The World of Advertising

and Integrated Brand

Promotion

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©2012©2012
Cengage
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 The New 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”
• The current “wisdom” is that advertising and IBP
will become more digital, interactive and social
• Facilitated through “mobile marketing” efforts
(i.e., reaching consumers with messages on their
mobile devices)

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©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
 Old Media/New Media

• It’s all about the brand!

• New media does not change the purpose
of advertising and IBP
• Communicate effectively about the brand
• Firms use advertising/IBP to build brands
• Firms of all sizes need and use IBP
• Advertising is just one of many tools in IBP
• Advertising/IBP does not guarantee success—
8 of 10 new products fail!

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©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
 What are Advertising and
Integrated Brand Promotions?
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
• People have all sorts of positive and negative
(mis)perceptions about advertising and promotion
– What are yours?

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©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
 What are Advertising and
Integrated Brand Promotions?
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:
o Advertising o Event sponsorship
o Point-of-Purchase (in-store) o Brand entertainment (product
materials placement on TV shows, in movies)
o Direct Marketing (catalogs, o Outdoor signage/billboards
infomercials, email) o Public relations
o Personal Selling o Influencer (peer-to-peer)
o Internet advertising communications
o Blogs o Corporate advertising
o Podcasting
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©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
 Distinctions within Advertising
• Advertising Campaign
 An integrated series of ads and promotions
that communicate a central theme or idea

Altoids® is a registered trademark of

Callard & Bowser
• Advertisements
 Specific messages designed to persuade an audience
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©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
 Advertising as a Communication
Process—A Model

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—individual by individual.
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©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
 Audiences for Advertising:
Audience Categories

• Household Consumers
• Business Organizations
• The Trade Channel
• Professionals
• Government

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©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
 Audiences for Advertising:
Geography

• Global advertising
– One ad fits all—when and why?
• International advertising
• National advertising
• Regional advertising
• Local advertising

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©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
 This ad ran in Italy. Do you think this
is a “global” or “international” ad?
What’s the difference?

Advertising Agency: IDUE

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©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
 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

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©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
 The Role of Advertising
in the Marketing Mix

The Marketing Mix

Product Distribution

Perceived
Brand
Value
Promotion Price
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©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
 The Role of Advertising
in Brand Management
• Information and persuasion
• Introduce new brands and
brand extensions
• Building and maintaining brand
loyalty/brand equity
• Creating an image/meaning
• Building brand loyalty in the trade
channel
• Facilitate brand management
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©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
 Advertising’s Role in
Segmentation, Differentiation,
and Positioning

Positioning
Segmentation • Distinct from other
(heterogeneous to homogeneous) brands

• Occupies a
Differentiation “valued” place in
(perceived as different or unique) consumer’s mind

• External niche vs.

internal positioning

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©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
 Advertising’s Role in Contributing
to Revenue and Profit Generation

• Brand loyalty leads to inelasticity

of demand: demand is less sensitive
to price changes

• Economies of scale: higher volume

results in lower unit cost = higher profit

• Both revenue and profit are enhanced

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©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
 Types of Advertising

• Primary demand stimulation

– Entire product category
• Selective demand stimulation
– Brands within a product category
• Direct response advertising
– Encourages immediate action by consumer
• Delayed response advertising
– Brand image development
• Corporate advertising
– Promote the firm, not the brands

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©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
 Is this ad an
example of
primary or
selective
demand
stimulation?

What’s the

Courtesy, Foote, Cone & Belding

difference?

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©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
 The Economic Effects
of Advertising

Gross Domestic Product

Business Cycles
Competition
Prices
Value

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©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
 Does this ad have an “economic effect?”

Courtesy, Advertising Archives

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 From Advertising to IMC to IBP

Mass Media Advertising

Interactive/Digital media

Coupons Special Events

Premiums Social Media
Public relations
Coordinated promotional
activities reinforce
one another

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©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.