The World of Advertising and Integrated Brand Promotion Chapter 1 The World of Advertising and Integrated Brand Promotion PPT 1-1 © 2009 South-Western, a part of Cengage Learning
What are Advertising and Integrated Brand Promotion? 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 PPT 1-3
What are Advertising and Integrated Brand Promotion? 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 PPT 1-4
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 PPT 1-5
Audiences for Advertising: Audience Categories Household Consumers Business Organizations The Trade Channel Professionals Government PPT 1-7
Audiences Geography Global advertising International advertising Regional advertising Local advertising PPT 1-8
Ad in Context Example This ad ran in Italy. Do you think this is a “global” or “international” ad? What’s the difference? PPT 1-9
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 PPT 1-10
The Role of Advertising in the Marketing Mix Perceived Value Distribution Product Promotion Price PPT 1-11
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 PPT 1-12
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 PPT 1-13
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 PPT 1-14
Types of Advertising Primary demand stimulation Selective demand stimulation Direct response advertising Delayed response advertising Corporate advertising PPT 1-15
Ad in Context Example Is this ad an example of primary or selective demand stimulation? What’s the difference? PPT 1-16
The Economic Effects of Advertising Gross Domestic Product Business Cycles Competition Prices Value PPT 1-17
From IMC to IBP Television Advertising Coordinated promotional activities reinforce one another Special Events C o u p n s PPT 1-18