Sunday, July 1, 2007

Corporate Advertisements

Corporate advertising

"Corporate advertising can be defined as paid use of media that seeks to benefit the image of the corporation as a whole rather than its products or services alone”.

Corporate Advertising

•Brands the company
•The corporate communication area or the CEO bears the expenses

Product Advertising
•Brands the products
•Marketing Department bears the expenses

Samsung Product Advertisement for still cameras









Three categories of corporate advertising are :
1. Image Advertising
2. Financial Advertising
3. Issue Advocacy


Advertising to Reinforce Identity or Enhance Reputation

•Companies use corporate advertising to strengthen their identities following structural changes.
For example, after split up in the Reliance Group, Anil Ambani used ads to strengthen his company’s identity as “Reliance Communications” - Anil Dhirubhai Ambani Group (ADAG)





•Image advertising allows companies to differentiate themselves from the rivals. •Image advertising helps companies to reposition its image in the minds of its constituencies.

Advertising to attract investors

•Companies use corporate advertising to enhance their image in the financial community and to stimulate interest in a company’s stock among potential investors.
•Strong financially oriented corporate advertising campaign can increase the price of the company’s stock.
For example, Wipro’s financial ad to attract investors






Advertising to influence opinions

•Companies use issue or advocacy to respond to external threats from either government or special interest groups.

For example, Pepsi Challenge - The challenge was designed to be a direct response to critics who allege that
Coca-Cola and Pepsi-Cola are identical drinks, with no meaningful differences. The challenge takes the form of a taste test. At malls, shopping centers and other public locations, a Pepsi representative sets up a table with two blank cups: one containing Pepsi and one with Coke. Shoppers are encouraged to taste both colas, and then select which drink they prefer. Then the representative reveals the two bottles so the taster can see whether they preferred Coke or Pepsi. The results of the test leaned toward a consensus that more Americans preferred Pepsi.



Who uses corporate advertising and why?

•Larger corporations use corporate advertising to establish a coherent reputation out of a variety of activities, products and services.
•Companies within more controversial industries: Cigarette companies, oil companies, pharmaceuticals and other large industrial companies that have image, health and pollution problems to deal with use corporate advertising.
To increase sales - Corporate advertising is meant to do things that eventually boost sales but results cannot be direct or immediate.
To create a stronger reputation - Corporate advertising creates goodwill and enhances reputation by letting constituents know about the organization, particularly if it does beneficial things that people might not be aware of.
To recruit and retain employees - Corporate advertising campaigns helps companies attract the best and brightest work force at both the entry level and senior positions and creates an excitement among both potential and current employees.

Experience - As a consumer, advertisement influences my buying behavior largely. The ads in the magazines related to new products in the markets or improved versions of current products keeps me informed. A corporate ad redefines the image of a company in my mind as I get to know the values, which lay their foundations.
The controversy that surrounded Pepsi regarding its quality, made me reluctant to opt my favorite beverage for quite a few months. However, after the TV ad that featured the CEO of Pepsi Co, India addressing the nation regarding the safety of the product made me think again regarding my decision and I started consuming Pepsi again. Thus, ads play a very crucial role in the minds of the constituencies and affect the preferences and buying behavior.

No comments: