Download Corporate Advertising

Introduction
 This chapter discusses the role and importance of
corporate advertising as a key corporate communication
function in the globalised and developing country.
 As a powerful strategic communication tool, today,
corporate advertising campaigns are being given
considerable attention by global corporation worldwide.
 Interestingly, corporate advertising is always associated
with the corporate image and corporate branding of the
corporation as it is aimed at promoting the company,
rather than its products or services
Corporate Advertising: Some Perspectives
 There are perceptual debates over whether
corporate advertising should be seen as a
promotional mix from a perspective of
integrated marketing communication
(IMC)(Belch & Belch, 1998) OR
 focused on corporate image and corporate
branding from a perspective of corporate
marketing (Gregory & Wiechmann, 1999)
Corporate Advertising: Some Perspectives
 The debates continously confuse many practitioners who
still perceive corporate advertising as a tactical tool to hit
the ground running in short-term planning.
 Many practitioners also still cannot differentiate between
corporate advertising and product advertising, though both
are considered as paid advertising.
Corporate Advertising: Some Perspectives
 Importantly, corporate advertising, from a perspective of
reputation management, must be aligned with strategic
communication policy set by top management.
 This must be seen beyond Integrated Marketing
Communication (IMC) or marketing side
 Thus, corporate advertising will be more valued if properly
conducted by strategic communicators at the Department
of Corporate Communication.
Corporate Advertising: Some Perspectives
 Van Riel and Fombrun (2007) argued that the success of
corporate advertising campaign largely depends on the
right tool and framework analysis used by corporation
aligning them with approaches of reputation management.
 Unlike other communication tools such as publicity, sales,
marketing communication, and product advertising,
corporate advertising must be viewed in a broader concept
by considering the public policy and corporate social
responsibility in a macro-external environment.
Corporate Advertising: Concepts & Functions
Defining Corporate Advertising
 Corporate advertising is aimed at promoting the overall
awareness of a company as well as enhance its brand image
to its various stakeholders. Thus, the main idea is to
strengthen a company’s reputation (Park et al, 2000)
 Argenti (2007: 87) defined corporate advertising as “paid
use of media that seeks to benefit the image of the
corporation as a whole rather that its products or services
alone”
Defining Corporate Advertising
Corporate Advertising: Concepts & Functions
 There is a significant different between corporate
advertising (managed by the corporate
communication department) and product
advertising (carried out by the sales and marketing
department) as illustrated in Figure 7.0 (Argenti,
2007)
Corporate Advertising: Concepts & Functions
Underlying Function of Corporate Advertising
 Corporate advertising is perceived as a key tool in
presenting the corporate identity of the organization to its
strategic constituencies.
 Its functions to promote the organization’ s character and
personality that assess the overall communications strategy
through several types of corporate advertising such as
image advertising, advocacy advertising and cause related
advertising (Park et al, 200, Argenti, 2007, Belch & belch,
1999)
Corporate Advertising: Concepts & Functions
 The study by Park et al (2000) showed that with the rise of
customer sophistication, the corporate advertising is one of
the pivotal drivers in formulating and implementing
strategy development and perception management for
today’s global corporation.
 Today’s corporation should pay substantial attention to,
and continue investing in corporate advertising campaign
as an improved marketing communication strategy to
reach out to existing customers and potential stakeholders
Strategic Objectives of Corporate Advertising
According to O’Guinn at al (2202: 74), there are several objectives of
corporate advertising that enhance the corporate image and reputation’
 1. To build the image of the firm among its various stakeholders such as
customer, investors, employees and general public
 2. To improve morale of existing employees and attract new skilled
employees
 3. To convey strategically more coherent corporate messages by
expressing the firm’s concerns over social, political or environmental
issues
 4. To better position the firm’s products against global competition.
Types of Corporate Advertising
 In a successful corporate advertising campaign, a firm
implements one of theses types of corporate
advertising (O’Guinn et al, 2000)
 1. Image advertising
 2. Advocacy advertising
 3. Cause-related advertising
Corporate Image Advertising
 Corporate image advertising is the most popular of
strategic communication campaign planning that is
frequently used by global corporation to promote the
corporate personality and character to their wider
stakeholder.
Corporate Image Advertising
 There are several methods that can be used to achieve the
objectives;
 1. Creating image-building in the stakeholders mind
 2. Providing sponsorship to create an image as a good
corporate citizenship
 3. Recruiting talented and skilled employees (brainpower)
 4. Generating more investment in the firm
 For example, the giant Korean electronic firm, Samsung,
recently invested 120 million pound to run a global
branding campaign by appointing the WPP group, a global
and reputable communication agency (Benady, 2004, in
Trench & Yeomans, 2006: 511)
Advocacy Advertising
 The firms creates corporate advertisement ‘to propagate
ideas and reveal controversial social issues of public
importance’ which may attract sponsors.
 They are not designed to promote the corporate image but
importanctly, ‘adopting a position on a particular issue’
concerning with social, business or environment that may
affect directly and indirectly the organisational image.
 For example, Avon’s policy on animal testing has alerted
many cosmetic companies to consider this corporate value
in its policy development
Cause-related advertising
 The firm creates corporate advertisements to sponsor
charities or non-profits organization for the purpose of
creating a win-win situation.
 For example, the diversified global financial services
corporation, American Express, supports the
restoration of the Statue of Liberty by raising funds
accounting for USD1.7 million.
Measuring Corporate Advettising
Campaigns
 1. Attitude Survey
 To observe the perception of stakeholders about the ads
 2. Corporate Advertising Strategy
 An E-fluential corporate advertising study
 3. Focus Group Research
 To examine qualitatively ‘what investors want to seein the ads
and how they are react after ads are developed’
Summary
 Corporate advertising is considered a market driven which
is used to formulate, implement and evaluate a strategic
corporate communication policy to achieve organization
objectives
 Aligning with today’s customer sophistication and high-
tech tehcnology complexity, corporate advertisng is a new
approach to reach and satisfy brilliant stakehilders, but
local sentivity mist be prioritised, particularly in Asian
countries which are rich in multiculturalism
SCL-Review Based Activity
1.Based on the any Television Commercial (TVC) shown on
any TV Channels, explain the investment done by the
organisation in their corporate adverting campaign?
2. Discuss the communication strategy to reach their existing
customer and potential stakeholder?