Corporate Vs Product Advertising

Corporate Advertising: is defined as paid use of media that seeks the benefit the image of the corporation as a whole, It presents a clear identity of the organization, many companies use corporate advertising to strengthen their identities following structural change. As companies merge and enter new business through corporate advertising they explain their vision, organization, and strategy to constituents who struggle to understand the new organization. Corporate advertising helps organization to differentiate themselves from rivals for example The “Color My World” spot featured Coca-Cola as part of a “red” theme that launched the red line of clothing from sportswear company. Organizations do corporate advertising to attract investment for example United Technologies Corp ad with the tag line “ You can see everything from here” sparked investors curiosity in the UTC brand. Corporate advertising creates strong reputation and helps to attract and retain employees.

Product Advertising: Product advertising is designed to create product awareness and increase market share in an ever-changing and demanding environment. Product advertising is an essential function of any business whose goal is long-term success. Product advertising consists of determining the needs and wants of potential customers, developing strategic advertisements to appeal to those needs and wants, and implementing a plan that incorporates those strategies focused around the specific product being advertised. Product advertising requires more attention in today’s marketing arena since the competition for attention is much greater. Increased Sales are directly linked to product advertising and Return of investment can be easily measured. For example Toyota runs a separate ad for Lexus to concentrate on their high-end customers that helps in increasing the sale of Lexus cars.

Corporate Advertising employs the same methodology and toolbox used in product Advertising, but it also elevates the approach a step further into the board room, where additional issues around stakeholder relations (shareholders, media, competitors, governments and many others) can help the corporation benefit from a strong and well-managed corporate branding strategy. Not surprisingly, a strong and comprehensive corporate branding strategy requires a high level of personal attention and commitment from the CEO and the senior management to become fully effective and meet the objectives.