alerting the students to the focus of the chapters within the part. Part 1 sets the tone for the study

© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

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

KEY TERMS

mobile marketing advertising client, or sponsor advertising campaign integrated brand promotion (IBP) advertisement audience target audience household consumers Advertising and Integrated Brand Promotion 7e Thomas O'Guinn Chris Allen Richard Semeni (Instructor Manual All Chapters, 100% Original Verified, A+ Grade) 1 / 4

Chapter 1/The World of Advertising and Integrated Brand Promotion © 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.members of business organizations members of a trade channel professionals trade journals government officials and employees global advertising international advertising national advertising regional advertising local advertising cooperative advertising, or co-op advertising marketing marketing mix brand brand extension (variant) brand loyalty brand equity market segmentation differentiation positioning external position internal position repositioning economies of scale inelasticity of demand primary demand stimulation selective demand stimulation direct response advertising delayed response advertising corporate advertising brand advertising institutional advertising gross domestic product (GDP) value symbolic value social meaning integrated marketing communications (IMC) Summary

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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 one might have their own working definition 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 specific 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 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.Advertising cannot be effective unless some form of communication takes place between the company and the audience. But advertising is about mass communication. There are many models that might be used to help explain how advertising works or does not work as a communication platform. 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. 2 / 4

Chapter 1/The World of Advertising and Integrated Brand Promotion © 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.Describe the different ways of classifying audiences for advertising and IBP.Although it is possible to provide a simple and clear definition 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 officials. Using another perspective, it can be global or local in its focus.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 firm’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 marketing process, none is more important than contributing to building brand awareness and brand equity. Similarly, firms have turned to more diverse methods of communication beyond advertising that we have referred to as integrated brand promotion.That is, firms are using communication tools such as public relations, sponsorship, direct marketing, and sales promotion along with advertising to achieve communication goals.Understand the various types of advertising.

There are six fundamental types of advertising described in contrasting pairs:

• Primary versus selective demand stimulation. Primary demand stimulation is the attempt to

stimulate demand for an entire product category—milk, toothpaste, automobiles, computers.Selective demand stimulation is the attempt to stimulate demand for a brand within a product category—Dairygold Milk, Crest toothpaste, Nissan Altima automobile, Dell computer.While primary demand has been attempted in various industries (the milk industry being the most prominent example), advertising is not powerful enough to stimulate demand for a product category—only broad influences like demographics, cultural values, or technology can stimulate primary demand. Selective demand is what advertising does and can be very effective at doing. It is the type of advertising that firms spend billions of dollars a year on to build brand awareness and preference. 3 / 4

Chapter 1/The World of Advertising and Integrated Brand Promotion © 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

• Direct versus delayed response advertising. Direct response advertising asks consumers to

act immediately upon receipt of the advertising message—call this toll-free number, click through to order now, and so on. Delayed response advertising develops awareness, preference, and an image for a brand that takes much longer to affect consumer choice.

• Corporate versus brand advertising. Corporate advertising features an entire corporation

rather than any brand marketed by that corporation. GM can run corporate advertising to increase recognition of the firm itself. Or, GM can run brand advertising for Chevrolet or Buick or GM trucks.Chapter Outline I.The New World of Advertising and Integrated Brand Promotion

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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

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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 Twitter does not change the fundamental challenge and opportunity—communicating effectively about the brand and the brand’s values.II.What Are Advertising and Integrated Brand Promotion?

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Despite the importance of advertising and IBP to firms, it is not a process that the average person understands or values. Many people believe advertising deceives others but rarely themselves.Most think it’s a semi-glamorous profession but one in which people are either morally bankrupt con artists or pathological liars. At worst, advertising is seen as hype, unfair capitalistic

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