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Advertising & Integrated Brand Promotion Dr. Close

11ObjectivesTo understand:What Advertising & IBP Actually Are (& what they are not!)the Advertising Communication ModelAudience ClassificationRole of Adv. In BusinessRole of Adv. In IBPIMC through the lens of branding

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Branding Baby!Swiffer Brand Extention to Baby Market3

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

4Consumers Resist Authority

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What is advertising?3 criteria must be met for a communication to be classified as advertising:The communication must be paid forThe communication must be delivered through mass mediaThe communication must be attempting to persuade61.6Example of Mass Media Advertising

7Not An Example (Mockvertising)dont be fooled!

81.7Not Advertising:SalesPromotion

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Distinctions within AdvertisingAdvertisementsSpecific messages designed to persuade an audienceAdvertising CampaignAn integrated series of ads & promotions that communicate a central theme or ideaIntegrated Brand Promotion (IBP)Coordinating promotional tools with advertising to build & maintain brand awareness, identity, & preference

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Advertising as a Communications ProcessProduction: The advertiser & social context determine ad content

Accommodation & negotiation: The ways in which consumers interpret ads

Reception: The context of ad reception & the audiences understanding of an ad result in a meaningful interpretation of the ad

11Interpretation is Key(Dont assume they get it.)

12Especially with Technology (huh?)

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Audiences for AdvertisingHousehold ConsumersBusiness OrganizationsThe Trade ChannelProfessionalsGovernment14

Audience GeographyGlobalInternational NationalRegionalLocal

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Advertising as a Business Process: Role of Advertising in Marketing & Brand PromotionAdvertising & the marketing mixAdvertising in brand development & management:Advertising in market segmentation, differentiation, & positioningAdvertising in revenue & profit generation

It's a Great Time to Invest...16Which brand development & management features are shown in this ad?

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The Marketing Mix

Perceived ValueProductPromotionPriceDistribution18

Advertising in Brand Development & ManagementInformation & persuasionIntroduction of new brands--extensionsBuilding brand loyalty/brand equityCreating an image/meaningBuilding brand loyalty or community in the trade channel

19Brand Community- HOG(they dont care what you think.)

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Advertisings role in SDP marketingSegmentation(heterogeneous > homogeneous)

Differentiation(perceived as different or unique)PositioningDistinct from other brands

Occupies a value level

External niche vs. internal21

Revenue & Profit GenerationEconomies of scale: higher volume results in lower unit cost

Brand loyalty leads to inelasticity of demand: less price sensitivity to demand22

Types of AdvertisingPrimary demand stimulationSelective demand stimulationDirect response advertisingDelayed response advertisingCorporate advertising

23Example of Corporate Advertising

24Not an Example of Corporate Advertising

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The Economic Effects of AdvertisingGross Domestic ProductBusiness CyclesCompetitionPricesValue

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Integrated Brand Promotion (IBP)SpecialEventsTelevisionAdvertisingCouponsCoordinated promotional activities reinforce one another27Example of IBP- AxeAxes campaign for their Axe Unlimited with some tv commercials & online components.The new TV spot leads to www.mojomastergame.com a Sim-like game.

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Review/Questions?

Understand:What Advertising & IBP Actually Are (& what they are not!)The Advertising Communication ModelAudience ClassificationRole of Adv. In BusinessRole of Adv. In IBPIMC through the lens of branding* (Next)

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