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Belch: Advertising and
Promotion, Sixth Edition
I. Introduction to Integrated
Marketing
Communications
1. An Introduction to
Integrated Marketing
Communications
larly for companies whose products and services are targeted at mass consumer markets.
More than 200 companies each spend over $100 million a year on advertising in
the United States. Figure 1-2 shows the advertising expenditures of the 25 leading
national advertisers in 2001.
There are several reasons why advertising is such an important part of many marketers’
promotional mixes. First, it can be a very cost-effective method for communicating
with large audiences. For example, the average 30-second spot on the four
major networks during prime-time network television reaches nearly 10 million
households. The cost per thousand households reached is around $14. 27
Advertising can be used to create brand images and symbolic appeals for a company
or brand, a very important capability for companies selling products and services
that are difficult to differentiate on functional attributes. For example, since 1980
Absolut has used creative advertising to position its vodka as an upscale, fashionable,
sophisticated drink and differentiate it from other brands. The advertising strategy has
been to focus attention on two unique aspects of the product: the Absolut name and the
distinctive shape of the bottle (Exhibit 1-7). Most of the print ads used in this longrunning
campaign are specifically tailored for the magazine or region where they
appear. The campaign, one of the most successful and recognizable in advertising history,
has made the Absolut brand nearly synonymous with imported vodka. While all
other spirits sales have declined by more than 40 percent over the past 15 years, Absolut
sales have increased 10-fold and the various Absolut brands have a combined 70
percent market share. 28
Figure 1-2 25 leading advertisers in the United States, 2001
Rank Advertiser Ad Spending (Millions)
1 General Motors Corp. $3,374.4
2 Procter & Gamble 2,540.6
3 Ford Motor Co. 2,408.2
4 PepsiCo 2,210.4
5 Pfizer 2,189.5
6 DaimlerChrysler 1,985.3
7 AOL Time Warner 1,885.3
8 Philip Morris Cos. 1,815.7
9 Walt Disney Co. 1,757.3
10 Johnson & Johnson 1,618.1
11 Unilever 1,483.6
12 Sears, Roebuck & Co. 1,480.1
13 Verizon Communications 1,461.6
14 Toyota Motor Corp. 1,399.1
15 AT&T Corp. 1,371.9
16 Sony Corp. 1,310.1
17 Viacom 1,282.8
18 McDonald’s Corp. 1,194.7
19 Diageo 1,180.8
20 Sprint Corp. 1,160.1
21 Merck & Co. 1,136.6
22 Honda Motor Co. 1,102.9
23 J.C. Penney Corp. 1,085.7
24 U.S. government 1,056.8
25 L’Oreal 1,040.7
Source: Advertising Age, June 24, 2002, p. S-2.
© The McGraw−Hill
Companies, 2003
17
Chapter One An Introduction to Integrated Marketing Communications