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
Marketing is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large. (Approved October 2007) http://www.marketingpower.com/aboutama/pages/definitionofmarketing.aspx
America Marketing Association (AMA) board of directors have defined marketing as “the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customer, clients, partners and society at large.”
Marketing – The process of creating, distributing, promoting, and pricing goods, services, and ideas to facilitate satisfying exchange relationships with customers and develop and maintain favorable relationships with stakeholders in a dynamic environment.
Definition of marketing is the management process through which goods and services move from concept to the customer. For example, new Apple products are developed to include improved applications and systems, are set at different prices depending on how much capability the customer desires, and are sold in places where other Apple products are sold. Marketing is based on thinking about the business in terms of customer needs and their satisfaction.
Everyday there is the entrance of new products and services in the market. Additionally, product innovation drives competition between multiple organizations. Subsequently, there is a shift in prices and the types of services of provided. Next, there are multiple channels in which goods and services are provided to consumers. These distribution channels include producer to consumer, retailer to consumer, and wholesaler to retailer and consumer. Moreover, supplier diversity allows for economic growth. In some instances it may be difficult for diverse businesses to obtain capital upon start-up. However, many of the supplier programs provide networking opportunities to those who encounter any
“Marketing is the process of planning and executing the conception, pricing, promotion and distribution of ideas, goods and services to create exchange and satisfy individual and organisational objectives” (AMA,1985)
To put the company's products to consumers can be sold through public distribution channels, direct channels, indirect channels.
Marketing is the process of planning and undertaking the idea of pricing, promotion, and distribution of goods and services to create and retain relationships that will satisfy individual and organisational objectives. It also deals with customers, understanding, communicating, and delivering consumer value and satisfaction. Also, individuals obtain what they need and want by creating and exchanging products with others. Exchange process involves work. Sellers must search for buyers, identify their needs, design good products, set prices to the product, promote and deliver them. However, individuals make decisions on how to spend their obtainable resources like money before purchasing any products. This is known as
Once we have the product ready, we need to divide our market in to homogenous units. This process of subdividing a large homogenous market into clearly identifiable segments having similar needs, wants, or demand is called Market segmentation.
There are different types of customers in the market, part of the business plan is to divide and concentrate on market strategies, which can be achieved by Segmentation, targeting and positioning (Chamber & Gray, 2010).
According to AMA (2013), Marketing is defined as the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large. It manages conveying the right item, to the right individuals at the right cost and at the ideal time.
‘Market segmentation represents an effort to identify and catergorise groups of customers and countries according to common characteristics’ (Keegan and Green 2016, p.228). For any business, it is crucial that they segment their market accordingly or they will risk forgoing sales opportunities. Fahy and Jobber (2015) identify the objective of market segmentation as distinguishing groups of customers with similar requirements so
Marketing takes strategy, a company does their homework to try to prevent failure of a product. They do the research to see which consumers may need or want their products. A firm segments its market so that it can respond to the wants of groups of potential buyers. It would be easier for the marketing department if not everyone had different wants and needs.
Definition of marketing: Marketing is something which every organization does to place their product or service in the hands of potential customers. It includes diverse disciplines, public relations, pricing, packaging and distribution.
Definition of Marketing – Marketing can be defined as the process of converting wants into needs. In other words it can be defined as the process of selling products or services to the customers by an organisation.