Advertising & Integrated Brand Promotion Dr. Close 1

Objectives To understand: 1.What Advertising & IBP Actually Are (& what they are not!) 2.the Advertising Communication Model 3.Audience Classification 4.Role of Adv. In Business 5.Role of Adv. In IBP 6.IMC through the lens of branding

Branding Baby! Swiffer Brand Extention to Baby Market

The World of Advertising We Need to have Perspective! Firms use advertising to build brands Firms of all sizes need & use advertising Advertising is 1 tool in Integrated Brand Promotion (IBP) Advertising & promotion do not guarantee success + & - (mis-)perceptions about advertising & promotion

Consumers Resist “Authority”

What is advertising? 3 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

1.6 Example of Mass Media Advertising

Not An Example (Mockvertising) don’t be fooled!

1.7 Not Advertising: Sales Promotion

Distinctions within Advertising Advertisements – Specific messages designed to persuade an audience Advertising Campaign – An integrated series of ads & promotions that communicate a central theme or idea Integrated Brand Promotion (IBP) – Coordinating promotional tools with advertising to build & maintain brand awareness, identity, & preference

Advertising as a Communications Process Production: The advertiser & social context determine ad content Accommodation & negotiation: The ways in which consumers interpret ads Reception: The context of ad reception & the audience’s understanding of an ad result in a meaningful interpretation of the ad

Interpretation is Key (Don’t assume they get it.)

Especially with Technology (huh?)

Audiences for Advertising Household Consumers Business Organizations The Trade Channel Professionals Government

Audience Geography Global International National Regional Local

Advertising as a Business Process: Role of Advertising in Marketing & Brand Promotion 1.Advertising & the marketing mix 2.Advertising in brand development & management: 3.Advertising in market segmentation, differentiation, & positioning 4.Advertising in revenue & profit generation It's a Great Time to Invest...

Which brand development & management features are shown in this ad?

The Marketing Mix Product PromotionPrice Distribution

Advertising in Brand Development & Management 1.Information & persuasion 2.Introduction of new brands--extensions 3.Building brand loyalty/brand equity 4.Creating an image/meaning 5.Building brand loyalty or community in the trade channel

Brand Community- HOG (they don’t care what you think.)

Advertising’s role in SDP marketing Segmentation (heterogeneous > homogeneous) Differentiation (perceived as different or unique) Positioning Distinct from other brands Occupies a “value” level External niche vs. internal

Revenue & Profit Generation 1.Economies of scale: higher volume results in lower unit cost 2.Brand loyalty leads to inelasticity of demand: less price sensitivity to demand

Types of Advertising 1.Primary demand stimulation 2.Selective demand stimulation 3.Direct response advertising 4.Delayed response advertising 5.Corporate advertising

Example of Corporate Advertising

Not an Example of Corporate Advertising

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

Integrated Brand Promotion (IBP) SpecialEvents TelevisionAdvertising Coupons Coordinatedpromotionalactivitiesreinforce oneanother

Example of IBP- Axe Axe’s campaign for their Axe Unlimited with some tv commercials & online components. The new TV spot leads to om om a Sim-like game.

Review/ Questions? Understand: 1.What Advertising & IBP Actually Are (& what they are not!) 2.The Advertising Communication Model 3.Audience Classification 4.Role of Adv. In Business 5.Role of Adv. In IBP 6.IMC through the lens of branding* (Next)