Types of Corporate Advertising

Marketers seek attainment of corporate advertising's objectives by implementing Exhibit 17-15 Tyco uses image, advocacy, or cause-related advertising. Each form is designed to achieve spe- image advertising to avoid cific goals. confusion

Image Advertising One form of corporate advertising is devoted to promoting the organization's overall image. Image advertising may accomplish a number of objectives, including creating goodwill both internally and externally, creating a position for the company, and generating resources, both human and financial. A number of methods are used:

1. General image or positioning ads. As shown in Exhibit 17-15, ads are often designed to create an image of the firm in the public mind. The exhibit shows how Tyco is attempting to create an image of itself as a market leader and health care expert, not a toy company. A number of companies have created new names—for example, Accenture, Verizon, and Allianz—in an attempt to create a new image.

Other companies and organizations have used image advertising to attempt to change an existing image. The American Medical Association (AMA), responding to its less-than-positive image among many Americans who perceived doctors negatively, ran a series of ads portraying doctors in a more sensitive light. It spent over $1.75 million to highlight the caring, sharing, and sensitive side of AMA members.31 Penthouse magazine attempted to change its image with advertisers by running ads in trade magazines that showed Penthouse was not just a magazine with pictures of

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nude females. The ad for America's pharmaceutical companies (Exhibit 17-16) casts the industry in a very favorable light. In 2002 Philip Morris Company, Inc., shareholders voted to change the company's name to Altria Group, Inc. Altria is derived from the Latin word meaning to "reach higher." Philip Morris CEO, Geoffrey Bible, said that the name was being changed to reflect the fact that the company was no longer just a cigarette company and that the new name better reflects its diversity. Others contend the move was an attempt to disassociate itself from the negative image of cigarettes.

2. Sponsorships. A firm often runs corporate image advertising on TV programs or specials. For example, the Hallmark or IBM specials and documentaries on network TV and Mobil and Gulf Oil program sponsorships on public TV are designed to promote the corporation as a good citizen. By associating itself with high-quality or educational programming, the firm hopes for a carryover effect that benefits its own image.

Other examples of sponsorships include those run by Outback Steak House (LUPUS), Providian Financial (children and youth), McDonald's (UNICEF), and GM (Make-A-Wish). Exhibit 17-17 shows KitchenAid's sponsorship of the fight against breast cancer.

Visa considers sponsorships an important part of its integrated marketing communications. It has sponsored the Olympics, the U.S. decathlon team, U.S. basketball's dream team, the U.S. Gymnastics Federation, the U.S. Open Tennis Championships, and Major League Baseball's All-Star game. According to John Bennett, senior VP for international marketing communications, the sponsorships are designed to fulfill specific business objectives while providing support for the recipients.32 Figure 17-6 shows a few of the companies that decided an Olympic sponsorship would be good for them. 3. Recruiting. The Mattel piece presented in Exhibit 17-18 is a good example of corporate image advertising designed to attract new employees. If you are interested in working in an innovative and family-oriented company, you might be interested in Mattel.

The Sunday employment section of most major metropolitan newspapers is an excellent place to see this form of corporate image advertising at work. Notice the ads in these papers and consider the images the firms are presenting. 4. Generating financial support. Some corporate advertising is designed to generate investments in the corporation. By creating a more favorable image, the firm makes itself attractive to potential stock purchasers and investors. More investments mean more working capital, more monies for research and development, and so on. In this instance, corporate image advertising is almost attempting to make a sale; the product is the firm.

While there is no concrete evidence that corporate image advertising leads directly to increased investment, at least one study shows a correlation between the price of stock and the amount of corporate advertising done.33 Firms that spend more on corporate advertising also tend to have higher-priced stocks (though a direct relationship is very difficult to substantiate).

This thing called image is not unidimensional. Many factors affect it. Figure 17-7 shows the results of a survey conducted by the Hay Group and Fortune magazine on the best corporate reputations in the United States. The most admired firms did not gain their positions merely by publicity and word of mouth (nor, we guess, did the least admired).

A positive corporate image cannot be created just from a few advertisements. Quality of products and services, innovation, sound financial practices, good corporate citizenship, and wise marketing are just a few of the factors that contribute to overall image. In addition, the type of product marketed and emotional appeal also contribute. The survey mentioned above demonstrated that profits and stock performances had little to do with reputation and that once a reputation is acquired, it has lasting power. A study conducted by Harris Interactive and the Reputation Institute showed that companies are ranked differently on key corporate attributes including emotional appeal, social responsibility, workplace environment, and vision and leadership (among 16

Exhibit 17-18 Mattel ad designed to attract new employees

Continue reading here: Advantages and Disadvantages of Corporate Advertising

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