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
 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

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 Audiences for Advertising:
Audience Categories

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

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 Audiences Geography

 Global advertising
 International advertising
 National advertising
 Regional advertising
 Local advertising

PPT 1-8
 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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 The Role of Advertising in the
Marketing Mix
The Marketing Mix

Product Distribution

Perceived Value

Promotion Price

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 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,
Differentiation and Positioning

Segmentation
•Distinct from
(heterogeneous >
other brands
homogeneous)

•Occupies a
“value” level

Differentiation
•External niche
(perceived as different or
ti s o P
vs. internal
unique)

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

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 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
Is this
this ad
ad an
an example
example of
of
primary
primary or or selective
selective
demand
demand stimulation?
stimulation?
What’s
What’s thethe difference?
difference?

PPT 1-16
The Economic Effects of
Advertising

Gross Domestic Product

Business Cycles
Competition
Prices
Value
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 From IMC to IBP

Sp i ong Coordinated
Ev eci v is isin promotional
en al e le ert
ts T dv
A activities
reinforce one
C
o another
u
p
o
n
s
PPT 1-18