Ch. 1 Advertising and IBP

Advertising

Mass mediated to reach a large mass of people

Attempts to persuade, inform, or remind

Must be paid for by a client or sponsor

Advertisements

Convey a specific message

Advertising Campaigns

A series of advertisements that communicate a message about a brand

Integrated Brand Promotion (IBP)

Coordinates all tools such as advertising, PR, social media, sales promos, and direct marketing to deliver a single, consistent, and compelling brand message across all customer touch points

Tools work together to create a consistent and compelling impression of the brand

Allows customers to quickly identify and evaluate the relevance of brands to their lives

Chief Marketing Officer (CMO)

The executive interested in IBP

Encoding

The process of translating a company’s goals and ideas into a communicable format

The sender’s perspective

Converting abstract concepts into symbols, images, and words that the consumer will understand

Decoding

The process by which a consumer receives and interprets a message to derive meaning

Unpacking the message based on their own personal background, knowledge, and culture

The Role of Advertising in the Marketing Mix

1) Contribute to the mix

2) Develop and manage the brand

3) Achieve effective marketing segmentation

4) Contribute to profit and revenue generation

Marketing Mix

Developing

Pricing

Promoting

Distributing

Brand Extension/Brand Variant

Adaptation of an existing brand into a new product

Example: Dyson uses its airflow technology from vacuums and extended into hair products

Brand Loyalty

Customer repeatedly purchases the same brand, even if competitor’s brands are cheaper

Willing to pay a premium because they trust the brand’s quality

Example: Always buying Starbucks even if Tim Hortons is cheaper

Brand Equity

A set of brand assets linked to a brand like its name and symbol

Recognizable name compared to its generic equivalent

Example: Apple logo

Market Segmentation

Breaks down larger markets into smaller, more similar segments such as demographics or psychographics

Differentiation

The process of creating a perceived difference between an organization’s brand and the competition in a specific category to make it more attractive

Example: Patagonia prioritizes environmental activism in combination with selling high quality clothing

Positioning

Designing a brand to occupy a distinct and valued place in the target consumer’s mind

External Position

The competitive niche that a brand pursues

The strategic space that a brand occupies in the mind of consumers compared to their competitorsIn

Internal Position

The niche a brand achieves with regard to the other similar brands a firm markets

How a brand is defined and understood by its own employees and stakeholders

Repositioning

The process of segmenting, targetting, and positioning a product or service to arrive at a revised positioning strategy

Pricing Flexibility through Advertising

Contribute to economies of scale (drives high demand by selling more units, therefore spreading out fixed costs)

Helps create inelasticity of demand (demand does not shift regardless of pricing)

Types of Advertising

Primary Demand Stimulation & Selective Demand Stimulation

Primary Demand Stimulation