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1. Advertising & Integrated Brand Promotion Dr. Close. Objectives. To understand: What Advertising & IBP Actually Are (& what they are not!) the Advertising Communication Model Audience Classification Role of Adv. In Business Role of Adv. In IBP IMC through the lens of branding.
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1 Advertising & Integrated Brand Promotion Dr. Close
Objectives To understand: • What Advertising & IBP Actually Are (& what they are not!) • the Advertising Communication Model • Audience Classification • Role of Adv. In Business • Role of Adv. In IBP • IMC through the lens of branding
Branding Baby! Swiffer Brand Extention to Baby Market
The World of Advertising We Need to have Perspective! • Firms use advertising to build brands • Firms of all sizes need & use advertising • Advertising is 1 tool in Integrated Brand Promotion (IBP) • Advertising & promotion do not guarantee success • + & - (mis-)perceptions about advertising & promotion
What is advertising? 3 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
Not Advertising: Sales Promotion 1.7
Distinctions within Advertising • Advertisements • Specific messages designed to persuade an audience • Advertising Campaign • An integrated series of ads & promotions that communicate a central theme or idea • Integrated Brand Promotion (IBP) • Coordinating promotional tools with advertising to build & maintain brand awareness, identity, & preference
Advertising as a Communications Process • Production: The advertiser & social context determine ad content • Accommodation & negotiation: The ways in which consumers interpret ads • Reception: The context of ad reception & the audience’s understanding of an ad result in a meaningful interpretation of the ad
Audiences for Advertising • Household Consumers • Business Organizations • The Trade Channel • Professionals • Government
Audience Geography Global International National Regional Local
Advertising as a Business Process: Role of Advertising in Marketing & Brand Promotion • Advertising & the marketing mix • Advertising in brand development & management: • Advertising in market segmentation, differentiation, & positioning • Advertising in revenue & profit generation It's a Great Time to Invest...
Which brand development & management features are shown in this ad?
The Marketing Mix Product Distribution Perceived Value Promotion Price
Advertising in Brand Development & Management • Information & persuasion • Introduction of new brands--extensions • Building brand loyalty/brand equity • Creating an image/meaning • Building brand loyalty or community in the trade channel
Advertising’s role in SDP marketing Positioning Segmentation (heterogeneous > homogeneous) Differentiation (perceived as different or unique) • Distinct from other brands • Occupies a “value” level • External niche vs. internal
Revenue & Profit Generation • Economies of scale: higher volume results in lower unit cost • Brand loyalty leads to inelasticity of demand: less price sensitivity to demand
Types of Advertising • Primary demand stimulation • Selective demand stimulation • Direct response advertising • Delayed response advertising • Corporate advertising
The Economic Effects of Advertising Gross Domestic Product Business Cycles Competition Prices Value
Special Events Television Advertising C o u p o n s Integrated Brand Promotion (IBP) Coordinated promotional activities reinforce one another
Axe’s campaign for their Axe Unlimited with some tv commercials & online components. The new TV spot leads to www.mojomastergame.com a Sim-like game. Example of IBP- Axe
Review/Questions? Understand: • What Advertising & IBP Actually Are (& what they are not!) • The Advertising Communication Model • Audience Classification • Role of Adv. In Business • Role of Adv. In IBP • IMC through the lens of branding* (Next)