Market Promotions Chapter Three
3-1
Chapter 3
The Evolution of Promoting
Brands
3-2
1. Identify economic changes that gave rise to advertising.
2. Discuss how the relationship between marketers and retailers has changed over time.
3. Describe significant eras of promotion in the United States, including the impact of social change on promotion.
4. Define consumer empowerment and branded entertainment.
5. Identify forces that will continue to affect the evolution of integrated marketing communication.
3-3
The Rise of Advertising
Socialism - the government owns things, that eliminate competitors. Mixture between capitalism and communism. He talked about Finland.
• Rise of Capitalism
• In capitalists systems, business organizations must compete for survival in a free market setting.
• In this setting, it is natural that a firm would embrace a tool that assists it in persuading potential customers to choose its products over those offered by others. • Industrial Revolution
• The principle of limited liability allowed for the accumulation of large amounts of capital to finance the Industrial Revolution.
• The explosion in production capacity that marked the Industrial Revolution added to the importance of demand stimulation tools.
• Mass moves of consumers to cities and modern times helped create, along with advertising, consumer culture.
• Other important changes: shifting away from household self-sufficiency to greater dependence on marketplace goods; revolution in transportation; rapid population growth and urbanization.
All of this is occurring in China as we speak.
3-4
Power in Distribution Channels
• Power in Distribution Channels
• Marketing and branding play a key role in the ongoing power struggle between manufacturers and their retailers.
• Retailers have power in the marketplace deriving from the fact that they are closer to the customer.
• To assert more power in distribution channels, U.S. manufacturers began
Chapter 3
The Evolution of Promoting
Brands
3-2
1. Identify economic changes that gave rise to advertising.
2. Discuss how the relationship between marketers and retailers has changed over time.
3. Describe significant eras of promotion in the United States, including the impact of social change on promotion.
4. Define consumer empowerment and branded entertainment.
5. Identify forces that will continue to affect the evolution of integrated marketing communication.
3-3
The Rise of Advertising
Socialism - the government owns things, that eliminate competitors. Mixture between capitalism and communism. He talked about Finland.
• Rise of Capitalism
• In capitalists systems, business organizations must compete for survival in a free market setting.
• In this setting, it is natural that a firm would embrace a tool that assists it in persuading potential customers to choose its products over those offered by others. • Industrial Revolution
• The principle of limited liability allowed for the accumulation of large amounts of capital to finance the Industrial Revolution.
• The explosion in production capacity that marked the Industrial Revolution added to the importance of demand stimulation tools.
• Mass moves of consumers to cities and modern times helped create, along with advertising, consumer culture.
• Other important changes: shifting away from household self-sufficiency to greater dependence on marketplace goods; revolution in transportation; rapid population growth and urbanization.
All of this is occurring in China as we speak.
3-4
Power in Distribution Channels
• Power in Distribution Channels
• Marketing and branding play a key role in the ongoing power struggle between manufacturers and their retailers.
• Retailers have power in the marketplace deriving from the fact that they are closer to the customer.
• To assert more power in distribution channels, U.S. manufacturers began