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Adibp Ch1


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Advertising and IBP: O'Guinn et al

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Adibp Ch1

  1. 1. © 2009 South-Western, a part of Cengage Learning<br />Chapter 1<br />The World of Advertising and Integrated Brand Promotion<br />PPT 1-1<br />
  2. 2. The World of Advertising and Integrated Brand Promotion<br />We need perspective on advertising and IBP!<br /><ul><li>Technology and consumer control are reshaping the communications environment
  3. 3. The lines between entertainment and advertising/IBP are blurring—”Madison & Vine”
  4. 4. Firms use advertising/IBP to build brands
  5. 5. Firms of all sizes need and use advertising
  6. 6. Advertising is just one of many tools in IBP
  7. 7. Advertising/IBP do not guarantee success—8 of 10 new products fail
  8. 8. People have all sorts of positive and negative (mis)perceptions about advertising and promotion</li></ul>PPT 1-2<br />
  9. 9. What are Advertising and Integrated Brand Promotion?<br />Three criteria must be met for a communication to be classified as advertising:<br /><ul><li>The communication must be paid for
  10. 10. The communication must be delivered through mass media
  11. 11. The communication must be attempting to persuade</li></ul>PPT 1-3<br />
  12. 12. What are Advertising and Integrated Brand Promotion?<br />Integrated Brand Promotion (IBP) is the process of using a wide range of promotional tools working together to create widespread brand exposure.<br /><ul><li>IBP is a process
  13. 13. IBP uses a wide ranges of tools including:
  14. 14. Advertising
  15. 15. Point of Purchase (in-store) materials
  16. 16. Direct Marketing (catalogs, infomercials, email)
  17. 17. Personal Selling
  18. 18. Internet advertising
  19. 19. Blogs
  20. 20. Podcasting
  21. 21. Event sponsorship
  22. 22. Brand entertainment (product placement on TV shows, in movies)
  23. 23. Outdoor signage/billboards
  24. 24. Public relations
  25. 25. Influencer (peer-to-peer) communications
  26. 26. Corporate advertising</li></ul>PPT 1-4<br />
  27. 27. Distinctions within Advertising<br /><ul><li>Advertising Campaign</li></ul>An integrated series of ads and promotions that communicate a central theme or idea<br /><ul><li>Advertisements</li></ul>Specific messages designed to persuade an audience<br />PPT 1-5<br />
  28. 28. Advertising as a Communications Process<br /><ul><li>Production: The advertiser and social context determine ad content.
  29. 29. Reception: The context of ad reception and the audience’s understanding of an ad result in a meaningful interpretation of the ad.
  30. 30. Accommodation and negotiation: The ways in which consumers interpret ads</li></ul>PPT 1-6<br />
  31. 31. Audiences for Advertising: Audience Categories<br /><ul><li>Household Consumers
  32. 32. Business Organizations
  33. 33. The Trade Channel
  34. 34. Professionals
  35. 35. Government</li></ul>PPT 1-7<br />
  36. 36. Audiences Geography<br /><ul><li>Global advertising
  37. 37. International advertising
  38. 38. National advertising
  39. 39. Regional advertising
  40. 40. Local advertising</li></ul>PPT 1-8<br />
  41. 41. Ad in Context Example<br />This ad ran in Italy. Do you think this is a “global” or “international” ad? What’s the difference?<br />PPT 1-9<br />
  42. 42. Advertising as a Business Process<br />The role of advertising in the marketing mix<br />Advertising in brand management<br />Advertising in market segmentation, differentiation, and positioning<br />Advertising in revenue and profit generation<br />PPT 1-10<br />
  43. 43. The Role of Advertising in the Marketing Mix<br />The Marketing Mix<br />Perceived Value<br />Distribution<br />Product<br />Promotion<br />Price<br />PPT 1-11<br />
  44. 44. The Role of Advertising in Brand Management<br /><ul><li>Information and persuasion
  45. 45. Introduction of new brands and extensions
  46. 46. Building and maintaining brand loyalty/brand equity
  47. 47. Creating an image/meaning
  48. 48. Building brand loyalty in the trade channel</li></ul>PPT 1-12<br />
  49. 49. Advertising’s Role in Segmentation, Differentiation and Positioning<br />Segmentation<br />(heterogeneous &gt; homogeneous)<br />Differentiation<br />(perceived as different or unique)<br />Positioning<br /><ul><li>Distinct from other brands
  50. 50. Occupies a “value” level
  51. 51. External niche vs. internal</li></ul>PPT 1-13<br />
  52. 52. Advertising’s Role in Revenue and Profit Generation<br /><ul><li>Brand loyalty leads to inelasticity of demand: less price sensitivity to demand
  53. 53. Economies of scale: higher volume results in lower unit cost</li></ul>PPT 1-14<br />
  54. 54. Types of Advertising<br /><ul><li>Primary demand stimulation
  55. 55. Selective demand stimulation
  56. 56. Direct response advertising
  57. 57. Delayed response advertising
  58. 58. Corporate advertising</li></ul>PPT 1-15<br />
  59. 59. Ad in Context Example<br />Is this ad an example of primary or selective demand stimulation? What’s the difference?<br />PPT 1-16<br />
  60. 60. The Economic Effects of Advertising<br />Gross Domestic Product<br />Business Cycles<br />Competition<br />Prices<br />Value<br />PPT 1-17<br />
  61. 61. Special<br />Events<br />Television<br />Advertising<br />C<br />o<br />u<br />p<br />o<br />n<br />s<br />From IMC to IBP<br />Coordinated promotional activities reinforce one another<br />PPT 1-18<br />