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©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessibl

The World of Advertising and Integrated Brand Promotion. 1. 1. ©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. The New World of Advertising and Integrated Brand Promotion.

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©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessibl

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  1. The World of Advertising and Integrated Brand Promotion 1 4 1 ©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

  2. The New World of Advertising and Integrated Brand Promotion • We need perspective on advertising and IBP! • Technology and consumer control are reshapingthe communications environment • The lines between entertainment and advertising/IBP are blurring—“Madison & Vine” • The current “wisdom” is that advertising and IBP will become more digital, interactive and social • Facilitated through “mobile marketing” efforts (i.e., reaching consumers with messages on their mobile devices) 1 1 2

  3. Old Media/New Media • It’s all about the brand! • New media does not change the purpose of advertising and IBP • Communicate effectively about the brand • Firms use advertising/IBP to build brands • Firms of all sizes need and use IBP • Advertising is just one of many tools in IBP • Advertising/IBP does not guarantee success—8 of 10 new products fail! 1

  4. What are Advertising and Integrated Brand Promotions? 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 • People have all sorts of positive and negative (mis)perceptions about advertising and promotion • What are yours? 1 1 4

  5. What are Advertising and Integrated Brand Promotions? 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 1 1 5

  6. Distinctions within Advertising Altoids® is a registered trademark of Callard & Bowser • Advertisements • Specific messages designed to persuade an audience • Advertising Campaign • An integrated series of ads and promotions that communicate a central theme or idea

  7. Advertising as a Communication Process—A Model 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—individual by individual. 1 1 7

  8. Audiences for Advertising:Audience Categories • Household Consumers • Business Organizations • The Trade Channel • Professionals • Government 1 1 8

  9. Audiences for Advertising: Geography • Global advertising • One ad fits all—when and why? • International advertising • National advertising • Regional advertising • Local advertising 1 1 9

  10. This ad ran in Italy. Do you think this is a “global” or “international” ad?What’s the difference? Advertising Agency: IDUE

  11. 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 1 1 11

  12. The Role of Advertising in the Marketing Mix The Marketing Mix Product Distribution Perceived Brand Value Price Promotion 1 1 12

  13. The Role of Advertising in Brand Management • Information and persuasion • Introduce new brands and brand extensions • Building and maintaining brand loyalty/brand equity • Creating an image/meaning • Building brand loyalty in the trade channel • Facilitate brand management 1 1 13

  14. Advertising’s Role in Segmentation, Differentiation, and Positioning Segmentation(heterogeneous to homogeneous) Differentiation(perceived as different or unique) • Distinct from other brands • Occupies a “valued” place in consumer’s mind • External niche vs. internal positioning Positioning 1 1 14

  15. Advertising’s Role in Contributing to Revenue and Profit Generation • Brand loyalty leads to inelasticity of demand: demand is less sensitive to price changes • Economies of scale: higher volume results in lower unit cost = higher profit • Both revenue and profit are enhanced 1 1 15

  16. Types of Advertising • Primary demand stimulation • Entire product category • Selective demand stimulation • Brands within a product category • Direct response advertising • Encourages immediate action by consumer • Delayed response advertising • Brand image development • Corporate advertising • Promote the firm, not the brands 1 1 16

  17. Is this ad an example of primary or selective demand stimulation? What’s the difference? Courtesy, Foote, Cone & Belding

  18. The Economic Effects of Advertising Gross Domestic Product Business Cycles Competition Prices Value 1 1 18

  19. Does this ad have an “economic effect?” Courtesy, Advertising Archives

  20. From Advertising to IMC to IBP Mass Media Advertising Interactive/Digital media Coordinated promotional activities reinforce one another Coupons Premiums Special Events Social Media Public relations 1 1 20

  21. Check Your Understanding The mayor of a midsize Southern city appears on local television, saying that she should be re-elected because she has brought jobs to the metropolitan area. Obviously, this effort is mass-mediated and is an attempt to persuade. But for it to be considered advertising, which other condition must be met? • The message must be received by a target audience. • There must be a public service announcement included. • The airtime must be paid for. • The claim must involve a product or service. 1

  22. Check Your Understanding A brand of soup is perceived by consumers as a “good deal,” one that provides a certain level of comfort and satisfaction that goes well beyond just the money it takes to purchase a few cans. In this way, the soup is said to have • demand stimulation. • inelastic demand. • positioning. • value. 1

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