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Corporate AdvertisingBy Group 6
What is corporate advertising ?Corporate Advertising - A form of institutional advertising focusing not on a particular product or product range but on the organization itself.
The primary purpose is promoting the name, image, personnel, or reputation of a company, organization, or industry.
Promotes the organizationPromotes the organization
An extension of the PR functionAn extension of the PR function
Does not promote a specific product or serviceDoes not promote a specific product or service
• Larger corporations which tend to be more diversified use corporate advertising to establish a coherent reputation out of a variety of activities, products and services.
• Controversial companies like Cigarette companies, oil companies and
pharmaceutical companies use corporate advertising to deal their image problems.
• A good corporate advertising can clarify and enhance a company’s reputation.
• In a closer look the companies invest in corporate advertising campaigns for three main reasons: • Increase Sales,• Create a Stronger Reputation• Recruit and Retain Employees
Who Uses Corporate Advertising and Why?
Create a positive image for the firmCreate a positive image for the firm
Smooth labor relationsSmooth labor relations
Communicate the organization’s viewpoint
Communicate the organization’s viewpoint
Boost employee moraleBoost employee morale
Establish diversified company’s identityEstablish diversified company’s identity
Help newly deregulated industries
Help newly deregulated industries
Help newly deregulated industries
Help newly deregulated industries
Smooth labor relationsSmooth labor relations
Boost employee moraleBoost employee morale
Communicate the organization’s viewpoint
Communicate the organization’s viewpoint
Create a positive image for the firmCreate a positive image for the firm
Objectives of Corporate Advertising
ObjectivesObjectives
Objectives :
1. To create awareness about the existence of the company & purpose for which is
had been established.
2. To give it a recognizable identity.
3. To give a sense of belonging to the employees & the internal public.
4. To project an image of the organization amongst the external publics as one,
which was helping to ensure a fair distribution of vital but scarce commodity.
Types of Corporate Advertising
• Corporate ad looking like a product ad which encourages people to trust and enjoy dealing with the company.
• Corporate ad to convey specific information to the public & at the same time to promote the organization.
• Image advertising allows companies to differentiate themselves from rivals.
• Many companies use corporate advertising to strengthen their identities following structural changes.
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Hero Honda To Hero Moto Corp.
Event Sponsorship
The basic objective is to promote patronage or favor on the basis of these events.
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Cause Related Marketing
Cause related marketing:is a form of marketing whereby companies link with charities or nonprofit organizations as contributing sponsors.
Cause related marketing:is a form of marketing whereby companies link with charities or nonprofit organizations as contributing sponsors.
• Social service ad to establish reputation.
• Institutional ad devoted to building customer attitudes relating to the organization.
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
STANDARD CHARTERED Mumbai Marathon
• Promotes Health
• Promotes various causes
• Generates charity funds
• Improves Brand image
Advocacy Advertising
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Advocacy advertising:is the propagation of ideas and elucidation of controversial social issues of public importance in a manner that supports the interests of the sponsor.
Advocacy advertising:is the propagation of ideas and elucidation of controversial social issues of public importance in a manner that supports the interests of the sponsor.
Advocacy Advertising Example
Corporate Advertising Growth Rate
Corporate advertising Is a waste of moneyCorporate advertising Is a waste of money
Consumers aren’t interested in this form of advertising
Consumers aren’t interested in this form of advertising
The firm’s finances or image must be in troubleThe firm’s finances or image must be in trouble
This is a costly form of corporate self-indulgenceThis is a costly form of corporate self-indulgence
Why Is Corporate Advertising Controversial?
Claims of Opponents to Corporate Advertising
Claims of Opponents to Corporate Advertising
Corporate advertising Is a waste of moneyCorporate advertising Is a waste of money
Consumers aren’t interested in this form of advertising
Consumers aren’t interested in this form of advertising
The firm’s finances or image must be in troubleThe firm’s finances or image must be in trouble
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Relating to Stock PricesRelating to Stock Prices
Attitude SurveysAttitude Surveys
Relating to Stock PricesRelating to Stock Prices
Attitude SurveysAttitude Surveys
Measuring Corporate Advertising Effectiveness
Focus Group ResearchFocus Group Research
Effective?Effective?
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
• Corporate brand campaign ‘Rishton mein hum jeete hain’
• Cars from Maruti Suzuki are an intrinsic part of the lives of Indians from different parts of the country
• Showcasing festivals of India, starting the ad with Eid, then Ganesh chaturthi, Diwali, Durga Pooja, Holi, and Chritmas shown with families celebrating together
• The TVC ends with the voice over saying, “Maruti Suzuki: For a festival called life.”
Maruti Suzuki celebrates the festival called life
• The agency was tasked with executing a commercial that would underline the leadership of the Maruti Suzuki brand
• The deep relationship that existed with the Indian car buyer, based on the immense trust and goodwill earned over decades of delivering quality and service.
• The brief is grounded in the emotional benefit they deliver
• A drive into a better day, a better way of life
• Thus the brand finds natural place with the Indian families in their most joyous celebrations of life and relationships
Maruti Suzuki celebrates the festival called life
Case: Amway to use corporate ad campaign in India to communicate25 October 2002
Mumbai: Amway India Enterprises, the multilevel direct marketing company, which has grown into a global multibillion corporation exclusively by word of mouth publicity, is now planning to use corporate advertising to communicate to its customers, though in a limited manner. And India is the first country where the company plans to use the mode of advertising.
Amway India managing director and CEO William Pinckney says: “Amway is growing fast in India and corporate advertising at this stage will be beneficial to its distributors, prospective distributors, customers and prospective customers. It will also add to the increased awareness and appreciation of the company.”
He emphasizes that it would not have a real change in Amway’s communication strategy. “The company still relies mainly on the word of mouth, and the ad campaign in India is a low-key affair.”
He says Amway’s ad campaign focuses on the business opportunities thrown up by the company, its corporate values and commitment. “More importantly, ads mention very distinctly about one of its important unique selling points, which is the 100-per cent customer satisfaction or money-refund policy commitment towards India is found necessary if only to supplement the efforts the company’s distributors continued to put in.”
The ad campaign, he feels, will enhance the receptivity of Amway products, and with it the business opportunities, and enable distributors to reach out to a much larger audience and much faster.
Amway India clocked a turnover of Rs 553 crore in the year ended 30 September 2001 and is targeting a turnover of Rs 700 crore for the coming year. From a six-product company ii 1998, the company now sells 33 products through 3 lakh distributors and is present in four categories - personal care, home care, nutrition and cosmetics.
Amway India is a wholly owned subsidiary of Amway Corporation and was established in August 1995 after getting approval from the Foreign Investment Promotion Board. The company commenced commercial operations on 5 May 1998.
The company manufactures all its products in India through three third-party manufacturers. Till now, it has invested in India in excess of $35 million, of which $6 million is in the form of foreign direct investment.
Blendtec is famous for its bevy of inexpensive “Will It Blend” videos posted on YouTube and shared by millions.
Corporate Advertising In Digital Space
Best Western is a chain of hotels who sponsors a blog, “On the Go with Amy,” where the author travels the country writing about her experiences.
Starbucks started MyStarbucksIdea so that customers can submit ideas for the company which are then voted on by other users, the best of which will be implemented by the company.
• Dell leverages a variety of social media platforms for customer engagement, including an island in the virtual world of Second Life.
• HSBC built the HSBC Business Network to connect entrepreneurs using blogs, videos and forums.
• McDonalds maintains a blog to highlight the company’s corporate social responsibility efforts.
• Southwest Airlines employees share their stories and communicate directly with customers through the “Nuts About Southwest” blog.
• Toyota started its own virtual world to promote its products in Japan (site is in Japanese).
• Visa launched The Visa Business Network application on Facebook to connect small business users and to help them promote their businesses to a larger community.
