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The World of Advertising and Integrated Brand Promotion

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Presentation on theme: "The World of Advertising and Integrated Brand Promotion"— Presentation transcript:

1 The World of Advertising and Integrated Brand Promotion

2 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

3 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

4 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

5 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.

6 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, ) 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

7 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

8 Model of the Communications Process
Encoding Fields of Experience Response Feedback Loop Decoding Channel MESSAGE Source / Sender Receiver / Audience

9 Advertising as a Communications Process:
Mass Mediated

10 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

11 Audiences for Advertising:
Audience Categories Household Consumers Business Organizations The Trade Channel Professionals Government

12 Audiences for Advertising:
Audience Geography Global advertising International advertising National advertising Regional advertising Local advertising

13 Ad in Context Example This ad ran in Italy. Do you think this is a “global” or “international” ad? What’s the difference?

14 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

15 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

16 The Role of Advertising in the Marketing Mix
Perceived Value Distribution Product Promotion Price

17 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

18 Advertising’s Role in Segmentation, Differentiation and Positioning
(heterogeneous > homogeneous) Differentiation (perceived as different or unique) Positioning Distinct from other brands Occupies a “value” level External niche vs. internal

19 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

20 Types of Advertising Primary demand stimulation
Selective demand stimulation Direct response advertising Delayed response advertising Corporate advertising

21 Ad in Context Example Is this ad an example of primary or selective demand stimulation? What’s the difference?

22 The Economic Effects of Advertising
Gross Domestic Product Business Cycles Competition Prices Value

23 From IMC to IBP Special Events Television Advertising C o u p n s Coordinated promotional activities reinforce one another


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