Advertising and Promotion

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Advertising and Promotion

• An Integrated Marketing Communications
  Perspective
• George E. Belch Michael A. Belch
• Both of San Diego State University

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Choosing a Group

• Account Executive Strategy
• Creative Concept driven, copy
• Media number crunching
• Production can it be done?
• Coordinator Captain of the ship

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History of AdvertisingPre-Marketing Era

• Pre-historic to 18th Century
• Media clay tables, town criers, signs
• Earliest found advert 3000 BC
• a clay table which bore inscriptions for an
  ointment dealer

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Mass-Communication Era

• 1700-1930s
• Reach large segments of population with faster
  presses and advent of broadcasting

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Research Era

• 1930s until now
• Identify and reach narrower audiences with
  specific messages
• i.e. magazines, direct mail, online media etc

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Trends to Look for in 21st Century

• Increased sophistication of advertising.
• Increased audience media fragmentation
• greater consumer involvement and use of 2-way,
  interactive forms of communication

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Trends...

• Switch to asynchronous versus broadcast forms
• i.e. VCR, Video-on-demand, www etc
• One -to- One marketing
• Online services and Cyber-information, merging of
  media

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Advertising Versus Publicity

• Advertising
• Paid, sponsor-identified, nonpersonal (media)
  communications.
• Publicity
• Non-paid, unsponsored, nonpersonal (media)
  communications.

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Is advertising anExpense or Investment?

• Accounting perspective
• expense short term 100 write-off

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Is advertising anExpense or Investment?

• Marketing perspective
• Investment long term Assett
• which translates in brand equity

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Is advertising anExpense or Investment?

• Dollar value of Brands
• Coke 24.4 billion
• Budweiser 10.2 billion
• Nescafe 8.5 billion

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Integrated Marketing Communications

• a concept of marketing communications planning
  that recognizes the added value of a
  comprehensive plan that evaluates the strategic
  roles of a variety of communication disciplines -
  for example, general advertising, direct
  response, sales promotion, and public relations-
  and combines these disciplines to provide
  clarity, consistency, and maximum communications
  impact.

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The Promotional Mix
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Classifications of Advertising

• Advertising to Consumer Markets
• National
• Retail/Local
• Primary vs. Selective Demand

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Classifications of Advertising

• Advertising to Business Markets
• Business to Business
• Professional
• Trade

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An Integrated Marketing Communications Planning
Model
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The Marketing and Promotional Process

• The marketing strategy and plan
• The target marketing process
• Marketing planning program development
• The communication plan

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Determining the Positioning Strategy

• 1. Identifying competitors
• 2. Assessing consumers' perceptions of
  competitors
• 3. Determining competitors' positions
• 4. Analyzing consumers' preferences
• 5. Making the positioning decision
• 6. Monitoring the decision

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Developing a Positioning Strategy

• Attribute/benefit Apple computer focus on ease
  of use, fashion
• Price/quality high/low price range or value,
  i.e. The Warehouse
• Use or application Arm Hammer multiple uses
• Product class Butter vs. margarine, beef vs. fish

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Developing a Positioning Strategy

• Product user Airwalk
• Competitor Avis vs Hertz
• Cultural symbol Jolly Green Giant, Pillsbury
  Dough boy
• Repositioning Lux soap range
• Anti-celebrity mindset New Balance, Sprite
• Nothing-but-Trendy Budweiser!

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