Instructor Solution Manual For
Advertising & Promotion 8CE Michael Guolla, George E. Belch, Michael A. Belch
Chapter 1-19
Chapter 1: Integrated marketing Communication
Chapter Overview
This chapter provides an overview of advertising and promotion. The first section summarizes how marketing
communication conveys marketing mix decisions. The promotional mix is introduced, and the firms involved in
promotion planning and execution are highlighted. This chapter introduces integrated marketing communications
(IMC) and discusses its evolution, a renewed perspective, and importance. Most marketers understand the value
of strategically integrating the communication functions rather than having them operate autonomously and so
this provides a foundation of the book’s IMC perspective. A model of the IMC planning process is examined to
illustrate the content of a promotional plan. Finally, the organization of the text that is consistent with the planning
process is summarized.
Learning Objectives
1. Describe the importance of marketing communication within the marketing mix.
2. Identify the content of the promotional mix - advertising, sales promotion, public relations, direct
marketing, digital, and personal selling – and summarize their purpose.
3. Illustrate the concept of integrated marketing communications (IMC) by distinguishing its evolution,
renewed perspective, and content.
4. Explain the IMC planning process model and express the steps in developing a marketing communication
program.
5. Identify how the IMC planning process is continued throughout all chapters.
Chapter and Lecture Outline
I. MARKETING COMMUNICATION
This section reviews the definition of marketing and illustrates how advertising and promotion communicates the
remaining elements of the marketing mix to support the AMA definition.
A Marketing— Most students have had a marketing course; however, it is helpful to remind them of
definition of marketing. The American Marketing Association defines marketing as: the activity, set of
institutions, and processes for creating, communicating, delivering, and exchanging offerings that have
value for customers, clients, partners, and society at large.
A description of marketing should include a summary of the activities involved in the marketing process
and the different types of companies that use marketing extensively, including both profit and nonprofit
organizations. It is important to indicate that each element of the marketing mix includes several
decisions. This reminder leads the way to identifying the text’s scope. The marketing mix point highlights
that marketing communication is responsible for drawing attention to product, price and distribution
elements in the message received by the audience.
B Communicating Product—an organization exists because it has a product, service, idea or cause to offer.
Discussion can focus on the value offered by the product and the fact that goods and services offer
attributes and benefits that satisfy needs. Benefits are communicated as functional based on their
features or attributes. They are also subjectively claimed in ads based on performance. And they are
Chapter 1 – Advertising & Promotion, 8th Canadian Edition
©2023 McGraw Hill Ltd.
1-1
, communicated emotionally through product consumption. These emotions are positive or negative and
are psychologically or socially based. Instructors can show ads that demonstrate these differences since
they are the heart of message development and delivery since promotional planners have complete
control in deciding which approach to influence consumers.
Communication for brand identity is important with respect to brand name, brand logo, brand tagline and
packaging. Ads usually identify the brand characteristics clearly to encourage recognition at the point of
purchase where decisions are made. Communicating all facets of the product is expected to contribute to
brand equity; an intangible asset of added value or goodwill that results from the favorable image,
impressions of differentiation, and/or the strength of consumer attachment to a company name, brand
name, or trademark. A discussion of the overall assessment of brand can ensue with reference to the data
in the brand exhibits. Other brand outcomes are identified (i.e., experience, attachment, love), and
instructors can draw on these to see if advertisers are fostering different brand related impressions upon
consumers.
C Communicating Price—the price decision of the marketing mix refers to what consumers give up in
exchange for a product. Marketing managers are concerned with establishing a price level, developing
pricing policies and monitoring consumers’ and competitors’ reactions to market prices. From a marketing
communication standpoint, price is often a key piece of information in an ad or is the main selling
message. Ad messages are intended to influence consumers knowledge of product category price points
and contributes to consumer reference prices.
D Communicating Distribution—marketing channels or the place decision of the marketing mix refers to
the set of interdependent organizations involved in the process of making a product or service available to
customers. The importance of resellers in marketing and promotional strategy should be introduced.
Attention should be given to the need to develop promotional programs for the trade or resellers to
encourage them to stock and promote a product.
E Communicating Value—all marketing activities and marketing communication decisions are designed to
enhance and or communicate customer value as conveyed in the AMA definition. Instructors should show
examples where there are notable consumer costs beyond economic and how brands communicate
value.
II. THE PROMOTIONAL MIX
Promotion is the coordination of all seller-initiated efforts to set up channels of information and persuasion.
Promotion is the communication function of marketing mix as most of an organization’s communication occurs
through a carefully planned and controlled program that utilizes elements of the promotional mix. The
promotional mix should be defined and the function of each promotional mix element can be discussed along with
its advantages and disadvantages.
A. Advertising—paid form of nonpersonal communication about an organization, product, service, or idea
by an identified sponsor.
Advantages of advertising:
cost-efficient way for communicating, particularly with large audiences.
cost-effective communication of a controlled message (what, when, how, where) if audiences process
the message and the message is appropriate for that audience.
valuable for creating and maintaining communication effects like brand equity by creating images and
symbolic appeals.
encourage online interaction with the brand.
Chapter 1 – Advertising & Promotion, 8th Canadian Edition
©2023 McGraw Hill Ltd.
1-2
, flexible application for all sorts of products, market situations, channel members, and target
audiences that works with other IMC programs.
advertising occurs in consumer markets (national, retail/local, direct response), and business and
professional markets (industrial, professional, trade).
Disadvantages of advertising: (not in the text)
cost of producing and placing ads is very high in some media like TV but is offset with inexpensive
Internet media exposure.
difficult to determine advertising effectiveness.
credibility and image problems associated with advertising.
numerous ad exposures from multiple brands and product categories have created clutter resulting in
concerns of weaker or minimal consumer attention.
B. Sales Promotion—marketing activities that provide extra value or incentive to the ultimate consumer, or
retailers and distributors.
Advantages of sales promotion:
provides incentive to consumers or trade members to purchase or stock/promote a brand.
way of appealing to price sensitive consumer
way of generating extra interest in product or ads.
easily measured direct effects are possible compared advertising.
can be used as a way of building or reinforcing brand equity.
Disadvantages of sales promotion:
companies become too reliant on sales promotion and focus on short run results.
some sales promotions do not contribute to brand image or long-term brand equity.
consumers become over-reliant on sales promotion that undermine brand loyalty.
problems with sales promotion clutter as consumers receive many promotional offers.
sales promotion offerings among competitors lowers margins and price tolerance.
It is important to address the terminology of promotion and sales promotion. In this text the term
promotion represents an element of the marketing mix by which firms communicate with their customers
and includes the promotional mix elements. However, marketing and advertising practitioners use the
term promotion in reference to sales promotion activities. Thus, sales promotion activities in the text
refer one specific element of the promotional mix.
C. Public Relations—a corporate communication program designed to enhance the company’s reputation
and/or earn public understanding and acceptance of a particular issue. It usually involves a process where
management evaluates public attitudes and executes a program of action to earn public understanding
and acceptance. In contrast, publicity is the nonpersonal communication that is not directly paid for nor
run under identified sponsorship.
The distinction should be made between publicity and public relations noting that public relations
generally has a broader objective than publicity, as its purpose is to establish and maintain a positive
image of the company among its various publics. Publicity is an important communication technique used
in public relations however other programs may also be used.
Chapter 1 – Advertising & Promotion, 8th Canadian Edition
©2023 McGraw Hill Ltd.
1-3
, Advantages of publicity:
credibility of publicity is usually higher than other forms of marketing communication.
low-cost way of communicating
often has news value and generates word-of-mouth discussion among consumers.
Disadvantages of publicity:
lack of control over what is said, when, where and how it is said
can be negative as well as positive.
D. Direct Marketing—a system of marketing by which organizations communicate directly with target
customers to generate a response and/or a transaction.
Advantages of direct marketing:
consumers are receptive to the convenience of direct-marketed products.
allows very selective targeting of marketing communications to specific customer segments.
customized messages fit the needs of specific market segments.
effectiveness of direct-marketing efforts is easier to assess than other forms of promotion.
Disadvantages of direct marketing:
unsolicited communication makes consumers less receptive to direct-marketing.
direct marketing has image problems.
problems with clutter as direct-marketing messages compete for consumers’ attention.
E. Digital—digital marketing communication uses interactive media that allows for a back-and-forth flow of
information whereby users participate in and modify its form and content instantly. Digital media is used
for advertising and communicates or executes all other elements of the promotional mix. Instructors
should demonstrate the differences between paid, owned, and earned media within social media and
across different content publishers.
Advantages of digital:
used for all integrated marketing communication functions.
used to target very specific groups of customers with a minimum of waste.
messages tailored to appeal to the specific interests and needs of the target audience.
high degree of customer involvement when customers visit a web site or social.
provide customers with a great deal of product information.
tremendous creative potential for shopping or influencing brand communication effects.
Disadvantages of internet marketing:
concern that digital ads are not fully processed by consumers.
clutter makes it difficult for advertising messages to be noticed and/or given attention.
audience measurement and effectiveness research are challenging.
F. Personal Selling—direct person-to-person communication whereby a seller assists and/or persuades
prospective buyers to purchase a company’s product or service or act on an idea.
Chapter 1 – Advertising & Promotion, 8th Canadian Edition
©2023 McGraw Hill Ltd.
1-4
Advertising & Promotion 8CE Michael Guolla, George E. Belch, Michael A. Belch
Chapter 1-19
Chapter 1: Integrated marketing Communication
Chapter Overview
This chapter provides an overview of advertising and promotion. The first section summarizes how marketing
communication conveys marketing mix decisions. The promotional mix is introduced, and the firms involved in
promotion planning and execution are highlighted. This chapter introduces integrated marketing communications
(IMC) and discusses its evolution, a renewed perspective, and importance. Most marketers understand the value
of strategically integrating the communication functions rather than having them operate autonomously and so
this provides a foundation of the book’s IMC perspective. A model of the IMC planning process is examined to
illustrate the content of a promotional plan. Finally, the organization of the text that is consistent with the planning
process is summarized.
Learning Objectives
1. Describe the importance of marketing communication within the marketing mix.
2. Identify the content of the promotional mix - advertising, sales promotion, public relations, direct
marketing, digital, and personal selling – and summarize their purpose.
3. Illustrate the concept of integrated marketing communications (IMC) by distinguishing its evolution,
renewed perspective, and content.
4. Explain the IMC planning process model and express the steps in developing a marketing communication
program.
5. Identify how the IMC planning process is continued throughout all chapters.
Chapter and Lecture Outline
I. MARKETING COMMUNICATION
This section reviews the definition of marketing and illustrates how advertising and promotion communicates the
remaining elements of the marketing mix to support the AMA definition.
A Marketing— Most students have had a marketing course; however, it is helpful to remind them of
definition of marketing. The American Marketing Association defines marketing as: the activity, set of
institutions, and processes for creating, communicating, delivering, and exchanging offerings that have
value for customers, clients, partners, and society at large.
A description of marketing should include a summary of the activities involved in the marketing process
and the different types of companies that use marketing extensively, including both profit and nonprofit
organizations. It is important to indicate that each element of the marketing mix includes several
decisions. This reminder leads the way to identifying the text’s scope. The marketing mix point highlights
that marketing communication is responsible for drawing attention to product, price and distribution
elements in the message received by the audience.
B Communicating Product—an organization exists because it has a product, service, idea or cause to offer.
Discussion can focus on the value offered by the product and the fact that goods and services offer
attributes and benefits that satisfy needs. Benefits are communicated as functional based on their
features or attributes. They are also subjectively claimed in ads based on performance. And they are
Chapter 1 – Advertising & Promotion, 8th Canadian Edition
©2023 McGraw Hill Ltd.
1-1
, communicated emotionally through product consumption. These emotions are positive or negative and
are psychologically or socially based. Instructors can show ads that demonstrate these differences since
they are the heart of message development and delivery since promotional planners have complete
control in deciding which approach to influence consumers.
Communication for brand identity is important with respect to brand name, brand logo, brand tagline and
packaging. Ads usually identify the brand characteristics clearly to encourage recognition at the point of
purchase where decisions are made. Communicating all facets of the product is expected to contribute to
brand equity; an intangible asset of added value or goodwill that results from the favorable image,
impressions of differentiation, and/or the strength of consumer attachment to a company name, brand
name, or trademark. A discussion of the overall assessment of brand can ensue with reference to the data
in the brand exhibits. Other brand outcomes are identified (i.e., experience, attachment, love), and
instructors can draw on these to see if advertisers are fostering different brand related impressions upon
consumers.
C Communicating Price—the price decision of the marketing mix refers to what consumers give up in
exchange for a product. Marketing managers are concerned with establishing a price level, developing
pricing policies and monitoring consumers’ and competitors’ reactions to market prices. From a marketing
communication standpoint, price is often a key piece of information in an ad or is the main selling
message. Ad messages are intended to influence consumers knowledge of product category price points
and contributes to consumer reference prices.
D Communicating Distribution—marketing channels or the place decision of the marketing mix refers to
the set of interdependent organizations involved in the process of making a product or service available to
customers. The importance of resellers in marketing and promotional strategy should be introduced.
Attention should be given to the need to develop promotional programs for the trade or resellers to
encourage them to stock and promote a product.
E Communicating Value—all marketing activities and marketing communication decisions are designed to
enhance and or communicate customer value as conveyed in the AMA definition. Instructors should show
examples where there are notable consumer costs beyond economic and how brands communicate
value.
II. THE PROMOTIONAL MIX
Promotion is the coordination of all seller-initiated efforts to set up channels of information and persuasion.
Promotion is the communication function of marketing mix as most of an organization’s communication occurs
through a carefully planned and controlled program that utilizes elements of the promotional mix. The
promotional mix should be defined and the function of each promotional mix element can be discussed along with
its advantages and disadvantages.
A. Advertising—paid form of nonpersonal communication about an organization, product, service, or idea
by an identified sponsor.
Advantages of advertising:
cost-efficient way for communicating, particularly with large audiences.
cost-effective communication of a controlled message (what, when, how, where) if audiences process
the message and the message is appropriate for that audience.
valuable for creating and maintaining communication effects like brand equity by creating images and
symbolic appeals.
encourage online interaction with the brand.
Chapter 1 – Advertising & Promotion, 8th Canadian Edition
©2023 McGraw Hill Ltd.
1-2
, flexible application for all sorts of products, market situations, channel members, and target
audiences that works with other IMC programs.
advertising occurs in consumer markets (national, retail/local, direct response), and business and
professional markets (industrial, professional, trade).
Disadvantages of advertising: (not in the text)
cost of producing and placing ads is very high in some media like TV but is offset with inexpensive
Internet media exposure.
difficult to determine advertising effectiveness.
credibility and image problems associated with advertising.
numerous ad exposures from multiple brands and product categories have created clutter resulting in
concerns of weaker or minimal consumer attention.
B. Sales Promotion—marketing activities that provide extra value or incentive to the ultimate consumer, or
retailers and distributors.
Advantages of sales promotion:
provides incentive to consumers or trade members to purchase or stock/promote a brand.
way of appealing to price sensitive consumer
way of generating extra interest in product or ads.
easily measured direct effects are possible compared advertising.
can be used as a way of building or reinforcing brand equity.
Disadvantages of sales promotion:
companies become too reliant on sales promotion and focus on short run results.
some sales promotions do not contribute to brand image or long-term brand equity.
consumers become over-reliant on sales promotion that undermine brand loyalty.
problems with sales promotion clutter as consumers receive many promotional offers.
sales promotion offerings among competitors lowers margins and price tolerance.
It is important to address the terminology of promotion and sales promotion. In this text the term
promotion represents an element of the marketing mix by which firms communicate with their customers
and includes the promotional mix elements. However, marketing and advertising practitioners use the
term promotion in reference to sales promotion activities. Thus, sales promotion activities in the text
refer one specific element of the promotional mix.
C. Public Relations—a corporate communication program designed to enhance the company’s reputation
and/or earn public understanding and acceptance of a particular issue. It usually involves a process where
management evaluates public attitudes and executes a program of action to earn public understanding
and acceptance. In contrast, publicity is the nonpersonal communication that is not directly paid for nor
run under identified sponsorship.
The distinction should be made between publicity and public relations noting that public relations
generally has a broader objective than publicity, as its purpose is to establish and maintain a positive
image of the company among its various publics. Publicity is an important communication technique used
in public relations however other programs may also be used.
Chapter 1 – Advertising & Promotion, 8th Canadian Edition
©2023 McGraw Hill Ltd.
1-3
, Advantages of publicity:
credibility of publicity is usually higher than other forms of marketing communication.
low-cost way of communicating
often has news value and generates word-of-mouth discussion among consumers.
Disadvantages of publicity:
lack of control over what is said, when, where and how it is said
can be negative as well as positive.
D. Direct Marketing—a system of marketing by which organizations communicate directly with target
customers to generate a response and/or a transaction.
Advantages of direct marketing:
consumers are receptive to the convenience of direct-marketed products.
allows very selective targeting of marketing communications to specific customer segments.
customized messages fit the needs of specific market segments.
effectiveness of direct-marketing efforts is easier to assess than other forms of promotion.
Disadvantages of direct marketing:
unsolicited communication makes consumers less receptive to direct-marketing.
direct marketing has image problems.
problems with clutter as direct-marketing messages compete for consumers’ attention.
E. Digital—digital marketing communication uses interactive media that allows for a back-and-forth flow of
information whereby users participate in and modify its form and content instantly. Digital media is used
for advertising and communicates or executes all other elements of the promotional mix. Instructors
should demonstrate the differences between paid, owned, and earned media within social media and
across different content publishers.
Advantages of digital:
used for all integrated marketing communication functions.
used to target very specific groups of customers with a minimum of waste.
messages tailored to appeal to the specific interests and needs of the target audience.
high degree of customer involvement when customers visit a web site or social.
provide customers with a great deal of product information.
tremendous creative potential for shopping or influencing brand communication effects.
Disadvantages of internet marketing:
concern that digital ads are not fully processed by consumers.
clutter makes it difficult for advertising messages to be noticed and/or given attention.
audience measurement and effectiveness research are challenging.
F. Personal Selling—direct person-to-person communication whereby a seller assists and/or persuades
prospective buyers to purchase a company’s product or service or act on an idea.
Chapter 1 – Advertising & Promotion, 8th Canadian Edition
©2023 McGraw Hill Ltd.
1-4
