RELATIONSHIP BETWEEN ADVERTISING

AND MARKETING

Christ University, Bangalore

Agenda

• Marketing Concepts
• Marketing Process
• Marketing Tools
• Advertising Agencies
• Synergy between
Marketing and
Advertising

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Evolution of Marketing Concept
1. The Production Concept: holds that
consumers will prefer products that are
widely available and inexpensive.
Production is considered to be an ultimate
aim. Whatever is produced is fed into the
market. In such a situation, consumers
readily accepts the product that is made
available.
2. The Product Concept: holds that a
consumer will favor those products that
offer the most quality performance or
innovative features. Managers in product-
oriented organizations focus their energy
on making superior products and improving
them over time
Evolution of Marketing Concept

3. The Selling Concept: holds that consumers and business if left alone,
will ordinarily not buy enough of the organization’s products. The
organization must therefore undertake an aggressive selling and
promotion effort.
Evolution of Marketing Concept

4. The Marketing Concept:

accepts the customer as the king. It
holds that the key to achieving its
organizational goal consists of the
company being more effective
than competitors in creating and
delivering and communicating
customer value to its chosen target
markets. In the marketing-
orientation stage, companies
identify what consumers want and
tailor all of the activities of the
firm to satisfy those needs as
efficiently and effectively as
possible
Evolution of Marketing Concept

5. The Societal/ Social Marketing

Concept: is broadened marketing
concept. It holds that the
organization’s task is to determine
the needs, wants and interests of
target markets and to deliver the
desired satisfactions more
effectively and efficiently than
competitors in a way that preserves
or enhances the consumer’s and the
society’s well- being. Societal
marketing concept is a management
philosophy that considers the
welfare of society as well as the
interests of the firm and its
Benefits of Marketing Concept

1. Long term success is assured to an

enterprise if it recognizes that the
needs of the market are paramount
or supreme
2. Customer needs, wants and desires
receive top consideration in all
business activities
3. Greater attention is paid to the
product planning and development
so that merchandising can become
more effective
4. Interests of the enterprise and
, society can be harmonized as profit
through service is emphasized
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Benefits of Marketing Concept

5. It ensures effective utilization of physical and human resources. Under

a market- minded firm, management has the responsibility to create
value- satisfying goods and services that consumers will want to buy
6. Demand side of the equation of exchange is honored more and supply
is adjusted to changing demand

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Definition of Marketing Concept

• According to Philip Kotler, “The

marketing concept is a consumer
orientation backed by integrated
marketing aimed at generating
customer satisfaction as the key
to satisfying organizational
goals”

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Definition of Marketing

• The American Marketing

Association defines Marketing as
“the process of planning and
executing the conception, pricing,
promotion, and distribution of
ideas, goods, and services to
create exchanges that satisfy the
perceived needs, wants, and
objectives of the customer and the
organization”
• In simple words, Marketing is the
process of finding, satisfying, and
retaining customers while the
business meets its goals
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Selling V/s Marketing

Selling Marketing

1.Emphasis is on the product 1. Emphasis is on the

customer’s needs
2.Internal- company (seller) 2. External- market
orientation (customer) orientation
3.Emphasis is on the seller’s needs 3. Emphasis is on the
buyer’s needs
4. Narrow in scope 4. Wider in scope
Marketing Management

• According to Philip Kotler, “Marketing

management is the art and science of
choosing target markets and getting,
keeping, and growing customers
through creating, delivering, and
communicating superior customer
value”
• According to William J. Stanton,
Marketing Management is the
marketing concept in action”
• Marketing Management is a wider term
and it includes Sales Management also
• Sales Management refers to the overall
management of sales
Advertising’s Role in the Marketing Plan

• Advertising is an integral but relatively

small part of the marketing plan
• Advertising is one of several marketing
communication techniques
• It is capable of reaching a mass audience
repeatedly
• It also effectively informs customers
about new products, explains important
changes in existing products, reminds
customers to buy, and reinforces past
purchases
• Finally, advertising can persuade
customers to change their attitudes,
beliefs, or behavior
Advertising’s Role in the Marketing Plan
• Superior advertising cannot
save an inferior marketing
plan or rescue a bad product-
at least not for long- but
inferior advertising can
destroy an excellent plan or
product
• The advertising director must
thoroughly understand
marketing and advertising’s
role in the marketing plan
• The marketing manager, too,
must understand the role
advertising plays in the
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Types of Markets

• The word ‘market’ originally meant the place where the exchange
between seller and buyer took place
• When marketing strategists speak of ‘markets’, they generally refer to
groups of people or organizations
• The four main types of markets are (1) consumer, (2) business- to-
business (industrial), (3) institutional and (4) reseller
• Refer the diagram on Page 65 in Wells, Burnett and Moriarty Text
Types of Markets
1. Consumer Markets: consist of people who buy products and
services for personal or household use
2. Business- to- Business (Industrial) Markets: consist of companies
that buy products or services to use in their own businesses or in
making other products
3. Institutional Markets: include a wide variety of profit and non-
profit organizations- such as hospitals, government agencies, and
schools- that provide goods and services for the benefit of society.
For example, Universities are in the market for furniture, cleaning
supplies, computers, office supplies, groceries, audio- visual material
etc.
4. Reseller Markets: are made up of what we call intermediaries.
Resellers are wholesalers, retailers, and distributors who buy finished
or semi- finished products and resell them for a profit
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Basics in Marketing
• Refer Chapter 3
‘Advertising and the
Marketing Process’ in
Wells and Moriarty Text
for studying some of basic
concepts in Marketing
• IMC (Integrated Marketing
Communication)- Refer
Page 80 of the above Text
• Approaching the Market-
Page 67 of the above text
• The Marketing Concept and
Relationship Marketing-
Refer Page 69 of the above
text
Push Strategy V/s Pull Strategy

•Push strategy: when the manufacturer

uses its sales force and trade promotion
money to induce intermediaries to
carry, promote, and sell the product to
end- users
•Pull strategy: when the manufacturer
uses advertising and promotion to
persuade consumers to ask
intermediaries for the product, thus
inducing the intermediaries to order it
•Most marketers use a Combination
Strategy of push and pull
Advertising Agency

• An advertising agency is an independent concern acting as a

specialist in advertising.
• It acts as an agent or consultant of the advertiser who is a
manufacturer, wholesaler or retailer
• An adverting agency helps in planning, creation and placing of
advertisement
• Examples of popular Indian ad agencies- Hindustan Thompson
Associates Ltd, Lintas India Ltd, Mudra Communications Ltd, Ogilvy
& Mather Ltd, Ultra Advertising Private Ltd
Functions of Advertising Agencies
•Copy writing
• Art- picture, photographs
• Media planning and buying of space
• Conducting market research
• Public relations
• Merchandising
• Sales promotion devices
• Forwarding advertising material to the clients and
the media owners on time
• Evaluating the effectiveness of the advertisement
 Ad Agencies: Combining Marketing and
Advertising
• Why hire an Agency?
• Why not hire an Agency?
• An in- house agency is a group of advertising specialists that operates
its own profit center and handles all the advertising work for its
primary client- the company with which it is affiliated. In- house
agencies may also handle outside work, particularly for suppliers,
vendors, and distributors who work with the company
• Advantages of in- house agencies are:
1. They allow individuals to become technical experts on the product
being advertised
2. The in- house agency works only for the client and gives priority to
the client’s needs, and,
3. Minimum staffing is required because all the work is focused on one
client
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Advertising Department

• An advertising department is
somewhat of a hybrid in that it
acts as a facilitator between
outside vendors and advertising
management
• It may contain a handful of client
employees who have expertise in
all tools of advertising
• So their responsibilities may
include selecting all agencies,
assigning tasks to these agencies,
and doing the same with other
communication specialists, such as
media providers, event planners,
and fulfillment houses
Advertising Department

• Advertising Departments may also have the responsibility of making

sure that the work is done and that objectives are achieved
• Advertising Departments may also engage in the creative and media-
planning/ buying tasks
• They share several of the advantages and disadvantages of the in-
house and external agency
Types of Advertising Agencies
• Full- Service Agencies: are those that includes the four major staff
functions- account management, creative services, media planning
and buying, and account planning, which is also known as research. A
full- service advertising agency will also have its own accounting
department, a traffic department to handle internal tracking on
completion of projects, a department for broadcast and print
production (usually organized within the creative department), and a
human resources department.
Types of Advertising Agencies
• Specialized Agencies: They either
specialize in certain functions (writing
copy, producing art, or media buying),
audiences (minority, youth), or industries
(health care, computers, agriculture,
business- to- business communication). In
addition, there are specialized agencies in
all marketing communications areas, such
as direct marketing, sales promotion,
public relations, events and sports
marketing, and packaging and point- of-
sale. There are also one- client agencies
such as the Focus agency in Dallas that
serves only GTE
Types of Advertising Agencies
• Industry- Focused
Agencies: Numerous
agencies concentrate on
certain fields or industries,
such as agriculture,
medicine and
pharmaceuticals, health
care, and computers. These
agencies handle a variety of
clients from within that
field, so they are able to
apply their particular
expertise in those areas,
making them essentially full
service.
Types of Advertising Agencies

• Minority Agencies: Agencies

that focus on an ethnic group, or
minority agencies, grew
substantially in the 1980s as
marketers realized that African
Americans and Hispanics, the
two largest minorities, had
preferences and buying patterns
that differed from those of the
general market. These agencies
are organized in much the same
way
Types of Advertising Agencies
• Creative Boutiques: are ad
agencies, usually small (two
or three people to a dozen
more), that concentrate
entirely on preparing the
creative execution of client
marketing communications.
The focus of the
organization is entirely on
the idea, the creative
product. A creative boutique
will have one or more
writers or artists on staff.
Types of Advertising Agencies
• Media- Buying Services: specialize
in the purchase of media for clients.
They are in high demand for many
reasons. First, media has become
more complex as the number of
choices grows- think of the
proliferation of new cable channels,
magazines and radio stations. Second,
the cost of maintaining a competent
media department has escalated.
Third, media- buying services often
buy, media at a low cost because they
can group several clients’ purchases
together to develop substantial
buying power.
Types of Advertising Agencies
• Virtual Services: A recent phenomenon is the agency that operates as
a group of freelancers and is paid accordingly. This type of agency
does not use conventional office space. Chiat/ Day pioneered an
approach called “team workroom”, or a virtual office. In a virtual
agency like Chiat/ Day, staff members do not have fixed offices, they
work at home, in their cars, or at their clients’ offices. Modern
technology allows team members to work in environments other than
a conventional office.
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YOU!!!!!!!!!!!