCESS

Develop Effective Communication

7. Measure Results: involves asking members of the target audience whether they recognize or recall the communication, how many times they saw it, what points they recall, how they felt about the communication, and their previous and current attitudes toward the product and the company.

Process

THE COMMUNICATIONS PROCESS

Develop Effective Communication

7. Manage Integrated Marketing Communications (IMC): IMC is: The marketing communications planning that recognizes the added value of a comprehensive plan that evaluates the strategic roles of a variety of communications disciplines and combines these disciplines to provide clarity, consistency, and maximum impact through integration of discrete (disconnected) messages

Process

DEVELOPING AN ADVERTISING PROGRAM

Process
1. 2. 3. 4. 5. Set Advertising Objectives; Establish A Budget; Choose The Advertising Message And Creative Strategy; Decide On The Media; Evaluate Communication And Sales Effects.

DEVELOPING AN ADVERTISING PROGRAM

Process
1. Set Advertising Objectives: is a specific communications task and achievement level to be accomplished with a specific audience in a specific period of time. Informative advertising aims to create brand awareness and knowledge of new products or new features of existing products. Unfortunately, sometimes people remembered the namebut hated the ad! Brand awareness cannot come at the expense of brand attitudes. Persuasive advertising aims to create liking, preference, conviction, and purchase of a product or service. Some persuasive advertising uses comparative advertising, which makes an explicit comparison of the attributes of two or more brands. Reminder advertising aims to stimulate repeat purchase of products and services. Reinforcement advertising aims to convince current purchasers that they made the right choice.

DEVELOPING AN ADVERTISING PROGRAM

Process
2. Advertising Budget:
Factors to be considered Stage in the product life cycle - New products typically receive large advertising budgets to build awareness and to gain consumer trial. Market share and consumer base - High-market-share brands usually require less advertising expenditure as a percentage of sales to maintain share. Competition and clutter - In a market with a large number of competitors and high advertising spending, a brand must advertise more heavily to be heard. Advertising frequency The number of repetitions needed to put across the brand's message to consumers has an important impact on the advertising budget. Product substitutability Brands in less-well-differentiated or commodity-like product classes (beer, soft drinks, banks, and airlines) require heavy advertising to establish a differential image.

DEVELOPING AN ADVERTISING PROGRAM

Process

3. Develop the Advertising Campaign:

what to say (Message Strategy), how to say it (Creative Strategy), Informational Appeal Transformational Appeal and who should say it (Message Source)

DEVELOPING AN ADVERTISING PROGRAM

Process
3. Develop the Advertising Campaign:
TV Ads: the most powerful advertising medium and reaches a broad spectrum of consumers. Strengths: 1. It can be an effective means of vividly demonstrating product attributes and persuasively explaining their corresponding consumer benefits. 2. Second, TV advertising can be a compelling means for dramatically portraying user and usage imagery. Drawbacks. 1. Product-related messages and the brand itself can be overlooked. 2. The large number of ads and non-programming material on television creates clutter that makes it easy for consumers to ignore or forget ads. 3. The high cost of production and placement

DEVELOPING AN ADVERTISING PROGRAM

Process
3. Develop the Advertising Campaign:
Print Ads: Strengths: 1. They can provide much detailed product information 2. They can also effectively communicate user and usage imagery. Drawbacks. 1. the static nature of the visual images in print media makes it difficult to provide dynamic presentations or demonstrations. 2. Print media can be fairly passive picture, headline, and copy are important, in that order. The picture must be strong enough to draw attention. Then the headline must reinforce the picture and lead the person to read the copy. The copy itself must be engaging and the advertised brand's name must be sufficiently highlighted

DEVELOPING AN ADVERTISING PROGRAM

Process

3. Develop the Advertising Campaign:

Radio Ads: Radio is a pervasive medium Strengths: 1. flexibilitystations are very targeted, 2. Ads are relatively inexpensive to produce and place, and 3. Short closings allow for quick response. Drawbacks. 1. lack of visual images and the relatively passive nature of the consumer processing that results. !!

DEVELOPING AN ADVERTISING PROGRAM

Process

4. Decide on Media:
Reach (R). The number of different persons or households exposed to a particular media schedule at least once during a specified time period. Frequency (F). The number of times within the specified time period that an average person or household is exposed to the message. Impact (I). The qualitative value of an exposure through a given medium (thus a food ad in Good Housekeeping would have a higher impact than in Fortune magazine).

DEVELOPING AN ADVERTISING PROGRAM

Process
4. Decide on Media:
Total number of exposures (E). E = R x F This measure is referred to as the Gross Rating Points (GRP) Weighted number of Exposures (WE). WE = R x F x I The media planner has to figure out the most cost-effective combination of reach, frequency, and impact. Reach is most important when launching new products, flanker brands, extensions of well-known brands, or infrequently purchased brands; or going after an undefined target market. Frequency is most important where there are strong competitors, a complex story to tell, high consumer resistance, or a frequentpurchase Many advertisers believe a target audience needs a large number of exposures for the advertising to work. Others doubt the value of high frequency. They believe that after people see the same ad a few times, they either act on it, get irritated by it, or stop noticing it

DEVELOPING AN ADVERTISING PROGRAM

Process

4. Decide on Media:

THANK YOU
[email protected] +20105474749