177: Is the Difference Between Marketing and Advertising Costing You Money?
Our culture uses the words advertising and marketing interchangeably. So does the auction industry in which I work, even though they should know the difference more than most industries.
Most people see the Venn diagram of these two words as this:
In actuality, the Venn diagram looks something like this:
Let me explain.
Marketing is the strategic pursuit of qualified prospects.
Advertising is the media through which marketing decisions are communicated.
In other words, advertising is just a part of marketing. It’s the louder, more flamboyant part; but it’s only a part.
3 real-world examples of this differentiation:
Marketing is my alma mater importing palm trees, lining walkways and roadways with them, and paying us grounds crew guys to insulate the non-native trunks so that they’d make it through the winter. Marketing is putting a palm tree in the college’s logo. Advertising is all the media that includes said logo and is sent to Indiana, Ohio, Pennsylvania, and Michigan—the states from which a large percentage of our student body came.
Advertising includes all the direct mail, newsprint, and signs my former employer dispersed before one of our multimillion dollar land auctions. Marketing is the multi-parcel system they used to get maximum value out of a property. Marketing is the software they wrote for that system when the personal computer was first invented. Marketing also includes all the lender luncheons they held in the new geographic markets they pursued.
Advertising got the registered bidders to an on-site auction, where one of my clients was selling his own farm. Marketing showed up when, after chatting up the attendees, he phoned a friend to get a sight-unseen starting bid by the acre.
Auctioneers make a marketing decision when they choose between live, simulcast, timed online, or sealed bid platforms. Same goes for when they choose whether to offer a buyer broker commission and, if so, at what percent.
Marketing determines who the prospects are, what they want to know about the asset or service at hand, and where to go to connect with these prospects. Advertising just executes that plan, and advertising decisions are easier once the marketing strategy has already been made.
Why do I make this distinction?
Because often, auctioneers ask me to recommend and/or execute advertising campaigns without that marketing foundation. I regularly seem to surprise auctioneers, when I ask them, “Who is your buyer for this asset?” or “Why would someone want this asset, or how would they use it?” The same goes for similar questions, when chasing auction sellers. (For the record, I also have stellar marketers as clients who start our correspondence with this information or answer these questions with dexterity.)
A marketing plan and an advertising budget are two different things. We can spend money on a standard media program that crosses a lot of t’s and dots a to of i’s. Or we can target prospects through the filters of cultural trends, asset appeal, market demand.
I gladly generate media all day. That’s how I make my money. But it behooves auctioneers to think bigger than just the box of advertising. Because marketing is how you make your money.
Stock image purchased from iStockPhoto.com