Promotion Mix: Advertising

What is the role of advertising within promotion mix? What is the difference between product advertising and institutional advertising?

Promotion Mix - Advertising

Advertising is the basic element of promotion within marketing mix. Advertising is any form of indirect presentation of ideas products or services. The basic purpose of advertising is to stimulate demand and product sales. Therefore advertising is considered to be basic instrument of sales and communication with public.

The advertising can support two different goals of the company. If the goal of advertising is the product or service, with the purpose of sales increase it is called Product Advertising. On the other hand, if the goal is to promote the image of the company, than it is Institutional Advertising.

Product Advertising can have different roles. The most important roles of product advertising are:

  • Pioneer Advertising that points to primary demand for the product. It is relevant during the introduction phase of the product. Since the product is new the pioneer advertising is promoting novelty and set a new trends.
  • Competitive Advertising is pointing for demand increase for specific product of the company. Since the product is in the phase of growth or maturity, competition is developed and active. Therefore the goal of competitive advertising is to differentiate product from the competition and to increase or protect sales volume.
  • Sustainability Advertising has a goal to keep the loyal segment of customers. The Sustainability advertising is reminder advertising that makes sense for established and developed brands.

Institutional Advertising has advertising goal that is much wider than the product advertising. While the product advertising is basic advertising stage, the institutional advertising is advanced level. Institutional advertising cannot be conducted without developed product advertising.

The institutional advertising is developing image of the company, clarifying the mission and vision to population and building the public opinion about the community contribution of the company. The example of institutional advertising can be promotion of eco & recycling programs, introduction of new additive free food production technology, switching from import to local production etc.

The usual channels for communication of product advertising and institutional advertising are TV, radio, newspapers, internet advertising, mail, e-mail, billboards, ... The Advertising activities are planned mostly by the company, with consulting and execution by marketing agencies.

Continue reading here: Promotion Mix: Public Relationship

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Readers' Questions

  • Jemima
    What is institutional advertising focused on promoting?
    1 year ago
  • Institutional advertising is focused on promoting an organization's image, values, mission and services in order to generate public trust and recognition. It is used to build an overall awareness of the organization and its various offerings, as well as to create a positive brand perception.
    • safa
      What is the difference between product and institutional advertising?
      1 year ago
    • Product advertising is designed to promote a specific product or service, while institutional advertising is designed to promote a company’s brand identity, corporate image, or its overall identity in the marketplace. Product advertising focuses more on the features and benefits of a product, while institutional advertising focuses more on the overall philosophy and purpose of a company as well as its unique value proposition in the marketplace.