Transcript Chapter 1 - Stephanie Larkin

What are Advertising and
Integrated Brand Promotions?
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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©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
What are Advertising and
Integrated Brand Promotions?
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:
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©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Distinctions within Advertising
• Advertising Campaign
An integrated series of ads and promotions
that communicate a central theme or idea
Altoids® is a registered trademark of Callard
& Bowser
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• Advertisements
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Specific messages designed to persuade an audience
©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Advertising as a Communication
Process—A Model
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.
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Accommodation and negotiation:
• The ways in which consumers interpret
ads—individual by individual.
©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Audiences for Advertising:
Audience Categories
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Household Consumers
Business Organizations
The Trade Channel
Professionals
Government
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Audiences for Advertising:
Geography
• Global advertising
– One ad fits all—when and why?
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International advertising
National advertising
Regional advertising
Local advertising
©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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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©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
The Role of Advertising
in the Marketing Mix
The Marketing Mix
Product
Distribution
Perceived
Brand
Value
Promotion
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Price
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The Role of Advertising
in Brand Management
• Information and persuasion
• Introduce new brands and
brand extensions
• Building and maintaining brand
loyalty/brand equity
• Creating an image/meaning
• Building brand loyalty in the trade
channel
• Facilitate brand management
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Segmentation
(wants/needs
demographic/psychographic)
Differentiation
(perceived as different or unique)
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Positioning
Advertising’s Role in
Segmentation, Differentiation,
and Positioning
•Distinct from other
brands
•Occupies a “valued”
place in consumer’s
mind
•External niche vs.
internal positioning
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Advertising’s Role in Contributing
to Revenue and Profit Generation
• Brand loyalty leads to inelasticity
of demand: demand is less sensitive
to price changes
• Economies of scale: higher volume
results in lower unit cost = higher
profit
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• Both revenue and profit are
enhanced
©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Types of Advertising
• Primary demand stimulation
– Entire product category
• Selective demand stimulation
– Brands within a product category
• Direct response advertising
– Encourages immediate action by consumer
• Delayed response advertising
– Brand image development
• Corporate advertising
– Promote the firm, not the brands
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©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.