Chapter 1

Introduction to Advertising & IMC

Defining Advertising

• Paid Communication • Informs, persuades or reminds • Mass Audience Target • Media-driven

Basic Elements of the Promotional Mix Personal Advertising Selling Direct Marketing Interactive/ Internet Marketing Sales Promotion Publicity/Public Relations Advertising

Defining Advertising

THE

BRIGHT SIDE

“The lifeblood of our business.” - P&G executive “Sometimes entertaining stuff that makes tv free.” - anonymous consumer “A driving force behind the American economy.” Adam Smith, Distinguished Economist

Defining Advertising

THE

DARK SIDE

“A shot in the dark. A necessary evil.” anonymous executive

“An annoying interruption to my favorite tv show that makes my Big Mac more expensive.” anonymous consumer “…gets on everybody’s nerves… intrudes everywhere… and gets at you when you least expect or want it.” - Theodore Levitt, Marketing Academic

The Growth of Advertising and Promotion

Expenditure in Billions of Dollars Advertising Outside U.S. U.S. Sales Promotion

U.S. Advertising

$0

$100

$200

$300

$400

Traditional Approach to Marketing Communications

Point of purchase

Special events

Publicity

Media Advertising

Public relations Direct marketing

Sales promotion

Packaging

Direct response

Interactive marketing

Contemporary IMC Approach

Packaging

Sales promotion

Point of purchase

Publicity

Interactive marketing

Media Advertising

Direct marketing

Direct response

Public relations

Special events

Defining IMC

IMC is a strategic business process used to plan, develop, execute and evaluate coordinated, measurable, persuasive brand communication programs with consumers, customers, prospects employees and other relevant external and internal audiences.

Reasons for the Growing Importance of IMC From

Toward

Media advertising

Multiple forms of communication

Mass media

Specialized media

Manufacturer dominance

Retailer dominance

Concept Driven Appeals General focus

Data-driven Data-based marketing

Low agency accountability

Greater agency accountability

Traditional compensation

Performance-based compensation

Limited Internet availability

Widespread Internet availability

IMC Audience Contact Tools Broadcast media (TV/radio)

Print media (newspapers,

magazines)

Public Relations/ publicity

Out-of-home media

Internet/ interactive

Direct marketing

Target Audience Personal selling Point-ofpurchase (displays, packaging)

Sales Promotion

Word-ofmouth

Events and sponsorship

Product placements (TV and movies)