The World of Advertising
and Integrated Brand
Promotion
Utkarsh Saxena

We need perspective on
advertising and IBP!
• Technology and consumer control
are reshaping the communications
environment
• The lines between entertainment
and advertising/IBP are blurring
—”Madison & Vine”
• Firms use advertising/IBP to build
brands

We need perspective on
advertising and IBP!
• Firms of all sizes need and use
advertising
• Advertising is just one of many tools
in IBP
• Advertising/IBP do not guarantee
success—8 of 10 new products fail
• People have all sorts of positive and
negative (mis)perceptions about
advertising and promotion

Four criteria must be met for a
communication to be classified as
advertising:
• The communication must be paid for
• The advertiser must be identified
• The communication must be delivered
through mass media
• The communication must be
attempting to persuade
We need perspective on
advertising and IBP!

Integrated Brand Promotion (IBP)
is the process of using a wide
range of promotional tools
working together to create
widespread brand exposure.
We need perspective on
advertising and IBP!

• Event sponsorship
• Brand entertainment
(product placement on
TV shows, in movies)
• Outdoor
signage/billboards
• Public relations
• Influencer (peer-to-peer)
communications
• Corporate advertising
•Advertising
•Point of Purchase
(in-store) materials
•Direct Marketing
(catalogs,
infomercials, email)
•Personal Selling
•Internet advertising
•Blogs
•Podcasting
IBP is a process
IBP uses a wide ranges of tools
including:
We need perspective on
advertising and IBP!

Distinctions within
Advertising
• Advertising Campaign
• An integrated series of ads and
promotions that communicate a
central theme or idea
• Advertisements
• Specific messages designed to

Model of the
Communications
Process
Encoding
Fields of Experience
Response Feedback Loop
Decoding
Channel
MESSAGE
Source /
Sender
Receiver /
Audience

Advertising as a
Communications Process:
Mass Mediated

Advertising as a
Communications Process
• Production: The advertiser and social
context determine ad content.
• Reception: The context of ad reception
and the audience’s understanding of an ad
result in a meaningful interpretation of the
ad.
• Accommodation and negotiation: The
ways in which consumers interpret ads

Audiences for Advertising:
Audience Categories
• Household Consumers
• Business Organizations
• The Trade Channel
• Professionals
• Government

Audiences for Advertising:
Audience Geography
•Global advertising
•International advertising
•National advertising
•Regional advertising
•Local advertising

Ad in Context Example
This ad ran in
Italy. Do you
think this is a
“global” or
“international”
ad? What’s
the difference?
This ad ran in
Italy. Do you
think this is a
“global” or
“international”
ad? What’s
the difference?

Advertising as a
Business Process
• The role of advertising in the
marketing mix
• Advertising in brand management
• Advertising in market segmentation,
differentiation, and positioning
• Advertising in revenue and profit
generation

Advertising as a
Business Process
• Definition of Marketing:
• The process of planning and
executing the conception, pricing,
promotion and distribution of
ideas, goods and services to
create exchanges that satisfy
individual and organizational
objectives.
• American Marketing Association, 1995

The Role of Advertising
in the Marketing Mix
The Marketing Mix
Perceived
Value
Product Distribution
Promotion Price

The Role of Advertising
in Brand Management
 Information and persuasion
 Introduction of new brands and
extensions
 Building and maintaining brand
loyalty/brand equity
 Creating an image/meaning
 Building brand loyalty in the trade
channel

Advertising’s Role in
Segmentation,
Differentiation and Positioning
• Segmentation
• (heterogeneous >
homogeneous)
• Differentiation
• (perceived as
• different
• or unique)
•Distinct from
other brands
•Occupies a
“value” level
•External niche
vs. internal
Pos

Advertising’s Role in
Revenue and Profit
Generation
 Brand loyalty leads to
inelasticity of demand: less
price sensitivity to demand
 Economies of scale: higher
volume results in lower unit
cost

Types of Advertising
 Primary demand stimulation
 Selective demand stimulation
 Direct response advertising
 Delayed response advertising
 Corporate advertising

Ad in Context Example
Is this ad an example
of primary or selective
demand stimulation?
What’s the difference?
Is this ad an example
of primary or selective
demand stimulation?
What’s the difference?

The Economic Effects
of Advertising
Gross Domestic Product
Business Cycles
Competition
Prices
Value
Gross Domestic Product
Business Cycles
Competition
Prices
Value

From IMC to IBP
Television
Television
Advertisin
Advertisin
gg
Special
Special
Events
Events
CC
oo
uu
pp
oo
nn
ss
Coordinated
promotional
activities
reinforce one
another