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 presents the overall identity of the organization and is paid from the company’s overall budget or by the CEO’s office. On the other hand product advertising concentrates on a particular product of the company which is paid by the marketing department.

Advertising to Reinforce Identify or Enhance Reputation

Many companies use corporate advertising to strengthen their identities following structural changes. Larger organizations need to simplify their image to unify a group of disparate activities. Image advertising allows companies to differentiate themselves from rivals.

http://www.herohonda.com/media_print_ads.htm
http://www.bajajauto.com/1024/index.asp

The above mentioned are two ads from the same industry where Hero Honda concentrates on targeting how useful and rigid the vehicle is, where as Bajaj concentrates the awards it has won. Both of them have their own strategies of advertising keeping their brand image and reputation in mind.

Advertising to Attract Investment

Strength of management is the most influencing factor for an investor to invest in a company. Companies use corporate advertising to enhance their image in the financial community. Corporate advertisers assert that the strong financially oriented corporate advertising campaign can actually increase the price of a company’s stock.

Advertising to Influence Options

Often called as issue or advocacy advertising is used by companies to respond to external threats from either government or special interest groups.
For example Saffola oil concentrates on health conscious groups.
http://www.saffolalife.com/default.asp

Who Uses Corporate Advertising and Why?

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 god 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 and to Recruit and Retain Employees

Experience

I had an experience in McDonald’s India branch. I visited McDonalds few years back where they had a general menu that included vegetarian and non vegetarian meal. But due to their beef usage controversy they lost many vegetarian customers. When I visited the restaurant recently, I found the menu is in a completely new format with separate vegetarian and non- vegetarian options for the Indian market.

http://www.mcdonaldsindia.com/ourfood/index.html