Advertising Marketing Process

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Advertising and the Marketing Process
Chapter Objectives
When you have completed this chapter, you should be able to 1. Discuss and define marketing and how advertising relates to marketing strategy 2. Explain the marketing concept 3. Outline the four tools of marketing and explain advertising’s relationship to them 4. Describe the role of the advertising agency. Its organization and compensation methods.

What is 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 exchange that satisfy the perceived needs, wants, and objectives of the customer and the organization. Effective
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Business-to-Business (Industrial) Markets * Business-to-business markets consist of companies that buy products or services to use in their own businesses or in making other products. Institutional Markets * Institutional markets include a wide variety of profit and nonprofit organizations-such as hospitals, government agencies, and schools-that provide goods and services for the benefit of the society. Reseller Market * The reseller market includes what we often call middlemen. Resellers include wholesalers, retailers, and distributors who buy finished or semi finished products and resell them for a profit. Approaching the Market * Planners need to develop a strategy for approaching the market. Because consumers in a market are seldom uniform, markets must decide whether to treat the market as homogeneous (that is, as a single, large unit) or as heterogeneous (a market composed of separate, smaller groups known as segment). Undifferentiation versus Segmentation Approaches * When planners treat the market as homogeneous, they ignore differences in the market and rely on one marketing strategy that will appeal to as many people as possible. This market approach is known as an undifferentiated or market aggregation strategy. * Few
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