CH 1: The World of Advertising and Integrated Brand Promotion

Advertising

a paid, mass-mediated attempt to persuade

* the company/organization that pays for advertising is called the client or sponsor. If a communication is not paid for, it is not advertising.

* a message that is not delivered face-to-face

* an ad informs the consumer for some purpose, and that purpose is to get the consumer to like the brand and eventually buy that brand

Integrated brand promotion

Process of using a wide range of promotional tools that work together to create widespread brand exposure. It is brand-focused. Integrated for cohesion and consistency.

* ex: advertising is traditional media (television, radio, newspapers, magazines, billboards), advertising in digital media (mobile, websites, social media), sponsorship, event marketing/experiential marketing, sales promos, internet advertising, social media sponsored content, podcasting/smartphone messaging, video advertising/blogs, etc.

*these tools need to work together to create a consistent and compelling impression of the brand.

*unless consumers are reached by these various forms of messages, they will have a difficult time understanding the brand and deciding whether to use it regularly.

Advertisement

a specific message that an organization has placed to persuade an audience

Advertising campaign

Series of coordinated advertisements and other promotional efforts that communicate a single theme or idea.

* Can be developed around a single advertisement placed in multiple media, or they can be made up of several advertisements with a similar look, feel, and message.

How does IBP fit in with advertisements and advertising campaigns?

IBP is the use of many promotional tools, including advertising, in a coordinated manner to build and then maintain brand awareness, identity, and preference. Requires careful coordination and sequencing different promotional efforts.

Model of mass-mediated communication

- Model is fluid and not unidirectional

Know what advertising and integrated brand promotion (IBP) are and what they do

- 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 specific message that a company has placed to persuade its 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 specified 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.

Discuss a basic model of communication

Describe the difference ways of classifying audiences for advertising and IBP

Understand advertising as a business process

Various types of advertising (6 types described in contrasting pairs)

Brand management

- Strategic tool for firm success

- Combination of decisions and tactics across the firm designed to enhance the value and brand experience for consumer

- Returns value to the company: cultivates consumer loyalty and attracts consumers to the brand

Managing the brand "experience"

- Product quality

- Website

- Retail environment

- Guarantees/warranties

- Customer service

- adv./communications

- Corporate policies

Integrated brand promotions

- sales promotions

- advertising

- corporate adv.

- influencers

- search

- PR

- billboard/transit

- branded entertainment

- events

- social/digital

- personal selling

- direct marketing

Why IBP?

- Technology changes how we connect to consumers.

- Interactivity and engagement increases sales conversions

- Consumers control what they want to hear and see

- Consumers are shifting from traditional media

- Increasing data points tell us more about consumers

- Two-way engagement trumps one-way exposure. In the new model (engagement model) brands invite their audiences to take part by interacting, commenting, sharing, and creating. Brands get real-time feedback when ideas resonate and audiences help spread the message.

What is IBP strategy?

Strategic choices are those that:

- Recognize and effectively work within constraints (budget)

- Satisfy specific goals and objectives

- Support brand values/identity/promise cohesively

- Reach consumers in meaningful and relevant ways

- Optimize the brand experience

Strategy = the plan and promise

Target audience

A particular group of consumers singled out for an advertisement or IBP campaign. Meaning a company wants to reach individuals or groups with a message.

Target audiences are always potential audiences because a company can never be sure that the message will actually get through to them as intended.

Household consumers

The most conspicuous of the five types of audiences for advertising; most mass media advertising is directed at them.

Brand identity

Elements of the brand promise as communicated through product, logos, color, packaging, retail channel, philosophy, management, and corporate culture.

Brand equity

(value and stability of future sales) The value delivered back to the company based on products market domination & the consumers belief that the promise is delivered (customer loyalty)

Advertiser

Business, not-for-profit, or government organization that uses advertising and other promotional techniques to communicate with target markets and to stimulate awareness and demand for its brands. Also called client by agency partners.

Ad agency

An organization of professionals who provide creative and business services to clients related to planning, preparing, and placing advertisements.

Business-to-business consumers

Global advertising

Developing and placing advertisements with a common theme and presentation in all markets around the world where the firm's brands are sold.

Firms that market brands with global appeal try to develop and place advertisements with a common theme and presentation in all markets around the world where the firm's brands are sold. Effective only when a brand and the messages about the brand have a common appeal across diverse cultures.

International advertising

The preparation and placement of advertising in different national and cultural markets, outside the home market.

Each international market might require unique advertising due to product adaptations or message appeals tailored specifically for that market.

International advertising differs from global advertising in that different ads for the same brand are tailored for each market.

National advertising

Advertising that reaches all geographic areas of one nation. Typically used to describe the kind of advertising we see most often in the mess media in the domestic U.S. market.

Regional advertising

Advertising carried out by producers, wholesalers, distributors, and retailers that concentrate their efforts in a particular geographic location.

Local advertising

Advertising directed at an audience in a single trading area, either a city or state.

Co-operative advertising

The sharing of advertising expenses between national advertisers and local merchants. Also called co-op advertising.

Audience categories

- Household consumers: McDonald's, Toyota, F21, etc, have products and services designed for the consumer market, targeting household consumers

- Members of business organizations: focus of advertising firms that produce business and industrial goods and services such as office equipment, production machinery, etc. This audience often requires personal selling

- Members of a trade channel: include retailers, wholesalers, and distributors. Target audience for both producers of both household and business goods and services.

- Professionals: defined as doctors, lawyers, accountants, teachers, or any other group that has special training or certification. Specialized needs and interests.

- Government officials and employees: producers of items such as office furniture, construction materials and equipment, etc. Advertising to this audience is dominated by direct email, catalogs, personal selling, and web advertising.

Brand metrics

What's a brand worth?

Interbrand uses financial analysis of global corporation, determination of earnings based on brand preference, the likelihood of future earnings based on brand stability & consumer choice.

Why brand?

- Differentiation in a crowded field

- Strength against competition

- Attract the best talent

- Charge premium price

- Attention from investors

- Increase market share cost-effectively

- Reduce sales volatility

*Stronger the brand the less spent on advertising

*Customers must recognize that you stand for something - a simple promise to your consumers

Brand benefits for consumers & firms

(consumers)

- Assurance of quality

- Confidence of category

- Reduces uncertainty

- Psy and social acceptance

- Simplifies choice

(company)

- Easier new product introduction

- Charge higher price

- Increased purchases

- Positive word of mouth

- More power w/ channel

- Resists competition

- Attracts employees

Media types

* integrated brands use a combination of these

Traditional measured broadcast: TV, cable, radio

Traditional measured print: newspaper, magazines

Non-measured print: collateral, direct email, fliers, programs

Interactive: Digital display, video, pop-ups, banners, You-tube, FB, SEO, mobile

Support: product placement, events, posters, P-O-P, etc.

Creation is always cheaper than distribution

Tangible elements of brand

- Product

- Retail environment

- Factories

- Adv & MKTG comm

- Name and logo

- Packaging

- Employees/service

Intangible elements of brand

- Policies

- Values

- Culture and country issues

- Media reports / publicity

- Personality and attitude

Positioning the brand

The marketers attempts to give a brand a certain meaning and distinct place in the consumer's mind, relative to its competitors.

Helping the customer distinguish between a product/firm and its competitors

External positioning: the niche the brand will pursue relative to all the competitive similar brands on the market.

Internal positioning: the niche a brand achieves with regard to the other similar brands a firm markets.

Can position by use/application, price, attributes, etc.

Brand identifiers

- Name and logo- enhances recognition and understanding of brand packaging, enhances decision making at the point of purchase

*High brand awareness does not mean it's positive/good for the brand. Content analysis allows brands to follow when/if their brand message/trends change & evolve.

Marketing

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.

Brand

A name, term, sign, symbol, or any other feature that identifies one seller's good or service as distinct from those of other sellers.

Market segmentation

The process of breaking down a large, widely varied market into submarkets that are more similar than dissimilar in terms of consumer characteristics.

Agency financial models

- Commission-based compensation

- Fee for services

- Mark-ups

- Pay for results

Differentiation

The process of creating a perceived difference, in the mind of the consumer, between an organization's brand and the competition.

Know what advertising and integrated brand promotion (IBP) are and what they can do

Discuss a basic model of communication

Describe the different ways of classifying audiences for advertising and IBP

Understand IBP as a business process

Understand the various types of advertising