The What, Whys And Hows

Of Corporate Advertising
What is Corporate Advertising?
Any advertising with attitudinal, image or information objectives intended to benefit the
Corporation as a whole even if it features specific products or services and regardless of
whether it is targeted to the general public or a specific part of it.
In this sense nearly all airline and automotive advertising, to cite just two examples, is
Corporate Advertising in as much as a customer for either buys more than a seat or a vehicle;
he/she buys the supporting services and equipment of the entire airline or manufacturer.

Why Corporate Advertising?

Corporate Advertising has its roots in public nature of modern business. As a social institution,
a corporation must depend on societys acceptance of its role and activities in order to survive and
grow. A corporation with favourable awareness levels find it easier and more profitable to
operate, from marketing products to raising money. Conversely, the less formed and filled out the
image is of a given company, the more subject it is to wild distortion through incidental,
unplanned public exposure of an adverse sort.
Todays corporation is responsible to many inherently incompatible publics: employees, unions,
shareholders, governments, consumers and a host of special interest groups, from minorities to
environmentalists to reformists of every persuasion. In our country corporations must further
contend with different culture values, nationalism, North-South, East-West stereotypes, and wide
range of other sentiments and sensitivities. Bitter experiences has taught business that it cannot
ignore these publics or remain above controversy; that in its own self-interest, all must be
cultivated or addressed. The one sure way to have a corporations side of the story told is through
Corporate Advertising.
The two basic reasons for starting a Corporate Advertising campaigns are:
1. To increase awareness of companys existence among its target publics and
2. To heighten a companys perceived competence and achieve a favourable disposition.

Is Corporate Advertising right for everyone?

While Corporate Advertising is used by companies in a wide range of industries, research shows
those in the fields of energy, telecommunication, electronics, business services and natural
resources development are most prominent. One major survey showed that while only quarter of
businesses in packaged consumer goods and a third in consumer durable goods used Corporate
Advertising, diversified business/industrial firms and petroleum companies all used it.
Another survey of Fortune 500 managers found that nearly 80% thought Corporate Advertising
could benefit firms and high-ticket (high-value) items, 72% firms selling industrial products and
61% selling packaged goods.

What Corporate Advertising can do?

1. Make friends. People will believe a friend more readily than a stranger. The time to make
friends is before they are needed. Research shows that people who know a company well
are five-times more likely to have a highly favourable opinion of it. Familiarity breeds
favourability and creates a reservoir of goodwill to draw on in times of need.
2.

Favourably affect a companys sales and growth prospects. Corporate Advertising can
aid a firms sales force by creating awareness, abet recruiting efforts and indirectly
improve productivity by boosting employee morale. Effective Corporate Advertising can
also predispose potential investors towards companys stocks.

3. Compensate, to an extent, for the lack of a strong physical presence in an important

market.
4. Assuage public hostility stemming from ignorance or misconception about corporate
activities.
5. Respond to charges made by the critics of business.
6. Overcome anti-corporate bias in the news media.
7. Rally support for views on public issues.

What Corporate Advertising CANNOT do?

1. Corporate Advertising will not gloss over a poor record or competitive position
2. It will not turn the tide of unfavourable public opinion in short term
3. It will not lead to overnight increase in stock prices.
4. It will not enhance a companys image unless its claims are backed by performance.
Please remember a companys image is the sum total of its words and deeds, as the public
perceives them.

Ways Corporate Advertising is used.

Bolster Product Advertising

Enhance community relations
Rally public support during labour disputes
Discourage unfriendly takeover bids
Counteract public wariness or disfavour with its products
Enhance or maintain a companys image
Maintain awareness of a companys name in market place
Change specific attitudes about the company or its products
Boost employee morale
Create new image in wake of mergers, acquisition, name changes

Some successful Corporate Advertising techniques

Various tried-and-true generic approaches have emerged over the years to get Corporate
Advertising messages across. Following are some of the more popular approaches:
Technological Achievements/Innovations: It is the most widely used strategy, probably because of
its versatility. It can be used as a bridge to other important themes in ads, to provide continuity
and to humanize company by showing employee responsible for innovations. It is relatively
immune to events, appeals to the financial community, and can have favourable impact on sales
as it is often oriented towards new products and services.
Commitment to Public Service: The heres-how-we-are-in-the-news strategy. Issue oriented,
such as developing/conserving energy, improving productivity, protecting the environment,
conserving natural resources, and ensuring worker and consumer safety.
Quality of life: The you-may-not-even-be-aware-of-it-but-heres-how-were-improving-your-life
technique. Reminds readers of crucial role corporation plays in their day-to-day lives to convince
them they have a personal stake in the future of the company. A favourite strategy of many
companies in primary industries.
Helping the consumer: Supplies useful information to emphasize sensitivity to consumer needs
and strong consumer orientation.
Humanizing the Corporation: By profiling employees and customers.

Is Corporate Advertising effective?

Yes. Properly researched, positioned and executed Corporate Advertising is an effective
communication tool for building goodwill among a companys various publics.
It has often been discovered, time and again, with ample proof that, when Corporate Advertising
stops, recognition drops.

Can Corporate Advertising Produce Tangible Results?

Yes. Time and again market research/survey showed that 75% of those polled thought Corporate
Advertising was responsible in favourably affecting the image and sales of the company.
In creative contents, 83% were most interested in information about new products and services.
How a company uses new technology changes in earnings were imported to 63% & 62%
respectively.

Why some Corporate Advertising campaigns dont work?

Awareness, attitude shifts, familiarity and favourability trends can be and often are measured.
Substantial research exists to show some of the many causes of Corporate Advertising not
working: wrong targeting, poor media selection, wrong message, lack of clarity about the
function of advertising, inability to formulate a relevant or convincing communication and so on.

Organising a Successful Corporate Advertising Campaign

How much to spend on Corporate Advertising campaign probably has as many answers as there
are Corporate Advertisers. According to fair industry standards and by Advertising Age,
between 0.7% and 1% of pretax profits should be the right amount for most corporate campaigns.

While objectives, budgets, audiences, media and other variables may differ from company to
company, effective Corporate Advertising programmes have several factors common:
a. Top management support. Corporate Advertising should reflect the purpose
and philosophy of the corporation, both of which the chief executive/MD is in the
best position to define.
b. Realistic & Measurable objectives. Preferably condensed to the single idea

that should come across. Some questions to ask before setting objectives:
How well known are we among the publics were concerned about? What
is our reputation now by public? Is it right? Do we know our reputation
weaknesses? Are our communications reinforcing the kind of reputation
we seek?
Are we capitalizing on our strengths? Do we have any unique characteristics on
which to build? Recognized strong points?
How do we compare with competitors? Other companies? Business in general?
Through what channels are people receiving information.
c. Ads must be built around themes of interest to the publics. The big idea,
Informative copy, providing the reader with useful information all have a place
in Corporate Advertising. Please remember you cannot bore people into admiring
a company.
d. Long-term Commitment
e. Back up with deeds. Assertions with facts, intentions with action

Some last minute checks before launching a campaign

Is it patronizing?
Does it reflect a view of the company a board of directors may wish to have and neglect
consumer needs and expectations?
Does it raise expectations beyond the capability of company fulfillment?
Does it talk to, rather than condescend to talk to consumers?
Is it political?