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The History of Marketing The Branding of North America

Essential Questionsbourguignon.weebly.com/.../history_of_marketing.pdf · The Essence of Marketing • Satisfying consumers’ wants and needs is a common definition of marketing

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Page 1: Essential Questionsbourguignon.weebly.com/.../history_of_marketing.pdf · The Essence of Marketing • Satisfying consumers’ wants and needs is a common definition of marketing

The History of Marketing 

The Branding of North America

Page 2: Essential Questionsbourguignon.weebly.com/.../history_of_marketing.pdf · The Essence of Marketing • Satisfying consumers’ wants and needs is a common definition of marketing

Essential Questions 

• Why is marketing needed? • Why do brands exist?

Page 3: Essential Questionsbourguignon.weebly.com/.../history_of_marketing.pdf · The Essence of Marketing • Satisfying consumers’ wants and needs is a common definition of marketing

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

Page 4: Essential Questionsbourguignon.weebly.com/.../history_of_marketing.pdf · The Essence of Marketing • Satisfying consumers’ wants and needs is a common definition of marketing

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

Page 5: Essential Questionsbourguignon.weebly.com/.../history_of_marketing.pdf · The Essence of Marketing • Satisfying consumers’ wants and needs is a common definition of marketing

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

Page 6: Essential Questionsbourguignon.weebly.com/.../history_of_marketing.pdf · The Essence of Marketing • Satisfying consumers’ wants and needs is a common definition of marketing

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?

Page 7: Essential Questionsbourguignon.weebly.com/.../history_of_marketing.pdf · The Essence of Marketing • Satisfying consumers’ wants and needs is a common definition of marketing

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

Page 8: Essential Questionsbourguignon.weebly.com/.../history_of_marketing.pdf · The Essence of Marketing • Satisfying consumers’ wants and needs is a common definition of marketing

Name that logo

Page 9: Essential Questionsbourguignon.weebly.com/.../history_of_marketing.pdf · The Essence of Marketing • Satisfying consumers’ wants and needs is a common definition of marketing

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

Page 10: Essential Questionsbourguignon.weebly.com/.../history_of_marketing.pdf · The Essence of Marketing • Satisfying consumers’ wants and needs is a common definition of marketing

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?

Page 11: Essential Questionsbourguignon.weebly.com/.../history_of_marketing.pdf · The Essence of Marketing • Satisfying consumers’ wants and needs is a common definition of marketing

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

Page 12: Essential Questionsbourguignon.weebly.com/.../history_of_marketing.pdf · The Essence of Marketing • Satisfying consumers’ wants and needs is a common definition of marketing

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

Page 13: Essential Questionsbourguignon.weebly.com/.../history_of_marketing.pdf · The Essence of Marketing • Satisfying consumers’ wants and needs is a common definition of marketing

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

Page 14: Essential Questionsbourguignon.weebly.com/.../history_of_marketing.pdf · The Essence of Marketing • Satisfying consumers’ wants and needs is a common definition of marketing

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

Page 15: Essential Questionsbourguignon.weebly.com/.../history_of_marketing.pdf · The Essence of Marketing • Satisfying consumers’ wants and needs is a common definition of marketing

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

Page 16: Essential Questionsbourguignon.weebly.com/.../history_of_marketing.pdf · The Essence of Marketing • Satisfying consumers’ wants and needs is a common definition of marketing

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

Page 17: Essential Questionsbourguignon.weebly.com/.../history_of_marketing.pdf · The Essence of Marketing • Satisfying consumers’ wants and needs is a common definition of marketing

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.

Page 18: Essential Questionsbourguignon.weebly.com/.../history_of_marketing.pdf · The Essence of Marketing • Satisfying consumers’ wants and needs is a common definition of marketing

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

Page 19: Essential Questionsbourguignon.weebly.com/.../history_of_marketing.pdf · The Essence of Marketing • Satisfying consumers’ wants and needs is a common definition of marketing

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

Page 20: Essential Questionsbourguignon.weebly.com/.../history_of_marketing.pdf · The Essence of Marketing • Satisfying consumers’ wants and needs is a common definition of marketing

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.

Page 21: Essential Questionsbourguignon.weebly.com/.../history_of_marketing.pdf · The Essence of Marketing • Satisfying consumers’ wants and needs is a common definition of marketing

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

Page 22: Essential Questionsbourguignon.weebly.com/.../history_of_marketing.pdf · The Essence of Marketing • Satisfying consumers’ wants and needs is a common definition of marketing

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

Page 23: Essential Questionsbourguignon.weebly.com/.../history_of_marketing.pdf · The Essence of Marketing • Satisfying consumers’ wants and needs is a common definition of marketing

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.

Page 25: Essential Questionsbourguignon.weebly.com/.../history_of_marketing.pdf · The Essence of Marketing • Satisfying consumers’ wants and needs is a common definition of marketing

Branding 

Images, logos, & slogans

Page 26: Essential Questionsbourguignon.weebly.com/.../history_of_marketing.pdf · The Essence of Marketing • Satisfying consumers’ wants and needs is a common definition of marketing

The Consummate Brand 

NIKE 

“Just Do it” Nike’s Mission 

“To bring inspiration and innovation to every athlete in the world”

Page 27: Essential Questionsbourguignon.weebly.com/.../history_of_marketing.pdf · The Essence of Marketing • Satisfying consumers’ wants and needs is a common definition of marketing

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

Page 28: Essential Questionsbourguignon.weebly.com/.../history_of_marketing.pdf · The Essence of Marketing • Satisfying consumers’ wants and needs is a common definition of marketing

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

Page 29: Essential Questionsbourguignon.weebly.com/.../history_of_marketing.pdf · The Essence of Marketing • Satisfying consumers’ wants and needs is a common definition of marketing

International Business 

Extension questions and activity

Page 30: Essential Questionsbourguignon.weebly.com/.../history_of_marketing.pdf · The Essence of Marketing • Satisfying consumers’ wants and needs is a common definition of marketing

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

Page 31: Essential Questionsbourguignon.weebly.com/.../history_of_marketing.pdf · The Essence of Marketing • Satisfying consumers’ wants and needs is a common definition of marketing

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

Page 32: Essential Questionsbourguignon.weebly.com/.../history_of_marketing.pdf · The Essence of Marketing • Satisfying consumers’ wants and needs is a common definition of marketing

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