1. Chapter 1
The World of Advertising
and Integrated Brand
Promotion
© 2009 South-Western, a part of Cengage Learning
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2. 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
 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
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3. 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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4. 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
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5. 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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6. 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
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7. Audiences for Advertising:
Audience Categories
 Household Consumers
 Business Organizations
 The Trade Channel
 Professionals
 Government
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8. Audiences Geography
 Global advertising
 International advertising
 National advertising
 Regional advertising
 Local advertising
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9. 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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10. Advertising as a Business
Process
1. The role of advertising in the marketing mix
2. Advertising in brand management
3. Advertising in market segmentation,
differentiation, and positioning
4. Advertising in revenue and profit generation
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11. The Role of Advertising in the
Marketing Mix
The Marketing Mix
Product Distribution
Perceived Value
Promotion Price
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12. 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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13. Advertising’s Role in Segmentation,
Differentiation and Positioning
Segmentation
•Distinct from
(heterogeneous >
Positioning
other brands
homogeneous)
•Occupies a
“value” level
Differentiation
•External niche
(perceived as different or
vs. internal
unique)
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14. 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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15. Types of Advertising
 Primary demand stimulation
 Selective demand stimulation
 Direct response advertising
 Delayed response advertising
 Corporate advertising
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16. Ad in Context Example
Is this ad an example of
primary or selective
demand stimulation?
What’s the difference?
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17. The Economic Effects of
Advertising
Gross Domestic Product
Business Cycles
Competition
Prices
Value
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18. From IMC to IBP
Sp ionng
Coordinated
Ev eci vistisi promotional
en al
ts elever
T d
A activities
reinforce one
C
o another
u
p
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