Chapter 1/The World of Advertising and Integrated Brand Promotion
Advertising & Integrated Brand Promotion 8e (O’Guinn, Allen, Close Scheinbaum)
PART 1
Advertising and Integrated Brand Promotion in
Business and Society
The book is divided into 5 parts. At the beginning of each distinct part of the text, it is worth
alerting the students to the focus of the chapters within the part. Part 1 sets the tone for the study
of advertising. The chapters in this part emphasize that advertising is much more than the old-
style mass media messages of the past. But advertising is now much more diverse and dynamic
and is part of a process called integrated brand promotion (IBP).
IBP is the process of using all sorts of different promotional techniques and tools—from
television ads to iPad broadcasts—that send messages about brands to consumers. The rapid
ascent of digital media—particularly social networking sites like Facebook, MySpace and
Twitter, have radically changed the landscape for advertising and IBP. Advertising and IBP
communications are not just marketing messages. They are also part of a social communication
process that has evolved over time with changes in culture, technology, and business strategies.
The “brand” plays a leading role in communications. Consumers know brands because they hear
about them and use them every day—Apple, Nike, Pantene, Starbucks, and literally hundreds of
others. Consumers also know (and learn) by using them and by seeing them being used in
society. This first part of the book lays out the broad landscape of the advertising and IBP
processes that expose us to brands and what they have to offer.
CHAPTER 1
The World of Advertising and Integrated Brand
Promotion
IBP in Action: Panera Bread
© 2019 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
,Chapter 1/The World of Advertising and Integrated Brand Promotion
Advertising & Integrated Brand Promotion 8e (O’Guinn, Allen, Close Scheinbaum)
LEARNING OBJECTIVES
1 Know what advertising and integrated brand promotion (IBP) are and what they can
do.
Since advertising has become so pervasive, it would be reasonable to expect that you might have
your own working de昀椀nition for this critical term. But an informed perspective on advertising
goes beyond what is obvious and can be seen on a daily basis. Advertising is distinctive and
recognizable as a form of communication by its three essential elements: its paid sponsorship, its
use of mass media, and its intent to persuade. An advertisement is a speci昀椀c message that a
company has placed to persuade an audience. An advertising campaign is a series of ads and
other promotional efforts with a common theme also placed to persuade an audience over a
speci昀椀ed period of time. Integrated brand promotion (IBP) is the use of many promotional tools,
including advertising, in a coordinated manner to build and maintain brand awareness, identity,
and preference.
2 Discuss a basic model of communication.
Advertising cannot be effective unless some form of communication takes place between the
company and the audience. But advertising is about mass communication. The model introduced
in this chapter features basic considerations such as the message-production process versus the
message-reception process, and this model says that consumers create their own meanings when
they interpret advertisements. A message has a source, and the audience (consumer)
accommodates and negotiates the message and its intent. The model includes encoding and
decoding of the message, with meanings formed during the interplay with the individual person’s
comprehension of the content. Reception takes place in the context of potential interference such
as clutter that might disturb the process.
3 Describe the different ways of classifying audiences for advertising and IBP.
Although it is possible to provide a simple and clear de昀椀nition of what advertising is, it is also
true that advertising takes many forms and serves different purposes from one application to
another. One way to appreciate the complexity and diversity of advertising is to classify it by
audience category or by geographic focus. For example, advertising might be directed at
households or government of昀椀cials. Using another perspective, it can be global or local in its
focus.
4 Understand advertising as a business process.
Many different types of organizations use advertising to achieve their business purposes. For
major multinational corporations, such as Procter & Gamble, and for smaller, more localized
businesses, such as the San Diego Zoo, advertising is one part of a critical business process
known as marketing. Advertising is one element of the marketing mix; the other key elements
are the 昀椀rm’s products, their prices, and the distribution network. Advertising must work in
conjunction with these other marketing mix elements if the organization’s marketing objectives
are to be achieved. It is important to recognize that of all the roles played by advertising in the
© 2019 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
,Chapter 1/The World of Advertising and Integrated Brand Promotion
Advertising & Integrated Brand Promotion 8e (O’Guinn, Allen, Close Scheinbaum)
marketing process, none is more important than contributing to building brand awareness and
brand equity. Similarly, 昀椀rms have turned to more diverse methods of communication beyond
advertising that we have referred to as integrated brand promotion. That is, 昀椀rms are using
communication tools such as public relations, sponsorship, direct marketing, and sales promotion
along with advertising to achieve communication goals. Organizations also use advertising and
IBP as part of their plans for purpose-driven marketing.
5 Understand the various types of advertising.
There are six fundamental types of advertising described in contrasting pairs:
a. Primary versus selective demand stimulation. Primary demand stimulation is the attempt to
stimulate demand for an entire product category. Selective demand stimulation is the attempt to
stimulate demand for a particular brand within a product category. Advertising is not powerful
enough to stimulate demand for a product category—only broad in昀氀uences like demographics,
cultural values, or technology can stimulate primary demand. Selective demand is what
advertising does and can be very effective for building brand awareness and preference.
b. Direct versus delayed response advertising. Direct response advertising asks consumers to
act immediately upon receipt of the advertising message. Delayed response advertising develops
awareness, preference, and an image for a brand that takes much longer to affect consumer
choice.
c. Corporate versus brand advertising. Corporate advertising features an entire corporation
rather than focusing on any one brand marketed by that corporation.
KEY TERMS
mobile marketing members of business local advertising
organizations
advertising cooperative advertising, or
members of a trade co-op advertising
client, or sponsor channel
marketing
integrated brand promotion professionals
(IBP) marketing mix
trade journals
advertisement brand
government of昀椀cials and
advertising campaign employees brand extension (variant)
source global advertising brand loyalty
audience international advertising brand equity
target audience national advertising market segmentation
household consumers regional advertising differentiation
© 2019 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
, Chapter 1/The World of Advertising and Integrated Brand Promotion
Advertising & Integrated Brand Promotion 8e (O’Guinn, Allen, Close Scheinbaum)
positioning primary demand institutional advertising
stimulation
external position gross domestic product
selective demand (GDP)
internal position stimulation
value
repositioning direct response advertising
symbolic value
economies of scale delayed response
advertising social meaning
inelasticity of demand
corporate advertising integrated marketing
purpose-driven marketing communications (IMC)
brand advertising
Chapter 1 Outline
PPT 1-1–1-5
Introduction:
Framework
Learning Objectives
IBP in Action: Panera Bread
I. The New World of Advertising and Integrated Brand Promotion
PPT 1-6
Consumer preferences and new technologies are reshaping the communication environment. The
lines between information, entertainment networking, and commercial messages are blurring.
The mass media are not dead, but they are being supplemented and supported by all sorts of new
ways to reach consumers. Analysts speculate that advertising, IBP, and marketing overall will be
more digital, more interactive, and more social. Their reasoning is not hard to understand. Firms
have not fully exploited all the opportunities presented by mobile marketing. Mobile marketing
is communicating with target markets through mobile devices like smartphones or iPad or
Surface tablet devices.
A. Old Media/New Digital Media—It’s All about the Brand
No matter how much technology changes or how many new media options and opportunities
are available for delivering messages—it’s still all about the brand! The use of Facebook or
© 2019 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Advertising & Integrated Brand Promotion 8e (O’Guinn, Allen, Close Scheinbaum)
PART 1
Advertising and Integrated Brand Promotion in
Business and Society
The book is divided into 5 parts. At the beginning of each distinct part of the text, it is worth
alerting the students to the focus of the chapters within the part. Part 1 sets the tone for the study
of advertising. The chapters in this part emphasize that advertising is much more than the old-
style mass media messages of the past. But advertising is now much more diverse and dynamic
and is part of a process called integrated brand promotion (IBP).
IBP is the process of using all sorts of different promotional techniques and tools—from
television ads to iPad broadcasts—that send messages about brands to consumers. The rapid
ascent of digital media—particularly social networking sites like Facebook, MySpace and
Twitter, have radically changed the landscape for advertising and IBP. Advertising and IBP
communications are not just marketing messages. They are also part of a social communication
process that has evolved over time with changes in culture, technology, and business strategies.
The “brand” plays a leading role in communications. Consumers know brands because they hear
about them and use them every day—Apple, Nike, Pantene, Starbucks, and literally hundreds of
others. Consumers also know (and learn) by using them and by seeing them being used in
society. This first part of the book lays out the broad landscape of the advertising and IBP
processes that expose us to brands and what they have to offer.
CHAPTER 1
The World of Advertising and Integrated Brand
Promotion
IBP in Action: Panera Bread
© 2019 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
,Chapter 1/The World of Advertising and Integrated Brand Promotion
Advertising & Integrated Brand Promotion 8e (O’Guinn, Allen, Close Scheinbaum)
LEARNING OBJECTIVES
1 Know what advertising and integrated brand promotion (IBP) are and what they can
do.
Since advertising has become so pervasive, it would be reasonable to expect that you might have
your own working de昀椀nition for this critical term. But an informed perspective on advertising
goes beyond what is obvious and can be seen on a daily basis. Advertising is distinctive and
recognizable as a form of communication by its three essential elements: its paid sponsorship, its
use of mass media, and its intent to persuade. An advertisement is a speci昀椀c message that a
company has placed to persuade an audience. An advertising campaign is a series of ads and
other promotional efforts with a common theme also placed to persuade an audience over a
speci昀椀ed period of time. Integrated brand promotion (IBP) is the use of many promotional tools,
including advertising, in a coordinated manner to build and maintain brand awareness, identity,
and preference.
2 Discuss a basic model of communication.
Advertising cannot be effective unless some form of communication takes place between the
company and the audience. But advertising is about mass communication. The model introduced
in this chapter features basic considerations such as the message-production process versus the
message-reception process, and this model says that consumers create their own meanings when
they interpret advertisements. A message has a source, and the audience (consumer)
accommodates and negotiates the message and its intent. The model includes encoding and
decoding of the message, with meanings formed during the interplay with the individual person’s
comprehension of the content. Reception takes place in the context of potential interference such
as clutter that might disturb the process.
3 Describe the different ways of classifying audiences for advertising and IBP.
Although it is possible to provide a simple and clear de昀椀nition of what advertising is, it is also
true that advertising takes many forms and serves different purposes from one application to
another. One way to appreciate the complexity and diversity of advertising is to classify it by
audience category or by geographic focus. For example, advertising might be directed at
households or government of昀椀cials. Using another perspective, it can be global or local in its
focus.
4 Understand advertising as a business process.
Many different types of organizations use advertising to achieve their business purposes. For
major multinational corporations, such as Procter & Gamble, and for smaller, more localized
businesses, such as the San Diego Zoo, advertising is one part of a critical business process
known as marketing. Advertising is one element of the marketing mix; the other key elements
are the 昀椀rm’s products, their prices, and the distribution network. Advertising must work in
conjunction with these other marketing mix elements if the organization’s marketing objectives
are to be achieved. It is important to recognize that of all the roles played by advertising in the
© 2019 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
,Chapter 1/The World of Advertising and Integrated Brand Promotion
Advertising & Integrated Brand Promotion 8e (O’Guinn, Allen, Close Scheinbaum)
marketing process, none is more important than contributing to building brand awareness and
brand equity. Similarly, 昀椀rms have turned to more diverse methods of communication beyond
advertising that we have referred to as integrated brand promotion. That is, 昀椀rms are using
communication tools such as public relations, sponsorship, direct marketing, and sales promotion
along with advertising to achieve communication goals. Organizations also use advertising and
IBP as part of their plans for purpose-driven marketing.
5 Understand the various types of advertising.
There are six fundamental types of advertising described in contrasting pairs:
a. Primary versus selective demand stimulation. Primary demand stimulation is the attempt to
stimulate demand for an entire product category. Selective demand stimulation is the attempt to
stimulate demand for a particular brand within a product category. Advertising is not powerful
enough to stimulate demand for a product category—only broad in昀氀uences like demographics,
cultural values, or technology can stimulate primary demand. Selective demand is what
advertising does and can be very effective for building brand awareness and preference.
b. Direct versus delayed response advertising. Direct response advertising asks consumers to
act immediately upon receipt of the advertising message. Delayed response advertising develops
awareness, preference, and an image for a brand that takes much longer to affect consumer
choice.
c. Corporate versus brand advertising. Corporate advertising features an entire corporation
rather than focusing on any one brand marketed by that corporation.
KEY TERMS
mobile marketing members of business local advertising
organizations
advertising cooperative advertising, or
members of a trade co-op advertising
client, or sponsor channel
marketing
integrated brand promotion professionals
(IBP) marketing mix
trade journals
advertisement brand
government of昀椀cials and
advertising campaign employees brand extension (variant)
source global advertising brand loyalty
audience international advertising brand equity
target audience national advertising market segmentation
household consumers regional advertising differentiation
© 2019 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
, Chapter 1/The World of Advertising and Integrated Brand Promotion
Advertising & Integrated Brand Promotion 8e (O’Guinn, Allen, Close Scheinbaum)
positioning primary demand institutional advertising
stimulation
external position gross domestic product
selective demand (GDP)
internal position stimulation
value
repositioning direct response advertising
symbolic value
economies of scale delayed response
advertising social meaning
inelasticity of demand
corporate advertising integrated marketing
purpose-driven marketing communications (IMC)
brand advertising
Chapter 1 Outline
PPT 1-1–1-5
Introduction:
Framework
Learning Objectives
IBP in Action: Panera Bread
I. The New World of Advertising and Integrated Brand Promotion
PPT 1-6
Consumer preferences and new technologies are reshaping the communication environment. The
lines between information, entertainment networking, and commercial messages are blurring.
The mass media are not dead, but they are being supplemented and supported by all sorts of new
ways to reach consumers. Analysts speculate that advertising, IBP, and marketing overall will be
more digital, more interactive, and more social. Their reasoning is not hard to understand. Firms
have not fully exploited all the opportunities presented by mobile marketing. Mobile marketing
is communicating with target markets through mobile devices like smartphones or iPad or
Surface tablet devices.
A. Old Media/New Digital Media—It’s All about the Brand
No matter how much technology changes or how many new media options and opportunities
are available for delivering messages—it’s still all about the brand! The use of Facebook or
© 2019 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
