Chapter 01
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Transcript of Chapter 01
© 2009 South-Western, a part of Cengage Learning
Chapter 1
The World of Advertising and Integrated Brand
Promotion
PPT 1-1
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
The World of Advertising and Integrated Brand Promotion
PPT 1-2
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
What are Advertising and Integrated Brand Promotion?
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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
What are Advertising and Integrated Brand Promotion?
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Advertising Campaign– An integrated series of ads and promotions that
communicate a central theme or idea
Advertisements– Specific messages designed to persuade an audience
Distinctions within Advertising
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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
Advertising as a Communications Process
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Household Consumers Business Organizations The Trade Channel Professionals Government
Audiences for Advertising: Audience Categories
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Global advertising International advertising National advertising Regional advertising Local advertising
Audiences Geography
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PPT 1-9
This ad ran in Italy. Do you think this is a “global” or “international” ad? What’s the difference?
Ad in Context Example
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
Advertising as a Business Process
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The Marketing Mix
The Role of Advertising in the Marketing Mix
Product Distribution
Promotion Price
Perceived Value
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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
The Role of Advertising in Brand Management
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Advertising’s Role in Segmentation, Differentiation and Positioning
Segmentation(heterogeneous >
homogeneous)
Differentiation(perceived as different or
unique) Posi
tioni
ng •Distinct from other brands
•Occupies a “value” level
•External niche vs. internal
PPT 1-13
Brand loyalty leads to inelasticity of demand: less price sensitivity to demand
Economies of scale: higher volume results in lower unit cost
Advertising’s Role in Revenue and Profit Generation
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Primary demand stimulation Selective demand stimulation Direct response advertising Delayed response advertising Corporate advertising
Types of Advertising
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Is this ad an example of primary or selective demand stimulation? What’s the difference?
Ad in Context Example
The Economic Effects of Advertising
Gross Domestic Product
Business Cycles
Competition
Prices
Value
PPT 1-17
From IMC to IBP
SpecialSpecial
EventsEvents Television
Television
Advertising
Advertising
CCoouuppoonnss
Coordinated promotional activities reinforce one another
PPT 1-18
Titleist, the manufacturer of golf balls, runs a commercial featuring professional golfer John Daly. A group of people watching the commercial at a country club all interpret the commercial in a similar manner. When members of an audience share a similar interpretation of an advertisement like this, it is most likely the result of
A.the content of the commercial.B.the choice of spokesperson.C.the similar background and social standing of the
audience.D.the characteristics of the product being advertised.
Check Your Understanding
PPT 1-15
CampusTown Foods, a local grocery store, has decided to run a series of advertisements. For this to be considered an advertising campaign, which one of the following conditions must be met?
A.The advertisements must communicate a cohesive and integrated idea or theme.
B.The advertisements must appear over an extended period of time.
C.The advertisements must appear in multiple media.D.The advertisements must focus on store products
rather than store services.
Check Your Understanding
PPT 1-15