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The World of Advertising and Integrated Brand Promotion

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The World of Advertising and Integrated Brand Promotion We need perspective on advertising and IBP! Technology and consumer control are reshaping the communications ... – PowerPoint PPT presentation

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Title: The World of Advertising and Integrated Brand Promotion


1
The World of Advertising and Integrated Brand
Promotion
2
We need perspective on advertising and IBP!
  • Technology and consumer control are reshaping the
    communications environment
  • The lines between entertainment and
    advertising/IBP are blurringMadison Vine
  • Firms use advertising/IBP to build brands

3
We need perspective on advertising and IBP!
  • Firms of all sizes need and use advertising
  • Advertising is just one of many tools in IBP
  • Advertising/IBP do not guarantee success8 of 10
    new products fail
  • People have all sorts of positive and negative
    (mis)perceptions about advertising and promotion

4
We need perspective on advertising and IBP!
  • Four criteria must be met for a communication
    to be classified as advertising
  • The communication must be paid for
  • The advertiser must be identified
  • The communication must be delivered through mass
    media
  • The communication must be attempting to persuade

5
We need perspective on advertising and IBP!
  • Integrated Brand Promotion (IBP)
  • is the process of using a wide
  • range of promotional tools
  • working together to create
  • widespread brand exposure.

6
We need perspective on advertising and IBP!
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

7
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

8
Model of theCommunicationsProcess
9
Advertising as a Communications Process Mass
Mediated
10
Advertising as a Communications Process
  • Production The advertiser and social context
    determine ad content.
  • Reception The context of ad reception and the
    audiences understanding of an ad result in a
    meaningful interpretation of the ad.
  • Accommodation and negotiation The ways in which
    consumers interpret ads

11
Audiences for Advertising Audience Categories
  • Household Consumers
  • Business Organizations
  • The Trade Channel
  • Professionals
  • Government

12
Audiences for Advertising Audience Geography
  • Global advertising
  • International advertising
  • National advertising
  • Regional advertising
  • Local advertising

13
Ad in Context Example
This ad ran in Italy. Do you think this is a
global or international ad? Whats the
difference?
14
Advertising as a Business Process
  • The role of advertising in the marketing mix
  • Advertising in brand management
  • Advertising in market segmentation,
    differentiation, and positioning
  • Advertising in revenue and profit generation

15
Advertising as a Business Process
  • Definition of Marketing
  • The process of planning and executing the
    conception, pricing, promotion and distribution
    of ideas, goods and services to create exchanges
    that satisfy individual and organizational
    objectives.
  • American Marketing Association, 1995

16
The Role of Advertising in the Marketing Mix
  • The Marketing Mix

Perceived Value
Distribution
Product
Promotion
Price
17
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

18
Advertisings Role in Segmentation,
Differentiation and Positioning
  • Segmentation
  • (heterogeneous gt homogeneous)
  • Differentiation
  • (perceived as
  • different
  • or unique)

Positioning
  • Distinct from other brands
  • Occupies a value level
  • External niche vs. internal

19
Advertisings 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

20
Types of Advertising
  • Primary demand stimulation
  • Selective demand stimulation
  • Direct response advertising
  • Delayed response advertising
  • Corporate advertising

21
Ad in Context Example
Is this ad an example of primary or selective
demand stimulation? Whats the difference?
22
The Economic Effects of Advertising
Gross Domestic Product Business
Cycles Competition Prices Value
23
From IMC to IBP
Coordinated promotional activities reinforce one
another
24
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