1. The World of Advertising and Integrated Brand Promotion
Chapter 1
The World of Advertising and Integrated Brand Promotion
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© 2009 South-Western, a part of Cengage Learning

2. 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
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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, )
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
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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
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5. Audiences for Advertising: Audience Categories
Household Consumers
Business Organizations
The Trade Channel
Professionals
Government
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6. Audiences Geography Global advertising International advertising
Regional advertising
Local advertising
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7. Ad in Context Example
This ad ran in Italy. Do you think this is a “global” or “international” ad? What’s the difference?
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8. 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
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9. The Role of Advertising in the Marketing Mix
Perceived Value
Distribution
Product
Promotion
Price
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10. 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
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11. 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
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12. 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
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13. Types of Advertising Primary demand stimulation
Selective demand stimulation
Direct response advertising
Delayed response advertising
Corporate advertising
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14. Ad in Context Example
Is this ad an example of primary or selective demand stimulation? What’s the difference?
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15. The Economic Effects of Advertising
Gross Domestic Product
Business Cycles
Competition
Prices
Value
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16. From IMC to IBP
Television
Advertising
Coordinated promotional activities reinforce one another
Special
Events C o u p n s
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