See Ad Samples|
TYPES OF
ADVERTISING |
| The advertising objectives
largely determine which of two basic types of advertising to use; product or
institutional. |
| Institutional
advertising tries to develop goodwill for
a company rather than to sell a specific product. Its objective is to
improve the advertiser's image, reputation, and relations with the various
groups the company deals with. This includes not only end-users and
distributors, but also suppliers, shareholders, employees, and the general
public. Institutional advertising focuses on the name and prestige of a
company. Institutional advertising is sometimes used by large companies with
several divisions to link the divisions in customers' minds. It is also used
to link a company’s other products to the reputation of a market-leading
product. |
| Product
advertising tries to sell a product. It
may be aimed at the end user or at potential representatives and
distributors. Product advertising may be further classified as pioneering,
competitive, and reminder advertising. |
| Pioneering
advertising tries to develop primary
demand, that is demand for a product category rather than a specific brand.
It's needed in the early stages of the adoption process to inform potential
customers about a new product. The first company to introduce a new
technology to its industry doesn't have to worry about a competitive
product since they alone have the technology. They have to sell the industry
on the advantages of the new technology itself. Pioneering advertising is
usually done in the early stage of the product life cycle by the company
which introduces an innovation. |
| Competitive
advertising tries to develop selective
demand; demand for a specific manufacturer’s product rather than a product
category. An innovating company is usually forced into competitive
advertising as the product life cycle moves along. After pioneering
technology is accepted and most manufacturers are supplying competing
products, the innovator is forced to sell the advantages of his specific
design over that of the competition. This is usually the situation in a
mature market. |
| Reminder
advertising tries to keep the product's
name before the public. It is useful when the product has achieved market
domination. Here, the advertiser may use "soft-sell" ads that just mention
or show the name as a reminder. Reminder advertising may be thought of as
maintenance for a product with the leadership position in the market.
|
| Of course none of the above classifications are exclusive. Some companies combine elements of the institutional ad with product advertising. The classifications are merely aids in developing the objectives which the company sets for their ads. |