Chapter 2 Notes - Advertisings Role in Marketing (Chapter...

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Unformatted text preview: Advertisings Role in Marketing (Chapter 2) WHAT IS MARKETING? Marketing the way a product is designed, tested, produced, branded, packaged, priced, distributed, and promoted AMA definition an organizational function and set of processes for creating, communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders Goal is to match a products availability and the companys production capabilities to the customers need, desire, or demand for the product Key Concepts in Marketing Product-driven philosophy traditionally, marketers developed a product and then tried to find a market for it Ex. cotton gin, sewing machine, patent medicines The pharmaceutical industry continues to be driven primarily by a product-focused philosophy Now, marketers attention is on consumer needs and wants and the concepts of exchange, branding, differentiation and added value Customer-based philosophy more recent view of marketing practices The Marketing Concept: Focus on Customers Successful marketers try to determine and meet the needs and wants of consumers rather than simply providing a product Marketing concept the philosophy that suggests marketing should focus first on identifying the needs and wants of the customer rather than on finding ways to build and sell products that customers may or may not want Consumer-first approach (market approach) theme of Discover Card ad Ex. Harley Davidson, UPS, Intel, Dell (personalization of computers) Corporate-focused approach (product approach) still used, particularly in areas where product innovation is important, such as technology Consumer a general term for people who buy and use products and services Customer someone who has purchased a specific brand or visited a specific retailer Closer link to brand or store because they have bought there or visited Said to have a brand relationship, sometimes even brand loyalty Marketing concept involves 2 steps: 1. Determine through research what the customer needs and wants 2. Develop, manufacture, market, and service goods that fill those needs and wants In advertising, the difference lies in the focus of the ad: Is the focus on the consumer or on the company? Consumer focus is said to be strongest approach, but sometimes a product or company approach is appropriate Product or corporate focus is less effective in driving consumer response Exchange Marketing creates exchange the act of trading a desired product or service to receive something of value (money) in return Money is exchanged for goods or services Marketing provides economic exchange and communication exchange (important to advertising) Communication exchange advertising provides both information and the opportunity for customer- company interaction Marketing is only as effective as the communication practices that make people aware of the product Differentiation and Competitive Advantage...
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Chapter 2 Notes - Advertisings Role in Marketing (Chapter...

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