Marketing Management 244
Chapter 1: The World of Advertising and Integrated Brand Promotion
The New World of Advertising and Integrated Brand Promotion
• Companies are trying to keep up with how and where consumers want to receive
information about their brands.
• Consumer preferences and new technologies are reshaping the communication
environment.
• Companies are now turning to branded entertainment, the Internet, influencer marketing
and other communication techniques to reach consumers and to get their brand messages
across.
• Advertising is being referred to as “Madison & Vine”, as Madison Avenue advertising
agencies attempt to use Hollywood entertainment industry techniques to communicate
about their brand to consumers.
• Advertising, integrated brand promotion and marketing will become more digital, interactive
and social.
• Mobile marketing: communicating with target markets through mobile devices like
smartphones or iPad tablet-like devices.
Old Media/New Digital Media – It’s All About the Brand
New media does not change the fundamental challenge and opportunity of communicating
effectively about the brand. Firms use advertising and integrated brand promotion (IBP) to build
brands, however, it does not guarantee successful marketing of a product as 8 out of 10 new
products fail.
What are Advertising and Integrated Brand Promotions?
Advertising and integrated brand promotion are the two tools that are going to be used. Advertising
is a business, an art form, an institution and a cultural phenomenon. It is an essential tool to help
create brand awareness, brand loyalty, attract people to the store, a creative expression of a
concept and a way of communicating to current and potential customers.
Advertising: Is a paid, mass-mediated attempt to persuade. The company that pays for the
advertising is called the client or sponsor.
Three criteria must be met for a communication to be classified as advertising:
o The communication must be paid for.
o The communication must be delivered through mass media.
o The communication must be attempting to persuade.
Integrated Brand Promotion: The process of using a wide range of promotional tools working
together to create widespread brand exposure.
Tools marketers use for IBP:
§ Advertising in mass media
§ Personal selling
, § Blogs
§ Event sponsorships
§ Corporate advertising
§ Branded entertainment
§ Public relations
Advertisements, Advertising Campaigns and Integrated Brand Promotion
Advertisement: A specific message that an organisation has created to persuade an audience.
Advertising campaign: A series of coordinated advertisements that communicate a central theme or
idea.
IBP fits in when marketers combine contests, a website, event sponsorship with advertisements and
advertising campaigns.
Advertising as a Communication Process
• A Model of Mass-Mediated Communication
A process where people, institutions and messages interact.
Production Reception
Accommodation
and negotiation
History,
Interaction of advertiser, Individual
personality,
imagined audience, audience
imagined Meanings
agency, media and other member’s
Message advertiser and formed: common
social institutions that understanding of
purposes and individual.
results in production of Intent the
forming context
advertising content. advertisement.
of reception.
Production: The advertise 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 – individual by
individual.
The Audiences for Advertising
An Audience is a group of individuals who receive and interpret messages sent from companies or
organisations.
Target audience: A particular group of consumers singled out by an organisation for an advertising
or IBP campaign. These individuals are singled out because the firm discovered that the audience
members like the product category and might prefer their brand within that product category.
,Audience Categories
Ø Household consumers: The most conspicuous audience in that most mass media advertising
is directed at them.
Ø Members of business organizations: The focus of advertising for firms that produce
business and industrial goods and services, such as office equipment, production machinery,
supplies and software.
Ø Members of a trade channel: Include retailers, wholesalers and distributors. They are a
target audience for producers of both household and business goods and services.
Ø Professionals: Form a special target audience and are defined as doctors, lawyers,
accountants, teachers or any other professional group that has special training of
certification.
Ø Trade journals: Are magazines published specifically for members of a trade and carry highly
technical articles.
Ø Government officials and employees: Constitute an audience in themselves due to the large
dollar volume of buying that federal, state and local governments do.
Audience Geography
Global advertising: When an ad is used worldwide, with only minor changes. It is only possible when
a brand and the messages about that brand have a common appeal across diverse cultures.
International advertising: Occurs when firms prepare and place different advertising in different
national markets outside their home market. Different ads are tailored for each market.
National advertising: Reaches all geographic areas of a single nation.
Regional advertising: Carried out by producers, wholesalers, distributors and retailers that
concentrate their efforts in a relatively large, but not national, geographic region. Placing ads only in
the regions where the firm’s stores are located.
Local advertising: Is directed at an audience in a single trading area, either a city or state.
Cooperative advertising: Sharing of advertising expenses between national companies and local
merchants.
Advertising as a business process
• The Role of Advertising in Marketing
The role of advertising relates to four important aspects of the marketing process: contributing to
the marketing mix, developing and managing the brand, achieving effective market segmentation,
differentiation and positioning and contributing to profit generation.
1. The role of advertising in the marketing mix
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.
The marketing mix includes product, promotion, distribution and price. The role of advertising in the
marketing mix is to focus on communicating to a target audience the value a brand has to offer.
Consumers look for value in the brands features, convenient location, credit terms, warranties and
, delivery. Also in emotional value such as security, a sense of belonging or excitement. Marketers
must determine which marketing mix ingredients to emphasise and how to blend the mix elements
in just the right way to attract customers.
2. The role of advertising in brand management
Brand: Is a name, term, sign, symbol or any other feature that identifies one seller’s goods or
services as distinct from those of other sellers. A brand allows a firm to communicate, consistently
and efficiently with the market.
Advertising affects brand development and management in five ways:
• Information and Persuasion: target audiences learn about a brand’s features and benefits
through the message content of advertising and other promotional tools that are used in the
IBP effort.
• Introduction of New Brand or Brand Extensions: New brands are often critically dependent
on advertising. When brand extensions are brought into the market, advertising and IBP play
a key role in attracting attention to the brand.
• Building and Maintaining Brand Loyalty among Consumers: Brand loyalty occurs when a
consumer repeatedly purchases the same brand to the exclusion of competitors’ brands.
Advertising and IBP often provide an extra incentive to consumers to remain brand loyal.
Brand equity is the set of brand assets linked to a brand, its name and symbol and occurs
over long periods of time.
• Creating an Image and Meaning for a Brand: Advertising can help link a brand’s image and
larger culture, and in this way, it can actually deliver a sense of personal connection for the
consumer.
• Building and Maintaining Brand Loyalty within the Trade: Marketers can provide the trade
with sales training programmes, collateral advertising materials, point-of-purchase
advertising cosplays and premiums.
3. The role of advertising in market segmentation, differentiation and positioning
Market segmentation: The process of breaking down a large, widely varied market into submarkets,
or segments, that are more similar than dissimilar in terms of consumer characteristics that
consumers look for. Advertising’s role in the market segmentation process is to develop messages
that appeal to the wants and desires of different segments and then to transmit those messages via
appropriate media.
Differentiation: The process of creating a perceived difference, in the mind of the consumer,
between an organisation’s brand and the competition’s. Brand differentiation is based on consumer
perception. The critical issue in differentiation is that consumers perceive a difference between
brands. The essential task for advertising is to develop a message that is different and unmistakably
linked to the organisations brand.
Positioning: The process of designing a brand so that it can occupy a distinct value place in the target
consumer’s minds relative to other brands and then this distinctiveness is communicated through
advertising. A perceptual space is hoe one brand is seen on any number of dimensions (quality,
taste, price or social display value) in relation to those same dimensions in other brands.
Chapter 1: The World of Advertising and Integrated Brand Promotion
The New World of Advertising and Integrated Brand Promotion
• Companies are trying to keep up with how and where consumers want to receive
information about their brands.
• Consumer preferences and new technologies are reshaping the communication
environment.
• Companies are now turning to branded entertainment, the Internet, influencer marketing
and other communication techniques to reach consumers and to get their brand messages
across.
• Advertising is being referred to as “Madison & Vine”, as Madison Avenue advertising
agencies attempt to use Hollywood entertainment industry techniques to communicate
about their brand to consumers.
• Advertising, integrated brand promotion and marketing will become more digital, interactive
and social.
• Mobile marketing: communicating with target markets through mobile devices like
smartphones or iPad tablet-like devices.
Old Media/New Digital Media – It’s All About the Brand
New media does not change the fundamental challenge and opportunity of communicating
effectively about the brand. Firms use advertising and integrated brand promotion (IBP) to build
brands, however, it does not guarantee successful marketing of a product as 8 out of 10 new
products fail.
What are Advertising and Integrated Brand Promotions?
Advertising and integrated brand promotion are the two tools that are going to be used. Advertising
is a business, an art form, an institution and a cultural phenomenon. It is an essential tool to help
create brand awareness, brand loyalty, attract people to the store, a creative expression of a
concept and a way of communicating to current and potential customers.
Advertising: Is a paid, mass-mediated attempt to persuade. The company that pays for the
advertising is called the client or sponsor.
Three criteria must be met for a communication to be classified as advertising:
o The communication must be paid for.
o The communication must be delivered through mass media.
o The communication must be attempting to persuade.
Integrated Brand Promotion: The process of using a wide range of promotional tools working
together to create widespread brand exposure.
Tools marketers use for IBP:
§ Advertising in mass media
§ Personal selling
, § Blogs
§ Event sponsorships
§ Corporate advertising
§ Branded entertainment
§ Public relations
Advertisements, Advertising Campaigns and Integrated Brand Promotion
Advertisement: A specific message that an organisation has created to persuade an audience.
Advertising campaign: A series of coordinated advertisements that communicate a central theme or
idea.
IBP fits in when marketers combine contests, a website, event sponsorship with advertisements and
advertising campaigns.
Advertising as a Communication Process
• A Model of Mass-Mediated Communication
A process where people, institutions and messages interact.
Production Reception
Accommodation
and negotiation
History,
Interaction of advertiser, Individual
personality,
imagined audience, audience
imagined Meanings
agency, media and other member’s
Message advertiser and formed: common
social institutions that understanding of
purposes and individual.
results in production of Intent the
forming context
advertising content. advertisement.
of reception.
Production: The advertise 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 – individual by
individual.
The Audiences for Advertising
An Audience is a group of individuals who receive and interpret messages sent from companies or
organisations.
Target audience: A particular group of consumers singled out by an organisation for an advertising
or IBP campaign. These individuals are singled out because the firm discovered that the audience
members like the product category and might prefer their brand within that product category.
,Audience Categories
Ø Household consumers: The most conspicuous audience in that most mass media advertising
is directed at them.
Ø Members of business organizations: The focus of advertising for firms that produce
business and industrial goods and services, such as office equipment, production machinery,
supplies and software.
Ø Members of a trade channel: Include retailers, wholesalers and distributors. They are a
target audience for producers of both household and business goods and services.
Ø Professionals: Form a special target audience and are defined as doctors, lawyers,
accountants, teachers or any other professional group that has special training of
certification.
Ø Trade journals: Are magazines published specifically for members of a trade and carry highly
technical articles.
Ø Government officials and employees: Constitute an audience in themselves due to the large
dollar volume of buying that federal, state and local governments do.
Audience Geography
Global advertising: When an ad is used worldwide, with only minor changes. It is only possible when
a brand and the messages about that brand have a common appeal across diverse cultures.
International advertising: Occurs when firms prepare and place different advertising in different
national markets outside their home market. Different ads are tailored for each market.
National advertising: Reaches all geographic areas of a single nation.
Regional advertising: Carried out by producers, wholesalers, distributors and retailers that
concentrate their efforts in a relatively large, but not national, geographic region. Placing ads only in
the regions where the firm’s stores are located.
Local advertising: Is directed at an audience in a single trading area, either a city or state.
Cooperative advertising: Sharing of advertising expenses between national companies and local
merchants.
Advertising as a business process
• The Role of Advertising in Marketing
The role of advertising relates to four important aspects of the marketing process: contributing to
the marketing mix, developing and managing the brand, achieving effective market segmentation,
differentiation and positioning and contributing to profit generation.
1. The role of advertising in the marketing mix
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.
The marketing mix includes product, promotion, distribution and price. The role of advertising in the
marketing mix is to focus on communicating to a target audience the value a brand has to offer.
Consumers look for value in the brands features, convenient location, credit terms, warranties and
, delivery. Also in emotional value such as security, a sense of belonging or excitement. Marketers
must determine which marketing mix ingredients to emphasise and how to blend the mix elements
in just the right way to attract customers.
2. The role of advertising in brand management
Brand: Is a name, term, sign, symbol or any other feature that identifies one seller’s goods or
services as distinct from those of other sellers. A brand allows a firm to communicate, consistently
and efficiently with the market.
Advertising affects brand development and management in five ways:
• Information and Persuasion: target audiences learn about a brand’s features and benefits
through the message content of advertising and other promotional tools that are used in the
IBP effort.
• Introduction of New Brand or Brand Extensions: New brands are often critically dependent
on advertising. When brand extensions are brought into the market, advertising and IBP play
a key role in attracting attention to the brand.
• Building and Maintaining Brand Loyalty among Consumers: Brand loyalty occurs when a
consumer repeatedly purchases the same brand to the exclusion of competitors’ brands.
Advertising and IBP often provide an extra incentive to consumers to remain brand loyal.
Brand equity is the set of brand assets linked to a brand, its name and symbol and occurs
over long periods of time.
• Creating an Image and Meaning for a Brand: Advertising can help link a brand’s image and
larger culture, and in this way, it can actually deliver a sense of personal connection for the
consumer.
• Building and Maintaining Brand Loyalty within the Trade: Marketers can provide the trade
with sales training programmes, collateral advertising materials, point-of-purchase
advertising cosplays and premiums.
3. The role of advertising in market segmentation, differentiation and positioning
Market segmentation: The process of breaking down a large, widely varied market into submarkets,
or segments, that are more similar than dissimilar in terms of consumer characteristics that
consumers look for. Advertising’s role in the market segmentation process is to develop messages
that appeal to the wants and desires of different segments and then to transmit those messages via
appropriate media.
Differentiation: The process of creating a perceived difference, in the mind of the consumer,
between an organisation’s brand and the competition’s. Brand differentiation is based on consumer
perception. The critical issue in differentiation is that consumers perceive a difference between
brands. The essential task for advertising is to develop a message that is different and unmistakably
linked to the organisations brand.
Positioning: The process of designing a brand so that it can occupy a distinct value place in the target
consumer’s minds relative to other brands and then this distinctiveness is communicated through
advertising. A perceptual space is hoe one brand is seen on any number of dimensions (quality,
taste, price or social display value) in relation to those same dimensions in other brands.
