Corporate advertising is used to build and promote the image and reputation of a company as a whole, rather than focusing on specific products or services. The goals are to brand the company and create awareness of who they are and what they do. Larger companies, especially those in controversial industries, typically rely on corporate advertising to differentiate themselves from competitors and deal with any negative public perceptions. One of the earliest major adopters of corporate advertising in the US was AT&T in the early 1900s as a way to gain public acceptance and protect their monopoly status.
2. Corporate advertising?
• To build the image of the
corporation/institution/company or organization
as a whole rather than the product or services
alone.
• Corporate image advertising should brand a
company the way product advertising brands a
product.
• Primary purpose is promoting the name, image,
personnel, or reputation of a company.
3. • A company’s marketing department typically
is responsible for all product related
advertising and pays for such ads out of its
own budget. Corporate advertising on the
other hand falls within the corporation
communication area and even comes out of
that budget or in some cases, is paid by the
CEO’s office.
4. To reinforce identity
• Company use corporate advertising to
strengthen their identities.
• As company starts new business, they needs
to explain their new vision.
• To project an image of organization among the
public.
• To create awareness about the company and
for which the company had been established.
5. Who uses corporate advertising?
• Larger corporation use corporate advertising
to establish a good reputation out of variety
of activities , products and services.
• Controversial companies like cigarette , oil and
pharmaceutical companies use corporate
advertising to deal their image problems. To
keep their image stable in market.
• A good corporate advertising can clarify and
enhance a company’s reputation.
6. • Companies use corporate advertising for main
three reasons.
• Increase sale
• To attract investment
• To influence opinion
• Create a stronger reputation.
• To differentiate themselves from rivals.
• Recruit and retain employees.
7. History of corporate advertising in
America
• In 1908 American telephone and
telegraph(AT&T) started corporate advertising.
• They faced unfavorable reputation,
competition in market and threats of public
ownership.
• To win public acceptance, the company turn
to launch long term effort to improve
company image
8. • The first monthly magazine ads explained that
AT&T was working for public and gave
instruction that how to communicate with
telephone operator.
• In 1920s more than half of AT&T ads budget
went toward corporate advertising.
• For 30 years the corporate advertising
protected the company’s monopoly and
status.
9. Radio and TV days
• Du pont a large manufacturer of chemicals
and military explosives had been accused of
profiteering during world war 1
• To diminish public negative perception, du
pont sponsored radio program ‘’cavalcade of
America’’
• The program presented historical vignettes
dramatizing people and events in U.S history
10. • The company also introduced new slogan
‘’better things for better livings…..through
chemistry’’
• 18 years of campaign turned negative
perception into favorable impression of the
company.
• In 1953 ‘’cavalcade of America’’ left radio for
the new medium of TV and ran for four years