Download Chapter+1

Chapter 1
The World of Advertising
and Integrated Brand
Promotion
© 2009 South-Western, a part of Cengage Learning
PPT 1-1
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
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
Distribution
Product
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
Segmentation
(heterogeneous >
homogeneous)
Differentiation
(perceived as different or
unique)
Positioning
Advertising’s Role in Segmentation,
Differentiation and Positioning
•Distinct from
other brands
•Occupies a
“value” level
•External niche
vs. internal
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
C
o
u
p
o
n
s
Coordinated
promotional
activities
reinforce one
another
PPT 1-18