Essential Questionsbourguignon.weebly.com/.../history_of_marketing.pdf · The Essence of Marketing...
Transcript of Essential Questionsbourguignon.weebly.com/.../history_of_marketing.pdf · The Essence of Marketing...
The History of Marketing
The Branding of North America
Essential Questions
• Why is marketing needed? • Why do brands exist?
The Essence of Marketing
• Satisfying consumers’ wants and needs is a common definition of marketing
• However, the true essence of marketing is
Convincing consumers to do something
• Marketers attempt to convince consumers that their organization has something the consumer wants or needs
Convincing Consumers
• Products, services, and events are not the only things that are marketed
• You can also market ideas or causes • For example:
– Politicians market their ideas to potential voters – NotforProfit organizations market their cause to potential donors or volunteers and their benefits to potential clients
Marketing in our Lives
T/P/S Activity List examples of marketing in everyday life. Where do you see it? What does it look like?
List as many examples of marketing in our lives as you can on a sheet of paper
Be prepared to discuss your list
Marketing in our School Debate
• Many school boards accept exclusive deals from companies such as Pepsi or CocaCola to be the sole soft drink supplier in that particular board in exchange for cash or inkind product
• As a consumer who is constantly bombarded by brands and marketing, do you think that these exclusive deals benefit or hurt students?
Brands
• Brands are synonymous with marketing and seem to be everywhere in our global economy
• A good brand tells a story, it has a personality • Think of McDonalds, Rolex, IBM, Google – What images do you see when you think of these brands?
Behind every great brand is a great idea Interbrand
Name that logo
Multinationals and their Brands
Proctor & Gamble • Always • Cascade • Charmin • Cheer • CoverGirl • Crest • Hugo Boss
Disney • Walt Disney Pictures • Touchstone Pictures • Miramax • ESPN • Disneyland • Disney Toys • ABC
Nestlé • Nescafé • Perrier • Nestea • HäagenDasz • PowerBar • Friskies • Purina • Smarties • Kit Kat
General Motors • Buick • Cadillac • Chevrolet • GMC • HUMMER
The History of Marketing
We have taken a glimpse at what marketing looks like in 2006…but how did we get to this point.
Where did it all begin?
Ancient times
• Farmers, craftspeople, and artisans worked with their hands and produced limited output
• Consumers bought what was available, if they had money. If not, they made their own products
• Marketing played a limited role because demand was greater than supply
The Industrial Revolution beginning in 1700’s
• The Industrial Revolution changed marketing forever
• Steam and eventually electricity, gas, and oil provided power to factories, railroads, homes, and automobiles
• Factories could produce huge quantities of goods • Railroads could transport these goods all over the country
How the Brand Came About
• During the second half of the 19 th Century, two occurrences contributed to the need for brands and advertising
1. Many new inventions 2. The invention of the factory
New Inventions
• Ads were used to inform consumers of new inventions • As well as, to convince them that their lives would be better if they used these new inventions
The Invention Timeline
The Effect of the Factory
• The market was being flooded with mass produced products that were indistinguishable
• Brands differentiated these products
• Advertisements communicated a perceived benefit of using one brand over another
• This was necessary because supply outweighed demand
• Familiar brands such as Uncle Ben, Aunt Jemima, and Old GrandDad began to replace the shopkeepers generic products
Industrial Revolution: Inventions & Factories
• Marketing became essential for business survival • Without advertising the population would never know about or want the new inventions
• Without branding these massproduced products were just commodities
Branding in the 20 th Century
• 1940’s – an understanding that corporations manufacture products but consumers buy brands
• Mid 1980’s – The idea developed by management theorists, that successful corporations must primarily produce brands, as opposed to products.
• Whoever owns the least, has the fewest employees on the payroll and produces the most powerful images, as opposed to products, wins the race.
1988 – Brand Equity Mania
• Philip Morris (Marlboro Cigarettes) bought Kraft for $12.6 billion
• Six times what the company was worth on paper • Paying the premium for the word Kraft. • Advertising had become more than just a sales strategy it was an investment in cold hard equity
The Marlboro Brand
• Owned by Philip Morris now a part of Altria Group
• Leading Cigarette manufacturer in the US
• The Marlboro Man is ranked the number one ad icon of all time by adage.com
• Launched in 1954 • Longest running ad campaign in history
Marlboro Friday
• April 2, 1993 • Philip Morris announced that they would slash prices of cigarettes by 20% to compete with bargain brands.
The Significance of Marlboro Friday • If a prestige brand that had spent more than a billion dollars on advertising was desperate enough to compete with no names than clearly the whole concept of branding was dead.
The Effect of Marlboro Friday
• Caused stocks to nosedive – Heinz, Quacker Oats, CocaCola, P&G, RJR Nabisco.
• Bargain conscious consumers hit by the recession were paying more attention to price than prestige.
• Loblaw’s PC, & Wal Mart’s Great Value had doubled their market share.
• Inexpensive PC clones flooded the market
• Had come full circle – Appeared as if it had returned to the shopkeeper dishing out generic goods from the prebranded era.
1850’s Generics
1980’s Brands
1993 Generics
However…
• The companies that were branded to the bone were doing just fine
• These companies had the foresight to see that brands are more important than products
The Real Legacy of Marlboro Friday?
• Brought the two most significant developments in nineties marketing and consumerism into sharp focus.
1) Big box bargain stores that provide the essentials of life and monopolize a disproportionate share of the market
2) Extra premium attitude brands that provide the essentials of lifestyle and monopolize ever expanding stretches of cultural space.
Big Box Stores & Premium Brands
Branding
Images, logos, & slogans
The Consummate Brand
NIKE
“Just Do it” Nike’s Mission
“To bring inspiration and innovation to every athlete in the world”
Top 10 Ad Icons & Slogans
1. The Marlboro Man Marlboro cigarettes
2. Ronald McDonald McDonald's restaurants
3. The Green Giant Green Giant vegetables
4. Betty Crocker Betty Crocker food products
5. The Energizer Bunny Eveready Energizer batteries
6. The Pillsbury Doughboy Assorted Pillsbury foods
7. Aunt Jemima Aunt Jemima pancake mixes and syrup
8. The Michelin Man Michelin tires 9. Tony the Tiger Kellogg's Sugar
Frosted Flakes 10.Elsie Borden dairy products
1. Diamonds are forever (DeBeers) 2. Just do it (Nike) 3. The pause that refreshes (Coca
Cola) 4. Tastes great, less filling (Miller Lite) 5. We try harder (Avis) 6. Good to the last drop (Maxwell
House) 7. Breakfast of champions (Wheaties) 8. Does she ... or doesn't she? (Clairol) 9. When it rains it pours (Morton Salt) 10.Where's the beef? (Wendy's)
Source: Adage.com, The Advertising Century
Also check out the Ad Slogan Hall of Fame
Brand Manager Activity
Take the role of a team of brand managers (Groups of 34)
Your task is to plan and create a “brand image” for the ODSS Business Department or our Marketing class
Tip: Think of why you took business or enjoy business and try to incorporate that image or feeling into your brand design
You need to develop 1. A brand name 2. A logo 3. A slogan
Useful websites www.adslogans.com www.interbrand.com
International Business
Extension questions and activity
Brandings effect on Int. Business
• How has the big box store trend contributed/effected international business?
• How do premium brands contribute/affect international business?
• Consider their affect on domestic and international jobs, choice, and public space
Extension Activity
ie. Antitrust practices (Microsoft)
Premium brands
ie. Fewer retailers The big box store trend
Public Space Jobs Consumer Choice
How has …. been effected by Int. Business
Sources
• Klein, N. (2000). No Logo, Vintage Canada, Toronto, ON.
• Notman, D & Wilson, J. (2002). The World of Marketing: A Canadian Perspective, Nelson Publishing, Toronto, ON.
• Adage.com