Advertising & Integrated Brand Promotion Dr. Close

1

Objectives

To understand:1. What Advertising & IBP Actually Are (& what

they are not!)2. the Advertising Communication Model3. Audience Classification4. Role of Adv. In Business5. Role of Adv. In IBP6. IMC through the lens of branding

Branding Baby!

Swiffer Brand Extention to Baby Market

The World of Advertising

We Need to have Perspective!• Firms use advertising to build brands• Firms of all sizes need & use advertising• Advertising is 1 tool in Integrated Brand

Promotion (IBP)• Advertising & promotion do not guarantee

success• + & - (mis-)perceptions about advertising &

promotion

Consumers Resist “Authority”

What is advertising?3 criteria must be met for a

communication to be classified as advertising:

• The communication must be paid for

• The communication must be delivered through mass media

• The communication must be attempting to persuade

1.6

Example of Mass Media Advertising

Not An Example (Mockvertising)don’t be fooled!

1.7

Not Advertising:SalesPromotion

Distinctions within Advertising

• Advertisements– Specific messages designed to

persuade an audience• Advertising Campaign

– An integrated series of ads & promotions that communicate a central theme or idea

• Integrated Brand Promotion (IBP)– Coordinating promotional tools with

advertising to build & maintain brand awareness, identity, & preference

Advertising as a Communications Process

• Production: The advertiser & social context determine ad content

• Accommodation & negotiation: The ways in which consumers interpret ads

• Reception: The context of ad reception & the audience’s understanding of an ad result in a meaningful interpretation of the ad

Interpretation is Key(Don’t assume they get it.)

Especially with Technology (huh?)

Audiences for Advertising

• Household Consumers• Business Organizations• The Trade Channel• Professionals• Government

Audience Geography

GlobalInternational National

RegionalLocal

Advertising as a Business Process: Role of Advertising in Marketing & Brand Promotion

1. Advertising & the marketing mix2. Advertising in brand development & management:3. Advertising in market segmentation, differentiation, &

positioning4. Advertising in revenue & profit generation

It's a Great Time to Invest...

Which brand development & management features are shown in this ad?

Which brand development & management features are shown in this ad?

The Marketing Mix

Product

Promotion Price

Distribution

Advertising in Brand Development & Management

1. Information & persuasion2. Introduction of new brands--extensions3. Building brand loyalty/brand equity4. Creating an image/meaning5. Building brand loyalty or community in the

trade channel

Brand Community- HOG(they don’t care what you think.)

Advertising’s role in SDP marketing

Segmentation(heterogeneous > homogeneous)

Differentiation(perceived as different or unique)

Posi

tioni

ng

•Distinct from other brands

•Occupies a “value” level

•External niche vs. internal

Revenue & Profit Generation

1. Economies of scale: higher volume results in lower unit cost

2. Brand loyalty leads to inelasticity of demand: less price sensitivity to demand

Types of Advertising

1. Primary demand stimulation2. Selective demand stimulation3. Direct response advertising4. Delayed response advertising5. Corporate advertising

Example of Corporate Advertising

Not an Example of Corporate Advertising

The Economic Effects of Advertising

Gross Domestic ProductBusiness Cycles

CompetitionPricesValue

Integrated Brand Promotion (IBP)

SpecialEvents Television

Advertising

Coupons

Coordinated promotional activities reinforce one another

Example of IBP- Axe

• Axe’s campaign for their Axe Unlimited with some tv commercials & online components.

• The new TV spot leads to www.mojomastergame.com

• a Sim-like game.

Review/Questions?

Understand:1. What Advertising & IBP Actually Are (& what

they are not!)2. The Advertising Communication Model3. Audience Classification4. Role of Adv. In Business5. Role of Adv. In IBP6. IMC through the lens of branding* (Next)