Advertising

and Integrated
Brand Promotion 8th Edition
O’Guinn • Allen • Close Scheinbaum • Semenik

© 2019 Cengage. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly
accessible website, in whole or in part.
 Chapter 1
The World of Advertising &
Integrated Brand Promotion (IBP)

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 Learning Objectives (Ch. 1)
1. Know what advertising and integrated brand
promotion (IBP) are and what they can do.
2. Discuss a basic model of communication.
3. Describe the different ways of classifying
audiences for advertising and IBP.
4. Understand advertising as a business process.
5. Understand the various types of advertising.

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Ch. 1 Framework

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 IBP In Action: Panera
*In each chapter, we feature a brand who is using IBP and new media integration with traditional advertising, such as Panera.

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The New World of Advertising and Integrated
Brand Promotion (IBP)
• New media is a game changer.
• Brands must blend traditional and new media;
digital is NOT a pure replacement.
• Consumer preferences and new technologies
are reshaping the communication environment.
– Mobile marketing: Communicating with target
markets through mobile devices like smartphones
or iPad or Surface tablet devices.

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 New Media
• Future is in digital and new media, as well as
experiential media.
• New media does not change the purpose of
advertising and IBP.
– Communicating effectively about the brand.
• Firms of all sizes use advertising and IBP to build
brands.
• Brands that do not meet the needs of consumers do
not succeed.
• Consumers’ emphasis on brands has increased.
• Google has revolutionized online advertising.
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 New Media & Google AdWords
How is digital advertising a game changer?

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 Advertising
Paid, mass-mediated attempt to persuade.
•Essentials for advertising.
– Paid: If a communication is not paid for, it’s not
advertising.
• Client or sponsor: company or organization that pays for
advertising.
– Mass mediated: Delivering through a medium designed
to reach a large number of people.
– Attempting to persuade: Communications designed to
get someone to do something.

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Advertising Icon: Absolut

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 Distinctions within Advertising
• Advertisement: Specific message that an organization
has created to persuade an audience

• Advertising campaign: Series of coordinated

advertisements that communicate a reasonably
cohesive and integrated theme about a brand

11
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 From Advertising to IMC to IBP

Traditional Advertising +
New Media

Event
Coupons Marketing/Sponsorship
Premiums Social Media
Public Relations

-Use coordinated promotional activities to reinforce one

another with the BRAND.
-Integrated BRAND Promotion goes beyond integrated
marketing communications.
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Integrated Brand Promotions (IBP) Tools
Process of using a wide range of promotional tools
working together to create widespread brand exposure.
• Uses a wide ranges of IBP tools:
– Advertising in mass media.
– Sales promotions.
– Point-of-purchase materials.
– Direct marketing.
– Personal selling.
– Internet advertising.
– Event sponsorship/experiential marketing.

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Integrated Brand Promotions Tools, cont.
– Social networks/social media.
– Blogs.
– Podcasting/smartphone messaging.
– Branded entertainment.
– Outdoor signage.
– Billboards, transit, and aerial advertising.
– Public relations.
– Influencer marketing.
– Corporate advertising.

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 IBP Example: Cadillac
(TV, Print, & Social Media)

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Advertising as a Communication Process
• Model of mass-mediated communication.
– Occurs not face-to-face but through a medium.
– Components.
• Production: By the sender of a message.
• Reception: By the sender of a message.
• Accommodation and negotiation: Lie between the
production and reception phases.

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A Model of Mass-Mediated Communication

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 Audiences for Advertising
• Audience: Group of individuals who receive
and interpret messages sent from companies or
organizations.
• Target audience: Particular group of
consumers singled out by an organization for
an advertising or IBP campaign.
– Potential audience since it can not be assured if the
message has been received as intended.

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Audience Categories
Members of
Household
consumers business
organizations

Members of a
Professionals
trade channel

Government
officials and
employees

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Audiences for Advertising: Geography (1 of 2)

• Global advertising: Advertising that is used

worldwide with only minor changes in the visual and
message content.
• International advertising: Firms prepare and place
different advertising in different national markets for
the same brand outside their home market.
• National advertising: Reaches all geographic areas
of a single nation.

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Audiences for Advertising: Geography (2 of 2)

• Regional advertising: Producers, wholesalers,

distributors, and retailers that concentrate their
efforts in a relatively large geographic region.
– Is not on a national scale.
• Local advertising: Directed at an audience in
a single trading area.
– Cooperative advertising: Sharing of advertising
expenses between national companies and local
merchants.

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 Advertising as a Business Process
• Important aspects:
– Contributing to the marketing mix.
– Developing and managing the brand.
– Achieving effective market segmentation,
differentiation, and positioning.
– Contributing to revenue and profit generation.
– Being measurable.

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Role of Advertising in the Marketing Mix
• Marketing: Process of planning and executing
the conception, pricing, promotion, and
distribution of ideas, goods, and services.
– Creates exchanges that satisfy individual and
organizational objectives.

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 Advertising is Key to the Marketing Mix

Marketing Mix
Product Distribution

Perceived
Perceived
Brand
Brand
Value
Value
Promotion Price
(includes advertising)

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Role of Advertising in Brand Management (1 of 2)

• Information and persuasion.

– Informs target audiences about the values a brand
has to offer.
• Introduce new brands or brand extensions.
– Brand extension: Adaptation of an existing brand
to a new product area.
• Called brand variant.

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Role of Advertising in Brand Management (2 of 2)

• Building and maintaining brand

loyalty among consumers.
– Brand loyalty: Consumers repeatedly purchases
the same brand to the exclusion of competitors’
brands.
– Brand equity: Set of brand assets linked to a
brand, its name, and symbol.
• Creating an image and meaning for a brand.

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IBP Example: Nike

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IBP Example: Adidas

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Role of Advertising in Brand Management
• Building and maintaining brand loyalty within
the trade.
– Marketers can provide the trade with:
• Sales training programs.
• Collateral advertising materials .
• Point-of-purchase advertising displays.
• Premiums.
• Web traffic.
• Foot traffic-building special events.

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IBP Example: Non-Profit (WWF)

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Advertising’s Role in Segmentation
• Market segmentation: Process of breaking
down a large, heterogeneous market into
submarkets that are homogeneous in terms of
consumer characteristics.
• Advertising helps:
– Develop messages that appeal to the needs and
desires of different segments.
– Transmit those messages via appropriate media.

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Advertising’s Role in Differentiation
• Differentiation: Process of creating a
perceived difference between a brand and its
competition.
– Based on consumer perception.
• Advertising helps:
– Emphasize performance features.
– Create a distinctive image for the brand.
– Develop a message that is different and
unmistakably linked to a company’s brand.
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Advertising’s Role in Positioning
• Positioning: Designing a brand to occupy a
distinct and valued place in the target
consumer’s mind.
– External position: Niche the brand will pursue
relative to all the competitive brands.
– Internal position: Position achieved with regard
to the other, similar brands marketed by the firm.
– Repositioning: Firm believes that a brand needs to
be updated to address changing market conditions.

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 IBP Example: Apple
How should Apple position their watch?

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Advertising’s Role in Contributing to Revenue
and Profit Generation
• Advertising contributes to the process of
creating sales and revenue.
– Does not generate revenue directly.
• Creates pricing flexibility by:
– Contributing to economies of scale.
– Helping create inelasticity of demand to price
changes.

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 Types of Advertising (1 of 3)

• Primary versus selective demand stimulation.

– Primary demand stimulation: Creating demand
for an entire product category.
– Selective demand stimulation: Points out a
brand’s unique benefits compared to the
competition.

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 Types of Advertising (2 of 3)

• Direct versus delayed response advertising.

– Direct response advertising: Encourages
immediate action by consumer.
– Delayed response advertising: Relies on imagery
and message themes that emphasize the benefits
and satisfying characteristics of a brand.

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 Types of Advertising (3 of 3)

• Corporate versus brand advertising.

– Corporate advertising: Creates a favorable
attitude toward a company as a whole.
– Brand advertising: Communicates the specific
features, values, and benefits of a particular brand
offered for sale by a particular organization.

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Economic Effects of Advertising (1 of 2)

• Effect on gross domestic product.

– Contributes to levels of overall consumer demand.
– Gross domestic product (GDP): Measure of the
total value of goods and services produced within
an economic system.
• Effect on competition.
– Competition is stimulated.

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Economic Effects of Advertising (2 of 2)

• Effect on prices.
– Advertising is built into product costs, which may
be passed on to consumers.
• Effect on value.
– Adds value to the consumption experience.
– Symbolic value: What a product or service means
to consumers in a nonliteral way.
– Social meaning: What a product or service means
in a societal context.

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 Is this ad an
example of
primary or
selective
demand
stimulation?

What’s the
difference?

41
©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
 Trend towards IBP
• From:
• Advertising to
• Integrated Marketing Communications to
• Integrated Brand Promotion.
• Advertising is only one of many promotional tools a marketer can use to
communicate about a brand.
• Beginning in about 1990, the concept of mixing various promotional tools
was referred to as integrated marketing communications (IMC).
• IBP involves the use of various promotional tools, including advertising, in
a coordinated manner to build and maintain brand awareness, identity,
and preference.
• IBP emphasizes that coordinated messages must have brand-building
effects, not just communications effects.

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Questions?

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