1. © 2009 South-Western, a part of Cengage Learning Chapter 1 The World of Advertising and Integrated Brand Promotion PPT 1-1

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 blurringMadison & Vine Firms use advertising/IBP to build brands Firms of all sizes need and use advertising Advertising is just one of many tools in IBP Advertising/IBP do not guarantee success8 of 10 new products fail People have all sorts of positive and negative (mis)perceptions about advertising and promotion The World of Advertising and Integrated Brand Promotion PPT 1-2

3. 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 What are Advertising and Integrated Brand Promotion? PPT 1-3

4. 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 What are Advertising and Integrated Brand Promotion? PPT 1-4

5. Advertising Campaign –An integrated series of ads and promotions that communicate a central theme or idea Advertisements –Specific messages designed to persuade an audience Distinctions within Advertising PPT 1-5

6. Production: The advertiser and social context determine ad content. Reception: The context of ad reception and the audiences understanding of an ad result in a meaningful interpretation of the ad. Accommodation and negotiation: The ways in which consumers interpret ads Advertising as a Communications Process PPT 1-6

7. Household Consumers Business Organizations The Trade Channel Professionals Government Audiences for Advertising: Audience Categories PPT 1-7

8. Global advertising International advertising National advertising Regional advertising Local advertising Audiences Geography PPT 1-8

9. PPT 1-9 This ad ran in Italy. Do you think this is a global or international ad? Whats the difference? Ad in Context Example

10. 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 Advertising as a Business Process PPT 1-10

11. The Marketing Mix The Role of Advertising in the Marketing Mix Product Distribution PromotionPrice Perceived Value PPT 1-11

12. 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 The Role of Advertising in Brand Management PPT 1-12

13. Advertisings Role in Segmentation, Differentiation and Positioning Segmentation (heterogeneous > homogeneous) Differentiation (perceived as different or unique) Positioning Distinct from other brands Occupies a value level External niche vs. internal PPT 1-13

14. Brand loyalty leads to inelasticity of demand: less price sensitivity to demand Economies of scale: higher volume results in lower unit cost Advertisings Role in Revenue and Profit Generation PPT 1-14

15. Primary demand stimulation Selective demand stimulation Direct response advertising Delayed response advertising Corporate advertising Types of Advertising PPT 1-15

16. PPT 1-16 Is this ad an example of primary or selective demand stimulation? Whats the difference? Ad in Context Example

17. The Economic Effects of Advertising Gross Domestic Product Business Cycles Competition Prices Value Gross Domestic Product Business Cycles Competition Prices Value PPT 1-17

18. From IMC to IBP SpecialEvents TelevisionAdvertising Coupons Coordinatedpromotionalactivitiesreinforce oneanother PPT 1-18