Advertising _ IBP

					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”
• Firms use advertising/IBP to build
  brands
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
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
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.
We need perspective on
advertising and IBP!

 IBP is a process
 IBP uses a wide ranges of tools
 including:
   •Advertising                • Event sponsorship
   •Point of Purchase          • Brand entertainment
    (in-store) materials         (product placement on TV
   •Direct Marketing             shows, in movies)
    (catalogs, infomercials,   • Outdoor signage/billboards
   email)                      • Public relations
   •Personal Selling           • Influencer (peer-to-peer)
                                 communications
   •Internet advertising
                               • Corporate advertising
   •Blogs
   •Podcasting
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
Model of the
Communications
Process
                      Fields of Experience




Source /
                           Channel                     Receiver /
 Sender
           Encoding                          Decoding Audience
                           MESSAGE




                Response Feedback Loop
Advertising as a
Communications Process:
Mass Mediated
 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
Audiences for Advertising:
Audience Categories


 • Household Consumers
 • Business Organizations
 • The Trade Channel
 • Professionals
 • Government
Audiences for Advertising:
Audience Geography


  •Global advertising
  •International advertising
  •National advertising
  •Regional advertising
  •Local advertising
Ad in Context Example




This ad ran in
Italy. Do you
think this is a
“global” or
“international”
ad? What’s
the difference?
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
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
The Role of Advertising
in the Marketing Mix

            The Marketing Mix

 Product                        Distribution


              Perceived Value

Promotion                         Price
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
Advertising’s Role in
Segmentation,
Differentiation and Positioning

•   Segmentation
•   (heterogeneous >




                       Positioning
    homogeneous)                     •Distinct from
                                     other brands


                                     •Occupies a
                                     “value” level
•   Differentiation
•   (perceived as
                                     •External niche
•   different                        vs. internal
•   or unique)
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
Types of Advertising

   Primary demand stimulation
   Selective demand stimulation
   Direct response advertising
   Delayed response advertising
   Corporate advertising
Ad in Context Example




               Is this ad an example
               of primary or selective
               demand stimulation?
               What’s the difference?
The Economic Effects
of Advertising
      Gross Domestic Product
         Business Cycles
           Competition
              Prices
              Value
From IMC to IBP




          C       Coordinated
          o
          u       promotional
          p       activities
          o
          n       reinforce one
          s
                  another

				
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posted:4/7/2012
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