Chapter 1 The World of Advertising and Integrated Brand Promotion

© 2009 South-Western, a part of Cengage Learning PPT 1-1

The World of Advertising and Integrated Brand Promotion We need

perspective on advertising and IBP! Technology and consumer

control are reshaping the communications environment The lines

between entertainment and advertising/IBP are blurring—”Madison &

Vine” Firms use advertising/IBP to build brands Firms of all sizes

need and use advertising Advertising is just one of many tools in

IBP Advertising/IBP do not guarantee success—8 of 10 new

products fail People have all sorts of positive and negative

(mis)perceptions about advertising and promotion PPT 1-2

What are Advertising and Integrated Brand Promotion? Three 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 PPT 1-3

What are Advertising and Integrated Brand Promotion? Integrated

Brand Promotion (IBP) is the process of using a wide range of

promotional tools working together to create widespread brand

exposure. IBP is a process IBP uses a wide ranges of tools

including: – Advertising – Point of Purchase (in-store) materials –

Direct Marketing (catalogs, infomercials, email) – Personal Selling –

Internet advertising – Blogs – Podcasting – Event sponsorship –

Brand entertainment (product placement on TV shows, in movies) –

Outdoor signage/billboards – Public relations – Influencer (peer-to-

peer) communications – Corporate advertising PPT 1-4

Distinctions within Advertising Advertising Campaign – An

integrated series of ads and promotions that communicate a central

theme or idea Advertisements – Specific messages designed to

persuade an audience PPT 1-5

Advertising as a Communications Process Production: The

advertiser and social context determine ad content. Reception: The

context of ad reception and the audience’s understanding of an ad

result in a meaningful interpretation of the ad. Accommodation and

negotiation: The ways in which consumers interpret ads PPT 1-6

Audiences for Advertising: Audience Categories Household

Consumers Business Organizations The Trade Channel

Professionals Government PPT 1-7

Audiences Geography Global advertising International

advertising National advertising Regional advertising Local

advertising PPT 1-8

Ad in Context Example This ad ran in Italy. Do you think this is a

“global” or “international” ad? What’s the difference? PPT 1-9

Advertising as a Business Process 1. The role of advertising in the

marketing mix 2. Advertising in brand management 3. Advertising in

market segmentation, differentiation, and positioning 4. Advertising in

revenue and profit generation PPT 1-10

The Role of Advertising in the Marketing Mix The Marketing Mix

Product Distribution Perceived Value Promotion Price PPT 1-11

The Role of Advertising in Brand Management Information and

persuasion Introduction of new brands and extensions Building

and maintaining brand loyalty/brand equity Creating an

image/meaning Building brand loyalty in the trade channel PPT 1-

12

Advertising’s Role in Segmentation, Differentiation and Positioning

Segmentation •Distinct from (heterogeneous > Positioning other

brands homogeneous) •Occupies a “value” level Differentiation

•External niche (perceived as different or vs. internal unique) PPT 1-

13

Advertising’s Role in Revenue and Profit Generation Brand loyalty

leads to inelasticity of demand: less price sensitivity to demand

Economies of scale: higher volume results in lower unit cost PPT 1-14

Types of Advertising Primary demand stimulation Selective

demand stimulation Direct response advertising Delayed

response advertising Corporate advertising PPT 1-15

Ad in Context Example Is this ad an example of primary or selective

demand stimulation? What’s the difference? PPT 1-16

The Economic Effects of Advertising Gross Domestic Product

Business Cycles Competition Prices Value PPT 1-17

From IMC to IBP Sp ionng Coordinated Ev eci vistisi promotional en

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