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PREFACE
THE CHANGING WORLD communications, including new applications that facili-
tate interactive information sharing and collaboration
OF ADVERTISING AND and bilateral, as opposed to unilateral, communication.
PROMOTION Web 2.0 developments mean that Internet users are no
Nearly everyone in the modern world is influenced to longer limited to the passive viewing of information
some degree by advertising and other forms of pro- and can interact with one another as well as companies
motion. Organizations in both the private and public and/or organizations. These applications have led to the
sectors have learned that the ability to communicate development of social networking sites, video sharing
effectively and efficiently with their target audiences sites, wikis, blogs, and online communities which have
is critical to their success. Advertising and other types all experienced explosive growth. Just a few years ago
of promotional messages are used to sell products and Facebook, Twitter, YouTube, and LinkedIn did not even
services as well as to promote causes, market politi- exist. Facebook now has more than 1 billion users,
cal candidates, and deal with societal problems such Twitter boasts over 500 million, and more than 4 bil-
as alcohol and drug abuse. Consumers are finding it lion videos are viewed each day on YouTube, including
increasingly difficult to avoid the efforts of marketers, many of the TV commercials and other promotional
who are constantly searching for new ways to com- videos created by marketers. Nearly every company or
municate with them. organization has a Facebook and Twitter page that they
Most of the people involved in advertising and pro- use to keep in constant contact with their customers and
motion will tell you that there is no more dynamic and these tools, along with other types of social media, have
fascinating field to either practice or study. However, become an integral part of most marketers’ marketing
they will also tell you that the field is undergoing communications programs. However, the increased use
dramatic transformations that are changing the ways of the Internet and social media is only the latest in a
marketers communicate with consumers forever. The number of fundamental changes that have been occur-
changes are coming from all sides—clients demanding ring in the way companies plan, develop, and execute
better results from their advertising and promotional their marketing communications programs.
dollars; lean but highly creative smaller ad agencies; For decades the advertising business was dominated
sales promotion and direct-marketing firms, as well as by large, full-service Madison Avenue–type agencies.
interactive agencies, which want a larger share of the The advertising strategy for a national brand involved
billions of dollars companies spend each year promot- creating one or two commercials that could be run on
ing their products and services; consumers who have network television, a few print ads that would run in
changed the ways they respond to traditional forms of general-interest magazines, and some sales promotion
advertising; and new technologies that may reinvent the support such as coupons or premium offers. However,
very process of advertising. We are experiencing per- in today’s world there are a myriad of media outlets—
haps the most dynamic and revolutionary changes of print, radio, cable and satellite TV, and the Internet—
any era in the history of marketing, as well as advertis- competing for consumers’ attention. Marketers are
ing and promotion. These changes are being driven by looking beyond traditional media to find new and
advances in technology and developments that have led better ways to communicate with their customers
to the rapid growth of communications through interac- because they no longer accept on faith the value of
tive media, particularly the Internet, social media, and conventional advertising placed in traditional media.
mobile devices. Major marketers are moving away from a reliance just
Companies from outside the traditional advertising on mass-media advertising and are spending more of
industry are rapidly changing the process of making their marketing communication budgets in specialized
and delivering advertising messages to consumers. media that target specific markets. Companies are also
Marketers are looking beyond traditional mass-media spending more of their monies in other ways such as
advertising to find new and more effective ways to event marketing, sponsorships, cause-related promo-
communicate with their target audiences. They recog- tions, and viral marketing. Advertising agencies are
nize there are numerous ways to reach their current recognizing that they must change the way they do
and prospective customers and bring them into contact business.
with their products and services. Many marketers view In addition to redefining the role and nature of
the Internet ads as a more cost-effective way to reach their advertising agencies, marketers are changing the
specific target markets and measure the results of their way they communicate with consumers. They know
marketing efforts. Major changes are taking place in they are operating in an environment where advertis-
the way marketers are using the Internet for marketing ing messages are everywhere, consumers channel-surf

Preface vii
past most commercials, and brands promoted in tradi- TO THE STUDENT:
tional ways often fail. New-age advertisers are rede-
fining the notion of what an ad is and where it runs. PREPARING YOU FOR
Stealth messages are being woven into the culture and THE NEW WORLD OF
embedded into movies and TV shows or made into their ADVERTISING AND
own form of entertainment. Many experts argue that PROMOTION
“branded content” is the wave of the future, and there
is a growing movement to reinvent advertising and other Some of you are taking this course to learn more about
forms of marketing communication to be more akin to this fascinating field; many of you hope to work in
entertainment. Companies are using branded entertain- advertising, digital media, or some other promotional
ment as a way of reaching consumers by creating short area. The changes in the industry have profound impli-
films that can be viewed on their websites, arranging cations for the way today’s student is trained and edu-
product placements, and integrating their brands into cated. You will not be working for the same kind of
movies and television shows to promote their products communication agencies that existed a few years ago. If
and services. you work on the client side of the business, you will find
A number of factors are impacting the way market- that the way they approach advertising and promotion is
ers communicate with consumers. The audiences that changing dramatically.
marketers seek, along with the media and methods for Today’s student is expected to understand all the major
reaching them, have become increasingly fragmented. marketing communication tools: advertising, direct mar-
Advertising and promotional efforts have become more keting, the Internet, interactive media, sales promotion,
regionalized and targeted to specific audiences. Retailers public relations, personal selling, as well as social and
have become larger and more powerful, forcing market- consumer-driven media. You will also be expected to
ers to shift money from advertising budgets to sales pro- know how to research and evaluate a company’s mar-
motion. Marketers often expect their promotional dollars keting and promotional situation and how to use these
to generate immediate sales and are demanding more various functions in developing effective communication
accountability from their agencies. The Internet revolu- strategies and programs. Marketers are also increasing
tion is in full force, and new ways to communicate with their attention on the determination of return on invest-
consumers are constantly being developed. Many com- ment (ROI) of various IMC tools as well as the problems
panies are coordinating all their communications efforts companies face in attempting to make this evaluation.
so that they can send cohesive messages to their custom- This book will help prepare you for these challenges.
ers. Some companies are building brands with little or As professors we were, of course, once students our-
no use of traditional media advertising, relying instead selves. In many ways we are perpetual students in that
on digitial media. Many advertising agencies have we are constantly striving to learn about and explain
acquired, started, or become affiliated with sales pro- how advertising and promotion work. We share many of
motion, direct-marketing, interactive agencies, and public your interests and concerns and are often excited (and
relations companies to better serve their clients’ market- bored) by the same things. Having taught in the advertis-
ing communications needs. Their clients have become ing and promotion area for a combined 50-plus years, we
“media-neutral” and are asking that they consider what- have developed an understanding of what makes a book
ever form of marketing communication works best to in this field interesting to students. In writing this book,
target market segments and build long-term reputations we have tried to remember how we felt about the various
and short-term sales. texts we used throughout the years and to incorporate
This text will introduce students to this fast-changing the good things and minimize those we felt were of little
field of advertising and promotion. While advertising is use. We have tried not to overburden you with defini-
its primary focus, it is more than just an introductory tions, although we do call out those that are especially
advertising text because there is more to most orga- important to your understanding of the material.
nizations’ promotional programs than just advertising. We also remember that as students we were not really
The changes discussed above are leading marketers and excited about theory. But to fully understand how inte-
their agencies to approach advertising and promotion grated marketing communications works, it is necessary
from an integrated marketing communications (IMC) to establish some theoretical basis. The more you under-
perspective, which calls for a “big picture” approach stand about how things are supposed to work, the easier
to planning marketing and promotion programs and it will be for you to understand why they do or do not
coordinating the various communication functions. turn out as planned.
To understand the role of advertising and promotion Perhaps the question students ask most often is, How
in today’s business world, one must recognize how a do I use this in the real world? In response we provide
firm can use all the promotional tools to communicate numerous examples of how the various theories and con-
with its customers. cepts in the text can be used in practice. A particular

viii Preface
strength of this text is the integration of theory with that are occurring in areas of marketing communications
practical application. Nearly every day an example of and how they influence advertising and promotional
advertising and promotion in practice is reported in the strategies and tactics. We have done this by continu-
media. We have used many sources, such as Advertising ing with the integrated marketing communications
Age, Adweek, The Wall Street Journal, Bloomberg perspective. More and more companies are approach-
Businessweek, The Economist, Fortune, Forbes, Sales & ing advertising and promotion from an IMC perspec-
Marketing Management, Mediaweek, Promo, and numer- tive, coordinating the various promotional-mix elements
ous online sites such as eMarketer, Mashable, MediaPost. with other marketing activities that communicate with
com, and ClickZ News to find practical examples that a firm’s customers. Many advertising agencies are also
are discussed throughout the text. We have spoken with developing expertise in direct marketing, sales promo-
marketing and agency personnel about the strategies and tion, event sponsorship, the Internet, social media, and
rationale behind the ads and other types of promotions other areas so that they can meet all their clients’ inte-
we use as examples. Each chapter begins with a vignette grated marketing communication needs—and, of course,
that presents an example of an advertising or promo- survive.
tional campaign or other interesting insights. Every chap- The text is built around an integrated marketing
ter also contains several IMC Perspectives that present communications planning model and recognizes the
in-depth discussions of particular issues related to the importance of coordinating all of the promotional-mix
chapter material and show how companies are using inte- elements to develop an effective communications pro-
grated marketing communications. Global Perspectives gram. Although media advertising is often the most
are presented throughout the text in recognition of the visible part of a firm’s promotional program, attention
increasing importance of international marketing and the must also be given to direct marketing, sales promotion,
challenges of advertising and promotion and the role they public relations, interactive media, and personal selling.
play in the marketing programs of multinational market- This text integrates theory with planning, manage-
ers. Ethical Perspectives focus attention on important ment, and strategy. To effectively plan, implement, and
social issues and show how advertisers must take ethical evaluate IMC programs, one must understand the overall
considerations into account when planning and imple- marketing process, consumer behavior, and communica-
menting advertising and promotional programs. Digital tions theory. We draw from the extensive research in
and Social Media Perspectives focus on how changes advertising, consumer behavior, communications, mar-
and/or advances in the use of social media are impacting keting, sales promotion, and other fields to give students
the field of integrated marketing communications. a basis for understanding the marketing communications
Each chapter features beautiful four-color illustrations process, how it influences consumer decision making,
showing examples from many of the most current and and how to develop promotional strategies.
best-integrated marketing communication campaigns While this is an introductory text, we do treat each
being used around the world. We have included more topic in some depth. We believe the marketing and
than 350 advertisements and examples of numerous other advertising student of today needs a text that provides
types of promotion, all of which were carefully chosen more than just an introduction to terms and topics. The
to illustrate a particular idea, theory, or practical applica- book is positioned primarily for the introductory adver-
tion. Please take time to read the opening vignettes to tising, marketing communications, or promotions course
each chapter, the IMC, Global, Ethical, and Digital and as taught in the business/marketing curriculum. It can
Social Media Perspectives, and study the diverse ads and also be used in journalism/communications courses that
illustrations. We think they will stimulate your interest take an integrated marketing communications perspec-
and relate to your daily life as a consumer and a target tive. Many schools also use the text at the graduate level.
of advertising and promotion. In addition to its thorough coverage of advertising, this
text has chapters on sales promotion, direct marketing,
the Internet and social media, and publicity/public rela-
TO THE INSTRUCTOR: A tions. These chapters stress the integration of advertising
TEXT THAT REFLECTS THE with other promotional mix elements and the need to
CHANGES IN THE WORLD understand their role in the overall marketing program.
OF ADVERTISING AND
PROMOTION ORGANIZATION OF
Our major goal in writing the tenth edition of Advertising
THIS TEXT
and Promotion was to continue to provide you with the This book is divided into seven major parts. In Part One
most comprehensive and current text on the market for we examine the role of advertising and promotion in
teaching advertising and promotion from an IMC per- marketing and introduce the concept of integrated mar-
spective. This new edition focuses on the many changes keting communications. Chapter 1 provides an overview

Preface ix
of advertising and promotion and its role in modern mar- the next section, where we discuss the development of the
keting. The concept of IMC and the factors that have led integrated marketing communications program.
to its growth are discussed. Each of the promotional-mix Part Five examines the various promotional-mix ele-
elements is defined, and an IMC planning model shows ments that form the basis of the integrated marketing
the various steps in the promotional planning process. communications program. Chapter 8 discusses the plan-
This model provides a framework for developing the ning and development of the creative strategy and adver-
integrated marketing communications program and is tising campaign and examines the creative process. In
followed throughout the text. Chapter 2 examines the Chapter 9 we turn our attention to ways to execute the
role of advertising and promotion in the overall market- creative strategy and some criteria for evaluating cre-
ing program, with attention to the various elements of ative work. Chapters 10 through 13 cover media strategy
the marketing mix and how they interact with advertis- and planning and the various advertising media. Chapter
ing and promotional strategy. We have also included 10 introduces the key principles of media planning and
coverage of market segmentation and positioning in this strategy and examines how a media plan is developed.
chapter so that students can understand how these con- Chapter 11 discusses the advantages and disadvantages
cepts fit into the overall marketing programs as well of the broadcast media (TV and radio) as well as issues
as their role in the development of an advertising and regarding the purchase of radio and TV time and audi-
promotional program. ence measurement. Chapter 12 considers the same issues
In Part Two we cover the promotional program situ- for the print media (magazines and newspapers). Chapter
ation analysis. Chapter 3 describes how firms organize 13 examines the role of traditional support media such
for advertising and promotion and examines the role as outdoor and transit advertising, advertising in movie
of ad agencies and other firms that provide marketing theaters, and promotional products, as well as the tre-
and promotional services. We discuss how ad agencies mendous increase in the use of nontraditional branded
are selected, evaluated, and compensated as well as the entertainment strategies such as product placements,
changes occurring in the agency business. Attention is product integration, and in-game advertising.
also given to other types of marketing communication In Chapters 14 through 17 we continue the IMC
organizations such as direct marketing, sales promo- emphasis by examining other promotional tools that are
tion, and digital interactive agencies as well as public used in the integrated marketing communications pro-
relations firms. We also consider whether responsibility cess. Chapter 14 looks at direct marketing. This chap-
for integrating the various communication functions lies ter examines the ways companies communicate directly
with the client or the agency. Chapter 4 covers the stages with target customers through various media, including
of the consumer decision-making process and both the direct mail, infomercials, direct-response TV commer-
internal psychological factors and the external factors cials, and e-commerce. Chapter 15 provides a detailed
that influence consumer behavior. The focus of this discussion of marketers’ increasing use of digital media,
chapter is on how advertisers can use an understanding including the Internet and wireless technologies, to mar-
of buyer behavior to develop effective advertising and ket their products and services. We examine the increas-
other forms of promotion. ing use of blogs, mobile, paid search, and other social
Part Three analyzes the communication process. and digital media strategies. We also give attention to
Chapter 5 examines various communication theories and how the Internet is used to implement various IMC
models of how consumers respond to advertising mes- activities including both Web 1.0 and 2.0 strategies, as
sages and other forms of marketing communications. well as mobile marketing. Chapter 16 examines the area
Chapter 6 provides a detailed discussion of source, mes- of sales promotion, including both consumer-oriented
sage, and channel factors. promotions and programs targeted to the trade (retail-
In Part Four we consider how firms develop goals and ers, wholesalers, and other intermediaries). Chapter 17
objectives for their integrated marketing communications covers the role of publicity and public relations in IMC
programs and determine how much money to spend try- as well as corporate advertising and cause-related mar-
ing to achieve them. Chapter 7 stresses the importance of keting. Basic issues regarding personal selling and its
knowing what to expect from advertising and promotion, role in promotion strategy are presented in Chapter 22,
the differences between advertising and communication which is available online in this edition.
objectives, characteristics of good objectives, and prob- Part Six of the text consists of Chapter 18, where we
lems in setting objectives. We have also integrated the discuss ways to measure the effectiveness of various ele-
discussion of various methods for determining and allo- ments of the integrated marketing communications pro-
cating the promotional budget into this chapter. These gram, including methods for pretesting and posttesting
first four sections of the text provide students with a advertising messages and campaigns, and examine some
solid background in the areas of marketing, consumer of the ways marketers attempt to measure the effects of
behavior, communications, planning, objective setting, social media. In Part Seven we turn our attention to spe-
and budgeting. This background lays the foundation for cial markets, topics, and perspectives that are becoming

x Preface
increasingly important in contemporary marketing. In IMC Perspectives
Chapter 19 we examine the global marketplace and the These boxed items feature in-depth discussions of inter-
role of advertising and other promotional-mix variables esting issues related to the chapter material and the prac-
such as sales promotion, public relations, and the Internet tical application of integrated marketing communications.
in international marketing. Each chapter contains several of these insights into the
The text concludes with a discussion of the regulatory, world of integrated marketing communications. Some of
social, and economic environments in which advertising the companies/brands whose IMC programs are discussed
and promotion operate. Chapter 20 examines industry self- in the IMC Perspectives include Nike, Siemens, Heinz,
regulation and regulation of advertising by governmental Ivory Soap, Under Armour, Facebook, and ESPN. Issues
agencies such as the Federal Trade Commission, as well discussed in the IMC Perspectives include the changing
as rules and regulations governing sales promotion, direct role of account executives in advertising agencies; the
marketing, and marketing on the Internet. Because adver- role of neuroscience in studying the processing of adver-
tising’s role in society is constantly changing, our discus- tising messages; changes in the measurement of viewing
sion would not be complete without a look at the criticisms audiences for television commercials; how companies
frequently levied, so in Chapter 21 we consider the social, use the purchase funnel to manage and guide their IMC
ethical, and economic aspects of advertising and promotion. programs; the use of music to enhance the effectiveness
of TV commercials; theories on why infomercials are
CHAPTER FEATURES effective; and the debate over the advertising practices
of the food and beverage industries, including proposals
The following features in each chapter enhance students’ to impose a tax on soft drinks.
understanding of the material as well as their reading
enjoyment. Global Perspectives
These boxed sidebars provide information similar to
Learning Objectives that in the IMC Perspectives, with a focus on interna-
Learning objectives are provided at the beginning of tional aspects of advertising and promotion. Some of the
each chapter to identify the major areas and points cov- companies/brands whose international advertising pro-
ered in the chapter and guide the learning effort. We also grams are covered in the Global Perspectives include,
indicate where specific learning objectives are covered Procter & Gamble, PepsiCo, and Facebook. The Global
within the chapter and how the discussion questions are Perspectives also discuss topics such as the challenges
keyed to the objectives. of developing marketing communication programs in
China, celebrities who appear in commercials in Japan
Chapter Opening Vignettes while protecting their image in the United States, com-
Each chapter begins with a vignette that shows the effec- munication problems in international advertising, and
tive use of integrated marketing communications by a developing IMC programs to reach consumers in third-
company or ad agency or discusses an interesting issue world countries.
that is relevant to the chapter. These opening vignettes
are designed to draw the students into the chapter by Ethical Perspectives
presenting an interesting example, development, or These boxed items discuss the moral and/or ethical
issue that relates to the material covered in the chap- issues regarding practices engaged in by marketers and
ter. Companies, brands, and/or campaigns featured in are also tied to the material presented in the particu-
the opening vignettes include social media campaigns lar chapter. Issues covered in the Ethical Perspectives
for the Ford Fiesta automobile and the addition of a include subliminal advertising, the battle between televi-
new flavor to the Mountain Dew soft drink product line; sion networks and advertisers over tasteful advertising,
Gatorade, Volkswagen, Taco Bell, the Qatar 2022 FIFA issues related to native advertising, unethical practices by
World Cup, Tacori, and JCPenney. Some of the chap- Internet marketers, controversies arising from the increase
ter openers discuss current topics and issues impacting in advertising of hard liquor on television, and increased
integrated marketing communications such as the rapid regulation of the marketing of tobacco products.
growth and popularity of social media; changes occur-
ring in traditional media including television, magazines, Digital and Social Media Perspectives
and newspapers and how they are impacting their use by These boxed items provide a detailed discussion of how
advertisers; the impact of television on college sports; changes and advances in digital and social media are
public relations problems faced by companies such as impacting the practice of integrated marketing com-
Maker’s Mark, Abercrombie and Fitch, and the fines munications. Some of the topics and issues covered in
imposed by the FTC on several companies for the decep- the Digital and Social Media Perspectives include the
tive advertising of athletic toning shoes. various ways the digital revolution and developments in

Preface xi
technology are impacting the practice of IMC; how many studying advertising and promotion from an integrated
companies such as Nike, Procter & Gamble, and others marketing communications perspective. We examine
are shifting the focus of their IMC programs away from contemporary perspectives of integrated marketing
traditional media and allocating more of their budgets communications that have been developed by those
to digital media; how technology and social media are doing research and theory development in the area.
changing the role of brand managers; how digital media We also consider developments that are impacting the
are impacting traditional print media such as newspapers way marketers communicate with consumers, partic-
and magazines; how online magazines are using native ularly through the use of digital and social media.
advertising to respond to the digital disruption they are Innovative social media–based campaigns for brands
facing and attract more advertising; how many marketers such as Old Spice, Mountain Dew, and the Ford Fiesta,
are developing creative campaigns for their brands that which rely heavily on user-generated content, are fea-
can go viral through social media; how there is a need for tured, and attention is given throughout this edition to
a creative revolution in online marketing and advertising; ways marketers are utilizing Facebook, Twitter, and
how social media are being used in various areas of IMC other tools. Technologies such as the convergence of
such as sales promotion, public relations, and mobile mar- television, computers, mobile devices, and the Internet
keting; how advertisers are using social media for devel- are changing the way companies are using advertis-
oping IMC campaigns based on user-generated content; ing along with other marketing tools to communicate
how social media are impacting the way we watch televi- with their customers. In this new edition we examine
sion; and how marketers are using various tools provided how these cutting-edge developments are impacting
by companies such as Google, Facebook, Twitter, and the IMC program of marketers.
other social media as part of their IMC programs. ■ Updated Chapter on Digital and Social Media The
tenth edition includes up-to-date information on the
Key Terms Internet and other forms of interactive media and how
Important terms are highlighted in boldface throughout they are being used by marketers. The Internet chap-
the text and listed at the end of each chapter with a page ter has been revised to reflect the impact of develop-
reference. These terms help call students’ attention to ments related to Web 2.0 while updating information
important ideas, concepts, and definitions and help them regarding Web 1.0 from the last edition. We discuss
review their learning progress. the use of various Web 2.0 tools that facilitate inter-
active information sharing and collaboration, includ-
Chapter Summaries ing social media (Twitter, Facebook, Google+, and
These synopses serve as a quick review of important LinkedIn) and user-generated content, including vid-
topics covered and a very helpful study guide. eos (YouTube), blogs, and podcasts. Specific exam-
ples of how companies are using these tools in their
Discussion Questions IMC programs are provided. We discuss a number
of Internet-based tools and strategies used by mar-
Questions at the end of each chapter give students an
keters, including paid search, behavioral targeting,
opportunity to test their understanding of the material and
RSS, and the use of mobile media. This chapter dis-
to apply it. These questions can also serve as a basis for
cusses the latest developments in areas such as audi-
class discussion or assignments. The discussion questions
ence measurement and methods for determining the
are also keyed to the learning objectives for the chapter.
effectiveness of Internet advertising. Discussion of
Four-Color Visuals the emerging role of digital and social media as an
important integrated marketing communications tool
Print ads, photoboards, and other examples appear and of the ways it is being used by marketers is inte-
throughout the book. More than 400 ads, charts, graphs, grated throughout the tenth edition.
and other types of illustrations are included in the text. ■ Digital and Social Media Perspectives—New to
This Edition In this edition we are introducing a new
CHANGES IN THE feature called Digital and Social Media Perspectives.
TENTH EDITION These boxed items are designed to focus attention
on changes and advances in digital and social media
We have made a number of changes in the tenth edition and how they are impacting the practice of integrated
to make it as relevant and current as possible, as well as marketing communications. There have been signifi-
more interesting to students: cant advances in technology over the past decade
■ Updated Coverage of the Emerging Field of and most consumers now have a third screen in their
Integrated Marketing Communications The tenth lives either in the form of some type of mobile device
edition continues to place a strong emphasis on such as a smartphone or a tablet such an iPad or

xii Preface
 Android-based product. Mobile devices have become also updated most of the examples and ads through-
an integral part of the lives of many consumers, and out the book. Advertising and Promotion continues to
traditional media such as magazines and newspa- be the most contemporary text on the market, offering
pers are developing digital versions of their publi- students as timely a perspective as possible.
cations to retain readers as well as to survive. For
most marketers, social media tools such as Facebook
and Twitter have become a basic part of their IMC SUPPORT MATERIAL
programs. Facebook now has over a billion regis- A high-quality package of instructional supplements
tered users around the world while Twitter has more supports the ninth edition. Nearly all of the supplements
than 500 million. The purpose of the new digital and have been developed by the authors to ensure their coor-
social media perspectives is to provide students with dination with the text. We offer instructors a support
insight into how advances in digital technology are package that facilitates the use of our text and enhances
impacting the strategy and implementation of IMC the learning experience of the student.
programs. Many of these perspectives also discuss
how companies and brands are using social media to Instructor’s Manual
communicate with consumers, often at the expense of The instructor’s manual is a valuable teaching resource
traditional print media. that includes learning objectives, chapter and lecture out-
■ New Chapter Opening Vignettes All of the chapter lines, answers to all end-of-chapter discussion questions,
opening vignettes in the tenth edition are new and and further insights and teaching suggestions. Additional
were chosen for their currency and relevance to stu- discussion questions are also presented for each chapter.
dents. They demonstrate how various companies and These questions can be used for class discussion or as
advertising agencies use advertising and other IMC short-answer essay questions for exams.
tools. They also provide interesting insights into some
of the current trends and developments that are taking Manual of Tests
place in the advertising world.
■ New and Updated IMC Perspectives All of the A test bank of more than 1,500 multiple-choice ques-
boxed items focusing on specific examples of how tions has been developed to accompany the text. The
companies and their communications agencies are questions provide thorough coverage of the chapter
using integrated marketing communications are new material, including opening vignettes and IMC, Global,
or updated, and they provide insight into many of and Ethical Perspectives.
the most current and popular advertising and promo-
Computerized Test Bank
tional campaigns being used by marketers. The IMC
Perspectives also address interesting issues related to A computerized version of the test bank is available to
advertising, sales promotion, direct marketing, mar- adopters of the text.
keting on the Internet, and personal selling.
■ New and Updated Global and Ethical Perspectives Home Page
Nearly all of the boxed items focusing on global and A home page on the Internet can be found at www.
ethical issues of advertising and promotion are new; mhhe.com/belch10e.
those retained from the nineth edition have been It contains downloadable supplements for instructors
updated. The Global Perspectives examine the role and a wealth of study tools for students. Adopters will be
of advertising and other promotional areas in interna- able to communicate directly with the authors through
tional markets. The Ethical Perspectives discuss spe- the site (contact your McGraw-Hill/Irwin representative
cific issues, developments, and problems that call into for your password).
question the ethics of marketers and their decisions
as they develop and implement their advertising and YouTube Channel
promotional programs. A YouTube channel has been created for the tenth
■ Contemporary Examples The field of advertising edition which can be accessed at youtube.com/user/
and promotion changes very rapidly, and we continue belch&belch. The YouTube channel includes a playlist
to keep pace with it. Wherever possible we updated for each chapter that contains links to television com-
the statistical information presented in tables, charts, mercials for the various companies and brands discussed
and figures throughout the text. We reviewed the most as well as videos and other material relevant to the chap-
current academic and trade literature to ensure that this ter. The YouTube channel provides instructors with easy
text reflects the most current perspectives and theories access to numerous commercials and videos that can be
on advertising, promotion, and the rapidly evolving shown during lectures and allows students to view them
area of integrated marketing communications. We as well.

Preface xiii
Video Supplements Mountain Dew drinkers was used to develop the flavor,
A video supplement package has been developed spe- packaging, and name as well as the advertising to launch
cifically for classroom use with this text. It includes the latest addition to the brand franchise.
six video cases that provide a detailed examination of
the IMC strategies and programs for various companies MCGRAW-HILL CONNECT™
and brands. All of the videos include interviews with MARKETING
key executives from the various companies and/or their
advertising agencies and were produced in cooperation
with each company. Three new video cases have been
produced for the tenth edition. The first video focuses
on Taco Bell’s “LIVE MÁS” IMC campaign which is
designed to make the brand attractive and relevant to
young, hip, and cross-cultural consumers by focusing Less Managing. More
on food as an experience and lifestyle. This video also Teaching. Greater Learning.
examines Taco Bell’s introduction of the Doritos Locos
Tacos (DLT) which emerged as a co-branding initiative McGraw-Hill Connect™ Marketing is an online assign-
with snack food giant Frito-Lay and has been one of the ment and assessment solution that connects students
most successful new product introductions in the history with the tools and resources they’ll need to achieve suc-
of the fast-food industry. The IMC program used for cess. Connect™ Marketing helps prepare students for
the launch of the Nacho Cheese and Cool Ranch ver- their future by enabling faster learning, more efficient
sions of the DLT is covered in the video. The second studying, and higher retention of knowledge.
new video focuses on athletic shoe and apparel com-
pany Under Armour and the IMC program developed by McGraw-Hill Connect™
the company to target women. The video examines the Marketing Features
female-focused campaign developed by Under Armour, Connect™ Marketing offers a number of powerful tools
which relies heavily on social media such as Facebook, and features to make managing assignments easier, so
Twitter, Pinterest, and Tumblr in addition to traditional faculty can spend more time teaching. With Connect™
media. It also focuses on how the company used IMC Marketing students can engage with their coursework
to focus on specific segments of the athletic-shoe market anytime and anywhere, making the learning process
such as running, training, and basketball. The third new more accessible and efficient. Connect™ Marketing
video focuses on the IMC efforts used by the Middle offers you the features described below.
Eastern country of Qatar to be chosen as the host nation
for the 2022 FIFA World Cup football (soccer) tourna- Online Interactives
ment. The video examines the strategy used by the Qatar Online Interactives are engaging tools that teach students
Supreme Committee to compete against other countries to apply key concepts in practice. These Interactives
for the rights to host the World Cup and the IMC pro- provide students with immersive, experiential learn-
gram that will be used over the next eight years to pro- ing opportunities. Students will engage in a variety of
mote the event to soccer fans around the globe. interactive scenarios to deepen critical knowledge on
The video supplement package also includes three vid- key course topics. They receive immediate feedback at
eos produced for the ninth edition which are still very rel- intermediate steps throughout each exercise, as well as
evant. These include a video that focuses on the PunchDub comprehensive feedback at the end of the assignment.
IMC campaign created by the Deutsch LA advertising All Interactives are automatically scored and entered
agency for Volkswagen of America that was created to into the instructor’s gradebook.
increase awareness of Volkswagen’s product line in the
U.S. market. The second video focuses on the innova- Student Progress Tracking
tive social media campaign called the “Fiesta Movement”
Connect™ Marketing keeps instructors informed about
which was used by the Ford Motor Co. to introduce the
how each student, section, and class is performing,
new Fiesta subcompact automobile to the U.S. market.
allowing for more productive use of lecture and office
The “Fiesta Movement” was very successful and a second
hours. The progress-tracking function enables you to:
generation of the social media campaign was used again
in 2013. The third video is for PepsiCo’s Mountain Dew ■ View scored work immediately and track individual or
soft-drink brand and examines the “Dewmocracy” cam- group performances with assignment and grade reports.
paign which is another social media–driven initiative that ■ Access an instant view of student or class perfor-
the company used to add a new flavor of the product line mances relative to learning objectives.
for the popular soft drink. The video focuses on how col- ■ Collect data and generate reports required by many
lective intelligence and user-generated content from loyal accreditation organizations, such as AACSB.

xiv Preface
Smart Grading focus on the in-class discussion, knowing they can revisit
When it comes to studying, time is precious. Connect™ important topics later. See below for further information.
Marketing helps students learn more efficiently by pro-
McGraw-Hill Connect™ Plus Marketing
viding feedback and practice material when they need it,
where they need it. When it comes to teaching, your time McGraw-Hill reinvents the textbook learning experience
is also precious. The grading function enables you to: for the modern student with Connect™ Plus Marketing.
A seamless integration of an eBook and Connect™
■ Have assignments scored automatically, giving stu- Marketing, Connect™ Plus Marketing provides all of
dents immediate feedback on their work and side-by- the Connect™ Marketing features plus the following:
side comparisons with correct answers.
■ Access and review each response; manually change
■ An integrated eBook, allowing for anytime, anywhere
grades or leave comments for students to review. access to the textbook.
■ Reinforce classroom concepts with practice tests and
■ Dynamic links between the problems or questions
instant quizzes. you assign to your students and the location in the
eBook where that problem or question is covered.
Simple Assignment Management ■ A powerful search function to pinpoint and connect
key concepts easily.
With Connect™ Marketing creating assignments is
easier than ever, so you can spend more time teaching In short, Connect™ Marketing offers you and your
and less time managing. The assignment management students powerful tools and features that will optimize
function enables you to: your time and energies, enabling you to focus on course
content, teaching, and student learning. Connect™
■ Create and deliver assignments easily with selectable
Marketing also offers a wealth of content resources
end-of-chapter questions and test bank items.
for both instructors and students. This state-of-the-art,
■ Streamline lesson planning, student progress report-
thoroughly tested system will support you in preparing
ing, and assignment grading to make classroom man-
students for the world that awaits.
agement more efficient than ever.
For more information about Connect, go to
■ Go paperless with eBooks and online submission and
www.mcgrawhillconnect.com, or contact your local
grading of student assignments.
McGraw-Hill sales representative.
Instructor Library
The Connect™ Marketing Instructor Library is your
TEGRITY CAMPUS:
repository for additional resources to improve student LECTURES 24/7
engagement in and out of class. You can select and use
any asset that enhances your lecture. The Connect™
Marketing Instructor Library includes:
■ Instructor’s Manual
■ PowerPoint files Tegrity Campus is a service that makes classtime avail-
■ TestBank able 24/7 by automatically capturing every lecture in
■ Videos a searchable format for students to review when they
■ eBook study and complete assignments. With a simple one-
click start-and-stop process, you capture all computer
Student Study Center screens and corresponding audio. Students can replay
any part of any class with easy-to-use browser-based
The Connect™ Marketing Student Study Center is the place viewing on a PC or Mac.
for students to access additional resources. This center: Educators know that the more students can see, hear,
■ Offers students quick access to lectures, practice and experience class resources, the better they learn. In
materials, eBooks, and more. fact, studies prove it. With Tegrity Campus, students
■ Provides instant practice material and study ques- quickly recall key moments by using Tegrity Campus’s
tions, easily accessible on the go. unique search feature. This search helps students effi-
■ Gives students access to the Personalized Learning ciently find what they need, when they need it, across
Plan described below. an entire semester of class recordings. Help turn all your
students’ study time into learning moments immediately
Lecture Capture via Tegrity Campus supported by your lecture.
Increase the attention paid to lecture discussion by decreas- Lecture Capture enables you to:
ing the attention paid to note taking. For an additional ■ Record and distribute your lecture with a click of a
charge Lecture Capture offers new ways for students to button.

Preface xv
■ Record and index PowerPoint® presentations and MCGRAW-HILL CUSTOMER
anything shown on your computer so it is easily
searchable, frame by frame. CARE CONTACT
■ Offer access to lectures anytime and anywhere by INFORMATION
computer, iPod, or mobile device. At McGraw-Hill, we understand that getting the most
■ Increase intent listening and class participation by from new technology can be challenging. That’s why
easing students’ concerns about note taking. Lecture our services don’t stop after you purchase our prod-
Capture will make it more likely you will see stu- ucts. You can e-mail our Product Specialists 24 hours
dents’ faces, not the tops of their heads. a day to get product-training online. Or you can search
To learn more about Tegrity watch a 2-minute Flash our knowledge bank of Frequently Asked Questions on
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LEARNING READY Analysts will be able to assist you in a timely fashion.

Many educational institutions today are focused on the

notion of assurance of learning, an important element of Create
some accreditation standards. Advertising and Promotion: Craft your teaching resources to match the way you teach!
An Integrated Marketing Communications Perspective is With McGraw-Hill Create, www.mcgrawhillcreate.com,
designed specifically to support your assurance of learn- you can easily rearrange chapters, combine material from
ing initiatives with a simple, yet powerful solution. other content sources, and quickly upload content you
Each test bank question for Advertising and Promotion: have written like your course syllabus or teaching notes.
An Integrated Marketing Communications Perspective Find the content you need in Create by searching through
maps to a specific chapter learning outcome/objective thousands of leading McGraw-Hill textbooks. Arrange
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You can then use the reporting features of EZ Test to mentary print review copy in three to five business days
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AACSB Statement
The McGraw-Hill Companies is a proud corporate mem- MCGRAW-HILL HIGHER
ber of AACSB International. Understanding the impor-
tance and value of AACSB accreditation, Advertising and
EDUCATION AND
Promotion: An Integrated Marketing Communications BLACKBOARD HAVE
Perspective, 10e, recognizes the curricula guidelines TEAMED UP. WHAT DOES
detailed in the AACSB standards for business accredi- THIS MEAN FOR YOU?
tation by connecting selected questions (in the text and/
or the test bank) to the six general knowledge and skill ● Your life, simplified. Now you and your students can
guidelines in the AACSB standards. access McGraw-Hill’s Connect™ and Create™ right
The statements contained in Advertising and from within your Blackboard course—all with one
Promotion: An Integrated Marketing Communications single sign-on. Say goodbye to the days of logging
Perspective, 10e, are provided only as a guide for the in to multiple applications.
users of this textbook. The AACSB leaves content cov- ● Deep integration of content and tools. Not only do
erage and assessment within the purview of individual
you get single sign-on with Connect™ and Create™,
schools, the mission of the school, and the faculty. While
you also get deep integration of McGraw-Hill con-
Advertising and Promotion: An Integrated Marketing
tent and content engines right in Blackboard. Whether
Communications Perspective, 10e, and the teaching
you’re choosing a book for your course or building
package make no claim of any specific AACSB quali-
Connect™ assignments, all the tools you need are
fication or evaluation, we have within Advertising and
right where you want them—inside of Blackboard.
Promotion: An Integrated Marketing Communications
Perspective, 10e, labeled selected questions according to ● Seamless Gradebooks. Are you tired of keeping
the six general knowledge and skills areas. multiple gradebooks and manually synchronizing

xvi Preface
 grades into Blackboard? We thought so. When a stu- Robert H. Ducoffe, Baruch College
dent completes an integrated Connect™ assignment, Roberta Elins, Fashion Institute of Technology
the grade for that assignment automatically (and Nancy Ellis, Suffolk Community College
instantly) feeds your Blackboard grade center. Robert Erffmeyer, University of Wisconsin–Eau
● A solution for everyone. Whether your institution Claire
is already using Blackboard or you just want to try John Faier, Miami University
Blackboard on your own, we have a solution for you. Raymond Fisk, Oklahoma State University
McGraw-Hill and Blackboard can now offer you easy Alan Fletcher, Louisiana State University
access to industry leading technology and content, Marty Flynn, Suffolk Community College
whether your campus hosts it, or we do. Be sure to Judy Foxman, Southern Methodist University
ask your local McGraw-Hill representative for details. Amy Frank, Wingate University
Jon B. Freiden, Florida State University
ACKNOWLEDGMENTS Stefanie Garcia, University of Central Florida
While this tenth edition represents a tremendous amount Geoff Gordon, University of Kentucky
of work on our part, it would not have become a reality Norman Govoni, Babson College
without the assistance and support of many other people. Donald Grambois, Indiana University
Authors tend to think they have the best ideas, approach, Stephen Grove, Clemson University
examples, and organization for writing a great book. But Robert Gulonsen, Washington University
we quickly learned that there is always room for our Bill Hauser, University of Akron
ideas to be improved on by others. A number of col- Ron Hill, Villanova University
leagues provided detailed, thoughtful reviews that were JoAnn Hopper, Western Carolina University
immensely helpful in making this a better book. We are Paul Jackson, Ferris State College
very grateful to the following individuals who worked
Karen James, Louisiana State University–Shreveport
with us on earlier editions. They include
Patricia Kennedy, University of Nebraska
David Allen, St. Joseph’s University Robert Kent, University of Delaware
Craig Andrews, Marquette University Don Kirchner, California State
Subir Bandyopadhyay, University of Ottawa University–Northridge
Michael Barone, Iowa State University Paul Klein, St. Thomas University
Jerri Beggs, Illinois State University Susan Kleine, Arizona State University
Mike Behan, Western Technical College and Viterbo Patricia Knowles, Clemson University
University Dr. Barbara Lafferty, University of South Florida
John Bennet, University of Missouri Dana Lanham, University of North
Elizabeth Blair, Ohio University Carolina–Charlotte
Janice Blankenburg, University of Clark Leavitt, Ohio State University
Wisconsin–Milwaukee Lauren Lev, Fashion Institute of Technology
Karen Bowman, University of California–Riverside Aron Levin, Northern Kentucky University
Kathy Boyle, University of Maryland Tina Lowry, Rider University
Terry Bristol, Oklahoma State University Karen Machleit, University of Cincinnati
Beverly Brockman, University of Alabama Scott Mackenzie, Indiana University
Lauranne Buchanan, University of Illinois Elizabeth Moore, Notre Dame
Jeffrey Buchman, Fashion Institute of Technology Joe Msylivec, Central Michigan University
Roy Busby, University of North Texas Darrel Muehling, Washington State University
Christopher Cakebread, Boston University Barbara Mueller, San Diego State University
Margaret C. Campbell, University of John H. Murphy II, University of Texas–Austin
Colorado–Boulder Peter Noble, Southern Methodist University
Les Carlson, Clemson University Mandy H. Ortiz, University of Alabama–Tuscaloosa
Lindell Chew, University of Missouri–St. Louis Carol Osborne, USF Tampa
Catherine Cole, University of Iowa Charles Overstreet, Oklahoma State University
Sherry Cook, Missouri State University Notis Pagiavlas, University of Texas–Arlington
Robert Cutter, Cleveland State University Paul Prabhaker, DePaul University, Chicago
Richard M. Daily, University of Texas–Arlington William Pride, Texas A&M University
Don Dickinson, Portland State University Astrid Proboll, San Francisco State University

Preface xvii
 Sanjay Putrevu, SUNY University at Albany Milwaukee; Kendrick Brunson, Liberty University;
Sekar Raju, University at Buffalo Victoria Bush, University of Mississippi; Nathaniel
Joel Reedy, University of South Florida Calloway, University of Maryland–University College;
Glen Reicken, East Tennessee State University Oscar Chilabato, Johnson & Wales University; Bob
Scott Roberts, Old Dominion University Cline, University of Iowa–Iowa City; Mary Conran,
Michelle Rodriques, University of Central Florida Temple University–Philadelphia; Sherry Cook, Missouri
State University; Kevin Cumiskey, Oklahoma State U–
Herbert Jack Rotfield, Auburn University
Stillwater; Andrew Czaplewski, University of Colorado,
Judith Sayre, University of North Florida Colorado Springs; Terri Faraone, Mt. San Antonio
Allen D. Schaefer, Missouri State University College; Theresa Flaherty, James Madison University;
Carol Schibi, State Fair Community College Debora Grossman, Suny Buffalo; Charles Gulas, Wright
Denise D. Schoenbachler, Northern Illinois State University–Dayton; Holly Hapke, University of
University Kentucky–Lexington; Diana Haytko, Florida Gulf Coast
Lisa Sciulli, Indiana University of Pennsylvania University; Yi He, California State University East Bay;
Andrea Scott, Pepperdine University Amanda Helm, University of Wisconsin, Whitewater;
Elaine Scott, Bluefield State College Christopher Joiner, George Mason University; Leslie
Eugene Secunda, New York University Kendrick, Johns Hopkins University; David Koehler,
Tanuja Singh, Northern Illinois University University of Illinois–Chicago; Gary Kritz, Seton
Lois Smith, University of Wisconsin Hall University; Ivy Kutlu, Old Dominion University;
Barbara Lafferty, University of South Florida–Tampa;
Harlan Spotts, Northeastern University
Ron Lennon, Barry University; Aron Levin, Northern
Monique Stampleman, Fashion Institute of Kentucky University; Stacey Massey, Texas A & M
Technology University; George Meier, University of California–
Mary Ann Stutts, Southwest Texas State University Irvine; Darrel Muehling, Washington State University–
James Swartz, California State Polytechnic Pullman; Mark Neckes, Johnson & Wales University;
University Kathy O’Donnell, San Francisco State University; Kristen
Ric Sweeney, University of Cincinnati Regine, Johnson & Wales University; Herb Ritchell,
Janice Taylor, Miami University DePaul University; Herb Rotfeld, Auburn University–
Robert Taylor, Radford University Auburn; Hope Schau, University of Arizona; Eugene
Brian Tietje, Cal State Polytechnic Secunda, New York University; James Swartz, California
Frank Tobolski, DePaul University State Poly U–Pomona; Kevin Toomb, University North
Mike Weigold, University of Florida–Gainesville Carolina Charlotte; Mindy Treftz, Columbia College–
Christian County; Lisa Troy, Texas A & M University;
John Weitzel, Western Michigan University
Deb Utter, Boston University; Jim Walker, Northwest
Kenneth C. Wilbur, University of Southern Missouri State University; Donna Wertalik, Virginia
California Polytechnic Institute.
Roy Winegar, Grand Valley State University We would also like to acknowledge the cooperation
Richard Wingerson, Florida Atlantic University we received from many people in the business, advertis-
Terrence Witkowski, California State University– ing, and media communities. This book contains sev-
Long Beach eral hundred ads, illustrations, charts, and tables that
Merv H. Yeagle, University of Maryland–College have been provided by advertisers and/or their agencies,
Park various publications, and other advertising and industry
Elaine Young, Champlain College organizations. Many individuals took time from their
Robert Young, Northeastern University busy schedules to provide us with requested materials
and gave us permission to use them. A special thanks
We are particularly grateful to the individuals who to all of you.
provided constructive comments on how to make this A manuscript does not become a book without a
edition better: great deal of work on the part of the publisher. Various
Lisa Abendroth, University of Saint Thomas; individuals at McGraw-Hill have been involved with
Natalie Adkins, Creighton University–Omaha; Bruce this project over the past several years. Our sponsoring
Alford, Louisiana Tech University; Neil Alperstein, editor on the tenth edition, Sankha Basu provided valu-
Loyola University Maryland; Sheila Baiers, Kalamazoo able guidance and was instrumental in making sure this
Valley Community College; Allen Bargfrede, Berklee was much more than just a token revision. A special
College of Music; Elizabeth Blair, Ohio University– thanks goes to Sean Pankuch, our developmental edi-
Athens; Janice Blankenburg, University of Wisconsin, tor, for all of his efforts and for being so great to work

xviii Preface
with. Thanks also to Dana Pauley for doing a superb University. As always, a great deal of thanks goes to
job of managing the production process. We also our families for putting up with us while we were revis-
want to acknowledge the outstanding work of Jennifer ing this book. Once again we look forward to return-
Blankenship for obtaining permissions for most of the ing to what we think is normal. Finally, we would like
ads that appear throughout the book. Thanks to the to acknowledge each other for making it through this
other members of the product team, Srdj Savanovic, ordeal for the tenth time! Our families and friends will
Jeremy Cheshareck, Janean Utley, and Debra Sylvester, be happy to know that we still get along after all this—
for all their hard work on this edition. We also want to though it is definitely getting tougher and tougher and
acknowledge Derek Belch for his help with researching tougher. Our parents would be proud!
and writing many of the IMC and Digital and Social George E. Belch
Media Perspectives boxes.
We would like to acknowledge the support we have Michael A. Belch
received from the College of Business at San Diego State

Preface xix
WALKTHROUGH PREFACE

Your guide through the exciting world

Why It’s a Powerful Learning Tool

The tenth edition continues to provide you with the most comprehensive and
current text on the market in the area of advertising and promotion from an
integrated marketing communications perspective. The following features in
each chapter enhance students’ understanding of the material as well as their
reading enjoyment.

CHAPTER OPENERS
Learning Objectives are provided at the beginning of each chapter to identify
the major areas and points covered in the chapter and guide the learning effort.
Each chapter also begins with a Chapter Opening Vignette that shows the effec-
tive use of integrated marketing communications by a company or ad agency or
discusses an inter-
esting issue that
is relevant to the
chapter. Some of
the companies and
Organizing for Advertising
and Promotion: The Role
of Ad Agencies and Other
Marketing Communication
3
brands profiled
Organizations
in the opening
DEUTSCH LA HAS VOLKSWAGEN ON A ROLL

vignettes include In 2008, Volkswagen chief executive officer Martin

Winterkorn announced that the German company
compact and midsize sedans as part of its strategy
and to sell American car buyers on German engi-
was planning on moving past Toyota to become neering and styling at affordable prices. However,

Volkswagen Gato- the world’s largest automaker by 2018. Winterkorn’s

“Strategy 2018” goals also included making
Volkswagen Group the world’s most profitable auto-
maker as well as the most fascinating and sustain-
when the automaker announced its aggressive
growth plans for the U.S. market, it recognized
that it faced a formidable marketing challenge as
nearly 80 percent of Americans were aware of the

rade, Tacori, Taco

able one. Volkswagen’s growth strategy included VW brand but only 2 percent were buying its cars.
going head-to-head with its major European com- Most Americans recognized the Beetle and Jetta
petitors, including BMW, Mercedes, Renault, and but drew a blank on the company’s other models,
Fiat, as well as pursuing the rapidly growing mar- such as the Passat, Golf, GTI, Routan, Eos, Tiguan,
kets of China, Southeast Asia, and India. However, and Touareg. Thus, to increase its sales volume in

Bell, Ford, Moun- LEARNING OBJECTIVES

LO1
To understand how companies organize for advertising and other aspects of
its most ambitious plans were in the U.S. market,
where the goal was to double sales to more than
400,000 cars by 2012 and to 800,000 vehicles per
the U.S. market, Volkswagen had to become more
relevant and the appeal of the brand had to move
beyond the base of loyal enthusiasts and captivate
integrated marketing communications. year by 2018. Volkswagen, which is the largest auto- consumers in the mainstream market.

tain Dew, and the LO2

To evaluate the advantages and disadvantages of the various ways companies
organize for advertising and promotion.
maker in Europe and number 2 in China, once was
the largest foreign auto brand in the United States
back in the days when the Beetle was a cultural
icon and dominated the small-car market. However,
Volkswagen of America took its first step toward
changing the perceptions of Americans and show-
ing them that it sells more than Beetles and Jettas,
when it awarded its advertising and marketing com-
To understand the role of advertising agencies and the services they perform as well

Phoenix Coyotes.
LO3 over the past two decades Volkswagen fell behind munications business to a new advertising agency,
as the various types of agencies and media specialist companies.
Japanese competitors such as Toyota and Honda Deutsch LA, in October 2009. Volkswagen chose
To examine methods for selecting, compensating, and evaluating advertising and then began facing new competition from Deutsch LA over a number of other agencies that
LO4
agencies. Korean brands such as Hyundai and Kia. Adding were competing for the account. However, after a
to VW’s problems was the fact that the strong euro rigorous agency review process, Deutsch won the
To explain the role and functions of specialized marketing communication made its German-built cars expensive in the U.S. account by focusing on the bottom-line issue of
LO5
organizations. market in recent years. selling vehicles and by impressing VW’s manage-
Volkswagen decided to invest in the American ment with its strategic thinking and its creative
To examine various perspectives on the use of integrated services and
LO6 market and build a state-of-the-art plant dedi- ideas, which included ways to extend the market-
responsibilities of advertisers versus agencies.
cated to producing cars specifically for the North ing campaign into the digital space and particu-
American market. The plant in Tennessee, which larly into the fast-growing realm of social media.
eventually opened in 2011, reduced production The agency team recognized that the initial chal-
and shipping costs and kept the overall costs of the lenges they faced were to make the Volkswagen
vehicle down. VW also plans to expand its product brand relevant again, increase awareness of the
line over the next five years by introducing new VW product line, and gain consumers’ interest and

beL28973_ch03_066-107.indd 66 11/1/13 1:01 PM beL28973_ch03_066-107.indd 67 11/1/13 1:01 PM

 of advertising and promotion.

HIGH
URBAN SUBURBAN
PRIZM Social Groups

SECOND CITY TOWN AND COUNTRY

T1
CHAPTER PEDAGOGY
S1
U1 LANDED GENTRY

Four-Color Visuals throughout the book consist of

ELITE SUBURBS
URBAN UPTOWN C1 05 Country Squires
01 Upper Crust SECOND CITY SOCIETY 09 Big Fish, Small Pond
04 Young Digerati 02 Blue Blood Estates 11 God’s Country
07 Money & Brains 03 Movers & Shakers 10 Second City Elite
16 Bohemian Mix
26 The Cosmopolitans
29 American Dreams
06 Winner’s Circle

S2
12 Brite Lites, Li’l City
13 Upward Bound
20 Fast-Track Families
25 Country Casuals

T2
photoboards, commercial shots, charts, graphs, and over
THE AFFLUENTIALS

400 print ads. Key Terms are highlighted in boldface

COUNTRY COMFORT
08 Executive Suites
23 Greenbelt Sports
14 New Empty Nests C2 28 Traditional Times
15 Pools & Patios CITY CENTERS 32 New Homesteaders

throughout the text and listed at the end of each chapter

U2 17 Beltway Boomers
24 Up-and-Comers 33 Big Sky Families
MIDTOWN MIX 18 Kids & Cul-de-Sacs
27 Middleburg 37 Mayberry-ville
19 Home Sweet Home
$ 31 Urban Achievers Managers
T3

with a page reference. Chapter Summaries serve as a

40 Close-In Couples S3 34 White Picket
MIDDLE AMERICA
54 Multi-Culti Mosaic MIDDLEBURBS Fences 38 Simple Pleasures
21 Gray Power 35 Boomtown Singles 42 Red, White & Blues
22 Young Influentials 41 Sunset City Blues 43 Heartlanders
30 Suburban Sprawl
36 Blue-Chip Blues
39 Domestic Duos
C3
45 Blue Highways
50 Kid Country, USA
51 Shotguns & Pickups
quick review of important topics covered and as a study
U3

guide. Discussion Questions tagged to learning objectives

MICRO-CITY BLUES T4
URBAN CORES
S4 RUSTIC LIVING
59 Urban Elders 47 City Startups
INNER SUBURBS 48 Young & Rustic
61 City Roots 53 Mobility Blues
55 Golden Ponds

at the end of each chapter give students an opportunity

44 New Beginnings 60 Park Bench Seniors
65 Big City Blues 56 Crossroads Villagers
46 Old Glories 62 Hometown Retired
66 Low-Rise Living 57 Old Milltowns
49 American Classics 63 Family Thrifts
52 Suburban Pioneers 58 Back Country Folks

to test their understanding of the material and to apply

64 Bedrock America
LOW
EXHIBIT 2–11
Nielsen Claritas provides
cluster profiles for marketers
it. These questions can also serve as a basis for class
discussion or assignments.

EXHIBIT 2–18
V8 positions itself as a EXHIBIT 2–19
drink that substitutes for DC positions by product user—in this case, skateboarders
vegetables

Repositioning One final positioning strategy involves altering or changing a

YTC 02–07 product’s or brand’s position. Repositioning a product usually occurs because
beL28973_ch02_040-065.indd 54 11/1/13 of
8:58 AM
DC Shoes Channel declining or stagnant sales or because of anticipated opportunities in other market
youtube.com/10ebelch positions. Repositioning is often difficult to accomplish because of entrenched
perceptions about and attitudes toward the product or brand. IMC Perspective
2–2 discusses an interesting example of a long-established brand taking a new
direction.
After a sales slump that began in 2008, Gatorade—once the world’s most popu- LEARNING OBJECTIVES
lar sports drink—changed its name to “G2,” reduced the size of its lightning bolt
trademark, and began to broaden its appeal to other markets (Exhibit 2–21). As To examine the structure of the television and radio industries and the role
LO1
noted by David Burwick, CEO of PepsiCo North America, “The functional dif- of each medium in the advertising program.
ference is that we’re going from a brand that speaks to really elite athletes to a
brand that speaks for the athlete in everyone.” While the repositioning originally tising
To consider the advantages and limitations of TV and radio as advertising
LO2
had disappointing results, within a few years significant brand share gains were media.
achieved.20,21 Summary
ia, how
To explain how advertising time is purchased for the broadcast media,
LO3
audiences are measured, and how rates are determined.
EXHIBIT 2–20 EXHIBIT 2–21 The development, execution, and administration of an advertis- media buying services. The first offers the client a full range of
e the useing and promotions program involve the efforts of many indi-
To consider future trends in TV and radio and how they will influence services (including creative, account, marketing, and financial
Tony the Tiger has become a Gatorade has made changes to appeal to a LO4
of these media in advertising. viduals, both within the company and outside it. Participants in and management services); the other two specialize in creative
cultural symbol broader market the integrated marketing communications process include the services and media buying, respectively. Agencies are compen-
advertiser or client, ad agencies, media organizations, special- sated through commission systems, percentage charges, and
ized marketing communications firms, and providers of collat- fee—and cost-based systems. Recently, the emphasis on agency
eral services. accountability has increased. Agencies are being evaluated on
Companies use three basic systems to organize internally both financial and qualitative aspects, and some clients are using
for advertising and promotion. Centralized systems offer the incentive-based compensation systems that tie agency compen-
advantages of facilitated communications, lower personnel sation to performance measures such as sales and market share.
requirements, continuity in staff, and more top-management In addition to using ad agencies, marketers use the services
involvement. Disadvantages include a lower involvement with of other marketing communication specialists, including direct-
overall marketing goals, longer response times, and difficulties marketing agencies, sales promotion agencies, public relations
in handling multiple product lines. firms, and digital/interactive agencies. A marketer must decide
Decentralized systems offer the advantages of concentrated whether to use a different specialist for each promotional func-
managerial attention, more rapid responses to problems, and tion or have all of its integrated marketing communications
increased flexibility, though they may be limited by ineffective done by an advertising agency that offers all of these services
decision making, internal conflicts, misallocation of funds, and under one roof.
a lack of authority. In-house agencies, while offering the advan- Recent studies have found that most marketers believe it is
tages of cost savings, control, and increased coordination, have their responsibility, not the ad agency’s, to set strategy for and
the disadvantage of less experience, objectivity, and flexibility. coordinate IMC campaigns. The lack of a broad perspective and
Many firms use advertising agencies to help develop and specialized skills in nonadvertising areas are seen as major bar-
execute their programs. These agencies may take on a variety of riers to agencies’ increased involvement in integrated marketing
forms, including full-service agencies, creative boutiques, and communications.
58 Chapter 2 THE ROLE OF IMC IN THE MARKETING PROCESS
beL28973_ch11_372-413.indd 372 11/15/13 10:42 AM
Key Terms
clients p. 69 billings p. 79 fixed-fee method p. 89
advertising agency p. 69 superagencies p. 80 fee–commission combination p. 90
beL28973_ch02_040-065.indd 58 11/1/13 8:58 AM
media organizations p. 70 full-service agency p. 82 cost-plus system p. 90
specialized marketing communication account executive p. 83 incentive-based system p. 90
services p. 70 account planners p. 84 percentage charges p. 91
collateral services p. 70 copywriters p. 85 financial audit p. 92
advertising manager p. 71 departmental system p. 86 qualitative audit p. 92
centralized system p.71 group system p. 86 direct-marketing agencies p. 99
decentralized system p. 73 creative boutique p. 86 sales promotion agency p. 100
brand manager p. 73 media specialist companies p. 87 public relations firm p. 100
category management system p. 73 commission system p. 88 digital/interactive agencies p. 101
in-house agency p. 75 negotiated commission p. 89

Discussion Questions
1. The chapter opener discusses the success of 3. Who are the various participants in the integrated
Volkswagen in the U.S. market over the past five years. marketing communications process? Briefly discuss the
Evaluate the advertising the Deutsch LA agency has done roles and responsibilities of each. (LO1)
for Volkswagen of America and the role it has played in 4. Discuss the various challenges faced by companies
helping to turn around the company in the U.S. market. that use the brand management system when organiz-
How important is advertising for an automotive company ing for advertising and promotion. What are some of the
such as Volkswagen? (LO3, 5) things that marketers can do to address these problems
2. Evaluate the “Punch Dub” campaign that the Deutsch and ensure that their brand managers are keeping abreast
LA agency developed when it took over the Volkswagen of external changes occurring in the market? (LO2)
of America account. Discuss the pros and cons of the 5. Discuss the pros and cons of using an in-house
campaign. (LO3, 5) advertising agency. What are some of the reasons why

Chapter 3 ORGANIZING FOR ADVERTISING AND PROMOTION 105

beL28973_ch03_066-107.indd 105 11/18/13 12:06 PM

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