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 .

  IBP is a process IBP uses a wide ranges of tools including: – Advertising – Point of Purchase (in-store) materials – Direct Marketing (catalogs.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. in movies) – Outdoor signage/billboards – Public relations – Influencer (peer-to-peer) communications – Corporate advertising PPT 1-4 . email) – Personal Selling – Internet advertising – Blogs – Podcasting – Event sponsorship – Brand entertainment (product placement on TV shows. infomercials.

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 This ad ran in Italy. Do you Italy. Do you think this is a think this is a “global” or “global” or “international” “international” ad? What’s the ad? What’s the difference? difference? PPT 1-9 .

Advertising in market segmentation. Advertising in brand management 3. and positioning 4.Advertising as a Business Process 1. differentiation. The role of advertising in the marketing mix 2. 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. internal PPT 1-13 . Differentiation and Positioning Segmentation (heterogeneous > homogeneous) •Distinct from other brands •Occupies a “value” level Differentiation ti s o P (perceived as different or unique) •External niche vs.

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 Is this ad an example of primary or selective primary or selective demand stimulation? demand stimulation? What’s the difference? 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 Ev eci en al ts ionng vistisi elever T d A C o u p o n s Coordinated promotional activities reinforce one another PPT 1-18 .

Check Your Understanding Titleist. B. PPT 1-15 . runs a commercial featuring professional golfer John Daly.the choice of spokesperson.the content of the commercial. it is most likely the result of A. C. D. A group of people watching the commercial at a country club all interpret the commercial in a similar manner.the characteristics of the product being advertised. When members of an audience share a similar interpretation of an advertisement like this.the similar background and social standing of the audience. the manufacturer of golf balls.

The advertisements must appear in multiple media. which one of the following conditions must be met? A. has decided to run a series of advertisements. C. a local grocery store.The advertisements must appear over an extended period of time. PPT 1-15 .The advertisements must focus on store products rather than store services. D. B.The advertisements must communicate a cohesive and integrated idea or theme. For this to be considered an advertising campaign.Check Your Understanding CampusTown Foods.

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