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