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The World of Advertising and Integrated Brand Promotion

The 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”

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The World of Advertising and Integrated Brand Promotion

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  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! • Event sponsorship • Brand entertainment (product placement on TV shows, in movies) • Outdoor signage/billboards • Public relations • Influencer (peer-to-peer) communications • Corporate advertising • 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

  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. Fields of Experience Source / Sender Receiver / Audience Channel Encoding Decoding MESSAGE Response Feedback Loop Model of theCommunicationsProcess

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

  12. Audiences for Advertising: AudienceGeography • 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 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 • Segmentation • (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. Television Advertising Special Events C o u p o n s From IMC to IBP Coordinated promotional activities reinforce one another

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