,INSTRUCTOR SOLUTION MNAUAL FOR
ADVERTISING AND PROMOTION AN INTEGRATED MARKETING
COMMUNICATIONS PERSPECTIVE 13E GEORGE BELCH AND MICHAEL BELCH
Chapter 1-22
CHAPTER 1
AN INTRODUCTION TO INTEGRATED MARKETING COMMUNICATIONS
Chapter Overview
The purpose of this opening chapter is to provide the student with an overview of the field of advertising
and promotion and its role in the marketing process. We introduce the concept of integrated marketing
communications (IMC), its evolution, and examine how various marketing and promotional elements
must be coordinated to communicate effectively. We also discuss the reasons for the increasing
importance of the IMC perspective in planning and executing advertising and promotional programs.
Marketers understand the value of strategically integrating the various communication functions rather
than having them operate autonomously. The move to integrated marketing communications also reflects
an adaptation by marketers to a changing environment, particularly with respect to consumers,
technology, and media. The various elements of the promotional mix are introduced in this chapter along
with a brief discussion of these basic tools of IMC. We discuss how many companies are taking an
audience contact or touch point perspective in developing their IMC programs and consider four basic
categories of touch points. This chapter also examines the various tasks and responsibilities involved in
advertising and promotion management and a model of the integrated marketing communications
planning process is presented. Lastly, we give an overview of the perspective and organization of the rest
of the text.
Learning Objectives
1. Describe the role of advertising and other promotional elements in marketing.
2. Discuss the evolution of the integrated marketing communications (IMC) concept.
3. Explain the increasing value of the IMC perspective in advertising and promotional programs.
4. Identify the elements of the promotional mix.
5. Identify the contact points between marketers and their target audiences.
6. Describe the steps in the IMC planning process.
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,Chapter and Lecture Outline
I. INTRODUCTION TO ADVERTISING AND PROMOTION
The chapter begins with a brief discussion of the changing roles of advertising and promotional strategy
in modern marketing. Specifically, it offers a case study about marketing approaches in the energy drink
category. The case discusses first-mover Red Bull‘s alignment with extreme sports to position itself as the
beverage for times of increased physical and mental stress. A new market entrant, Celsius, positioned
itself as a healthier energy drink, relying heavily on influencer marketing. Its tactics attract new users to
the energy drink category and convert consumers from other brands. Instructors should discuss how the
roles of advertising and other forms of marketing communication are changing. Increases in audience
fragmentation and a shift to digital media have spearheaded this change in brand/consumer
communication. Consumers are no longer passive message recipients who wait to receive unfiltered
advertising messages. They want more control of the content they receive, and actively seek out more
information. Brands must be willing to adapt their strategies, moving away from solely an advertising
focus to a holistic approach that attempts to engage consumers in a conversation: an IMC approach.
Instructors should also stress the difference between IMC, advertising, and public relations.
II. THE GROWTH OF ADVERTISING AND PROMOTION
Advertising and promotion are integral parts of our social and economic systems. Advertising has evolved
into a vital communication system for both consumers and businesses. In market-based economies,
consumers rely on advertising and other forms of promotion to provide them with information they can
use in making purchase decisions. Corporations rely on advertising and promotion to help them market
their products and services.
Evidence of the increasing importance of advertising and promotion in the marketing process comes from
the growth in expenditures in these areas over the past decade. In 1980, advertising expenditures in the
U.S. were $53 billion and $49 billion was spent on sale promotion. In 2022, $330 billion was spent on
advertising. Of that, $129 billion was spent on traditional advertising media such as TV, radio,
magazines, newspaper, and OOH. Digital/online advertising accounted for the other $201 billion. Billions
more are spent by both domestic and foreign companies in other promotional areas such as direct
marketing, event sponsorship, interactive marketing, sponsorships, consumer and trade promotions, and
public relations efforts. The tremendous growth in expenditures for advertising and promotion reflect the
growth of the U.S. and global economies. Expansion-minded marketers are taking advantage of growth
opportunities in various regions of the world and taking advantage of integrated marketing opportunities
through methods such as event sponsorship and the use of the Internet.
Particularly noteworthy is the increase in the amount of marketing communications dollars being spent
online. For the first time ever, in 2019, digital ad dollars in the U.S. surpassed those dollars spent on
traditional advertising media. Specifically, 54 percent of advertising dollars in the U.S. went to digital
advertising efforts while 46 percent went to traditional advertising media. By 2022, digital advertising
accounted for nearly two-thirds of all advertising spending. The increase in digital advertising comes
from declines in spending in print versions of magazines and newspapers as well direct mail—with the
largest digital ad category being paid search on search engines. These upward trends in ad spending, and
particularly digital ad spending, are seen globally, although U.S. advertising spending accounts for nearly
40 percent of the world‘s advertising expenditures.
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, Professor Notes:
III. THE ROLE OF MARKETING
Many students may already have had a marketing course; however, it is still helpful to define marketing
and stress that it involves more than just selling or other promotion functions. For more than two decades,
the American Marketing Association, the association that represents marketing professionals in the
United States and Canada, defined marketing as:
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.
This definition of marketing focused on exchange as a central concept in the various activities involved in
the marketing process. Many experts argue that exchange is the core phenomenon or domain for study in
marketing. The discussion can focus on the nature of exchange and what is needed for this process to
occur including: two or more parties with something of value to one another; a desire and ability to give
up their something of value to the other party; and a way for the parties to communicate with one another.
In 2007, the AMA adopted a revised definition of marketing:
Marketing is the activity, set of institutions, and processes for creating, communicating, and
delivering exchange offerings that have value for customers, clients, partners and society at
large.
This definition of marketing is more reflective of the role of nonmarketers to the marketing process. It
also focuses on the important role marketing plays in developing and sustaining relationships with
customers and delivering value to them.
Value is the customer‘s perception of all of the benefits of a product or service weighed against all the
costs of acquiring and using it. Benefits can be functional (focusing on the performance of the product),
experiential (focusing on what it feels like to use the product), or psychological (feelings that result from
owning a particular brand). Costs include the money paid for the product or service as well as other
factors such as acquiring information, making the purchase, learning how to use a product/service,
maintaining the product, and disposing of it.
A. The Marketing Mix—The four elements of the marketing mix (product, price, place, and
promotion) can be introduced and the task of combining these elements into an effective
marketing program for facilitating exchange with a target audience should be noted. The
instructor should point out that while this course focuses on the promotion element of the
marketing mix, the promotional program must be part of a viable marketing strategy and
coordinated with other marketing mix variables. This leads into a discussion of the concept of
integrated marketing communications.
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