Download The World of Advertising and Integrated Brand Promotion

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
We need perspective on
advertising and IBP!
 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
We need perspective on
advertising and IBP!
Four criteria must be met for a communication to be classified
as advertising:




The communication must be paid for
The advertiser must be identified
The communication must be delivered through mass media
The communication must be attempting to persuade
We need perspective on advertising
and IBP!
Integrated Brand Promotion (IBP)
is the process of using a wide
range of promotional tools
working together to create
widespread brand exposure.
We need perspective on
advertising and IBP!
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
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
Model of the
Communications
Process
Fields of Experience
Source /
Sender
Channel
Encoding
Receiver /
Decoding Audience
Response Feedback Loop
Advertising as a
Communications Process:
Mass Mediated
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
Audiences for Advertising:
Audience Categories
 Household Consumers
 Business Organizations
 The Trade Channel
 Professionals
 Government
Audiences for Advertising:
Audience Geography
•Global advertising
•International advertising
•National advertising
•Regional advertising
•Local advertising
Ad in Context Example
This ad ran in
Italy. Do you
think this is a
“global” or
“international”
ad? What’s
the difference?
Advertising as a
Business Process
 The role of advertising in the marketing mix
 Advertising in brand management
 Advertising in market segmentation,
differentiation, and positioning
 Advertising in revenue and profit generation
Advertising as a
Business Process
 Definition of Marketing:
 The process of planning and executing the conception,
pricing, promotion and distribution of ideas, goods and
services to create exchanges that satisfy individual and
organizational objectives.
 American Marketing Association, 1995
The Role of Advertising
in the Marketing Mix
The Marketing Mix
Distribution
Product
Perceived Value
Promotion
Price
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

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
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
Types of Advertising
 Primary demand stimulation
 Selective demand stimulation
 Direct response advertising
 Delayed response advertising
 Corporate advertising
Ad in Context Example
Is this ad an example
of primary or selective
demand stimulation?
What’s the
difference?
The Economic Effects
of Advertising
Gross Domestic Product
Business Cycles
Competition
Prices
Value
From IMC to IBP
C
o
u
p
o
n
s
Coordinated
promotional
activities
reinforce one
another