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Charles Warner

  What Is Marketing?

  The Internet and Ad Words: Disrupting Marketing and Advertising

  Google

  Customers Versus Consumers

  What Is Advertising?

  The Media

  Hypocrites Not Allowed

Anyone taking a moment to ponder the $2 trillion marketing and advertising sector of the economy “can’t avoid the inescapable truth that capitalism could not exist without marketing,” Ken Auletta writes in Frenemies: The Epic Disruption of the Ad Business (and Everything Else).¹ The marketing process is vital to the vigor of the American economy, and the media are integral elements in that marketing process and, thus, to the economy’s health and stability. Consumer demand is what drives the economy, and it is marketing that fuels demand. Advertising is a major component of marketing, and it is through the media that consumers and businesses receive advertising messages about products and services. Also, “in the United States each dollar spent in advertising alone spawned nineteen dollars in sales and supported sixty‐seven jobs across many industries…”²

Furthermore, advertising keeps a brand healthy and growing in a highly competitive marketplace. In a March 4, 2019 issue of Ad Age an article titled “The end of austerity” detailed how “The stunning tumble of Kraft Heinz has caused pain for investors … after Kraft Heinz took a $15.4 billion write‐down of its assets.”³ The article goes on to report how Kraft Heinz owner, Brazilian investment firm 3G, went into a cost‐cutting mode and used a zero‐based budgeting process to cut advertising investments drastically. After the Kraft Heinz huge write‐down on assets, a JP Morgan analyst said, “Investors for years have asked if 3G’s extreme belt‐tightening model ultimately would result in brand equity erosion.”⁴ So not only is advertising a major element in the fuel that drives consumer demand, lack of sufficient advertising investment can stunt a brand’s growth.

If any one of the three elements (marketing, advertising, and the media) is not healthy, the other two cannot thrive. This chapter will examine the ecosystem‐like interdependent relationships among marketing, advertising, and the media and how the Internet disrupted that ecosystem.