ch4 - I. The Assumption Syndrome A. You can't assume...

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I. The  Assumption Syndrome A. You can't assume anything about a market. Respect the importance of marketing and know how to interpret the data uncovered by research. B. Even superior advertising can't save a product that isn't marketed correctly. II. The Larger Marketing context of Advertising A. Advertisers must understand the relationship between the product and the marketplace. B. Every business organization performs a number of diverse activities which are typically classified into three broad functional divisions: 1. Operations (production/manufacturing) 2. Administration/finance 3. Marketing C. Marketing is the only function whose primary role is to attract revenues into the company, to recover the initial investment capital, and to earn consistent profits. D. Advertising helps the organization achieve its marketing goals. Therefore, an effective advertising specialist must have a broad understanding of the whole marketing environment in which advertising operates. III. Defining marketing A. Marketing is the business process (a series of actions or methods that takes place sequentially) 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 individuals and organizations. B. Advertising is just one of the numerous tools used in the promotion or communication, aspect of marketing. 1. Customer Needs and Product Utility a) A main element of marketing is its focus on the special relationship between a customer's needs and the product's problem- solving potential. This is generally referred to as the product's utility .
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b) Utility extends to the product's ability to satisfy both symbolic (or psychological) wants. 2. Marketers use research to discover what needs and wants exist in the marketplace and to define a product's general characteristics in the light of economic, social, and political trends. 3. The goal is to use this information for " product shaping " - designing products, through manufacturing, repackaging, or advertising, to satisfy more fully the customer's needs and wants. C. Marketing aims to create exchanges that satisfy the perceived needs, wants and objective of individuals and organizations. 1. Threeimportant concepts  are: a) Exchanges : The purpose of marketing and advertising. An exchange is any business transaction in which one person trades something of value to another person. Exchange is the traditional, theoretical core of marketing. It is important that the seller reassures the buyer - perhaps through advertising - that an equal exchange is possible. There must be a perceived equal-value exchange or the likelihood of an exchange is remote. b)
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This note was uploaded on 03/18/2008 for the course ADV 205 taught by Professor Bukovac during the Spring '08 term at Michigan State University.

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ch4 - I. The Assumption Syndrome A. You can't assume...

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