mkt106 notes.docx

Marketing

Marketing

The activity, institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society.

Marketing Mix

A total system of business activity designed to plan, price, promote, and distribute products to the target market to achieve organizational objectives.

Price/Value Proposition

The price of a product based on market demand, competition, consumer economic well-being, relative value, and the consumer's ability to gauge that value.

Place (Distribution)

Involves the channels used to make the product easily accessible to customers, sending messages through the choice of distribution channel.

Promotion

Includes marketing communication tools like advertising, public relations, sales promotion, direct response, events, digital media, and personal sales.

Concept of Exchange

Marketing creates demand leading to an exchange, trading something of value for a desired product.

Types of Markets

Consumer markets, business-to-business markets, institutional markets, and channel markets are the four main types based on the type of buyer of a product.

Promotional Mix

Integrated Marketing Communication (IMC) unifies all marketing communication messages and tools to send a consistent message promoting the brand’s strategy.

History of Advertising

Traces the evolution of advertising from pre-modern times, the printing revolution, industrial period, machine period, to the digital period, highlighting key milestones and figures.

F

Founded N.W. Ayer & Son in 1869, introduced the "open contract" in 1875, changing how advertising agencies function.

Helen Lansdowne Resor

Renowned advertising executive at J. Walter Thompson Co., considered the greatest copywriter of her generation.

William Bernbach

Revolutionized advertising by advocating for short, memorable copy instead of extended content.

David Ogilvy

Known as the father of modern advertising, founded Ogilvy & Mather with a focus on selling as the primary objective.

Centralized system

Advertising or marcom manager controls the entire promotions operation, including budgeting and coordinating ad creation.

Decentralized system

Responsibilities transferred to brand manager who collaborates with outside agencies for promotional programs.

In-house agency

Advertising agency owned and operated by the advertiser, responsible for significant advertising expenditures.

Full-service agency

Offers a comprehensive range of marketing, communications, and promotions services to clients.

Account Services

Link between ad agency and clients, with account executives interpreting client needs to agency personnel.

Marketing Services

Research department gathering, analyzing, and interpreting information for developing advertising strategies.

Media department

Analyzes, selects, and contracts for media space or time to deliver client's advertising message.

Creative Services department

Responsible for creating and executing advertisements.

Communication Process

Involves sender, message, channel, receiver, decoding, feedback, noise, and response.

Word-of-mouth

Informal communication among consumers about products and services, a powerful source of information.

Buzz Marketing

Organized efforts to encourage positive word-of-mouth about a company, brand, or issue.

Viral Marketing

Propagating marketing messages through individual consumers' cooperation.

Receiver Analysis

Cognitive, affective, and conative stages representing receiver's knowledge, feelings, and actions towards a brand.

Effects of advertising program

Cognitive, affective, and behavioral stages influencing consumer response to advertising messages.