CORPORATE vs PRODUCT ADVERTISING

Advertising as you know is any paid form of non-personal communication promoting a product or service by an identified sponsor. What this definition doesn’t state is that advertising also involves the promotion of a Corporation.

Corporate advertising includes building the image of a responsible corporate entity, attracting good talent and reinforcing the corporate mission. In corporate advertising, companies never promote the product directly. They promote the product along with giving something to society. Corporate Advertisements are used by the organizations to inform the constituencies about the latest developments and happenings in an organization.

Corporate advertising should present a clear identity for the organization based on a careful assessment of its’ overall communication strategy, it generally falls into three broad categories: image advertisings, financial advertising and issues advocacy.

Image advertising has the aim to reinforce a company's identity and to enhance its reputation. Especially when structural changes occur within companies, they frequently use corporate advertising to strengthen their identities.

Companies arrange financial advertising campaigns to make themselves attractive as investment by enhancing their image in the financial community. Financial-relations advertising tries to stimulate interest of potential investors in a company's stock. E.g. The advertisements in the newspapers regarding company’s previous year performance in order to attract more investment.

Issue or advocacy advertising is used by companies to respond to threads exposed by the government or special interest groups. In this case, companies try to communicate directly with consumers, competing with journalists who also try to influence readers with their stories about the companies. Companies dealing with environmental issues use advocacy advertising very often.

Product Advertising involves paid form of non-personal communication involving the promotion of any product or a service. E.g. The advertisement for a new Toyota car. The main purpose of a product advertisement is to induce the consumers to buy the product thus increase the sales.

PRODUCT vs CORPORATE

It is risky to only give importance to promotion of products and to do nothing to improve the image and enhance the reputation of the organization. Brand marketers, who have traditionally argued that all marketing and communication should support the brand or product, are beginning to put resources into supporting the corporation - even if it is only in some instances as a defensive strategy.
In a marketplace where there is often little differentiation between brands, the organization, its people, its policies and its attitude can often be the point of difference. Product advertisements have short term implications. They are effective only till the products are sold. But, the corporate advertisements will have huge significance for the life-time of the corporation.
I would like to conclude that Good reputation is vital to support marketing. In good times it provides that extra bonus. In bad times it can minimize problems. And it can help recruit better people and attract the best business partners.

Links:
· www.wikipedia.org
· http://www.prinfluences.com.au/index.php?artId=112

Reference:

Corporate Communication, Paul. A. Argenti, Fourth Edition.