Advertising and Integrated

Brand Promotion (IBP)

 Advertising and Integrated Brand Promotion

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
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
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
 Distinctions within Advertising

 Advertising Campaign
– An integrated series of ads and promotions that
communicate a central theme or idea

 Advertisements
– Specific messages designed to persuade an audience
 Advertising as a Communications
Process

 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
 Audiences for Advertising:
Audience Categories

 Household Consumers
 Business Organizations
 The Trade Channel
 Professionals
 Government
 Audiences Geography

 Global advertising
 International advertising
 National advertising
 Regional advertising
 Local advertising
 Ad in Context Example

This
This ad
ad ran
ran in in
Italy.
Italy. Do
Do you
you
think
think this
this is
is aa
“global”
“global” or
or
“international”
“international”
ad?
ad?
 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

 The Role of Advertising in the
Marketing Mix
The Marketing Mix

Product Distribution

Perceived Value

Promotion Price
 The Role of Advertising in
Brand Management
 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
Advertising’s Role in Segmentation,
Differentiation and Positioning

Segmentation
•Distinct from
(heterogeneous >
other brands
homogeneous)

•Occupies a
“value” level

Differentiation
•External niche
(perceived as different or
ti s o P
vs. internal
unique)

PPT 1-13
 Advertising’s Role in Revenue
and Profit Generation

 Brand loyalty leads to inelasticity of

demand: less price sensitivity to
demand
 Economies of scale: higher volume
results in lower unit cost

PPT 1-14
 Types of Advertising

 Primary demand stimulation

 Selective demand stimulation
 Direct response advertising
 Delayed response advertising
 Corporate advertising

PPT 1-15
 Ad in Context Example

Is
Is this
this ad
ad an
an example
example of
of
primary
primary or or selective
selective
demand
demand stimulation?
stimulation?
The Economic Effects of
Advertising

Gross Domestic Product

Business Cycles
Competition
Prices
Value
PPT 1-17
 From IMC to IBP

Sp i ong Coordinated
Ev eci v is isin promotional
en al e le ert
ts T dv
A activities
reinforce one
C
o another
u
p
o
n
s
PPT 1-18
 Check Your Understanding
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
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.
35 years of Advertising style
When helmets were made
compulsory in Bombay Bankers’ demand for increased
Dearness Allowance.
Souyuz – Cosmonaut in space. Soft budget which pleased all
sections of the society.

Extended Rajya Sabha term. INSAT-1′s initial problems regarding

opening of its flaps.
Policemen ask for McEnroe using abusive language
on the tennis court.
increase in salary.

Climbing a mountain summit Americans boycott the Moscow

without oxygen. Olympics.
Sunil Gavaskar’s century Sunil Gavaskar’s quick century
against West Indies in Delhi. in succession.

Sunil Gavaskar did not go on a tour. Viv Richards refused entry into a city club
for not adhering to the dress code.
India’s chances during Reliance On Kumble bowling with a
Cup. fractured jaw

Haul of 10 wickets by kumble. Missed a few crucial catches, during

the World Cup.
On the waiver of import duty on the On Indian cricketers extremely high
Ferrari gifted to Sachin Tendulkar levels of endorsements on T.V.

Shane Warne Australian cricketer’s On Pepsi’s ‘Toss ka Boss’ contest for

alleged scandalous involvement in the ICC Champions Trophy
sending Sex Text Messages –
Tata Motors unveil “Nano” the world’s
cheapest and technologically advanced Tata Motors Nano plant shut down
car with Rupees one lakh operations in Singur,

On the extradition of Underworld Don

to India
On the Gulf War
Pakistan infiltration into India. The rapid change of Prime Ministers in
the Country

“Military overtakes Pakistan. Prime Minister

Nawaz Sharif placed under house arrest” –
The political crisis during the Gulf War October 1999.
On the infighting within the Congress government
during the general election.

The above hoarding was blackened out by the Election

Commissioner’s office. This was AMUL’s response.
A comment on the film `Mr. India’. Bollywood Actor Sanjay Dutt In Jail

Poaching by actors in Jaipur Launch of Hindi film “Ashoka” –

October 2001
Based on the popular film “Dil On the controversy surrounding the
Chahta Hai” film “Ek Chhotisi Love Story”

On the English film `Spiderman’ On the release of the film ‘Swades’

 superstar Shah Rukh Khan’s new
look… perfect six pack abs
CHAKDE! INDIA,

CHEENI KUM (A Sugar Free Romance) Richard Gere and Shilpa Shetty
Mumbai city being cleaned up for the arrival of
U.S.A. President Bill Clinton – March 2000. On Bill and Hillary Clinton.

On U.S. president, Bill Clinton’s alleged sexual exploits.

Financial crisis hits USA Inflammatory speech given at a
political rally –

Iraqi journalist’s shoe attack on Rs.7,000 Cr. scam at Satyam

George Bush Computer Services
Create your own campaign Using
Your own product
Your own ideas
Your own style …