Corporate vs. Product Advertising

Corporate advertising is used by many large corporations to enhance their image as a whole and any corporate advertising should be strategic and consistent. Corporate advertising should provide a clear image about the organization and is classified into three categories: image advertising ,financial advertising and issue advocacy.

Many managers do not use them because of the costs and problems in analyzing their effects on sales . if the objectives like enhancing and creating a stronger reputation, influence opinions and retain employees are accomplished ,an organizations financial situation will improve.

Corporate advertising is used by more than half of the largest industrial and non industrial companies in the united states; bigger the company ,more likely it is to have corporate advertising .it enhances a company’s reputation and gives a position to the company .

We all are aware of advertising, but the two main important kinds of advertising are corporate and product. Corporate advertising enhances the image of the corporation as a whole and product advertising promotes the companies product. Basically company’s marketing department is responsible for product advertising. Corporate advertising is done by corporate communication department and is paid for by the CEO’s office.

The different types of corporate advertising are :-

• Advertising to reinforce identity or reputation
• Advertising to attract investors and advertising to influence opinions.

In the recent Cola controversy that Coca Cola had been through, the company used well actor for advertisement to reinforce corporate image. Generally organizations use advertisements to Capture more investors. Issue advertising is used to respond to external threats such as environment, government etc. Off lately such advertisements are done on a regular basis to create a greater social image of an organization and to build good citizenship globally. Corporate advertising defines and enhance a company’s reputation.

The purpose of product advertisement is to increase sales and explain the need of the product. The relationship between corporate advertising and sales is less clear than that between product advertising and sales, because corporate advertising is meant to do things that eventually boost but likely won’t directly or immediately do so.