Download Chapter 1 The World of Advertising and Integrated Brand Promotion

1
Advertising &
Integrated Brand
Promotion
Dr. Close
Objectives
To understand:
1. What Advertising & IBP Actually Are (& what
they are not!)
2. the Advertising Communication Model
3. Audience Classification
4. Role of Adv. In Business
5. Role of Adv. In IBP
6. IMC through the lens of branding
Branding Baby!
Swiffer Brand Extention to Baby
Market
The World of Advertising
We Need to have Perspective!
• Firms use advertising to build brands
• Firms of all sizes need & use advertising
• Advertising is 1 tool in Integrated Brand
Promotion (IBP)
• Advertising & promotion do not guarantee
success
• + & - (mis-)perceptions about advertising &
promotion
Consumers Resist “Authority”
What is advertising?
3 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
Example of Mass
Media Advertising
1.6
Not An Example (Mockvertising)
don’t be fooled!
Not Advertising:
Sales
Promotion
1.7
Distinctions within
Advertising
• Advertisements
– Specific messages designed to
persuade an audience
• Advertising Campaign
– An integrated series of ads &
promotions that communicate a
central theme or idea
• Integrated Brand Promotion (IBP)
– Coordinating promotional tools with
advertising to build & maintain
brand awareness, identity, &
preference
Advertising as a
Communications Process
• Production: The advertiser & social context determine
ad content
• Accommodation & negotiation: The ways in which
consumers interpret ads
• Reception: The context of ad reception & the
audience’s understanding of an ad result in a
meaningful interpretation of the ad
Interpretation is Key
(Don’t assume they get it.)
Especially with Technology (huh?)
Audiences for Advertising
•
•
•
•
•
Household Consumers
Business Organizations
The Trade Channel
Professionals
Government
Audience Geography
Global
International
National
Regional
Local
Advertising as a Business Process:
Role of Advertising in Marketing &
Brand Promotion
1. Advertising & the marketing mix
2. Advertising in brand development & management:
3. Advertising in market segmentation, differentiation, &
positioning
4. Advertising in revenue & profit generation
It's a Great Time to Invest...
Which brand development
& management features
are shown in this ad?
The Marketing Mix
Product
Promotion
Distribution
Price
Advertising in Brand Development
& Management
1.
2.
3.
4.
5.
Information & persuasion
Introduction of new brands--extensions
Building brand loyalty/brand equity
Creating an image/meaning
Building brand loyalty or community in the
trade channel
Brand Community- HOG
(they don’t care what you think.)
Segmentation
(heterogeneous > homogeneous)
Differentiation
(perceived as different or unique)
Positioning
Advertising’s role in SDP
marketing
•Distinct from
other brands
•Occupies a
“value” level
•External niche
vs. internal
Revenue & Profit Generation
1. Economies of scale: higher volume
results in lower unit cost
2. Brand loyalty leads to inelasticity of
demand: less price sensitivity to
demand
Types of Advertising
1.
2.
3.
4.
5.
Primary demand stimulation
Selective demand stimulation
Direct response advertising
Delayed response advertising
Corporate advertising
Example of Corporate Advertising
Not an Example of Corporate Advertising
The Economic Effects of
Advertising
Gross Domestic Product
Business Cycles
Competition
Prices
Value
Integrated Brand Promotion
(IBP)
C
o
u
p
o
n
s
Coordinated
promotional
activities
reinforce one
another
Example of IBP- Axe
• Axe’s campaign for their
Axe Unlimited with some
tv commercials & online
components.
• The new TV spot leads to
www.mojomastergame.c
om
• a Sim-like game.
Review/
Questions?
Understand:
1. What Advertising & IBP Actually Are (& what
they are not!)
2. The Advertising Communication Model
3. Audience Classification
4. Role of Adv. In Business
5. Role of Adv. In IBP
6. IMC through the lens of branding* (Next)