1

The Worldof Advertising and

Integrated Brand Promotion

you will be able to do the

After reading and thinking about this chapter,
following: do.
1. Know what advertising andintegrated brand promotion (IBP) are and what they can
2. Discuss a basic model of communication.
advertising and IBP
3. Describe the different ways of classifying audiences for
4. Explain the key role of advertising and IBP business processes.
and the role advertising
5. Understand the concept of integrated brand promotion (IBP)
plays in the process.

INTRODUCTORY SCENARIO; So JusT WHAT Is GoING ON?

time in a week oN
The simple answer is-a lot. The more complete answer is that you ikely spend more
newspapers.
MySpace, Facebook, Twitter, and reading blogs than you do reading magazines andsee, for decades, This is a big
You advertisers
problem for advertisers trying to reach you with messages about their brands. produçe an ad or plarn a pro
have been living in a comfortable mass media world where all they had to do was
encounter these progruns as
motional program and you, as a typical cOnsumer, would run acrOss these ads and
Now, new technologics and
you used the mass imedia for your main sources for information and entertainment. raically changed the
a shift in consumers' desire to have lore control over their information environment have
role of nass media in consumers' lives.
Does this soundfanniliar? It's a Friday night and youjust battled your way through an online quiz in Anthropology
on your iPad that had to be submitted by 11 p.m. and you beat the deadline by acouple of hours, Feeling pretty
good about the quiz (and actually leaving a couple hours of a Friday night frec). you check your friends' Facebook
32

entries and Twitter twects to se what tlhey're up to. You notice tbat some triends you haven't seen for awhile are
having a party, s0 you text twO of your buddies on your BlaCkBerry to ask if theybecause want to hit the party. Then
you hurry up and get on the Ticket1master welbsite (http://www.ticketmaster.com) Redeye Empire from
"performer alert
Vancouver B.C. is coming to the big arena on canipus (you signed up for the Ticketmaster sOon as possible Yo11 meseo
want to sag acouple of tickets as
service and got an cmail this afternoon) and you
your buddies with the Redeye MySpace link (http://www.nyspace.com/redeye 29rethey cords) so that they can check
out the band and decide if they want ticketstoo. Your buddies message back and say are up for the partyand
plans. Before thev get there
do want tickets for the concert and will be at your place in halt an hour to make (http://vwww.cdbaby.com) and set
vou have just enough time to buy the new Redeye Empre CDromthe cdbaby
NBA scores on SportsCenter on wour
your Slingbox (http://www.slingmedia.com) so that you can chcck
Blackberry while you're at the party.
Does this sound familiar? If you're into being wired and kecping track of things that are important to vou
Slingbox), which is still pretty Deu:
then this scenario probably does sound pretty fam1liar (except maybe theaccess your television or DVR fom
you
and expensive. If you haven't seen a Slingbox, it's a device that letsyour friends represent a huge challenge for
your computer or your smartphone (See Exhib1t 1.1).And you and
messages. As indicated at the outset. for
companies that want to reach you with their advertis1ng and promotion magazines, and other traditional
the last 50 years, firms have primarily been using telev1siOn, radiO, newspapers, about your (maybe typical) Fridav
media to send messages to consumers about their brands. Well, in this scenario bought concert tickets and a CD
you
night, you encountered little if any mass media advertisng, even though a whole series of individually controlled
had
and accessed television programming from your phone! Instead, you to see rather than information some
information encounters that let you access all the intormation yo4 wanted
Company wanted you tO see or hear,!

SlingMedia.com
Courtesy,

sHngoos

messaging, devices like Slingbox allow consumers to control heir

ExHIBIT .J Along with blogs, emails, and instant their brand messages o
challenges for companies trying to get
intormationenvironment in a way that creates huge
Consumers.
are still
advertising and brand messages? They
with their
So, what are companies gOng tO do to reach youaround the globe that, just like you, is turnng to new
other consumer newer torms
gomg tO try to each you and every connpanies are going to use a blend of mass media and other,
of acquring ntormation. And these
December 14, 2009, 8.
Creamer and Rupal Parekh, "Ideas of che Decade" Advetising Age,
L Matthew
MesEth -onectfor C

The World of Advertising and Integrated Brand Promotion 33

communication to try to get their brand messages across. But, rather than the old style of mass media advertising.
companies are turning to a wide range of new digital advertising and promotional techniques that complement
their mass media advertising.?
You'll still see advertising during your favorite television show or in your favorite magazinea lot of adyer
tising, in fact. But if you haven't encountered some of the new "smart ads" from conpanies, you will before too
long. If you are a smartphone user, advertising will work its way into a variety of your apps. If you're a video
worth of advertis
game player, your favorite games are already full of ads in the cyberscenery-about $1 billion
video tablet attached
ing, actually. The next time you go to the grocery store, you just might find an electronic aisles. That way
the
to the shopping cart that asks you to swipe your stote loyalty card before you start touring convenience. And
the store's computers can prepare a shopping list of items you've purchased before for your
when you pass a product in the store that a marketer wants to feature, the screen might flash a coupon you can
redeem clectronically at checkout. When you've finished your shopping and are heading home, your smartphone
new world
might alert you to aspecial on oil changes just as you're approaching a lube shop. Welcome to the
of advertising and integrated brand promotion.

THE NEW WORLD OF ADVERTISING AND INTEGRATED BRAND PROMOTION,

As the introductory scenario highlights, the world of advertising and integrated brand promotion is going
through enormous change. What you will learn in this book and in your class discussions is that companies are
media are not
trying to keep up with how and where consumers want tó receive information about brands. Mass
dead, but they are being supplemented and supported by all sorts of new ways to reach consumers. Consumer
the
preferences and new technologies are reshaping the cómmunication environment. You'l also learn that
lines between information, entertainmnt, networking, and commercial méssages are blurring. As one analyst
put it, *The line of demarcation was obliterated years ago, when they started naming ballparks after brands."*
Companies are turning to branded entertainment, the Internet, influencer marketing (i.e., social networks), and
other communication techniques to reach consumers and get their brand-messages across. You'l also read about
how the world of advertising is being referred to as Madison &&Vine" as Madison Avenue advertising agencies
consumers.°
attempt to use Hollywood entertainment-industry techniques tocomnmunicate about their brands to
You can go to http://www.adage.com/madisonandvine and read about how new agencies like Madison Road
Entertainment are producing brand-filled reality shows like Treasure Hunters that expose consumers to dozens
of brands, but not in the old stop the program, show a 30-second ad" kind of way but rather with "product
integration" into the show's storyline. As the vice president of marketing for Audi America described this new
process of integrating brands into consumers' lifestyles, hebelieves in "acupuncture marketing" where you go
"narrow and deep" with your messages."
Analysts speculate that advertising, integrated brand promotion, and marketing overall will be more digital.
More interactive, and more social. Their reasoning goes like this. Firms have not fully exploited all the opportun1
ties presented by nobile marketing. Mobile marketing is communicating with target markets through moble
devices like smartphones or iPad tablet-like devices. As an example, spending on Internet advertising, inchuhng
mobile marketing, is only about 12 percent of all advertising spending, but consumçrs are spendng abot 4
percent of their media time on the Internet relative to the traditional media of television, radio, newspapers, or
magaz1nes." In addition, digital and interactive techniques can "funnel" consumers to retail site visits and onlme

2. Rita Chang, "Mobile Markeüng Beyond the Mobile Phone" Adhenising Age, Novenber 30, 2009, 10.
hctp://4.com/theteed/blogpost/095860 in-game
3. Jake Gaskill, "In-Game Advertising Spending to Hi $1 Billion in 2014" G4TV, May 26, 2009,
advertising-spending-tw-hit-1-billion-in-2014.hunl
4. David H. Freedmat), "The Fuure of Advertising." Ic. Magazine, Augus, 20O5, 70 77.
5. Question of the Week, Ad Infnium, Business Week, Novenmber 20, 2006, I8.
6. Burt Helm, "Hollywood's Ad Auteur," Bloomberg Businessweek, January 18, 2010, 50-52. To see current*Madison and Vine campugu srategIs, go to
http://www.adage.con/umadisOnandvine
7. Jean Haliday. "Audi laps Ad Whiz to Direct Braning" Adetising Age. May 8, 20006, +, 88
8. Josh Bernoff,Why Marketing Will Be More Digital, More Interacive aud More Social" Marketing Neus, October 30, 2009, 18.
 34

shopping and purchasing, But for now, the "new world of advertising" is still in transition and still has some
fundamentals that will not change, as the next section desCribes.

Old Media/New Digtal Media-Ws All About the Brand.

We need to remain clear about one thing. No matter how much technology changes or hOw many Dew nedia
options and opportunities are available for delivering messages-it's still all about the brand! Just because an
advertiser offers consumers the opportunity to "follow them" on Twitter or visit the brand's Facebook page
these new communications options do not change the fundamental challenge and opportunity-communica
ng effectively about the brand. As consumers, we know what we like and want, and advertising-regardless of
brand that
the method-can help expose us to brands that can neet our needs. And there is a simple trutha
whether that advertis
does not meet our needs will not succeedno matter how much advertising there is or
ing is delivered through old traditional media or new digital media and mobile marketing. Consider the case of
Cadillac. In the early 1950s, Cadillac held a stunning 75 percent share of the luxury car market and was a leading
advertiser in the nmarket year after year. But by 2007, that market share had fallen to about 9 percent-an unprec
cdented loss in the history of the automobile industry or most other industries for that matter. What happened
to the Cadillac brand? It wasn't the advertising. A series of product missteps confused the market's perception of
the brand: the 1986 Cimarron, for example, used a Chevy chassis and looked cheap, and the 1987 Allante sports with
car was slow and leaked like a sieve. Formidable competitors like Lexus and Infiniti entered the market
powerful and stylisbh alternatives that were effectively advertised. Does it seem likesocial networking the brand on
Twitter or Facebook could bave changed Cadilacs fate during this period of decline? Not likely even thougih
there are nearly 10 million monthly users of Facebook Over 55 years old (see the Social Media box). Now, GM
has reinvested in the Cadillac brand and committed $4.3 billion to redesign, advertise, and promote the brand to
change consumers' perceptions (see Exhibit 1.2) It seens to be working as Motor Trend evaluators said,"With

Motors
General
Courtesy,

$22

EXHIBIT .2 GM is trying to reinvent the Cadillac brand with new body and interior designs and new "brand story
odvertising featuring music by artists like the Teddybears, Explosicons in the Sky, and Melikka.

Peter Cotbetr. Facehook Demographics and Satistics Report 2010 - 1459% Growth in 1Year. posted Januars 4, 2010, at htup:/'ww.t
C 00 01/àcebook-demographics-and-staistics-report-2010-145-growth-in-1-year/
 The World of Advertising and Integrated Brand Promotion 35

SocIAL MEDIA
It's Big. It's Getting Bigger. But Can You Advertise?
worldwide with 103
Onine social networks are big. And, they're getting bigder., Facebook has more than 350 mition users
mition in the United States alone, Users of Facebook spend trom6 to 8 hours every month posting 55 mitlion updates a
of conternt every week to share with friends and famiy. Beyond
day on the site and providing more than 350 billon pieces concentrates ori music
Facebook, ahost of other onlne networks cater tö specific interests and demographics: MySpace
Linkedin targets career-oriented professionals, and
and entertainment, ResearchGATE Connects scientists and researchers, from your kid
Twitter lets members send out 140 word "tweets" about their daily whereabouts and activities. Everybody
muti-billion dollar irnvestment service) are members of
Sister to venerabie, conservative organizatons like TIAA-CREF the 00, France has
United States-China has
one or nore social networks Social networksare not just a phenomenon in the
Skyrock, and Russia has VKontakte with milions of monthly visitors. the
advertisers are delirious over
As big as these networks are and as much trafic as they attract, you can imagine that
Everything about
DOSsibity of reaching users with all sorts of nighiy customized, persuasive, relatively low cost messages,
identifiable users, easily
asocia networking site is idealysuited tor reachng audiences and touting the valces of brands: into advertising with its
accessed, heavily trafickedan advertiser's dreams corme true. Well, not exacty Facetook's foray purchased
Beacon advertisingtool forfor advertisers did not go well, Beacon was set up to track what peopie on Facebook productsali of
tthey would want to buy sirmilar
on other sites, then it woLud tell your Facebook frends in the hopes that class actíon
of privacy, and filed a
this without Facebook users cOnsent Facebook users went balistic, caled it an invasion
law suit. Uitimately Facebook ended the Beacon program altogether.
to create
Now adver tisers are let on the outside looking in at all those mlions of users. Sure, there is still the opportunity
in tr aditional media advertising. But that is not the
a facebook page and promote ts existence at a compary website or ads
networking. And, you can post banner
same as beng on Facebook users sites as they spend al those hours a month
is "no," you really carn't advertise
at sites ike Linkedn, but that's ust like any other Web ad. So, for now, it seems the answer
on the biggest thing goingin Web user activity--at least not in the most powerful ways.
2010-145%
Sources:"A Word of Connections The Economist, January 30, 2010, 3-4; Peter Cobet, Facebook Dermographics andStatistics Report
Growth n1 ear posted January 4 2010. at http:ww.istategylabs.com/2010/01/faceb0ok-dernographics and-statistics teport-2010-t45growth--1
yeatl, Jordon MoColum, Facebook Bows Ou. ww.marketirgpigram.com. posted September 21, 2009

this bold, savvy, uncompromising showpiece ofa sedan...GM has leapt straight from the rabble's side of the velvet
rope into that coveted, highly selective inner sanctum m¡rked 'World's Finest Cars.""10
So, as you work your way through the class and the chapters in the book, you'l learn how advertising works
and how it is changing. You'llalso learn about all the new methods of communicating to consumers as firms are
trying to successfully create effective integrated brand promotion.

WHAT ARE ADVERTISING AND INTEGRATED BRAND PROMOTION?

Now that we've set che new and dynamic context for communication, let's consider the tools companies are
gOng to be using: advertising and integrated brand promotion. We'll start with advertising. Yos have your own
leas about advertising because yoå see some advertising every day-even if you try to avoid most of it. ike the
Situation in the introductory scenario. You need to know that advertising means different things to ifferent peo
ple, though. It's a business, an art form, an institution, and a cuiltural phenomenon. To the CEO of amultinational
Corporation, like Pepsi, advertising is an essential marketing tool that helps create brand awareness and brand
loyalty. To the owmer of a small retail shop, advertising is a way to bring people into the store. lo the art director
in an advertising agency, advertising is the creative expression of a concept. To a media planner, advertising is the
10. David Welch and Gerry Khermouch."Can GM Save an lcon?" BuSiness Week, April 8, 2002, 0 67; David Welch,"The Second Coming of Cadillac."
Business Week, Novenber 24, 2003, 79 80;Arhur St.Antojne,"One Gian Leap: Cadillac Aius tor he Surs.And Builds Oue. Mtor Tiend. Novenber, 2007.
 Ehics

36

way afirm uses the meia to commnicate to current and potential customers. To a website manager, it's away
to drive traffic to the URIL. To scholars and museum curators, advertising is an important cultural rtifact, text,
and hisxorical recond. Advertising means something different to allthese people. In fact, sometimes determining
just what is and what is not advertising is adifficult task!
Even though companies believe in and rely heavily on advertising, it is not aprocess that the average person
cdearty understands or values. Most people have some ignificant misperceptions about advertising and what i's
supposed to do, what it can do, and what it can't do. Many people think advertising deceives others but rarely
themseves, Mot think itk asemi glaorous profesion but one in which people are either morally bankrupt con
artists or pathological liars. At worst, advertising is seen as hype, unfair capitalistic manipulation, banal commercial
noise, mind control. postmodern voodoo, or outright deception. At best, the average person seesadvertising as
anus1ng. informative, helpfint, and occasionally hip.
The truth about advertising lhes somewhere between the extremes. Sometimes advertising is hard -hiting and
powerful, at other times, it's boring and ineffective. Advertising can be enormously creative and entertaining, and
it can be simply anoying One thing isfor sure: Advertising is anything but unimportant. Advertising plays a
pivotal role in world commerce and in the way we experience and live our lives. It is part of our language and
our culture. It reflects the way we think about things and the way we see ourselves. Now, advertising is integrating
itself more seamlessly intoour social interactions.A irm called Infegy tracks more than 20 million Web pages and
creates a"Social Radar Sentiment ladex"The index tracks brand comment volume. In 2009, the index identi
fied tens of millions of brand comments led by Apple and Microsot with 1.4 million combined mentions. " It is
a complex communication process, a dynamic business process, and now a part of the soCial interaction process.

theAnd. as abusines proces, advertising is and

central theme of this book.
relied on by companies big andsmallto build their -brandsthis is
Advertising integrated brand promotions are key to organizations' strategies
to build awareness and preference for brands (see Exhitbit 1.3).

Advertising Defined.
Keeping in mind that different people in different contexts see advertising so differently and that advertising suf
fers from some pretty complex controversies, we offer this straightforward definition:

A
Advertising 1S a paid mass.mediated attempt to petsuade

As direct and simple as this definition seems, it is loaded with

Ncation by a company or organization that wants its information distinctions. First, advertising is puid commu
company or organization that pays for advertising is called the client disseminated. In advertising language, che
or sponsor. If a communication is not
paid for, it's not advertising. For example, a form of public relations
ing because it is not paid for. Let's say Will Smith appears on promotion called publicity is not advertis
his newest novie. Is this advertising? No, because the the Late Show with David Letterman to promote
with David Letterman for airtime. In this producer or film studio did not pay the Lute Show
example, the show gets an interesting and popular guest, the guest
Star gets exposure, and the film gets plugged.
public relations, but it is not advertising, But Everyone is happy, but no advertising took
when the film studio produces and runs adsplaceit might be
in newspapers across the cOuntry for the newest Will on television and
studio, it is placed in media to reach consumerS, and Smith movie, this communication is paid tor by the
For the same reason, public service therefore most definitely advertising.
is
and sound like ads, but they are not ads. announcements (PSAs) are not advertising either. True, they look hke ads
They
for like an ad.They are offered as information in theare not commercial in the way an ad is because they are not
pau
on the radio that inplores you to "Just Say No to public (noncommercial) interest. When you hear a messags
put, PSAs are excluded from the definition of drugs, this sounds very much like an ad, but it is a PSA. Smpy
Consider the two messages in Exhibits 1.4 advertising because they are unpaid communication.
and 1.5.These two messages have similar
advice. Exhibit 1.4 has persuasive intent, is paid-for copy and offer simua
communication, and appears in the mass media. It 1S an advel
11. Jack Nef, "Apple, Microsoft Top Social Media Kiugpins"
Adventising Age, October 5, 2009, 10.
 The World of Advertising and Integrated Brand Promotion 37

adver
Tisin9)
pentium4
AAF
Courtesy,

tswhat makes COmputers more

Advertising the way great brands

ExHIBT 1.3 The American Advertising Federation (AAF) ran this ad touting the power of advertising's effect on brand
most
building. The AAF used the Intel logo and brand "look" for this message because Intel is regarded as one of the
successful firms in using adverting to build brand name awareness and recognition. http://www.aaf.org
HOW FAR WILL YOU GO BEFORE YOU MENTION CONDOMS?

"I didn't use one because I didn't THIS AR

have one with me.

GETREAL
Ifyou dont have aparachute, dorrt jurmp, genius.

THIS AR

Helps reduce the risk

EXHIBITS 14 AND 1.5 The messages in Exhibits 1.4 and .5 communicate nearly identical information to the audience,
but one is an advertisement and one is not. The message in Exhibit 1.4 sponsored by Trojan is an advertisement because
ifis paid-for communication. The message in Exhibit 1.5, sponsored by the U.K.'s Health Education Authority, has.a
persuasive intent similar to the Trojan ad, but it is not advertising-Exhibit 1.5 is a PSA. Why isn't the Health Education
Authority PSA message an ad? http://www.trojancondoms.com
 38
tisement. Exhibit 1.5 also has ppersuasive intent and appcars in mass media outlets, but it is not advertising because
cousins.
1t is not pad-for comuncation. PSAs are important and often strongly mitate their comnercial medium designed t
Second, advertisng is mass mediated This means it is delivercd through a communication
disseminated
reach nor than one person, typically a large number-or mass-of people. Advertising is widely
through fanuliat mcans television, radio, newspapers, and magazihes-and other media such as direct mail.
billboards, video games, the Internet, iPods, and smartphones. The mass-mediated nature of advertising creates
This distinguishes
ACOmmCAtiOn cnvironent wlhere the mcssage is not delivered in a face-to-face manner.
advertising from personal sclhng as aform of connunication.
Thnd, all advertising includes an attempt to persuade. To put it bluntly, ads are communications designed to get
soNeonc to do sonnethng. Even an advertisement with a stated objective of being purely informational still has
persuasi0n at its core. The ad informs the consumer for some purpose, and that purpose is to get the consumer
to like thc brand, and becausc of that liking, to eventually buy the brand. An ad" can be extremely subtle, like
a Sprite bottle and logo appearing in the Green Eyed World" video series on YouTube. Or, it can be loud and
blatant like a Saturday morning infonmercial. Consider the PUR water filter ad in Exhibit 1.6. It doesn't carry
a lot of explicit product information. But it's interesting, and most of us would say. Yeah, I like that ad" With
that reaction, this ad is persuasive. In the absence of a persuasive intent, a communication might be news, but it
would not be advertising.
Cour
UK;
Authority,

Education

Health

the
of
Courtesy

Inc;
Garmble
Medpointe,

&
POR Procter
Courtesy,
tesy,

ExHIBIT 1.6 In order for a communication to be

advertising, it has to haye a persuasive intent. Even though this
PUR water filter ad is not overtly persuasive, the fact
that it is interesting creates a positive reaction in the
which can persuade people to try the brand. audience,
http://www.purwater.com
At this pont, we can say that tor a communication to be
be met:
classificd as atvertising, three essential criteria must

1. The comunication mUst be paid for.

 The World of Advertising and Integrated Brand Promotion 39

2 The Communication must be delivered to an audience via mass media.

3. The comunication ust be attempting persuasion.
It is inportant to note here that advertising can be persuasive communication not only about a product or
service but also albout an idea, a petson, or an entire organization. When Colgate and Honda use advertising,
this is product advertising and meets all three criteria. When TD Ameritrade, Delta Air Lines, Terminix, or your
dentist run advertisenments, these service advertisements meet all three ctiteria.

Integrated Brand Promotion Deined.

Now that we have defined advertising, lets consider the other important context for the bookthe process of
integrated brand promotion, or BP. As we discussed earlier, communication is all about the brand and, as such,
promotion is all about the brand as well. To fully understand integrated brand promotion, let's first define IBP and
describe all the tools used for IBP Then we can talk about how it is related to and yet distinct from advertising.
Hrst the definition:

integrated brand promonon (BP) sthe pocess of ustng a wde Knge of prOmotional tools werkrng together to

definition of integrated brand

Just as the definition of advertising was loaded with meaning, so too is the managed in an integrated fash
promotion. First, IBP is a process. It has to be. It is complicated and needs to be
to be evaluated and scheduled. IBP creates
ion. Second, IBP uses a wide range of promotional tools that have but the IBP process is squarely
exposure for the band. It can be å branded product or an overall corporate brand,
marketers use for IBP:
focused on brand exposure. Here is a list of the 'most prominent tools
Advertising in mass media (television,radio, newspapers, magazines, billboards)
samples, trial offers, rebates, frequent
Sales promotions (coupons, premiums, discounts, gift cards, contests,
user-affinity programs, trade shows).
Point-of-purchase (in-store) advertising
Direct marketing (catalogs, telemarketing, email offers, infomercials)
Personal selling
Internet advertising (banners, pop-ups/pop-unders, websites)
Social networks/Blogs
Podcasting
Event sponsorships television progrning, Webcasts, video games,
Branded entertainment (product placement/insertion in
and films), also referred to as "advertainment"
Outdoor signage
Billboard, transit, and aerial advertising
Public relations
Influencer marketing (peer-to-peer persuasion)
Corporate advertising
Notice that this long list of IBPtools incudes various types of advertising but goes well beyond traditional
intluencer marketing and sOCial netwvorks, the tools of IBP
advertising forms. From mass media of advertising to reach target customers inditerent ways with
a marketer to
are varied and wide ranging. All of these tools allow brand.
d1fferent kinds of messages to achieve broad exposure fOr a work together. That is, they need to be
Third, the definition of IBP highlights that all of these tools need to Havng mass nneda advertising send one
Integrated to create aconsistent and compelling mpression of the brand.
 40
or personal selling deliver
another message will confs.
image and then have Webcasts
message and create one of the brand--this is a very bad
thing!
consumers about the meaning and relevance all of the advertising and promotional etfort undertaken by a firm
enphasizes that various forms o
Finally,the definition of IBP for a brand. Unless consumers are reached by
these
regularly.
exposure whether to use it
designed to create widespread understanding the brand and deciding
messages,they will have adifficult tinne

Integrated Brand Promotion.

Advertisements, Advertising Campaigns, and some other impor.
advertising and IBP. we can turn our attention to
Now that we have working
definitions of
start with the basics. An
advertisement refers to a specitic message that an
tant distinctions and definitions. Let's audience. An advertising campaign is a series of coordinated
adver.
ofganization has created to persuade cohesive and integtated theme about a brand. The theme may made
an be
tisements that communicate a reasonably advance an essentially singular theme. Stuccesstul advertising campaigns
up of several claims or points but should
advertisement placed in multiple mnedia, or they
can be made up of several
can be developed around a single familiar with the "Got Milk"
with a similar look. feel, and message. You are probably Notice
different advertisements
Another example is represented by the Altoids ads in Exhibits 1.7 through 1.10.
campaagn as an example. this advertising campaign. Advertising campaigns
can run tor a few
the excellent use of similar look and feel in campaign requires a keen sense of the conmplex environments within
wecks or tor many years. The advertising
audiences.
which a company must communicate to different campaigns. Most individal ads would make little
sense
aspect of advertising
And thmk about this important accumulated fromn previoss ads for a particular brand. Ads are
without the knowledge that audience members have experiences with a brandand having viewed previous ads for
mterpreted by each consumer through their personal the ad through your personal history with Nike and
the brand. When you see a new Nike ad, you make sense of
product are situated within each audience member's
Its previous advertising. Even ads for a new brand or a new ads and buying brands, people bring
broader knowledge of products, brands, and advertising. After years of viewing
a rich history and knowledge base to every communications encounter.
is the use of
How does IBP fit in with advertisements and advertising campaigns? As we discussed earlier, IBPbrand aware
many promotional tools, including advertising, in acoordinated manner to build and then maintain
ness. identiry, and preference.When marketers combine contests, awebsite, event sponsorship, and point-of-pur
chase displays with advertisements and advértising campaigns, they create an integrated brand promotion. BMW
did just that when the firm (re)introduced the Mini Cooper auto to the U.S. market. The IBP campaign used
billboards, print ads, an interactive website, and "guerrilla" marketing (a Mini was mounted on top of a Chevy
Suburban and driven around New York City). Each part of the campaign elements was coordinated with all the
others. Note that the word coordinated is central to the IBP cffort. Without coordination among these various
promotional efforts, there is not an integrated brand promotion. Rather, the consumer will merely encounter a
series of individual, unrelated (and therefore confusing) communications about a brand.

AFocus on Advertising.
Integrated brand promotion will be a key concept throughout our discussion of advertising. The fact that this
phrase is included in the title of the book signals its importance to the
sumersencounter a daily blitz of commercial messages and appeals, brandscontemporary marketng ettort. As COn
and brand identity offer them a way to
cope with the overload of information. Brands and the images they project
and evaluate the relevance ofa brand to their lives and value allow consumers to quickly identity
and IBP as a way to build brand exposure and meaning for
systems. The marketer who does not use advertis1ng
We will develop the concept and describe the executionconsunners
will, rankly, be ignored.
of lBP throughout the text and demonstrate how
advertising is central to the process. The encounters between consumers and
advertising, advertisements, and
advertising campaigns, specifically, are the focus of our next discussion. Elaboration
tion of other IBP tools will be covered extensively in Part 5 of on the features and applica
the text.

12. lobn Gafiney, "Most Innovative Caunpaign, Business 2.0, May 2002, 98-99.
 The World of Advertising and Integrated Brand Promotion 41

ww

IRON MINT!
TEECURIOOSLYSTERONGMIMTS
USE OL NSEL
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FENSE

Bowser

&
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of
trademark

registered

"NICEroIDS a

Afos
Altoids®is
THa CURUQUSL SRONG NNTS
T CURIOUSAY STRONG MNTS

EXHIBITS 1.7 THROUGH 1.10 A well-conceived and well-executed adverting campaign otfers consumers a series
Of messages with a similar look and feel. The series of ads tor Altoids is an excellent example of a campaign that
communicates with similar images to create a unified look and teel. http://www.altoids.com
 Bth

42

ADVERTISING AS ACOMMUNICATION PROCESS.

of human existence,and advertising isone ofthose communications, T
Lommunication
understand advertising at all, you aspect
is a fundanental must understand something about communication in general and about mss
understand the basics of how advertis1ng works as a
Commnication in particular. At the outset, it's important to
understanding, let's cons1der a contemporary model of mas
means of communication, To help with gaining this a first step toward tunderstand1ng advertisine
Communication. We'll apply this basic model of communication as

A Model of Mass-Mediated Communication.

meditun
communication; it occuts not face-to-face but through a
As we said carlier, advertising ismass-mediated or smartphone). Althougt
the side of a building, ot on your computer
(such as radio, magazines, television, on conimunicatioh, mass-mediated communica
a contemporary model of
there are many valuable models of mass mass communication as a process where people,
institutions
tion is presented in Exhibit 1.11.This model shows production
each representing quas1-1ndependent processes: reception
and messages interact. It has two major components,
the receiver of a message). Between production and
(by the sender of a message) and reception (byaccommodation and negotiation. It's not as complex as it sounds
are the mediating (interpretation) processes of
Let's investigate each part of the model.
Coca-Col

Producton Accomnmodation Reception

and
the
negotiation
teraction of acvetise istory, persona
ty, magined ndivdual aucience Mearings of
nagnec aucience Courtesy
Compa
agency media, and other Metsag avetiser, and mernbers forrmed
socialinsttutions tat purposes forming understandingof Comnon and
sesutsinprodLction of context of the acvertise ent incivictuat
acvertistg cor tet reoeption

ExAIBIT 1.11 Amodel of mass-mediated communication.

Moving from left to right in the model, we first see the process of communication production, where the content
of any mas communication is created. An advertisement, like other forms of mass comm1nication, is the product
of nsitutions (such as corporations, onganizations, advertising agencies, and governments) interacting to produce
content (what is created for a print ad, television ad, radio ad, podcast, or on acomputer screen at a companyS
website). The creation of the advertisement is a complex interaction of the company's brand message; the companys
expectations about the target audience's desire for information; the companys assumptions about how members ot
an audience will interpret the words and images in an ad; and the rules and regulations of the medium thattransus
the mesage.
Continuing on to the right, we see that the mediating processes of accommodation and negotiation ie
between the production and reception phases. Accommodation and negotiation are the ways in
Interpret ads. Individual audience menmbers have some ideas about how the company wants them whch consuniss
the ad (we all know the rules of advertising-somebody is trving to persuade us to buy to nterpre
brand or 1dea). And each consumer has needs, agendas, and preferred something like theu
or
interpretations
ence, and individual value systems. Given all this, every consumer who sees an ad based on history, exper
the ad that makes sense to chem, serves their needs,and fits their arrives at an interpretation
set of brands. You'llearn nore about wide range of personal history with a product category ad
influences on each consumer in Chapter5Adverasu
Integrated Brand Promotion, and Consumer Behavior"
What's interesting about the whole progression of consumer receipt and then
cation is that it is often wholly incompatible with the way the company wants interpretation of a comimu
consumers
words, the receivers of the communication must accommodate their perceived multiple to see an ad! In ou
meanings and persoa
 The World of Advertising and Integrated Brand
Promotion 43
agendas and then negotiate a meaning, that is an
riences and value systes. That's why we say thatinterpretation, of the ad according to their individual life expe
means to any given consumer is a function not ofcommunication is inherently a social
an isolated solitary thinker but of anprocess: What a message
responding to what he or she knows about the ptoducers of the message inherently social being
it (peer groups, tor example), and the social (the companies),other receivers of
world in
adittedly, all this interpretation happens very fast and which
without
the brand and the message about it resides. Now,
much contemplation. Still, it happens. The level
of conscious Mterpretation by each receiver
might be minimal (mere recognition) or it might be extensive
(thoughtful, elaborate processing of an ad), but there is ahviys
The conmunication model in Exhibit 1.11 interpretation.
undetscores a critical point: No ad contains a single meaning for
allaudiencc members. An ad for a pair of women's shoes means something different for women than it does for
men. An ad that achieved widespread popularity (and controversy) is the ad for Diet Coke shown in Exhibit 1.12,
which may be interpreted differently by men and women. For example, does the ad suggest that men drink Diet
Coke so that they can be the object of intense daily admiration bya group of fenale office workers? Or does
the ad suggest that Diet Coke is a part of amodern woman's lifestyle,
granting
attractive m¢n n the same way women have been eyed by nale construction workers her"permissicn" to freely admire
(or executives) for years?
Each audience member decides what meaning to take away from a
communication.

Company

Coca-Cola

the
of
Courtesy

EXHIBIT 1.12 This ad is a good example of how the meaning of an ad can vary for different people. How would you
interpret the meaning of this ad? Think of someone very different from you. What meaning might that person give this ad?
http://www.cocacola.com

3 THE AUDIENCES FOR ADVERTISING.

We ve been referring to audiences, so now it's time to define them. In the language of advertising, an audience
S groupP of individuals who receive and interpret messages sent from companiesor organizations. The audience
could be made up of housechold consuners, college students, or busincs people. Any large group of people can
be an audience. Åtarget audience is a particular group of consuners singled out by an organization for an
advertising or [BP campaign. These target audiences are singled out because the firm has discovered that audience
members like the product category and might prefer their particular brand within that product category. Target
audiences are always potential audiences because a company can never be sure that the message will actually get
through to them as intended. Bythe way, there is nothing sinister about the targeting process. Targeting audiences
 lik something bad
wants to reach you with a mcssage. Do you fccl Somewhere along
not!
to
the line, the happens
simply means that a company it on TV? Of course
you with an ad and you see connotationsignore them.
you when the Gap targets target andience have picked up some negative broad audience categorins
word tageting and the phrase identify dozens of different target atudicnces, five members of a trade chan
Even though companies can business organ1zations,
commonly descrilbed: houschold consuners, members of
cmployces.
professionals, and gOvernment oficials and

Audience Cotegories. media advertis1ng is directed

consumers are the most conspicuous auidience in that mOst mass have products and seri
Household Farm Insurance
Brewing,thc Gap, and State household
at then MDonalds, Nissan. Miller consumers.
the consUmer market, and so their advertising tárgets households in the United States ai
designed for there are about 116 million
indicates that
The most recent information consumers.13"Total yearly retail spending by these households exceeds s3
approximately 307 millhon hoUsehold of"consumer advertising," very fine audience distinctions Can
trilhon annually: "Under the very broad heading metropolitan areas, with
made by advertisers. A target audience definition such as men, 25 to 45, Iiving n advertiser mich
be kind of target audience desCription an
than $50,000 per year would be the
incomes greater
develop advertising for firms that produce business and
Members of business organizations are the focus of
industr1al goods and services,such as office equipment, production machinery, supplies, and software. Althouch
require personal selling, advertis1ng is used to create aware
products and services targeted to this audience often businesses such as un1versities, some research
ness and afavorable attitude among potential buyers. Not-for-profit separate business audi
laboratories, philanthropic groups, and cultural organizations represent an important and organizations.
ence for advertis1ng. Exhibit 1.13 is an example of an ad directed at members of business
Members of atrade channel include retailers (like Best Buy for constumer electronics), wholesalers (ike
CastlieWholesalers for construction tools), and distributors (ike Sysco Food Services for restaurant supphes).
They are atarget audience for producers of both household and business goods and services. So, for example. it
Microsoft cannot gain adequate retail and wholesale distribution through trade channels for the Xbox, the brand
will not reach target customers. That being the case, its important to direct advertising at the trade level of the
market.Various forms of advertising can be used.to develop demand among members of a trade channel. The
promotional tool used most often to communicate with this group is personal selling. This is because this targer
zudience represents arelatively small,easily identifiable group that can bereached with personal selling. When
advertis1ng is also d1rected at this target audience, it can serve an extremely useful purpose, as we will see later in
the section on advertising as a business process.
Professionals form a special target audience and are defined as doctors, lawyers, accountants, teachers, or aly
other profesional group that has special training or certificaion. This audience warrants a separate class1tcation
because itS members have specialized needs and interests. Advertising directed to profeionals typically hign
lights products and services uniquely designed to serve their more narrowly defined needs. The language ad
mages used in advertising to this target audience often rely on esoteric
terminology
that members of professions readily recognize.Advertising to professionals is and unique circustan
predoinantly
trade publications. Trade journals are nagazines published specifically for nembers of a tradecarried out throug
technical articles. and carry higy
Government officials and employees constitute an audience in thems¢lves due to the large dollar
Voume of buy1ng that federal, state, and local
to road maintenance operations buy huge amountsgovernments do, Government organizations trom nres
of various
ooe urnture, constructio) materials and equipment, vehicles, types of products. Producers of items suCn
target governiment organizations with advertising, fertilizers, computers, and business serviceo
mail, catalogs, and Web Advertising this target audience is domunated by
to
advertising.
13. US. Cesus Bureau
FactFinder, Populatjon of the United States 2009,
14. "2009 Survey of Buying
Power" Sales and Murketing Management, 2009,hup://factînder.census.gov,
18.
accessed onine February
 The Worldof Advertisingand Integrated Brand Promotion 45

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Technologies,

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ExHIBIT 1.13 RightNow Technologies sells systems used by companies to cut ales costs and improve customer relationship
management. When members of business organizations use advertising to communicate, the ads often emphasize creating
copy
awareness of the company's brand name. RightNow Technologies is combining high visual appeal with detailed ad
to accomplish brand name recognition. htp://www.rightnow.com

Audience Geography.
Audiences can also be broken down by geographic location. Because of cultural d1fferences that often accompany
with
geographic location, very few ads can be eftective tor all consumers worldwide. If an ad is used worldwide
only minor changes it is called global advertising. Very few ads can use global advertising. These are typically
brands that are considered citizens of the world" and whose manner of use does not vary tremendously by
culture. Using a Sony television or taking a trip on Singapore Airines doesn't change much from culture to
culrure and grogruphic locationtogeographic location. Exhibits 1.14 and 1.15 show extremely similar appeals
in rwo diffcrent ads for Rolex watches -another product category where product use across cultures is the sme.
Frs that market brands with global appeal, like Singapore Airines, IBM, Sony, and Prelli Tires, try to develop
and place adverisements wirh àcommon theme and presentarion in all markets around the world where the
 46

"Bisgpa essere Sotissimí

entrale',
PAinbuL per rimanerd."

Mller t n , Anders ang leh wlcbe Tennie epielen.

ornnmie

Uhrgekh b, deren Guslaiun

ExAIBITS 1.14 AND 1.15 Global advertising can be used for brands where there is litle difference in use across culture: ..
geographic location. The only real difference in these two ads is langUage (German versus Italian), while other aspects-
Rolex's appeal to an affluent lite who likely follow tennis and the Rolex brand imagery-remain the same. An interestn:
twistwith Rolex is that it uses a website to describe, but not sell, its products (hitp://www.rolex.com). instead the webs
directs surfers to the retoailers who carry the brand. Is the Web likely to be Rolex's best acvertising channel, anywayê
firm's brands are sold. Global placement is possible only when a brand and the messages about that brand ha
acommon appcal across diverse cultures. The Globalization box highlights a situation where a
product catego
wIdcly advertised in the U.S. market, lingerie, is somewhat more complicated to advertise in a different
Saud1 Arabia. culture
International advertising occurs when firms prepare and place different advertising in d1fferent
markets outside their home market. Each international nationa
market may require unique advertising due to produ:
adaptatiotns or message appeals tailored
Its laundry products for nearly every specifically for that market. Unilever prepares different versions of ads tr
laundry task differently. Consuners ininternational market because consumers in
the United States use large and powerful different cultures approach the
hot water. Ilouseholds in Brazil use very little hot
water
washers and dryers and a lot ot
of having a brand with truly and hang clothes out to dry. Few firms enjoy the luxury
crosS-cultural appeal and global recognition, as is necessary
as descriled in the previous section.
are tailored for each market. International advertising differs from global advertisingforinglobal advertsng
that different ad
National advertising reaches all geographic areas of a
cally used to describe the kind of single nation. National advertising is the term typi
Does international advertising use advertising we see most often in the nhass
many diferent national advertising efforts?medha in the domestic.U.S. market
between international advertising and national advertising. Yes, that is exactly the relationshif
Regional advertising is carried out
their efforts in arelatively large, but not by producers, wholesalers, distributors, and retailers that
stores in 31 western, national, geographic region. Albertson's, a concentrat
northwestern,
It places advertising only in nidwestern, and regional
southern states. Because of the nature of the grocery chan,
regions
Local advertising is uch the samewhere it has stores. firm's marke
Sngle trading area, either a city or state.as regional advertising. Lo cal advertising is directed at an
count ckothing retailer with storesin theExhibit 1.16 shows an example of this type of audience n.
Iike DatBy's use all types of local New advertising.
York/New Jersey metropolitan area. Retailers with locals ismarket
Daffy' a
media to reach customers. Under special circumstances, national
companies
 46
"Bisogna essere fortissimi
raggiungere il 'centrale'.
perimbattibili
Ed per rimanerci."
to appens gli applausi
"Peenderó posses RA kHfico. Raccolgo
tutte le nie forze e mi
Wimbledon &una delte
dico che posso farceta A
emozioni pló grandi quetn pronto lincato si
nella vit di un tenni.
sta. Perchá &t tótneo rompe ee sent tun enor.
me carica i energedi
pin imporrante e li
sfims. Sono penato
maggior prestigio,
Èmerrvigioso sol.
quello che ogni giox a levare trfeo ul"cen
rore togna dí vinore.
Noller Einsatz. Anders kann ich nicht Tennis spielen" ,
Avevo sedici an.
teale" ti Wimbledeon
,lim ('oity eilt als :rechrn kAn Triumoh wr die Kronung einre ertaten ove &gia un granda
Iichen Siecesserie in 32 Spirlen lenn erin ni guaándó venni a
nehet und ehtNhlseener (eraer puf den sÜcceso esere am
Winbledon la prima
volta ner seguire un in metsi e dove, seconda
cine tenreensvrt sovrle strlng Katt enJ Ausdauee aut cioe r . hc grra
Je nbyinlich i sebeibt 2:ti me, il tennis &nato.
Rgenulur seinn Sport lal:rt he!. contro sul eentrale".
Menhener kem. de besrr spielt ak Iin Cunir
Ero cmozionatisyimo.
Jim Courier c
selevieriern Neis4o.lielen iu Paria ist ole Bl anche oggi. quAn
l'organizzazione di
Se.ne Fshiekeis e 1vachsendèn io glaheoder Hize out den PlaZen in Alel. do ci gareggiv io, pry
Druch besser ru nçrden, hat .Jin Courier bourte. Covrier spielt sein bestes Tennis, vu lo sresso brivido. Wimbledon banno
bereits tir Grand Slan-Tite ringebrah wnn P hay auf halecht Èuna senszione ehe ti pende negli scolto Rolex. La precisivne e Vaffidabihtà
\br an tn Ate:rotien is1 er de deminie: di Rolex sono le qualità richiestc afinc
, dove il gioc atore si roncentra
rende Soiele. or gewanr er geich zwe:
Avsreahan Oen hinrereinarer. IDieter
Uhr gewiblt hat. deren Qualitaten
Soy- ehens unübertrotfen sind. ROLBX spogliatol,o.lo
pricoa di fFrooure e che scuuraiea l gronde meccanismo di Wimbledaoa
te sarà uno degli ineontri pii ismportanti possa funziona re proprio come un
go. Cna scelta condi. t
dela sua carriera. orologio.
Raggivngo il retangolo da giuco, e sen visa da molti altri campioni. ROLEX

ExHIBITS 1.14 AND 1.15 Global advertising can be used for brands where there is little difference in use across cultures ^.
geographic kocation. The only real difference in these wo ads is language (German versus ltalian), while other aspecs
Rolex's appeal to an affluent elite who likely follow tennis and the Rolex brand imagery-remain the same. An interesing
wist with Rolex is that it usea a website to describe, but not sell, its products (hitp://www.rolex.com). Instead the websia
directs surters to the retailers who carry the brand. Is the Web likely to be Rolex's best advertising channel, anyway?

firm's brands are sold. Global placement is possible only when a brand and the messages about that brand haye
acommon appeal across diverse cultures. The Globalization box highlights a
widely advertised in the U.S. market, lingerie, is sonewhat more complicated situationto
where a product categor
advertise in a different culture
Saudi Arabia.
International advertising occurs when firms prepare and place different advertising in different national
markets outside their home market. Each international market may require unique advertising due to produt
adaptations or message appeals tailored specifically for that market. Unilever prepares different versions of ads tor
its laundry products for nearly every
international market because
laundry task differently. Consumers in the United States use large and consumers in different cultures approach tht
powerful washers and
water and hang clothes out to dry. Few firmsdryers
hot water. Households in Brazil use very little hot and a lot et
of having abrand with truly enjoy the luxury
cross-cultural appeal and global recognition, as is necessary for global
as described in the previous section.
are tailored for each market. International advertising differs from global advertising in that d1fferentadvertisng
as
National advertising reaches all geographic arcas of a
cally used todescribe the kind of single nation. National advertising is the term typ
Does international advertising use many advertising we see most often in the nnass media in the domestic.U.S. markt
between international advertising and national different national advertising efforts? Yes, that is exactly the relationsh"
Regional advertising.
their efforts inadvertising
is carried out by producers,
a relatively large, but not wholesalers, distributors, and retailers that concentral
national, geographic
stores in 31 western, northwestern,
it places advertising only midwestern, and southern region.
states,
Albertson'
Because of
s, a regional grocery chal,
the nature of the firm's mark
in regions where it has stores.
Local advertising is much the
Single trad1ng area, either a cityorsame as regional advertising, Local
1.1l6shows an exampleadvertising
state. is directed at an audience
count clothing retailer with stores in theExhibit of this type of advertising. Dafty'
like Daffy's use all types of local media to New York/New Jersey metropolitan area. Retailers with locals 1Smat .
reach customers.Under special circumstances, national compani
nSelling 4 Rela

Brand Promotion 47
The World of Advertising and Integrated

Globalization
Try This One On for Size
for a retail store that sells
global proportions. Imagine that it is your job to develop the advertising
Here's a challenge of bold television advertising
all, Victoria's Secret has done a great job with
women's lingerie. This shouldn't be too hard, After product category that's showing
Tyra Banksand Gisele Bündchen, not to mention those direct mail catalogs. It's a
featuring visuals.
restrictions for
strong growth and the media are loosening up on store's narne is Al Mashat and
one other little detail that might make this a bit more difficult. The retail lingerie
Well, there is true, but Saudi Arabia is
Saudi Arabia. So, you ask? Lingerie is lingerie and women are women, That may be
it is located in Margo Chase, founder and
that is most problematic was well articulated by
also Saudi Arabia and in Saudi Arabia, the detail to market lingerie in acountry
consulting firm: "The really huge problem is-how
executive director ofChase Design Group lingerie is a somewhat important detail
Not being able to show women in
where yOu can'tshow photographs of women,"
that would make this just a bit mòre difficult. sure, there is no way that the religious culture
of Saudi
So, what would you do in àsituation like this? One thing is for wants to mare effectively
restrictions it creates are going to change just because some retail store
Arabia and the mnedia population, with 42.4
some details that might help. youout: Saudi Arabia has an extremely young
advertise. But here are to Saudi women.
shopping is one of the few recreations available
percent being under the age of 15. Additionally, look at what the U.S. consulting firm Chase Design
yet? Wel, let's take a
Have you figured out an advertising strategy the design firm decided that if they could not
use the images
advertising for Al Mashat. First, sensSual."
Group came up with for carried by "language that was rich, textured, layered, and
campaign wOuld be robe of
of women, then the advertising advertising and store banners: "Wrap this beautiful
a poem featured both in
An example of the language was language, a special font and characters were
around yOu and dream." Second, to carry through on the force of the featuring bags imprinted
Words radio ads, and a direct mail piece
using print ads,
developed. Finally, advertising was launched pearl-colored paper. As a folloW-up,
with potpourri and an invitation card printed on iridescent
with the store logo and filled customers. How did it al
campaign mailed out gift vouchers worth 50riyals (about $13) to prospective
another direct mail owner expects
operations, more than $3.2 million in.revenue was generated. The
Work out? In the first year of the store's
store's second full year.
revenue to grow to $5 million in the cicumstances can restrict the way we might use
advertising.
global markets,any umber of unique
The lesson here is that in
there may be what seem to be huge
barriers (like not showing women in ads for a
But the other lesson is that even though used to overcome such barriers.
designed exclusively for women), the-breadth and creativity of advertising can be
product
Under:" Marketing News, July 21, 2003.
Source: Arundhati Parmar, "Out from

Inc.;
U.S.A.,

MMEN ACLOTHING STORE HRSRSALE Watch

ONSELECTEDMERCHANDISE Datty's
MHYISITALAR'S MERCHANDISE Rolex

YOUD MEVER SELECT

AL Daffys yo°lfAnd40-70% oftall our chhes every day sh Ave &I8th S, Madison
Ave&th S
of
Courtesy
COurtesy
DAFFY'S
aoNESTNYTNrooTAK O

ExHIBIT 1.16 Daffy's (http://www.daffys.com) is a clothing retailer with several shops in the New York/New Jersey
metropolitan area. It services a local geographic market. Retailers that serve a small geographic area use local advertising
radio ads to regch their local target market.
to reach their customers and ypically rely on newspaper and
48

Share advertising expenses in a market with local dealers to achieve specific advertising objectives. This sharin
cooperative advertising (
of advertising expenses betvween national companies and local merchants is called luggage and one of its retailers
cO-op advertising). Exhibit 1.17 illustrates aco-opadvertisement run by'TUMIco-op advertising program with
its
Shapiro. In akey strategy move several years ago, General Motors redesigned promotion.
15

dealers in an attenmpt to create a more fiully coordinated integrated brand

EERY DAY ER 00
COMPUR AR. BROKEN

HAVE A SAFE TRIP

-SHAPIRS
merchants if the retailer features
EXHIBIT 1.17 National companies will often share advertising expenses with local retail retailer,
a local
the company's brand in local advertising. This sharing of expenses is called coop advertising. Here
Shapiro Luggage, is featuring TUMI brand luggage in this coop ad. http://wwww.tumi.com

ADVERTISING AS A BusINESS PROCESS.

So far we have talked about advertising as a communication process and as a way companies reach diverx
audiences with persuasive brand information. But we need to appreciate another dimension: Advertising is ver
much a business process as well as a communication process. For multinational organizations like Microsoft ani
Boeing, as well as for smalllocal retailers, advertising is a basic business tool that is essential to retaining current
customers and attracting new customers. We need to understand that advertising functions as a business proces n
three ways. First, we'llconsider the role advertising plays in the overallmarketing and brand development prograuts
in firms. Second, we will look at the types of advertising used by firms. Finally,we will take abroader look a
advertising by identifying the economic effects of the proces.
The Role of Advertising in Marketing.
lo truly appreciate advertising as a business process, we have to understand the role advertising plays in a r
marketing efort. To begin wih, realize that every organization ust make marketing decisions. There simipy
no escaping the need to develop brands, price them, distribute them, and advertise and promote them to atatg
audience. The role of advertising relates to four important aspects of the marketing process: (1) contributing to
marketing mix; (2) developing and managing the brand; (3) achieving effective market Segmentation, diferenti'
tion, and positioning, and (4) contributing to revenue and profit generation.

19. Joe Miller,"Dealers Regain Ad Input as GM Revives Program," Adventising Age,

October l6, 2000, 80.
 The World of Advertisi ng and Integrated Brand Promotion 49

The Role of Advertising in he Marketing Mix. Aformal definition of marketing reveals that advertising (as a
part of ovetall prormotion) is one of the primary marketing toolk available to any organization:
and distriburion of ideas, goods,
Marketing i te prOESS Of plamming and executing the conception, pricng,. promotion,
and sertes oceate exdhanges that sartsfyindvidualand orgamzational objetives
Marketing people assume a wide range of responsibilities in an organization related to conceVing, pricing,
responsib1hty
promoting, and distribut1ng goods, services, and evenideas. Manyof you know that these four areas of
and decision makmng n marketing are referred to as the marketing mix. The word mix used to describe the
advertis1ng) versus Its
blend of strategic emphas1s on the product versus its price versus its promotion (including program for
distribution when a brand is marketed to consumers. This blend. or mix, results in the overall marketing
responsibility and it 1s only one
abrand.Advertising is mportant, but it is only one of the major areas of marketing audacious $25 million
unleashed "an
of many different IBP tools relied on in the marketing mix. Under Armour Armour sales in that
line. Under
campaign" with the slogan The future is ours!" to introduce its non-cleated shoe
from Nike, Adidas, and Reebok proved too formidable
category did not grow the following year-competitionOvercome 17

advertising alone, no matter how "audacious" could not competitors' product features and distribution.
communicating to a target
Generally speaking, the role of advertising in the marketing mix is to focus on
aspects of the brand itselt.
audience the value a brand has to offer. Value consists of more than simply the t£ngible
such things as convenient loca
Indeed, consumers look for value in the brand's features., but they also demand
addition, a wide range of emotional values such as
tion, cred1t terms, warranties and guarantees, and delivery. In
be pårsued in the brand choice process. If you
security, belonging, affiliation, excitement, and prestige can alsothat a $16,000 Ford Focus can get you from one
have any doubts that emotion plays a role, think aboút the fact
BMW M5. Well, maybe without the same thrill and
place to another in pretty much the same way as a $120,000 a brand; they often buy the emotional kick
style-but that's the point. People look for more than function in 5.
that a brand and its features provide. We talk more about this in Chapter
determine which marketing mix ingredients
Because consumers search for such diverse values, imarketers must way to attract customers. These marketing
the right
to emphasize and how to blend the mix elements in just
the message content and media placement of advertising.
mix decisions play a significant role in determining the marketing mix. You can see that decisions
Exhibit 1.18 lists factors typically considered in each arèa of
advertising message. The important point is that a
under each of the marketing mix areas can directly affect the overall marketing mix strategy being used
firm's advertising effort must be consistent with and complement the
by a firmn.
key issues to understand about the role of adver
The Role of Advertising in Brand Management. One of themanagement. We have been réferring to the brand
tising is that it plays a critical role in brand development and of the process of advertising so far. All of us have
discussion
and integrated brand promotion throughout our all, we buy brands every day. A formal definition of a brand
Our oWn understanding of what a brand is. After from
that identifies one sellers good or service as distinct
1S a name, term, sign, symbol, or any other feature management. A brand is in
in brand development and
those of other scllers, l$ Advertising plays a significant rolefirm. consistently and
by a It allows a firm to communicate
many ways the most precious business asset owned
efficiently with the mnarket. nmarketing analysis and consulting tirm, has attached
Business Week magazine, in conjunction with Interbrand, asales, earnings, future sales potential, and intangibles
a dollar value to brand names based on a combination of
other than the brand that drive sales. The 20 most valuable brands in the world in 2009 are shown in Exhibit 1.19.
annual sales of the brand. Coca-Cola, the most valuable
Oten, the brand name is worth much more than the though salesof branded Coca-Cola products
Drand in the world, is estimated to be worth almost $70 billion even
are only about $31 billion a year.
and remains the
Sdetinition of marketing was approved in 1995 by the
Aneriçan Marketing Association (hup://www.markeongpower.com)
oficial definiúon offered by the organizaion.
November 2, 2009, 3, 51.
Jeremy Mullman,"Under Armour Can't Live Up to Own Hype," Advetising Age,
(Chicago:American Marketiug AssociaioI, 1995), 4.
er D. Bennet, Didionary of Markeine Terms, 2nd ed.
50

Product Promotion

Fnctoma oature Amount and type ot adver tsirig

Aestnt descn Nurmber and cualfcatons ot saspeope

AOcOmaanyng ervoes Extent and type of personal seirng progrant

Satos promoton Ons ortass SwaO

Warranty Tradestows
Puthc rekatons acttes
Product positionin Drect malortalemarketing
Event sponsorship
nternet connnuioaionsoble ma ketnd
Distribution
Price
NLIrbe of tetail outers
Levet

Bpes of retail otes

Copetive average pioes

ther ronstore ata etO

Numbe and type o wacesaiet

Nentoes extentatdtocatm

ease tental

ExHIRIT 1.18 These are the factors that an organization needs to consider in creating a marketing mix. Advertising
messoge, media placement, and IBP iechniques musi be consistent with and complement strategies in allthe other areas of
the markeing mix.

Abrand can be put at a serious competitrive disadvantage without eftective communication provided b
advertising. Staples, the office supplyretailer, was struggling with an outdated advertising campaign teaturg
tagline "Yeah, we've got that"Customers were complaining that items were out of stock and sales statt at
Care.so the companysvice president of marketing, Shira Goodnan, determined that shoppers wanted an "easer
shopping experience with well-stocked shelves and helpful staf. Once those operational changes were na
Staples introduced the "Staples: That Was Easy" canpaign,featuring big red "Easy" buttons that were also
able tor sale at the stores. Now, with clear, straightforward ads and custoners spreading the word (called Vira
marketing) by having their "Easy" push-butons in offices all across the counry, Staples is the runaway leader u
office retail 19
For every organization, advertising affects brand developuent and nanagenent in five important ways.
19. Michael Myser, "Markeúng Made Easy'" Business 2.0, June 2006, 43 45.
 The World of Advertising and Integrated Brand Promotion 51

2009 2008
Country of Change
Rank Rank Brand 2009 Brand in Brand
Origin Sector Value (Sm) Value
Coca-Cola United States
Beveraes 68,734 3%
BM UnitedStates Computer Services 60,211
3 Microsoft United StatesComputer Software. 56.647 -4%
UnitedStates Dversified 47111 10%
NOKIA Finland Consumer Electronios 34,864 3%
6 8 MCBOnads United StatesRestaurants 32275
10 Google United StatesnternetServices 31.980 25%
Tovota
Automotve
9 Inte United States Computer Kardware 30,636 2%
O O D S n e y R t e d Staes
28.44
HP United States Computer Mardware 24096
Mercedes Cermany Autonaotye

134Gillette United States Persona Care 22,841 4%

14 1 CscoUntec States Cocopuler oervices 22 030
53 BMW Germany Automotive 21,671 7%
Louts Viitton 21120 2%
18Mar boroUaited States Tobaceo 19,010 11%
8 20HondaJapan AutonotVe
19 21Samsung Republic ofKoreaGonsumer Electronics 518 1%
20 24 AppleUnted statescopter Haowae
Souce: interBrand (http:/www.intetbrand.combest _global _brands.aspx?langid=1000)
ExHIBIT 1.19 The Wold's 20 Most Valuable Brands in 2009

Information and Persuasion. Target audiences learn about abrands features and benefits through the message
content of advertising and, to a lesser extent, other promotional tools (most other promotional tools, except
the Web, are not heavy on content) that are used in the IBP effort. But advertising has the best capability to
intorm or persuade target audiences about the values a brand has to offer. No other variable in the marketing
ix is designed to accomplish chis conmunication. Analysts agree that branding is crucially important in the
multibllion-dollar cell phone market as Verizon, Sprint Nextel, T-Mobile, and AT&T compete for 250 million
Wireless subscribers,20 In many ways,marketing and advertising a cellular serviçe brand is much like marketing
and advertising brands of bottled water. One cell phone works just like another and there are plenty of alterna
dves, just like one brand of bottled water is pretty much the same as the next brand.
Introducion of New Brand or Brand Extensions (ariants). Advertising is absolutely critical when organiza
are often critically
ons introduce a new brand or extensions of existing brands to the market. New brands blanket
dependent on advertising. Consider the case of the new brand Snuggie--that sonnewht fumny-looking
with sleeves, The president of Snuggie used low-budget direct resgponse ads on low ratings cable progras to
introduce the brand and nOw bas distribution in Lord & Taylor, college book stores, and pet stores. A brand

lce Z. Cuneo, '"Cell Giants Plot $1.5B Ad Bonanza}" Advertising Age, October 6, 2003, 1, 44.
21. Jack Neff,"Snuggie' Adventisine Aoe. Noven1ber l6, 200, 25.
 52

extension (also referred to as a brand variant) is an adaptation of an existing brand to abar,

newandproduct
Ivory area. For
example, the Snickers Ice Cream Bar is a brand extension of the otiginal Snickers candy
1s a brand extension of Ivory Dishwashing Liguid. When brand extensions are brought to market, advertising a
IBP play a key role in attracting attention to the brand-so nuch so that researchers now
suggest that "manae
Shampoo
should tavor the brand extension wvith agreater allocation of the ad budget." This is often accomplished with
advertis1ng working in conjunction with othèr promotional activities such as sales promotions and point-of
purchase displays. Mars (famous for candy) invested heavily in advertising when it extended the Uncle Ben
Rice brand into ready-toeat mictowave Rice Bowls of all varieties, including Italian, Mexican, and Chinee:
Exhibit 1.20 shows another example of advertising being used to extend a famOus brand name nto a totallk
different product category.
Gamble

&
Procter

Photo/®Crest

Publicity

AP

ExT 1.20 Advertising helps companies with brand extension strategies. Here, the famous Crest name is being used as
the companyextends the brand name into toothbrushes. What value does the widely recognized nature of a good brand
name lend to the brand extension process?

Building and Maintaining Brand Loyalty among Consumers. Loyalty to a brand is one of the most importan:
assets a firm can have. Brand loyalty occurs when, a consumer repeatedly purchases the same brand to the
cxclusion of competitors' brands. This loyalty can result because of habit, because brand nanmes are prominent n
the consumer's memory, because of barely conscious associations with brand images, or because consumers have
attached some fairly deep meanings to the brands they buy.
Even though brand features are the most important influence on building and maintaining brand lo_aly.
advertising plays akey role in the process as well. Advertising reminds consumers of the values tangible and
intangibleof the brand. Advertising and integrated brand promotions often provide an extra incentive to co0
sumers to remain brand loyal. Direct marketing can tailor communications to existing customers. Other pron
tional tools can offer similarly valuable communications that will help build and strengthen lasting and post
associations with a brandsuch as a frequent-flyer or frequent-buyer program. The importance of brand
cannot be overstated. When a firn creates and maintains positive associations with the brand in the mmu:
Consumers and builds brand loyalty, then the firm goes on to develop brand equity. Brand equity is the se
brand assets linked to a brand, its name and symbol.?4 Eventhough brand equity occurs over long periods of tim:.
Short-term advertising activities are key to long-term success.25 And, recent research has affirmed that integ

22. Dougas W. Vorhies, "Brand Extension Helps Parent Gain Inluence," Marketing News, January 20, 2003, 25. This concept was verifiedin acadenue
research as well. See Franziska Volckner and Henrik Sattler, Drivers of
23. Stephanie Thompson, "The Bowl Is Where It's Atfor Brand Extension Success" Joumal of Manketing, vol. 70 (Apnu 200
24. David A. Aaker, Managing Brand Equity New Frozen Meal Lines," Advertising Age, August 14, 2000, 4.
(New York: The Free Press, 1991), 15.
23. Kevin L. Keller, "Conceptualizing, Measuring, and
Managing Customer-Based Brand Equity" Journal of Marketing, vol. 57 (anuary
ing

Promotion 53
The World of Advertising and Integrated Brand
became clear
communications is a "critical component of brand cquity strategv"26 This advertising fact of life against a new
to strategists at food giant Kraft as it devised a strategy to defend its Kraft Miracle
Whip brand
campaign by competitor Unlever for Inmperial Whip. In order to protect Miracle Whip's $229 million sales
in
and brand equty with consmers, Kraft invested heavily in television advertising just
before Unilever lowered
prices on the Imperial Whip brand 2?
Creating on Image and Meaning for a Brand. As we discussed in the marketing mix section, advertising can
and therefore plays an important role in attracting cus
communicate how a brand can fulfill needs and desires
advertising can go further. It can help link a brands
romers to brands that appear to be useful and satisfying, But and in this way, it can actually
image and meang to a coNsUMer's sOcial environment and to the larger culture,
deliver a sense of personal connection for the consumer.
an image
The Schiff ad for prenatal vitamins in Exhibit 1.21 is aclear example of how advertising can create
advantages of using a nutritional supple
and deeper meanng. The message in this ad is not just about the health and caring for an unborn or recently
ment during pregnancy. The message mines associations related to loveRequirements" plays on the notion that
born child. Even the slogan for the brand, "Benefits Beyond Your Daily
promotional tools in the IBP process, such as
a vitamin is more than a vehicle for dosing up on folic acid. Other
cannot achieve such creative power
personal sell1mg, sales promotions,event sponsorship, or the Internet, simply
can have to a consumer as we will see later in the
or communicate all the potential symbolic meaning a brand
text (Chapter 11).

hAVELOVED
O ALWAYS,

1995
EN EREECT TOES.
International
HEART IWLL TEACH
Q ALL THAT I KNOW:
M
STRONG ENOUGH Nutrition

Weider

Courtesy,

Benelits Beyurxd Your Daly RoguremetS.

that goes beyond the daily nutrition role vitamins

SlBIT 1.21 The message in this Schiff ad creates meaning for vitamins
consumers? http://www.schittvitamins.com
an piay. What are the manymeanings in this message offered to

as
"lnergrated Marketing Communication (IMC) and Brand Idenäty
Cri%t Madhavaram, Vishag Badrinaravanan., and Robert E. McDonald,
Components of Brand Equity Srategy Journal of Adentising, vol. 34, no. 4(Winter 2005), 69-80.
27. Stephanie Thompson,""Kraft Counters Unilever Launch." Adventising Age, August 25, 2003, 4.
 ahics Issues inS
\es

54

Building and Maintaining Brand Loyalty within the

Trade. It might not seem as if wholesalers,
distributors, and brokers would be brand loval, but they will
from ananufacturer. Advertising and favor one brand over others given the properretailers,
particularly
where support can be given. Marketers can advertising integrated with other brand promotions is suppott
an area
materials (e.g., btochures, banners, posters),provide the trade with sales training programs, collateral advertising
point-of-purchase advertising displays, premiums (giveaways like
key chains or caps), Web-traffic building advertising,
Company, spends several million dollars a year tobe theandoficial
foot traffic-building special events. Exide, the battery
battery of NASCAR racing. Mike Dever, Exide's
VICe president of marketing and product management, explains:
CUstomers, for the most part, are race fans, so it's the place we "Both our distributors and our distributors'
want to
Also, remember that trade buyers (retailers, wholesalers, distributors, be."2
brands or brand extensions, as we pointed out earlier in the brokers) can be key to the success of new
discussion of
Marketers have little hope of successfully introducing a brand if there is the trade market as a target audience.
no cooperation in the trade channel
among wholesalers and retailers. This is where [BP as a factor in advertising
the trade is less responsive to advertising messages than they are to other formsbecomes prominent. This is because
the trade in terms of displays, contests, increased margins, and personal selling of promotion. Direct support to
IBP program helps ensure the success of a brand. Research also shows that retailer combined with advertising in an
SIOn is key to the success of the new product." acceptance of a brand exten

The Role of Adverhising in Market Segmentation, Differentiation, and Positioning. The

advertising in marketing is helping the irm implement market third role for
segmentation, differentiation,
Market segmentation is the process of breaking down a large, widely varied and positioning.
(heterogeneous) market into
submarkets, or segments, that are more similar (homogeneous) than dissimilar in terms of consumer
that consumers look for. Underlying the strategy of market segmentation characteristics
are the facts that consumers differ in
their wants and that the wants of one person can differ under various
can be divided into submarkets for different types of automobiles basedcircumstances. The market for automobiles
on the needs and desires of various groups
of buyers. Identifying those groups, or segments, of the population who
economy or hybrid, sport or sedan, or minivan models is an important partwantof
and will buy large or small, luxury,
basic
to needs, markets are often segmented on marketing strategy. In addition
age, marital status, characteristics of consumers both in terms 'of demographics (such as
education, gender, and
values). These data are widely available andincome)
or psychographics (attitudes, belhefs,
tend to be related to product preference and personality.
use.
lifestyle, and
Advertising's role in
the market segmentation process is to develop messages that
and then to transmit those messages via appropriate media. For appeal to the wants and desires of different segments
basic aspirin brand. There is regular Bayer for headache example, Bayer has four different versions of its
relief; Bayer
people with cholesterol and heart concerns; Women's Bayer, which includes Enteric Safety Coated 81 mg aspirin for
Bayer, which is lower dose and chewable. Each of these versions of the a calcium supplement; and Children's
needs and characteristics of consumers in the market (see Bayer brand of aspir in addresses both the
Exhibit 1.22).
Differentiation is the process of creating a perceived difference, in the mind of the
organization's brand and the competition's. Notice that this definition emphasizes that brand consumer, between an
based on onsumer pereption.The perceived differences can be
tangible
differentiation 1s
differences, or they may be
or style factors. Consider the Fendi watch ad in
Exhibit 1.23. A $20 Timex and a $12,000 Fendibased keep
on mage
time n
exactly the same way. But the two,brands are differentiated on
brands can have, as discussed earlier. The critical issue in perceptions of style and the deeper meaning
between brands. If consunmers do not perceive a difference,diferentiation is that consumers perceive a
then whether real differences exist or notditterence
matter. Differentiation is one of the most critical of all does not
marketing strategies.
distinctive and attractive by consumers, then consumers will have no reason to If a firm's brand is not perceivea 2
the competition or to pay higher prices for the "better" or"more choose that brand over one from
meaningfu"
(Evian), bananas (Chiquita), or mt (Niman Ranch) where marketers have been able to brand. Think about bottded water
with excellent advertising and branding strategies.0 differentiate their brands

28. Beh Soyder Bulik, The Company You Keep," Sales &
29, Franziska Volckner and Henrik Sattler, "Drivers of Brand Marketing Management, November 2003, 14.
Extension
0. Paul Kaihla, "Sexing Up a Piece of Meat" Business 2.0, April 2006, Success,"
72-76.
JouTyal of Marketing, vol. 70 (April 2006), 18-34.